SUSTAINABLE DEVELOPMENT MANAGEMENT

PROGRAM and

CORPORATE SOCIAL RESPONSIBILITY

Paola Ceriola Perpy Tio

Sustainable Development Management Program

(SDMP)

What is SDMP

• A comprehensive five-year plan prepared in consultation with the host and neighboring communities as well as the provincial and municipal governments.

• Based on Chapter 10 of Republic Act (RA) No. 7492 or the Philippine Mining Act of 1995– RA 7492 mandates mining companies to assist in

the development of the communities affected by its operations

Three components of SDMP

• Social development program for residents

• Programs for the advancement of mining technology and geosciences; and

• An information, education, and communication program for public awareness and understanding of responsible mining and geosciences.

• Under the SDMP is the Community Development Program (CDP) which is supported by a fund amounting to at least ten percent (10.0%) of the budget of the approved two-year Exploration Work Program of the company.

What is the Purpose of SDMP

• Main purpose:– Ensure the social acceptability of mining projects

by meeting the basic needs of the host mining communities through grassroots development and people empowerment

• It provides opportunities for self-sustained livelihood which should lessen the communities’ dependency on the benefits derived from the mining companies

• The SDMP also intends to promote environmental awareness and protection.

What is the Basis for the Computation for the SDMP

• Mining companies are required to allot a minimum of one and a half percent (1.50 percent) of their operating costs for the implementation of SDMP

• The 1.5 percent allotment should be allocated as follows:– 75% for implementation of projects and

programmes for social development of the community

– 10% of the amount for the improvement of mining technology

– 15% for information, education and communication programs

Who should Implement SDMP

• The mining companies are responsible for the proper execution of the programs they have crafted with the communities

• The Mines and Geosciences Bureau (MGB) is responsible for reviewing and approving the SDMPs of large scale mining companies

Who Benefits from SDMP

• The host and neighboring communities of the SDMP mining contractors – SDMP mining contractors assist in their

development through infrastructure, livelihood, health services, education, and other needs

– It augments the government’s capacity to provide programs, projects, and services for the communities that are affected by mining

– These programs include:• capacity building and • programs that encourage creation of community

organizations, enterprise development and creation of market linkages, infrastructure development and maintenance, educational support programs, health services, protection and respect of socio-cultural values

CORPORATE SOCIAL RESPONSIBILITY (CSR)

What is CSR

• It is the commitment of business to contribute to sustainable economic development, working with employees, their families, local community and society at large to improve the quality of life, in ways that are both good for business and good for development

What are the CSR Activities of Mining Companies

• The CSR activities of mining companies revolve around the six themes of:

– Environmental management– Community engagement and development– Safety and health

– Security and human rights– Labor– Management and governance