How important is a corporate social responsibility (CSR) program for a company?
For Philex Mining Corp., it is an integral part of good governance. That’s the reason it has gained respect and recognition as the face of responsible mining in the country.
In November last year Philex was hailed as the top publicly listed company (PLC) in corporate governance among 263 participants in the local bourse during the first Asean Corporate Governance Scorecard Awards held in the country. Philex was also among the top 50 PLCs in the Asean region in the field.
Philex was, likewise, named as one of the top 5 firms in corporate governance in the highly prestigious Fourth Annual Philippines Stock Exchange Bell Awards held in the same month.
In the area of sustainability, Philex bested other local and regional companies by being named as one of the top 5 CSR companies in Asia during the Asia Corporate Excellence & Sustainability (Aces) Awards night held in Singapore.
The Aces Awards are handed out to companies that have carried out significant CSR campaigns, or implemented policies and structures that generate returns going beyond financial gain.
While these accolades do not directly contribute to the bottom
line, investors appreciate and
reward companies that demonstrate strong corporate governance and CSR platforms.
Recently, Philex’s share price slowly climbed from P3.91 per share at the end of January to P4.68 per share as of February 4 and has, in fact, outperformed the Philippine Stock Exchange index, which has fallen by 1 percent during the same period.
Gold prices in the world market have rallied to around $1,155 per ounce from $1,128 per ounce.
While a correlation between gold prices and Philex’s share price performances can be surmised, it is an incontrovertible fact that sound corporate-governance practices and an effective CSR program—two characteristics that are deeply embedded in and imprinted in the company’s DNA—serve to enhance the value of an organization.
Untapped potential
Philex’s successful CSR programs are taking place amid the decline in the Philippine mining industry. The country has $1.4 trillion worth of untapped mineral reserves, including gold, copper and nickel, according to industry estimates. The Philippines produced metals worth a record $3.1 billion in 2014, when it was the world’s top nickel producer, contributing more than 18 percent of global supply. But mining contributed just 0.7 percent to the GDP in 2013, as compared, for instance, to 8.3 percent for South Africa during the same period. This was attributed to complicated application procedures and intense anti-mining sentiment among indigenous peoples claiming ancestral domain.
Under the Aquino administration, the contribution of the
mining industry to economic growth has not substantially improved because of a moratorium on new mining permits in 2012. It is now open to lifting the moratorium, but it also wants to levy higher taxes on newly approved mines and on mines whose permits would be renewed. Under the new tax system, the government’s share of revenue over the lifetime of a mine would increase to between 64 percent and 72 percent, from 59 percent.
In other words, this would really make mining uncompetitive as it would deter new mining firms from coming in, and would drive those already operating here out of business.
Our own Nasa: Not a pipe dream at all
Now we can really say that our Department of Science and Technology (DOST) has entered the space age. No matter that the Russians launched Sputnik 1, the first artificial Earth satellite, way back in 1957, while the United State landed the first man on the moon in 1969, or 57 years ago.
The DOST recently completed its first microsatellite, the Diwata-1, which will be launched in April. This is a low Earth orbit satellite set to fly 400 kilometers above the Earth. Its sensors will send vital images and data back to a ground receiving station center in Subic by May.
The microsatellite, designed and built by Filipino engineers and scientists, mainly from the University of the Philippines in Diliman, Quezon City, has been turned over to the Japan Aerospace Exploration Agency for shipment to the US.
The microsatellite has four cameras, one of which is capable of taking a clear image of any object at least three meters in size. Aside from monitoring the weather, forest and marine resources and national security, Diwata-1 can take images for tourism purposes.
Next on the DOST agenda is putting up a national space agency for the Philippines. Apparently, there’s already a law passed by Congress proving for the establishment of such an agency. The creation of a Philippine Space Agency patterned after the US National Aeronautics and Space Agency is long overdue because many technologies we use now, such as solar cells, actually came from space technology and space research, according to the DOST.
But space-science research and projects will benefit the country in terms of more jobs. It is estimated that if there are 5,000 people working for the space-development program, then that would mean as many as 20,000 more can work as support staff, not to mention that non-space-related jobs in manufacturing and services would also be created.
E-mail: ernhil@yahoo.com.
2 comments
What is amazing is that despite all the bashing mining companies get from phony environmentalists, Philex bested other companies, many who are not even into mining, in corporate social responsibility. What’s more Philex and mining is a copncrete example of inclusive growth by the positive effects they have on the immediate community and the economy as a whole, especially with gold prices rising worldwide. Philex’s excellent corporate governance will serve as an incentive to investors.
Coolness! This award by Philex isn’t a surprise at all, because most of the groups under MVP group have awards for their CSR programs. Excellent management skills showing by these group. kudos!