Profit vs. Corporate Social Responsibility

“We do business for profit”, that is one common statement I hear from entrepreneurs.

Though making money is not necessarily bad, governments, specially that of the first world, have set guidelines to ensure a minimum Corporate Social Responsibility (CSR) is observed.

To some, CSR and profit making don’t mix well.

I came to hear an interesting commentary in AM radio of the TRO (Temporary Restraining Order) issued by the Supreme Court on the implementation of the RIRR (revised implementing rules and regulation) of the Philippines’ milk code.

As a backgrounder, the Milk Code and RIRR, among other things, would like to imbibe breastfeeding in the culture of the Philippines, citing results of medical and scientific studies. The RIRR would effectively prohibit and/or regulate the the marketing of infant formula to children up to three years of age. Likewise, consistent with the findings of international experts, milk formula companies are required to put up labels warning that their products “may” contain either “Enterobacter sakasakii” or “salmonella.” The United Nations’ Food and Agriculture Organization and the World Health Organization earlier found that “intrinsic contamination of powdered infant formula sakasakii and salmonella is a cause of illness and infection.”

Because of this, the Pharmaceutical and Health Care Association of the Philippines (PHAP), composed of the providers of medicine, medical and other laboratory equipment such as Abbot Laboratories, Wyeth Philippines, Mead Johnson, AstraZeneca Pharmaceuticals, Bayer Philippines, Novartis, GlaxoSmithKline, Mercury Drug Corp. and other broad-based healthcare companies which produce and/or distribute pharmaceutical, medical and nutritional products, have petitioned the Supreme Court to issue a TRO. Believing the RIRR went beyond the provisions of the Milk Code, which in effect, amended the Executive Order 51, that came into force on July 7 and the amendments made are unconstitutional.They further believe that the enforcement of the RIRR will unavoidably affect the investment and expansion plans of key milk manufacturers in the country as they may opt to cut down productions, put on hold expansion plans and lay off employees in the process due to the new restrictions.

Likewise, on Aug. 11, The Chamber of Commerce of the United States of America called President Gloria Macapagal-Arroyo’s attention to the Department of Health’s revised implementing rules and regulations covering the marketing of milk formulas. Said on the Philippine Daily Inquirer’s report “It has been brought to my attention that a recent regulatory decision by an agency of your government would have unintended negative consequences for investors’ confidence in the predictability of business law in the Philippines,” Thomas Donahue, chamber president and chief executive officer, said in the letter, a copy of which was obtained by the Inquirer.

Because of these, the issue caught the attention of international eyes and support for the Philippine Gov’t, who stood pat in the middle of pressure, poured in.

In the middle of all of this, and the reason why I wrote this blog entry, is the stand of Nestle Philippines supporting the Philippine Government on this issue. This is Corporate Social Responsibility in action.

These restrictions of the RIRR has been in place in first world countries, according to the program of VP Noli De Castro over DZMM. Therefore, not new to the Chamber of Commerce of USA and PHAP. What the DOH and the Gov’t. would like to accomplish is simply to promote breastfeeding. Mothers milk, per the discussion with the DOH secretary would:

  • Address the malnutrition problem
  • Literacy problem (malnutrition is the major reason for student drop out)
  • Birth spacing (this is the safest means of family planning)
  • Economics (mother’s milk is free and will flow as long as the milk is consumed)

Interestingly, according to DOH Secretary, the rich who have the means to purchase the expensive infant formula are the ones breast feeding. The lower and the middle class are the ones buying the expensive milk. Thru the RIIR, people will have access to the right information.

I would like to see what value this will add to nation in general, and the mothers in particular.

Update 10/10/07: The Supreme Court of the Philippines has ruled that a total total ban on infant formula ads is illegal. The TRO was likewise lifted to pave way for revision based on this ruling and for implementation.

12 Responses to “Profit vs. Corporate Social Responsibility”

  1. Sir Sonnie, this is very interesting. thank you for sharing and Im glad that at least there’s some action. I hope this wont be just one of them “plans” na ok from the start and then wont pull through. =D

  2. Hi Fil,

    it’s nice to have some go’vt. officials who are sincere and dedicated to their work. Like you, I do hope that this will not get railroaded because of technicalities and other interests than public.

  3. Ironically, it might’ve been in the 70s when infant health activists (I think) set out on a campaign and put out posters and flyers that said “Nestle kills babies.” Nestle sued and won. Still, the message from the activists apparently wasn’t lost on Nestle, if they’re supporting the RP govt’s breastfeeding campaign.

    I’m tempted to mount my own campaign with the slogan “The US Chamber of Commerce kills babies.” Nah, can’t afford the libel suit defense. Maybe we can just ask the DFA to declare the US Chamber of Commerce officials personae non grata.

  4. Ruth G. Tiangco April 13, 2007 at 1:44 PM

    4.13.07
    hello!
    i was brought to this page as a result of covering SM Batangas’ launching of their mall clinic & breastfeeding station last month. we have a community paper &i covered the event. i met Dra Elvira Esguerra of Children for Breastfeeding Inc & Ms Nona Castillo, of Internatl Board of Certified LActating Consultants, 2 very admirable women fighting for the health of Filipino moms and babies.
    i am really ANGRY at our SC giving these greedy infant formula manufacturers a TRO. more so when i learned from them that when a TRO is issued by the SC, it can mean 4EVER. sadly, it’s true, the bottom line is simply, MONEY.
    i am not a mother, but all my nephews and nieces were breastfed till 2 yrs old. in fact, medyo nahirapan butawin (wean) sila ng mga kapatid ko. they never used the bottle. they went straight from the breast to kiddie cups. and they are all healthy kids, with only the occasional colds. unlike a friend’s kid who has all sorts of ailments to this day.
    FYI, in one grocery store here in BAts. (before SM came), the #1 most shoplifted item are infant milk formulas. such that there came a time that mgt decided to put them behind locked glass cabinets, unlike most goods u see in the grovery. and ALL the caught mothers, judging by their appearances in the pictures, were most likely poor!
    it pains me to see this poor mothers having to resort to shoplift to feed their babies when they don’t even have to spend a cent for the 1st 6 months for their babies’ milk. and obviously these formula makers don’t care.
    but i see something positive coming out of this David vs Goliath battle b/w the breastfeed advocates and formula (hello?! there were no such formulas at the time of Beethoven and Einstein, right??) makers. i think the public will be made more aware.
    and let’s remember that David won!
    Ruth

  5. Relax lang Ruth, he he… we can do two things, (1) do whatever we can do (what is within our control)– advocacy and making sure our voices are heard and (2) Pray that the truth and what is best for the nation will prevail.

    Thanks for dropping by, and you are most welcome to return and give your two cents as you wish.

  6. hi.interesting issue on breastfeeding brought me to the site.. and better to put my views on it too…
    nobody, not even milk companies, disagree that breastfeeding is best for babies.but why would it be wrong to offer alternatives at some instances it cannot be made possible?working moms?moms who do not produce enough milk for the baby?Why ban milk companies from sharing thru promotions updates on Nutrition?Excuse me, governement, moreso, DOH has alot more to think of and why not just leave the choice to the parents.Why cant the DOH first and foremost, think of and look at malnutrition.Hello, theres more to work on…why not focus on something more significant…

  7. milk companies are offering not a substitute but a choice.it can be used/bought, it can be ignored in the market.u can be wise in ur own decision on this.ur own stand can make the point.u dont have to generalize.it is like choosing to use condoms or contraceptives or by just going ur way.y not leave the choices to the people?y so affected?ye ryt, ure not mothers.ure not working moms?OFW’s?as if u can be by the side of ur babies 24/7… most people and women are working.its unlike centuries ago where moms can just be home and take care of the kids.be real.

  8. Hi Viviene,

    Your thoughts brought a different perspective on the issue. Thanks for speaking your mind, hope to hear more from you. :-D

  9. I agree with Viviene. I am a mom of two who tried my darnest to breastfeed as long as I could. Unfortunately, I could only breastfeed till 7 months for my 1st-born, and 10 months for my 2nd. I consider myself lucky. I am a working mom who tried to pump at work and go home at the earliest possible time to breastfeed my baby. Unfortunately, I could not keep it up till — what advocates say — should be 2 years. My question is this? For those who are not “mama cows” (I know of moms who cry in frustration because they can’t get an ounce of breastmilk per feeding), what alternative is there? Short of having to get wet nurses (which is not common in the Philippines), they should be well-informed about breastmilk alternatives. I was able to switch my kids to formulas because there was enough info out there (and its not coming from DOH!) to tell us moms what is appropriate. I agree with the milk code regulating marketing of milk for infants 0-1 year, but up to 3 years?!!! I can only see more confused, uneducated moms doing a guessing game of what their choices are.

  10. @ Snoopymom– very well said :-)

  11. Dear Mothers,

    Yes, you are right, people should be informed of their choices. However, the milk companies will not tell you that their products are contaminated with microscopic steel flakes, industrial oil, enterobacter zakasakii, synthetic hormones, antibiotics intended for cows, etc. They will not tell you that cow’s milk can trigger severe allergies that may lead to diabetes, liver canncer, etc. (please go to my website http://www.breastfeedingphilippines.com to get information on the dangers of milk consumption and email me at nurturers2005@yahoo.com.ph for more local sources of calcium)

    Milk companies will not tell you that there are safer and better sources of calcium like brown rice, sesame seeds, nuts and other indigenous vegetables like beans, leafy vegetables and root crops. They will not tell you that in 1986, the World Health Assembly that emphasized that follow-up milk is not necessary. These are just products created by milk companies to circumvent the laws that protect breastfeeding.

    I really symphatize with mothers who were not properly empowered to sustain breastfeeding while pursuing their career. However, it is really possible to do so as I have guided stewardesses, event organizers, NGO workers, insurance agents, etc. to work and breastfeed. If mothers will really be away eg OFWs, the best thing is to give their babies donated breastmilk and feed them with indigenous foods instead of formula.

    Yes, you are right, the DOH has in the past neglected its role to inform mothers that is why we as advocates are initiating activities and trainings while critically cooperating with them.

    Please do not fall prey to the milk companies’arguments that are based on their tremendous desire for profits. They try to bribe our team with P200 million because they are earning an estimated P18 billion a year while our children are dying.

    Please go also go to milksucks.com and the website of John Robbins http://www.foodrevolution.org. He is the only son of the Baskin and Robbins ice cream empire founder who refused to inherit the company because his conscience can’t bear to promote dangerous products. It may save your life and the lives of your loved ones!

  1. [...] the operation of a breastmilk bank in the country. Environmentalists also endorse breastfeeding. Sonnie’s porch blogs about the milk wars and corporate social responsibility. Tiene Ara Zamboanguena is shocked [...]

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