Corporate Social Responsibility of San Miguel Brewery Inc.
San Miguel Corporation's commitment to bring quality products to each and every Filipino home has brought together well-loved brands that make everyday life a celebration. No other company in Philippine history has developed such a rich and diverse product portfolio covering the beverage, food and packaging industries as San Miguel. Prior to the creation of San Miguel Brewery Inc., all of SMC's beer operations were under the San Miguel Beer Division ("SMBD"), a business unit of SMC. San Miguel Brewery Inc. was incorporated on July 26, 2007, and the domestic beer business was spun off from SMC effective October 1, 2007. The spin-off of SMC's domestic beer business into SMB was intended to realize the value of SMC's flagship business. Due to wide varieties of products, San Miguel Corporation had this brand extension called the San Miguel Brewery Inc. SMB is the largest producer of beer in the Philippines, with a total market share of approximately more than 95% in 2008. The Company has five breweries strategically located across the Philippines and a highly developed distribution system serving approximately 471,000 retail outlets.
SMB has breweries in each of Valenzuela City, Metro Manila; San Fernando City, Pampanga; Mandaue City, Cebu; Bacolod City, Negros Occidental; and Darong, Sta. Cruz, Davao del Sur, with a total annual production capacity of 15.1 million hectoliters. Each of these breweries is equipped with automated facilities capable of packaging the Company's products in a variety of sizes and formats, including bottles, cans, and kegs San Miguel grew to its commanding position in the Southeast Asian market in spite of political upheaval, infrastructure glitches, and high taxes. It achieved its status through aggressive competitive strategies and shrewd long-range planning over the decades. In today’s corporate world, most business organizations have realized the importance to the perception of their clients and consumers on the role of the organizations in national development. They perceive that this can be accomplished by sharing a significant portion their profit. “A corporation’s initiatives in social responsibility broaden with growth of its business. This is especially true when social responsibility is woven into the fabric of its corporate structure.” “San Miguel is a company of people who care about people and communities we serve and partner with as well as the businesses we manage. We have a proud history of doing business honorably of working to improve the quality of life and giving something back. Social responsibility exemplifies our spirit of caring. We care for our environment, our stakeholders, our customers and investors, our host communities and our people because they are integral to our growth. Our programs are design to enhance the relevance of social responsibility endeavors as we partner with this vital linkage to our various businesses. Social responsibility is a commitment we pursue for the long-term as we continue to honor our social covenant with various publics.” Eduardo M. Cojuangco Jr. (Chairman and CEO of San Miguel)
Grewal & Levy (2008) stated that Corporate Social Responsibility (CSR) is the set of activities taken by a company in addressing the impacts of the business operations to its stakeholders. Thorne & Ferrell (2012) defined stakeholders as people that have a claim on the company’s products, operations, market industry and outcomes. The company is committed to the empowerment of San Miguel host communities and various stakeholders by harnessing corporate social responsibility among various San Miguel businesses in pursuing mutually beneficial program that lead to self reliance and sustainability. In creating an environment of sharing SMB comply with the policy on environment and environment management system. Under this is solid waste segregation, energy and water conservation, reuse, reduce,...
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