MANILA, Philippines ? It is now generally accepted that businesses need to help address social problems that ail societies in which they operate. One of the main challenges confronting corporations with regard to corporate social responsibility (CSR) activities that are intended to address such social problems is the task of ensuring that these are sustainable in the long run. For this reason, the preferred forms of CSR programs are those integrated into the core of how they do business.

There are various ways by which such integration can take place. One way is to develop products and services that not only address a social issue but also generate profits for the corporation and its shareholders. One such product is the development of hybrid cars. These cars not only reduce emissions that damage the environment, they also provide a competitive advantage to those companies producing them.

Access to means of communication is a vital need in any society, for the rich as well as for the poor. In the Philippines, access to such means of communication (telephones) was limited for a long time to the more affluent segment of our society. Both Smart and Globe have developed a business model that provided access to such a service to the poorest of the poor, which C.K. Prahalad calls the bottom of the pyramid. As a result, these two companies are among the most profitable companies in the country today.

Garbage dumps have long been a nuisance to communities, but they are now a source of methane that is used to generate electricity. One such project is located in San Mateo, Rizal.

The thrust toward ensuring the sustainability of CSR programs has driven some food manufacturing and distribution companies like Jollibee and Figaro Coffee to include farmers into their supply chain. These companies want to ensure that they get a steady supply of quality raw materials. Farmers, on the other hand, lack the resources to learn new technologies to improve their yields and the quality of their farm outputs. Moreover, they often lack a steady market for their produce. By helping farmers to learn new technologies and to provide financing for their crops, food companies are helping ensure the availability and quality of their raw materials. The companies have also realized that by integrating the farmers into their supply chain, they would no longer need a separate budget for CSR.

Poor people often don?t have access to health products. In response, companies like Unilever and P & G have developed new packaging for their products, in sachets, to put them well within the reach of even the poor. At the same time, this new packaging serves to expand the market for such products. Climate change and concern for the environment have also motivated manufacturers to develop new processes. Certain companies like Intel and Coca Cola continue to seek ways of minimizing the amount of water they use in their manufacturing, as well as of recycling the excess.

What can we learn from the foregoing examples about integrating CSR into the core and strategy of business? The key to sustainability of CSR programs is the link between these programs and the nature of the business of the corporations concerned. The corporation must realize some benefit from the programs, otherwise, when hard times come, the budgets for CSR disappear. After all, corporations are formed in order to generate profits for shareholders. But as shown in our examples, it is possible, and in fact recommended, that they go beyond their accountability to shareholders and likewise address social issues and problems in the way they do their business.

The process begins with identifying the social problems in the environment where the corporation operates. Such problems may revolve around poverty, climate change, environment, or access to resources as shown in our examples. Then the corporation can ask itself what resources or capabilities it has that can be brought to bear on the identified social problem. If there is a match between the two, then you have the beginning of a truly sustainable CSR program.

The concept is really simple, but it may require creativity and innovation to implement. To start with, it may require other skills and resources that certain corporations do not possess. Hence partnerships with other corporations, NGOs and the government may be needed. It has not always been easy for these three segments of our society to work together. They have been accustomed to work in silos with little or no interaction with one another. The partnership among these three deserves a full-length article by itself.

As I mentioned in an earlier column, it is my expectation that as business applies to social problems the same innovation, creativity and commitment it has demonstrated to ensure the success of its business ventures, we will be on our way to seeing a better life for all Filipinos. But it will be a continuing challenge, a work in progress.

Felipe B. Alfonso is vice chair of the Asian Institute of Management (AIM) Board of Trustees and the executive director of the AIM-Ramon V. del Rosario Sr. Center for Corporate Social Responsibility.