About Ayala Social Initiatives

Ayala y Cia, the forerunner of Ayala Corporation, was established in Manila in 1834, in the same year the Philippines was formally opened to world trade. Hand in glove with its 174-year history as a successful business house, the Ayala group of companies traces its strong and robust corporate social responsibility (CSR) programs to the philanthropy of its founders. Soon after they arrived in the Philippines, Dona Margarita Roxas de Ayala established Colegio de la Immaculada Concepcion Concordia in 1856, a school for girls, which exists to this day. At the heart of the Ayala group of companies today is a strong commitment to CSR and the recognition of the valuable role Ayala plays, not only in the area of business, but also in social development. As the Ayala group continues to provide its investors with healthy financial returns, so too shall it continue to integrate development work into the bloodstream of its systems and processes. After years of implementing social development programs as individual companies, the Ayala group sought greater synergy in its practice of CSR and thus banded together to achieve greater focus, scale, and impact. In 2007, Ayala consolidated its numerous development projects into one program called Ayala Social Initiatives (ASI), which draws on the strengths and resources of the Ayala companies and its partners in a concerted effort to effect wider change in the country. In one bold stroke, ASI brings together the various CSR projects and activities of Ayala Corporation, Ayala Foundation, Ayala Land, Bank of the Philippine Islands, Globe Telecom, Manila Water, Integrated Microelectronics, and Ayala Automotive Holdings Corporation, as well as BPI Foundation. Based on information from the groundcollected through formal and informal surveys, and matched with the groups convictionsAyala selected its three critical development priorities of education, environment, and entrepreneurship. These 3Es form the pillars of ASI and are the concrete expressions of Ayalas social responsibility and commitment to poverty reduction and national development. ASI represents the Ayala groups dedication to developing a CSR model that does not only respond to current development needs and challenges, but is also integrated and aligned with the Ayala groups core businesses. With ASI, Ayala aims to incorporate CSR into its business strategy so that each Ayala company can design and implement development programs that make the most of its strengths and the unique opportunities available to it.

About the ASI Logo

A combination of colorful arcs, each arc turning a complementary direction, forms the chambers of the heart in the ASI logo. The colors green, red, and yellow stand for ASIs 3Es of environment, education, and entrepreneurshipthe three pillars of the Ayala group of companies umbrella CSR program. The interconnected arcs illustrate the Ayala groups commitment to working in partnership with like-minded individuals and organizations that are seeking effective ways to contribute to social development. ASI programs engage the participation not only of the Ayala companies, but also of other businesses, government agencies, civil society organizations, academic institutions, Ayala employees, and most importantly, the communities who benefit from Ayalas development initiatives.

Contents
About Ayala Social Initiatives About the ASI Logo About Our Report Our Commitment: Foreword from Our Leaders Message from Jaime Augusto Zobel de Ayala Message from Fernando Zobel de Ayala About Our Group Our Members Investing in Communities Employee Volunteerism Stakeholders Involvement Awards and Recognitions Ayala Social Initiatives Our CSR at a Glance Our CSR Map Ayala Social Initiatives in Figures Partnerships for Progress Our Individual CSR Journeys Looking Forward GRI Index Acknowledgments 11 12 13 15 23 36 IBC IBC 06 08 09 10 10 02 04 01

About Our Report

Focus for Greater Reach and Impact is the Ayala group of companies firstever account of its CSR programs across the entire conglomerate. By sharpening the focus of our efforts and paving the way for greater synergy among our different development initiatives, we hope to widen the reach of our programs and achieve greater impact and scale.
This initial CSR report affirms the Ayala groups goal of unifying its various initiatives. It features strategic partnerships that we have established to merge our CSR programs into a more effective whole. At the same time, the report documents the respective strides of our individual companies in social development and sustainability. Our first group-wide report uses the Global Reporting Index (GRI) G3 sustainability reporting guidelines on profile indicators covering strategy and analysis, organizational profile, report parameters, governance and commitments, and stakeholders engagements. This is our first report since the launch of the Ayala Social Initiatives (ASI) in 2007, and it covers our material CSR activities as of June 30, 2008. We aimed to highlight our achievements using aspects of our performance that we have already measured, and in the next years, we will strive to better measure the impact of our CSR programs to improve our planning and decision-making processes. The report serves as a prelude to the Ayala groups full and comprehensive sustainability report, which will be released in the first half of 2009. Henceforth, the Ayala group of companies plans to issue the comprehensive report every two years to communicate our progress towards strategically aligning our businesses with the countrys development and sustainability goals. We consider the reporting process as a learning activity that will enable us to improve on both our performance and reporting. Because this is a community report, we rely on feedback from our different stakeholders to refine our programs and to effectively communicate the work we have done. To send feedback on the report, please email us at asi@ayalafoundation.org.

Our Commitment
Foreword from our Leaders
Message from Jaime Augusto Zobel de Ayala
Dear Stakeholder,
The Ayala group is proud to present the first Ayala Social Initiatives (ASI) CSR Report. The report is an important step towards the strategic integration of our CSR programs into our mainstream businesses. We have taken this step because it embodies the Ayala group of companies brand of CSR: one that creates value for our shareholders while making a positive contribution to national development. ASI is the culmination of decades of immersion in social development work by all our corporations and foundations. We have long realized that the challenges confronting the Philippines are complex, and that they are best addressed through collaboration that creates social movements of consequence. ASI brings together the strengths and expertise of the diverse programs of Ayala Corporation, Ayala Land, Bank of the Philippine Islands, Globe Telecom, Manila Water, Integrated Microelectronics, Ayala Automotive Holdings Corporation, Ayala Foundation, and BPI Foundation. This report clearly indicates our commitment to mainstreaming CSR in the Ayala corporate culture. We see CSR as a strategic social investment as well as a strategic management tool. It strengthens our business reputation and brand equity, enriches our human resource development programs, and provides us access to global investments and technology partnerships. ASI therefore enables a sustained commitment to national development that becomes one of the pillars of Ayalas competitiveness and market positioning. ASI provides the companies with a framework for developing viable and effective responses to our existing social conditions. Our business flourishes when we have a healthy population, an educated workforce, a sizable consumer market with growing household incomes, a sustainable environment, and adequate infrastructure. At the same time, Ayala responds to the evolving expectations of businesses to address social

development issues. As a large conglomerate, the Ayala group knows that the depth and diversity of our businesses give us sufficient leverage to meet these issues head on and create broad, potent, and lasting change that has scale and impact. ASI focuses on intervention and engagement in three specific areas of development: education environment entrepreneurship Through education and entrepreneurship, we provide those in need with opportunities to become their own active agents of change. By working for a sustainable environment, we provide a greater number of people with a physical and social ecosystem that continually upgrades their standard of living. We recognize the Filipino as partner, guide, and inspiration. We also acknowledge the Filipino values and culture that must govern and guide us. Even as we develop programs to respond to the present conditions, we must ensure that they also prepare the community and our people for the demands of the future. We seek to be at the forefront of social development, through innovative social technologies that respond to real needs and result in positive, significant, sustainable, and widespread change. Ayala has always believed in working closely with a broad base of stakeholderslocal and international institutions and government agencies, NGOs and peoples organizations, academic institutions, communities, and other business groupstoward a common agenda. Our partnerships go beyond individual, parochial or business interests, ensuring strategic and effective social investments in the future of the Philippines. Our commitment is not only to implement effective and efficient CSR programs, but also to evaluate and report on our work for transparency and accountability. We are currently undertaking group-wide efforts to develop corporate responsibility and sustainability reporting that utilizes the international standards of the Global Reporting Initiative (GRI) to ensure a holistic understanding of our business philosophy among our stockholders and stakeholders. The move towards GRI reporting communicates how we operate, addressing the triple bottom line concerns of economic, environmental, and social accountability. Manila Water and Ayala Land have already begun

the practice of sustainability reporting, aligning their community involvement and CSR initiatives with their core businesses. These efforts at global benchmarking support our record as leading business innovators in the Philippines. Ayala is the first Filipino business house to utilize the GRI framework for community reporting, and in so doing we benchmark ourselves against the most successful and responsible companies and groups of companies in the world. Ultimately, it is when business does what it does bestfinding solutions to the needs of the communitythat CSR can be truly strategic and sustainable. With ASI, the Ayala group seeks to influence more businesses into the practice of strategically aligned CSR. This we can achieve by raising the bar and providing replicable and scalable CSR models; empowering nonprofits by positioning business and market forces as strong and effective partners of development; and working with the government on policy direction through model programs that harness multi-sectoral resources and capacity. Through ASI, our commitment to the Philippines engenders new platforms of growth so that we can truly make a difference in the lives of Filipinos.

Jaime Augusto Zobel de Ayala

Chairman and Chief Executive Officer Ayala Corporation

Our Commitment
Foreword from our Leaders
Message from Fernando Zobel de Ayala
Dear Stakeholder,
Over the years, the Ayala group of companies strong commitment to CSR has been one of the keys to its continued success and expansion. The growth of our companies is in varying ways a function of the stability and sustainable development of the communities we serve. It is therefore in our best interestas Filipinos and entrepreneursto undertake CSR programs that enhance national development, addressing the issues that affect our companies and our communities. As the challenges of business and society become increasingly complex, so too must our approach to CSR evolve. The ASI was established in 2007 to achieve our goal of creating greater value for our shareholders, while addressing the concerns of our stakeholders and various publics more effectively and efficiently. The ASI framework guides the Ayala groups CSR practice, focusing on our three identified development areas of education, environment, and entrepreneurship, or the ASI 3Es.

Education. Improving the quality of education remains

one of the best tools for effecting positive and broadbased social change in the country. It continues to be a cornerstone of the Ayala groups efforts in CSR and social development with our innovative technologies that enhance our educational system. One of the programs of ASI in education is the Gearing up Internet Literacy and Access for Students program, or GILAS, a project in partnership with more than 20 other companies, that seeks to connect all the public high schools in the country to the Internet. Our Center for Excellence in Public Elementary Education or CENTEX also continued to expand its reach, signing agreements with private high schools for the continuing education of its graduates.

Environment. The Ayala group is committed to caring

for the countrys environment and natural resources. We ensure that our manufacturing processes do not harm the planet and that sustainable living is achieved in our real estate development programs through various efforts such as solid waste management, reforestation, and clean air and water measures. Manila Water is at the forefront of our environmental agenda, with programs in groundwater management, wastewater treatment and sanitation, and its pioneering policy on climate change. Ayala Lands (ALI) sustainability campaign, BeneficiALI, made the strategic shift to align its initiatives with the companys products and services. Nuvali, its first large-scale development

project to employ sustainable practices from the design stage to construction and maintenance, was also launched. ALI and Ayala Foundation (AFI) continue to implement the Solid Waste Management program in Ayala-managed properties, and to provide its partners with training and capacity building to manage waste. We also continued forging partnerships with organizations such as the World Wide Fund for NaturePhilippines in land development projects.

Entrepreneurship. The Ayala group firmly believes

in the power of entrepreneurship to solve some of our most daunting socio-economic problems. We aim to create environments that are conducive to novel business ideas, and we assist enterprising individuals through the provision of capital and livelihood training. In 2007, the Bank of the Philippine Islands (BPI) reinforced its focus on entrepreneurship by assisting microfinance institutions and small and medium enterprises through capacity-building programs. The Bridging Communities program of Globe Telecom implemented community and enterprise development projects that empower local leaders and microentrepreneurs.

The Ayala Social Initiative Report. These are only

a few of the projects in the ASI portfolio. ASI will continue to serve as the anchor for the Ayala groups concerted CSR strategy as the companies mainstream the 3Es into their business operations and CSR programs. The achievements and challenges we face in CSR are discussed in detail inside this report, our first-ever group-wide report to comply with the GRI standards for community reporting. With the combined expertise and resources of all the Ayala groups CSR units, we endeavor to turn ASI into one of the most productive and successful CSR programs in the country. By doing so, we can assure our shareholders that our investments in social development will reap benefits not only for the underprivileged but also for them and for our respective companies. We look forward to continuing our journey towards lasting national development together with you, our stakeholders and partners to progress. We hope that you find our first ASI report an informative and interesting read, and we thank you for your continued interest in Ayala.

Fernando Zobel de Ayala

President and Chief Operating Officer Ayala Corporation

About Our Group

Global trends in CSR are changing the way the Ayala group of companies views its business and social responsibility. As the countrys oldest business house and one of its leading conglomerates, Ayala is committed to its mission and mandate of creating long-term value for its businesses and stakeholders. Today, the Ayala group is challenged to align its business practices with its CSR agenda to deliver sustainable programs that create lasting improvement in the lives of Filipinos. The parent company of the Ayala group is Ayala Corporation (AC), which holds a diversified portfolio of investments in real estate, financial services, telecommunications, water distribution, electronics manufacturing services, and automotive dealership. Ayala Foundation Inc. (AFI) serves as the lead social-development and CSR arm of AC, and is responsible for managing Ayala Social Initiatives (ASI). AC sets the standard for its subsidiaries in terms of quality, innovativeness and responsiveness to consumer needs. As a holding company, AC gives each business the independence, financial flexibility, and governance structure in order to compete in its respective industries. Good corporate governance has been a solid foundation of the Ayala groups success throughout its 174-year history. Ayalas governance philosophy stems from the belief that maintaining the highest standards of governance is invariably linked to the creation of greater shareholder value and long-term growth. The group continues to institutionalize measures to improve its corporate governance and enhance internal systems and processes at the parent company and subsidiary level. The highest authority in matters of governance and in managing the businesses of the Ayala group is the Board of Directors of each company. Under the Board are various supporting committees, such as the Executive Committee, Nomination Committee, and Audit Committee, among others. These committees assist the respective Board of each company in the performance of specific functions and in raising the bar of good governance across the conglomerate. Further details of the governance structure and processes of each company are available in the Ayala groups latest annual reports. These may be downloaded from the company websites listed on this page.
Ayala is the largest and one of the most respected business groups in the Philippines. It holds a diversified portfolio of investments in real estate, financial services, telecommunications, water distribution, electronics, manufacturing services, automotive dealership, business process outsourcing and international real estate projects.

www.ayala.com.ph

Ayala Land is the countrys largest and only full-line property developer and one of the most successful operators of prime commercial spaces in the Philippines. Its product portfolio is composed of residential, industrial, commercial and leisure projects; shopping center, office and residential leasing; hotel operations; and construction and property management services. www.ayalaland.com.ph

BPI is the Philippines largest bank in terms of market capitalization and third largest bank in terms of asset size. It has a lead position in intermediation capacity, corporate and consumer lending, remittances, and electronic banking. The bank offers peso and foreign currency deposits, corporate and consumer loans, leasing, loan syndication, securities underwriting and distribution, foreign exchange, cash management, credit cards, payments and settlements, remittances, asset management service, life and general insurance. BPI Foundation is the social responsibility arm of the Bank of the Philippine Islands. A pioneer in microfinancing, BPI Foundation provides a credit line for non-government organizations and cooperatives that seek to uplift the lives of Filipinos in need. www.bpi.com.ph

IMI is a leading regional electronics manufacturing services (EMS) provider that offers flexible solutions including design and product development, process and product engineering, test development, logistics, and manufacturing solutions for the computing, communications, consumer, automotive, industrial, and medical electronics segments. www.global-imi.com

Globe is a pioneering provider of digital mobile telephone services in the Philippines. It is a full-service telecommunications provider offering digital wireless communication, wireline voice, data transmission, domestic and international long-distance communication services, and mobile commerce. www.globe.com.ph Ayala Foundation Inc. (AFI) is one of the countrys most respected non-stock, non-profit organizations with cultural and educational programs that benefit underprivileged Filipinos. AFIs current thrusts are in education, environment, entrepreneurship, and arts, history, and culture. www.ayala.com.ph

Manila Water is the sole concessionare for the East Zone of Metro Manila, covering major business districts such as Makati City, most of Quezon City, Pasig City, San Juan, Taguig, and Mandaluyong City. It serves the water delivery, sewerage and sanitation requirements of the East zone. www.manilawater.com

Ayala Automotive Holdings Corporation

Ayala Automotive Holdings Corporation is a vehicle dealership network of Honda and Isuzu brands. Its products in the passenger car category include Honda City, Jazz, Civic and Accord. In the commercial vehicle segment, it has Honda CR-V and Pilot, and Isuzu Crosswind, D-Max, Alterra, and Isuzu trucks. www.hondamakati.com.ph www.isuzuautodealer.com.ph

Investing in Communities
The Ayala commitment to social development has evolved over time in response to greater challenges and opportunities. Looking for ways to contribute most effectively, the Ayala groups social involvement has moved from purely charitable giving to strategic philanthropy, and is now pursuing a brand of CSR that is integrated and aligned to its core businesses. The Ayala companies have also committed to exploring expanded business models that capitalize on business strengths to achieve social development goals. Manila Waters experience in delivering high-quality water and sanitation services to low-income areas is proof that what is good for the community is also good for business, and that community involvement and investment are essential to business success. In this report, we begin to account for our community investments, and we commit to tracking and measuring these investments in succeeding reports. In 2007, Ayala Land reported a total of P1.726 million worth of initiatives covering environmental and social projects that align its business objectives with its corporate responsibility strategies. It released a sustainability report on this effort. The report is available for download on their website, www.ayalaland.com.ph. The Bank of the Philippine Islands through BPI Foundation increased its microfinance assistance from P10.68 million in 2006 to P12.74 million in 2007. Globe Telecom contributed a total of P42.3 million in 2007 to projects on education and microentrepreneurship. The Ayala Automotive Group also participated actively in community investing practices totaling P1.65 million, with funds drawn from the company as well as donations from individuals and clients. Through its technical expertise and skilled manpower, Integrated Microelectronics participated in egovernance, electoral monitoring, and vote counting as its investment in nation-building. Its employees donated almost P1.5 million in support of projects such as Childrens Hour and GILAS. Manila Waters community investments reflect the successful alignment of its business with its CSR projects. Manila Waters investment of P1.7 billion in water connections for low-income communities has helped improve their health condition and quality of life. The Lingap, or We Care, Programs have helped improve the quality of water and wastewater services to public institutions, a project worth P6 million. Finally, Manila Water also secured a $2.8 million grant from the Global Partnership for Output-Based Aid to facilitate water delivery to more poor households. A more in-depth discussion of its investments is available in its recently released sustainability report. The report may be downloaded from their website, www.manilawater.com. Ayala Foundation serves as the CSR arm of Ayala Corporation. The foundation has its own portfolio of programs in education, environment, entrepreneurship, and arts and culture, but it also takes the lead in coordinating various community involvements of the Ayala companies. With its experience in the field of social development, the foundation is able to create and mobilize a network of supportworking with partners in various consortium projectsand is able to generate, direct, and invest resources in a range of projects that benefit not only the communities that the Ayala group serves, but the whole country as well.

Employee Volunteerism
The culture of concern for others permeates the Ayala group of companies. This is evident in the way we do business and engage with our partners and communities. Our commitment to care for others is shared by our employees, who not only help us achieve our business goals, but also contribute to our various causes in Ayala. This convergence of business and CSR objectives is expressed in the Ayala groups programs for employee volunteerism and engagement. In order to maximize the potential of employee volunteerism as a CSR strategy, we will move towards the creation of more meaningful and organized volunteerism programs that can be efficiently tracked and measured. We will continue to develop employee engagement programs that are aligned with ASIs priorities and respond to the environmental and social realities of the areas where we conduct our business. We also aim to provide our employees with opportunities to use their skills and talents for the benefit of our communities. Through such programs, our employees become part of the bigger ASI picture and share in our mission to build a better nation, while further deepening the fulfillment that they experience at work. Promoting stronger employee engagement and participation are important ways to advance our brand of CSR to our front-line operations. We are committed to expanding our reporting parameters for employee volunteerism, using additional metrics, such as age and gender distribution, corporate position representation, and direct impact on specific programs or communities.

Aside from the friends I met, I liked the feeling of being able to contribute something positive to nature. It was also a form of exercise for me. Victor Legara
Service Technician, Honda Cars Cebu, Inc.

I am privileged to be a member of an organization that not only does good business but also truly improves the quality of life of its customers. Ester Yusingco
Unit Manager, Office of the President, Manila Water

The volunteerism initiatives in Globe helped us hone our leadership skills and this was made more relevant since we were able to experience this with the communities that needed us most. It is that passion for enriching peoples lives through volunteerism that makes our individual citizenship more meaningful. Aldrich Paypon
Network Engineer, Globe Telecom

We enjoyed being big sisters and brothers to the kids of Morong. We also learned about protecting the wildlife and their natural habitats in the area. We even had a chance to touch the pawikan. It was really a learning experience for all of us. Tess Bulan
Secretary, Regional and Urban Planning Division, Ayala Land, Inc.

How can my single personal act create a larger impact? Employee volunteerism is the best venue for professionals to unify individual desires to keep hope alive in our country. Marites P. Kintanar
Assistant Manager - Branch Head, BPI Cebu Taboan Branch

I choose to be a volunteer to help others in every small way I can, to help them become what they are capable of becoming. Being a volunteer, I meet different kinds of people and it makes me realize that there are many things we can do to help them and help build our nation.
Clerk, Business Unit , Integrated Microelectronics, Inc.

It feels good to be involved in environmental projects, no matter how simple. I look forward to more activities such as this. I do not feel tired, I only feel a sense of pride in realizing I was able to help others. Alex Relagio
Associate BRP Leadman, Isuzu Pasig

Evangeline Tolentino

Ayala Foundation Inc. 240.46 hours 109 volunteers

Ayala Land 600 hours 200 volunteers

Manila Water 191,944 hours 791 volunteers Globe Telecom 13,956 hours 1,682 volunteers BPI IMI 2,120 hours 265 volunteers 14,120 hours 1,230 volunteers Ayala Automotove Group 1,013 hours 87 volunteers
Total Number of Employees Involved and Total Number of Hours Volunteered by the Ayala Group of Companies (As of June 30, 2008) 8 9

Stakeholders Involvement
ASI is our attempt to respond to the needs of the Ayala groups various stakeholders by offering opportunities for meaningful engagement in a holistic, integrated manner. Through continuing dialogue and collaboration with stakeholders and partners, our programs can achieve greater impact, reach significant scale, and attain sustainability. Our member companies. Through ASI, each of the companies within the Ayala group is able to work with their stakeholders towards the achievement of shared goals. They can collaborate on large-scale programs and also implement their own individual activities in alignment with the 3Es. Our corporate family. Ensuring the congruence between the aspirations and values of the corporation and its employees is an important component in our practice of good corporate citizenship. To achieve this, we provide our employees opportunities for professional growth. At the same time, we seek to encourage the value of sharing among our employees through their participation in our social responsibility programs. Our program consortium members. The 3Es represent some of our countrys critical development needs. Meeting these needs are the concern and responsibility not just of Ayala, but also of many likeminded groups. The ASI programs go beyond individual, parochial, or business interests, and bring together a diverse group of multisectoral partners to work for a common agenda. The Ayala group has led or joined a number of social consortiums for development programs, harnessing the power of partnership to achieve impact and scale. Our communities and beneficiaries. The ASI programs respond to the needs of our country and our people, solving social problems that are deeply rooted, complex, and widespread. Addressing these needs requires not only our commitment and focus, but also the participation of those in need of help. Our engagement activities seek to transform our beneficiaries into partners and active agents of their own advancement. Our partners and donors. We have the opportunity to work with a wide range of individuals and groups local and international business partners, donors, non-government organizations, international agencies, media, and business groupsthat share our goals and work with us in creating an enabling environment for development. We also strive to be a good corporate citizen as we operate within the regulatory framework set by the government. We will continue to build ASI programs with our stakeholders and look forward to deepening our engagement with them in order to develop programs that are strategic, efficient, effective, and sustainable.

Awards and Recognitions

The Ayala group of companies has consistently been acknowledged by various award-giving bodies for its performance in CSR. The following is a list of its awards and recognitions for 2007, with Globe Telecom receiving various awards in 2008 as well. AYALA CORPORATION 3rd of Top 7 companies, Corporate Governance Asia Recognition Awards One of the Top 5 Companies in the 2007 Institute of Corporate Directors Corporate Governance Scorecard Project Chosen as the Philippines Best Managed Company in the 8th FinanceAsia Poll of Asias Top Companies GLOBE TELECOM One of the Top 5 Companies in the 2007 Institute of Corporate Directors Corporate Governance Scorecard Project 2nd Best Managed Company in the Philippines in the 8th FinanceAsia Poll of Asias Top Companies Employee Confederation of the Philippines Child Friendly Company Award Grand Anvil Award, Globe Bridging Communities, Public Relations Society of the Philippines (PRSP) Anvil Award of Excellence for Globe Bridging Communities (PRSP) Anvil Award of Merit for Globe BridgeCom Sa Bayan (PRSP) Gold Quill Award of Merit for Globe Bridging Communities, GT Eskwela, CSR Communications Strategy, Operation Reming, International Association of Business Communicators (IABC) Philippine Quill Award of Excellence for Globe Bridging Communities and Globe BridgeCom Sa Bayan (IABC) Philippine Quill Award of Merit for Globe BridgeCom Entrep Fair, Globe BridgeCom Volunteerism, Globe BridgeCom Story: Integrating CSR to Core Business Strategy (IABC) Anvil Award of Excellence for Globe Bridging Communities, Globe BridgeCom Sa Bayan, Globe BridgeCom Entrepreneurship Fair, Globe BridgeCom Youth Development

Programs, Globe BridgeCom Employee Volunteerism Programs (PRSP) Anvil Award of Merit for Communicating CSR through Media (PRSP) International Gold Quill from the International Association of Business Communicators (IABC) New York City, New York USA. MANILA WATER IFC Client Leadership Award, 2007 Intel AIM Corporate Social Responsibility Award, 2007 7th Best Managed Company in the Philippines in the 8th FinanceAsia Poll of Asias Top Companies One of the Top 10 Greenest Companies, cited by FinanceAsia AYALA LAND, INC. One of the Top 5 Companies in the 2007 Institute of Corporate Directors Corporate Governance Scorecard Project 2nd among Philippine corporations, The Asset Awards 2007 for Best in Corporate Governance for the Philippines Cited in FinanceAsias 7th Annual Best Companies Poll across several categories: best managed, best corporate governance, best investor relations, most committed to a strong dividend policy 64 out of 65 enlisted properties managed by the Ayala Property Management Corporation received awards from the Makati Fire Safety Foundation Inc., 2007 Six managed buildings received energy efficiency awards and one engineer received an Outstanding Energy Manager Award from the Department of Energys Don Emilio Abello Energy Efficiency Award, 2007 AYALA FOUNDATION, INC. Agora Awards for Outstanding Achievement in Advocacy Marketing for Solid Waste Management Program, 2007 Award of Excellence in Support of Education at the Asian Corporate Social Responsibility (CSR) Awards, 2007 BANK OF THE PHILIPPINE ISLANDS Cited for performance in Corporate Governance in the 8th FinanceAsia Poll of Asias Top Companies

Ayala Social InitiativesOur

Our CSR at a Glance
Ayala Social Initiatives (ASI) provides a framework that guides the implementation of Ayalas CSR programs in order to achieve focus, scale, and impact. ASI enhances Ayalas approach to CSR by defining three priority areas or areas of focus where the Ayala companies can be most effective: education, environment, and entrepreneurship. Working in partnership, the Ayala companies collaborate on several large-scale CSR programs that address particular social problems. These collaborative programs unify the Ayala groups support to national development. At the same time, ASI provides the direction for individual Ayala companies to implement their own unique CSR programs. In this report, features on each companys CSR show how priorities set by ASI can enable each company to harness its resources and strengths to empower the youth, enable aspiring microentrepreneurs, and enrich the earth for tomorrow. Education: Empowering Filipinos. Improving the quality of education of our youth best ensures national development. With ASIs focus on education, the Ayala group has taken steps to develop CSR strategies that meet the challenges in this sector. Through various programs, Ayala helps improve educational infrastructure, provide scholarships, and develop innovative learning and training materials. Large-scale consortium projects, such as GILAS and Text2Teach, show how technology can turbo-charge the public education system. Environment: Enriching the Nation. Aware of the scarce resources of the country, ASI guides the Ayala companies to implement strategies that ensure sustainable living through reforestation programs, solid waste management (SWM), clean air and clean water campaigns, and energy efficiency measures. Through ASI, the Ayala group commits to maintaining, conserving, and protecting the countrys natural resources, especially in areas where Ayala operates. Entrepreneurship: Enabling Progress. Business is able to help Filipinos help themselves through the creation of livelihood. Our CSR programs provide enterprising Filipinos with skills and opportunities for employment or self-employment, explore innovative business solutions, and facilitate the growth of our entrepreneurial culture.

10 11

Our CSR Map

Education Environment Entrepreneurship Ayala seeks not only to increase shareholder value, but to contribute positively to the national development agenda. Ayala CSR Programs target the three priority areas of the Ayala Social Initiatives and are implemented nationwide.

Metro Manila

Autonomous Region of Muslim Mindanao

Ayala Social Initiatives in Figures

EDUCATION
Over 6,300 total number of public high schools in the Philippines 1,849 number of schools connected to the internet through Gearing up Internet Literacy Alliance (GILAS) program 6,000 number of school teachers given Internet and computer literacy training Note: Connectivity data are based on actual schools connected by GILAS itself or as reported to GILAS by partner telcos and other programs involved with connecting schools to the Internet. 203 number of schools reached by Text2Teach 938 number of Grade 5 and 6 science teachers involved in program 200,000 number of Grade 5 and 6 students receiving science videos 68 number of grade school graduates from Center for Excellence (CENTEX) Manila in 2008 69 number of grade school graduates from CENTEX Batangas in 2008 1,418 students supported by CENTEX since 1998 728 total number of college students who have participated in Ayala Young Leders Congress (AYLC) 17 number of provincial chapters of AYLC alumni P1,719,618.50 donations in cash and kind raised by Ayala Young Leaders Alliance (AYLA) Disaster Management Team for relief operations after Typhoon Reming in 2007 63 volunteers from Metro Manila who repacked and distributed relief goods 2,500 number of families in Tiwi, Albay given disaster assistance through AYLA 105 number of schools assisted by Education and Livelihood Skills Alliance (ELSA) in Region 12 as of February 2008 160,000 number of public elementary school children supported by ELSA in the Autonomous Region of Muslim Mindanao and Regions 9 and 12 201 number of students and out-of-school youth leaders trained at ELSA Young Leaders Camps 25 number of young scientists who received the BPI-DOST Science Awards in 2007 Over 150 number of four-year scholars who benefited from BPIs College Scholarship Program since 1989 1,500 number of youth leaders nationwide supported by Globe through education, training and development programs in 2007. 35,000 average number of students visiting the history exhibit Dioramas at the Ayala Museum every year 9th-century earliest known ceramic artifacts on exhibit at the Museum at the Crossroads of Civilization exhibition 94 number of university libraries nationwide connected to the online LibraryLink catalogue of Filipiniana materials in Filipinas Heritage Library (FHL) 60,000 number of photographs in the Retrato imagebank, of which 35,000 are catalogued and stored online 52,000 early 20th century Filipino classical songs being digitized for a new music website, Himig.com 979 number of public elementary school teachers who participated in the ArtConnection training program in 2008 52 Mangyan students given scholarships to Talipanan Mangyan High School, Mindoro Oriental 184 number of public schools covered and 800,000 students benefiting from rehabilitation of water and sanitation facilities through Manila Waters Lingap Eskwela

ENVIRONMENT
267,178 households with properly maintained septic tanks through Manila Waters Sanitasyon Para sa Barangay 31 million liters per day (MLD) of wastewater treated 4 MLD of treated wastewater recycled Reduced water losses from 63% to 24% 2 number of commercial centers in the Makati Central Business District participating in the Ayala Foundations solid waste management programs 50 solid waste management training programs, seminars and workshops conducted 1,904 number of seminar participants 200 number of participating commercial and residential buildings 4,000 tons amount of waste recyclables collected from January 2007 to June 2008 P20,000,000+ value of recyclables collected 163 tons amount of materials traded at weekly Ayala Recyclables Fair from January 2007 to June 2008 P700,000 value of recyclables traded at weekly recyclables fairs 2,775 cubic meters estimated volume of landfill space saved

ENTREPRENEURSHIP
7 number of finance and credit literacy sessions conducted by BPI Foundation 276 entrepreneurs and staff trained 221 small and medium enterprises nationwide benefiting from training programs 83 number of microfinance institutions reached through the BPI Foundation-Ateneo de Manila University partnership 500,000 microfinance clients nationwide benefiting from BPI Foundation-Ateneo training and development programs P730,000,000 credit facilities made available to microfinance institutions through BPI 6 number of backyard cooperatives from low-income communities included in Manila Waters supply chain through the Livelihood Program More than 19,000 jobs generated and 20 small and medium enterprise contractors now full-time AAA contractors with the help of Manila Waters Vendor Development Program 150 training runs conducted by Globe BridgeCom sa Bayan 2,500 number of barangays covered nationwide 9,623 number of barangay leaders and microentrepreneurs trained 3 number of Entrep Fairs in Nueva Ecija, General Santos and Batangas 4 number of Technology Business Incubators in operation 48 number of office slots available for technology start-up companies

DIASPORA PHILANTROPHY
9 number of Fil-Am volunteer groups working in the United States 4,000 number of scholars provided with educational assistance 149 number of accredited beneficiaries outside of Ayala Foundation US$3.7M amount of donations raised through AF-USAs network of donors from January to June 2008 92 number of public high schools connected to the internet through AF-USA donations 12 13

Empower

Forging Partnerships for Progress

The Ayala Social Initiatives (ASI) not only views the 3Es as critical development concerns, but also as great opportunities for creating the most significant impact on the countrys quality of life. We recognize, however, that development needs in the Philippines are nationwide, complex, and challenging. They therefore require sustained commitment, focus, and innovative strategies to reach effective and sustainable solutions. In order to address development issues more effectively, the Ayala group has turned to forging partnershipsbetween and among themselves as well as with external partnersas its main approach to CSR. Ayala has therefore led the creation of multisectoral social consortiums or joined existing oneswith national and local governments, with other corporations, with NGOs, local communities, and academe. Ayala harnesses the power of such alliances to create greater impact, while working within the group brings together the various strengths and expertise of the companies to focus on common objectives. By mobilizing such an internal and external network of support, greater strides can be made towards overcoming the challenges within the 3Es: larger social problems become more manageable and programs can achieve impact and scale. The following sections detail our Partnerships for Progress in the 3Es. GILAS (Gearing up Internet Literacy and Access for Students). GILAS was organized in January 2005 to help make information and communication technology more widely accessible to the Filipino youth. The program aims to provide computer laboratories with Internet access to all public high schools in the Philippines. It offers our underprivileged youth computer and Internet literacy skills, which are requirements if they are to compete in todays increasingly globalized job market. In addition, teachers are trained in basic Internet skills, LAN administration, and project management, and the support of the local community is harnessed to ensure the programs longterm sustainability.

The Internet is a gift that enables us to learn more and more each day.
Effie Ignacio, Muntinlupa Science High Shcool

Empowering the Youth

Education is universally acknowledged as possibly the single most important factor in improving a persons ability to create a better future for himself and his family. In turn, a better-educated populace helps ensure the future of the country as a whole. By focusing on the public education sector, where 90% of our youth are enrolled, the Ayala group seeks to achieve impact and scale in programs such as GILAS and Text2Teach. The Ayala group also works together to implement the Ayala Young Leaders Program for youth leadership development.

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GILAS is a multi-sectoral social consortium composed of members from the business, government, and civil society sectors. The Chairman of Ayala Corporation, Jaime Augusto Zobel de Ayala, serves as co-chair for the GILAS consortium. Consortium members contribute to GILAS goal through cash and in-kind donations; some provide hardware and software, while others focus on teacher training or other aspects addressing the programs sustainability. Ayalas own contribution consists of support for administrative services and funds for school connection, as well as project management through Ayala Foundation Inc. (AFI), which also serves as the secretariat of GILAS. Together with other partner telecommunication companies, Globe supports the Internet service provision needs of GILAS. It has sponsored over 800 schools by providing free Internet access for the first year. Additionally, Globe subsidizes a second year of Internet service with a 50 percent discount. GILAS has not only been successful in generating support from the consortium members, but one of its remarkable achievements has been in gaining the support of other local and multinational corporations. Local government units and legislators actively participate in GILAS, with many agreeing to match funds raised by the private sector. This unique publicprivate sector partnership in education has likewise encouraged Filipinos in the United States to support public schools in their hometowns through Ayala Foundation USA. Text2Teach. Text2Teach enriches the learning environment in public elementary schools. It uses the ubiquitous SMS technology to facilitate the delivery of learning resources directly to the classroom. Text2Teach began as a project under the auspices of the Bridgeit Program, a global initiative of the International Youth Federation, Nokia, Pearson Foundation, Globe Telecom, Dream Broadcasting, Chikka, and the United Nations Development

Connecting the Filipino youth to a brighter tomorrow

American Chamber of Commerce of the Philippines, Inc. Apple South Asia Pte. Ltd. Ayala Corporation Ayala Foundation, Inc. Bayan Telecommunications, Inc. Commission on Information and Communications Technology (CICT) Department of Education Department of Trade and Industry Digital Telecommunications Philippines, Inc. Globe Telecom, Inc. GMA Network, Inc. IBM Asean Integrated Microelectronics, Inc. Intel Microelectronics Philippines, Inc. Makati Business Club Microsoft Philippines, Inc. Narra Venture Capital Office of Senator Mar Roxas Philippine Long Distance Telephone Company Philippine Business for Social Progress Philstar.com Smart Communications, Inc. SPi Technologies

Find out more at www.gilas.org

When you are an Ayala Young Leader, its all about genuine leadership, its all about passion in serving your colleagues, your fellow students, its serving the community which is really important.
Program. The program aimed to provide Grade 5 and 6 science students with interactive audio-visual materials designed to make learning more exciting and effective. Text2Teach expanded under the Education and Livelihoods Skills Alliance (ELSA) as it focused on improving the quality of Grade 5 and 6 mathematics, science and English education in schools in Mindanao. AFI is the lead convenor of the Text2Teach consortium, which includes Globe Telecom, SEAMEO INNOTECH, Chikka, and PMSI Dream Broadcasting. Text2Teach provides a range of inputs to improve knowledge delivery. Partner schools are provided with a media technology package, which includes a television, MediaMaster unit, a satellite dish, a cell phone and other audio-visual equipment. Text2Teach also provides lesson plans and teachers guides, teacher and trainers training, and community orientations on the program. The program also facilitates linkages and networking for its partner schools. Studies by two University of the Philippines research institutionsthe National Institute for Science and Mathematics Development and the Demographic Research and Development Foundation showed that students who benefited from Text2Teach made significant gains in learning as shown through pre and post-tests. Youth Leadership Development Program. The Ayala group seeks to develop a new generation of change agents and servant leaders in business, government, academe or non-government organizations. A keystone of the leadership development program is the annual Ayala Young Leaders Congress (AYLC). AYLC brings together 70 or so of the most promising student leaders from colleges and universities

Janus Dellava, AYLC Batch 2007

nationwide in an annual three-day summit. AYLC is anchored on the belief that quality education must go hand-in-hand with value-based leadership formation to prepare the Filipino youth for their role in nation building, with a commitment to principled leadership and integrity. Part of AYLCs goals is to foster nationalism and to instill in the youth a sense of responsibility and stewardship for their communities. The tenth Congress was held in February 2008, with the theme Leadership: A Call to Moral Courage. Seventyfour delegates were chosen to attend this congress. The Ayala Young Leaders Alliance (AYLA), the official AYLC alumni network has 728 active members. To date, there are 17 AYLA chapters around the country, serving their respective communities. AYLA members also work to echo the congress experience for schools in provinces with limited access to studentleadership training. Such activities have already been implemented for groups in Bicol, Iloilo, Negros, Northern Luzon, and NCR. AYLA also launched the Resource and Fund Generation Project for Disaster Management (REFUGE) in 2008. REFUGE is a nationwide call for greater disaster preparedness, building on AYLAs experience in regional relief operations during natural disasters. AYLA also produces Starfish Magazine, a non-stock, nonprofit Filipino youth empowerment publication. It has published nine issues.

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Enrich

Enriching the Environment, Enriching the Nation

Often, there is a symbiotic relationship between environmental degradation and poverty. Today, there is a growing recognition that prosperity cannot be sustainable unless the environment is protected and nurtured. ASI considers the environment as one of the pillars of CSR engagement. The Solid Waste Management Program (SWM) is a collaborative effort of AFI and Ayala Land Inc. (ALI), through its property management arm, the Ayala Property Management Corporation (APMC), together with the Ayala Center Association and the Makati Commercial Estate Association. The SWM Program is an example of the integration of CSR into the business operations of ALI. It improves cost efficiency and helps maintain the standards set by Ayala development projects as premiere lifestyle centers. The SWM program now covers the entire Makati Central Business District (Makati CBD), with new local government partners emerging in Taguig. The program assists in setting up waste segregation systems and facilities. It also mobilizes a network of partner junk shops and recyclers, and organizes regular waste markets, the Ayala Recyclables Fair, where the public can sell their junk materials in designated Ayala mall venues. Participating buildings are able to generate revenues through the sale of recyclables and reduce the costs associated with waste handling. Translated into environmental benefits, the collected recyclables save approximately 2,775 cubic meters of landfill space. The waste markets are also an excellent venue for heightening the general publics awareness of the solid waste management problem, and encouraging their active participation. About 906 individual and corporate participants joined the recyclables fairs in 2007. The scope of the SWM program extends outside Metro Manila. Solid waste management initiatives are being implemented in the Ayala-owned and managed properties in Laguna and Cavite, as well as in the Ayala Center in Cebu. AFI was actively involved in the development of these programs, providing training, technical assistance and other capacity building support. Cebus SWM Program was done in collaboration with the Cebu City local government; Barangay Hipodromo, under the auspices of the Good Neighbor Project of

Cebu Business Park; and the Neighboring Barangays Altruistic Alliance Inc. It is now managed by Cebu Holdings, Inc. The SWM program also spearheads information and advocacy efforts. Community engagement incentives are developed in support of the SWM program. The PayAs-You-Throw collection system was also implemented, a scheme requiring waste generators to pay for the actual volume of waste generated. This encouraged the buildings to segregate their wastes more efficiently to reduce the volume of waste being thrown away. To provide a better framework for environmental sustainability especially in dense and highly urbanized areas, AFI, ALI, and APMC partnered with the Asian Institute of Management (AIM) in the development of the Ayala-AIM Environmental Capacity Building Program.

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Enable

Enabling Growth through Entrepreneurship

The entrepreneurial spirit of the Filipino is an important catalyst for the countrys social and economic development. ASI brings together the Ayala groups broad industry expertise, marketoriented mechanisms, and focused, strategic CSR programs that facilitate the transformation of potential entrepreneurs, including the entrepreneurial poor, into successful ones. The Bank of the Philippine Islands (BPI) pioneered the wholesale delivery of microfinance services in the Philippines in the 1980s through BPI Foundation. It recognized the need of low-income families for mechanisms that would enable them to grow into credit-reliable members of the formal economy and allow them to develop productive and competitive enterprises. The foundation partnered with Tulay sa Pag-unlad, Inc., now known as TSPI Development Corporation, providing a P500,000 credit line to serve as loan capital for investment in small enterprise projects. In 2005, BPI established the microfinance unit within its corporate banking division, the first Philippine bank to do so, sending a strong signal of the banks interest in deepening its involvement in development enterprises. Partnerships with microfinance institutions (MFIs) remain an important strategy for BPI. Small MFIs are often unable to achieve the kind of scale that can effect real change. BPI helps build their capacity to scale up operations, expand reach and

increase viability, thus turning them into sustainable partners for poverty alleviation. BPI Foundation also focused on building the capacity of entrepreneurs through a series of training programs for MFIs through the BPI-Ateneo Partnership on Developing Capacities for MFIs. Development capacity loans to fund management and staff training of MFIs were also given through Ateneos Training and Mentoring Assistance Program. It approved three loan accounts to Progressive Bank and LifeBank in Iloilo and Agricultural and Rural Development for Catanduanes, Inc. For small and medium enterprises (SMEs), the foundation continued its Show Me, Teach Me SME: Empowering Entrepreneurs program to intensify the organizational capacities of SMEs in financial and credit management. A total of seven sessions were conducted, benefiting 276 participating entrepreneurs and SME staff and members. This year, BPI packaged a loan for one of Manila Waters cooperatives under its Livelihood Program and the BPI Foundations developmental capacitybuilding loans. Both institutions support the transitional growth of the more mature cooperatives with bigger capitalization, as well as link-ups with BPIs financial advisers. The overall goal is to establish the cooperative as a truly bankable and credit-reliable organization.

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Ayala group of companies

Our Individual CSR Journeys

ELSA contributes to the delivery of the Department of Educations Alternative Learning System through local partners in Mindanao, in order to improve the skills of out-of-school youths through community-based learning.
Ayala Foundation, Inc.
As the Ayala Corporations (AC) social and cultural development arm, Ayala Foundation, Inc. (AFI) commits to working for national development by harnessing the full potential of CSR. The programs of AFI seek to improve the quality of life of Filipinos, facilitate access to knowledge and learning, and foster a sense of national pride. AFI views the Filipino as a partner in development and aims to turn beneficiaries and bystanders into co-authors of our nations progress. It also takes the lead in coordinating the Ayala Social Initiatives (ASI). With the ASI framework to guide the Ayala companies in aligning their CSR projects and activities with ASIs identified priority areas, AFI is able to synergize the programs to help eradicate poverty in the Philippines in all its forms. Education and Livelihood Skills Alliance (ELSA). ELSA is a consortium that seeks to contribute to the development of Mindanao by providing its youth with diverse education and livelihood programs. AFIs Center for Social Development serves as program manager and coordinator of the ELSA consortium, which includes International Youth Foundation, Consuelo Foundation, Philippine Business for Social Progress, Petron Foundation, and SEAMEO INNOTECH. ELSA has threeyear funding support from the United States Agency for International Development (USAID). Faced with the deep-rooted problem of poverty in Mindanao, ELSA goes back to the basics of constructing school buildings and educational facilities,

providing learning materials, and ensuring a safe and effective learning environment for the youth of Mindanao. The consortium provides scholarships, and in-school feeding and health-improvement programs that allow deserving children to go to school and stay in school. The programs of ELSA also develop student leaders, who are given training and opportunities to implement community development projects. Out-ofschool youths are among ELSAs target beneficiaries. They are given access to a wide range of technical courses to help them develop skills that will lead to employment or self-employment. ELSA contributes to the delivery of the Department of Educations Alternative Learning System through local partners in Mindanao, in order to improve the skills of out-of-school youths through community-based learning. Center of Excellence in Public Elementary Education (CENTEX). Ayala Foundations vision of an excellent public school system is brought to life through CENTEX Manila and CENTEX Batangastwo pilot schools that benefit bright and deserving children from poor families. Parents of CENTEX students are also provided livelihood opportunities to improve the overall quality of living of the families of the students,

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which in turn, contributes to the improved performance of these students in school. CENTEX shows that by providing a supportive learning environment and the best facilities, and by conducting continuous teachertraining programs and improving the curricula, public elementary schools can compete with the best private schools in the country. CENTEX Manila, the first CENTEX school, is located within the Gregorio del Pilar school compound in Tondo, Manila. Ayala Land Inc. (ALI) is its corporate champion, and the schools primary funding comes from an endowment fund set up by ALI and managed by AFI. Globe Telecom funded CENTEX Batangas in partnership with the local government of the province and Purefoods Corporation.

CENTEX Manila bested other schools in its division to get the highest mean score in the 2007 National Achievement Test (NAT). The Division of City Schools Manila honored CENTEX with a special award for achieving the target mean score in the NAT. To sustain the education of CENTEX graduates into high school, new partnerships were developed in 2007 with Sta. Isabel College in Manila and St. Bridget College in Alitagtag, Batangas. Ayala Museum. Staying true to its mission of fostering pride in the Filipino, Ayala Museum strengthened its collection and extended the reach of its public education programs in 2007. A five-year loan of rare 18th to 19th-century Philippine costumes from the National Museum of Ethnology in Leiden, The Netherlands, made possible with support from the Royal Netherlands Embassy, had a special showing and is part of a display in the new fourthfloor galleries of the Ayala Museum. A large-scale loan exhibition from the Asian Civilisations Museum in Singapore, The Peranakan Legacy, was showcased in Chinese Diaspora: Art Streams from the Mainland, which celebrated this rich visual culture evident in Philippine pre-historic, colonial, and contemporary periods.

A mix of education programs supplemented the ongoing exhibitions, enhanced the museum experience, and enriched our understanding of our historical and cultural past. Lakbay Aral is an outreach program that facilitates the creative development of children from public elementary schools and marginalized groups. Targeting 150 participants, the program includes free transportation and museum visit, and a hands-on art activity to help foster awareness and appreciation of local history and culture for children with limited opportunities. This museum program is made possible with support from ALI. Likhang Sining, a project with Makati Rotary West, provides a venue where budding artists from public high schools can pursue their interests in the arts and enhance their skills. Visiting curator from the National Museum of Ethnology in Leiden, Dr. Pieter ter Keurs gave a talk on the origin of collections and contexts of museum collections under the museums Conversations on Art and History. Yumi Janairo Roth, artist and faculty member of University of Colorado-Boulder, conducted a two-day workshop for students and artists entitled Outside the White Cube. The workshop explored alternative exhibition opportunities outside the traditional notions of presenting and perceiving works of art. Consisting of a field trip to locations around Metro Manila, such as the American Cemetery, Bangkal, and the MRT/ LRT, and a number of projects presented along the walkway around Ayala Museum, this workshop is part of the International Visiting Artist Series Program. The museum also hosted the Second Global Symposium on Media, Religion, and Culture with the participation of over twenty scholars from five continents. Museum in a Box was launched at the Davao Museum at the end of 2007. The traveling exhibit, dubbed as The Pioneers of Philippine Art: Luna, Amorsolo, Zobel, chronicles 100 years of Philippine art through paintings by three of the countrys visual arts pioneers: Juan Luna (1857-1899), Fernando Amorsolo (1892-1972), and Fernando Zobel (19241984). The exhibition and a gallery talk were hosted by the Davao Museum. Eighty students, teachers, artists, and various members of the Davao community participated in these outreach activities. Filipinas Heritage Library (FHL). FHLs projects, activities and services are driven by AFIs vision of facilitating access to knowledge and learning. They are aimed at growing a community whose lives are enriched and recharged by a greater awareness of

the relevance of Filipino culture to who they are and what they do. The library draws on the power of the Internet to extend the reach of its programs. Librarians, students, and researchers from all over the Philippines continued to be served by FHLs LibraryLink, an online union catalog of 94 libraries nationwide. LibraryLink is not only a search engine or entry point for researchers, but also a venue through online forums for interaction among those interested in Filipiniana. The presidential papers of Elpidio Quirino, a collection of post-war correspondence and papers, were also digitized to preserve the documents and facilitate greater access to these rare materials. The librarys annual Filipiniana acquisition was upgraded by a donation of 575 books on World War II and the Japanese Occupation of the Philippines, further enriching the librarys counterpart collection of the Memorare Manila. The Himig Collection, consisting of 1,349 vinyl records of Philippine classical, folk, and pop music from various decades, was also launched. In 2007, FHL mounted a special lecture series called Trade Roots. The projects website was launched in September 2008. The Trade Roots project seeks to provide innovative approaches to teaching Philippine history from the perspective of trade from precolonial to contemporary times. Thirty-six high school teachers of the Department of Education-Makati Division were oriented on these new approaches to teaching history. Asia Society Philippines and DepEd-Makati were FHLs partners in this project. Four lecturers from the University of the PhilippinesDiliman Department of History were commissioned to handle the lecture series.

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AF-USA was conceptualized as bridge of hope across the seas, helping US-based Filipinos who wish to extend assistance to communities in the Philippines.

The library also conducted the ArtConnection lecture series from April to June 2008. ArtConnection is another teacher-training program that seeks to invigorate the teaching of Philippine history through art. Its goal is to revitalize teaching-learning dynamics by using specific Filipino artworks as a springboard for discussions on Philippine history. The lecture series benefited 979 public elementary school teachers in the National Capital Region. FHL also conducted regular workshops on writing and photography. The promotion of reading and literacy is a core thrust of FHL. To this end, FHL partnered with the National Book Development Board to host lectures and a panel discussion on improving the roles of community and school libraries. The Teens Read, Too! campaign engaged young adults in reading-centered activities and competitions. FHLs Literacy Fund, which comes from a percentage of the sales of the FHLs bookshop, enabled book donations to six schools and libraries. FHL also coordinates donations from other organizations to help sustain public and community libraries.

Ayala Technology Business Incubator (AyalaTBI). AyalaTBI is a technology business incubator that supports the formation and development of knowledgebased industries. It seeks to increase the global competitiveness ranking of the Philippines, which is crucial to development and investment. Technologyenterprise development also addresses the countrys need for more competitive human capital in the hightechnology field. AyalaTBI is both a facility and a service that creates an environment where technology start-ups can improve

Ayala Foundation USA serves as a channel for Filipino-Americans and other US-based donors to give back to the Philippines. It has raised well over $6 million since 2000; in 2007 alone, AF-USA was able to raise a little over $1.3 million in donations, through the generosity of 392 individual and group donors across the US. AF-USA also generated a total of $229,847.00 for GILAS, which translates to the granting of free Internet connections to 92 public high schools or 46,000 students. AF-USA also partnered with a Filipino chain of grocery stores in the US named Seafood City, which embarked on an active fundraising campaign in behalf of GILAS. AF-USA also works in partnership with the University of the Philippines Medical Alumni Society in America to support its various programs at the UP College of Medicine, Philippine General Hospital, and other community health projects.

their chances of growing into large-scale businesses. The first facility, UP-AyalaTBI, opened at the South S&T Park of the University of the Philippines-Diliman and was supported by a grant from the World Bank infoDev program. Three TBI facilities have already been opened to locators. With global trends indicating the continuing growth of technology businesses, AyalaTBI conducts knowledge and networking sessions to bring breakthrough ideas on technology and innovation to our local technologists. Innovation Forum and Kape + Teknolohiya sessions created opportunities for members of the science, technology, and business sectors to meet, learn about and discuss sectoral developments, and identify possible innovation projects and investments. These discussions reached more than 700 entrepreneurs, tackling diverse topics, such as markets, intellectual property, and funding. In the last year and a half, AyalaTBI hosted over 20 of these fora. The Department of Science and Technology sponsored the provincial road show of AyalaTBI to expand the reach of high-technology development outside Metro Manila. The first one was held in Cebu and the next three will be in Baguio, Cagayan de Oro, and Davao. AyalaTBI also hosted TechBootCamp with the support of the Brain Gain Network and Philippine Emerging Startups Open in October and November 2007. The TechBoot Camp is a three-day training course for aspiring technology entrepreneurs. The event gives young entrepreneurs with new ideas the opportunity to create a business plan and make brief pitch presentations to panels composed of venture capital (VC) firms. In April and May 2008, AyalaTBI partnered with an open-source software developer and venture capital firm, and ran a second boot camp patterned after AyalaTBIs camp. Six companies have already been shortlisted for VC funding for their enterprises and an initial round of outside equity. AyalaTBI is also developing ten case studies on technology entrepreneurship with the Asian Institute of Management to serve as references on good practice. All in all, nine enterprises are being hosted at the UP-Ayala TBI, and some 160 new enterprises were given guidance on the development of business plans. Ayala Foundation USA (AF-USA). Established as a way to increase the number of donors supporting development projects in the Philippines, AF-USA aims to mitigate the impact of the decline in funding for the non-profit sector in the Philippines. AF-USA

was conceptualized as a bridge of hope across the seas, helping US-based Filipinos who wish to extend assistance to communities in the Philippines. AF-USA provides an efficient, reliable, and trustworthy donation mechanism for expatriates and foreigners who wish to contribute to Philippine development. AF-USAs network of accredited partner-NGOs can legitimately receive donations from donor-advised funds from the US. AF-USA also allows donors to support their preferred causes or charities. Today, AF-USA has 149 partners or grantees, giving US-based donors more opportunities to contribute to Philippine development. AF-USA also allows Filipino-Americans to share their time and resources by championing worthy projects that benefit their fellow Filipinos. There are more than 400 Fil-Am volunteers who help raise funds by hosting benefits, special events, and implementing other fundraising strategies, like employee giving, designing corporate matching gifts, or coordinating in-kind donations. These volunteer fundraisers focus their efforts on promoting quality education for the Filipino youth. AF-USA now has nine volunteer groups in Northern California/San Francisco, Southern California/ Los Angeles, Washington DC, New York/Tri-State, Chicago, Seattle, Hawaii, Las Vegas, and Portland. Buklod Bahayan Daycare. In partnership with ALI, AFI implemented an Integrated Community Development Program consisting of community organizing, capability building, skills training, livelihood assistance, cooperative organizing, and solid waste management in Silang, Cavite. These efforts included the establishment of a daycare center in Buklod Bahayan, Barangay Tartaria, Silang, Cavite. Every year, the Buklod Bahayan Daycare takes in about 150 students. The daycare has six teachers and one staff member. It works closely with the parents, who contribute at least two hours of service every week at the facility. Apart from the lessons, the daycare also sponsors a feeding program for the students. Iraya Mangyans. AFI is committed to preserving indigenous Filipino culture and heritage. AFI supports the education of the Mangyan youth in Mindoro and has assisted the community in regaining their ancestral lands. In 2004, the Mangyans were awarded the Certificate of Ancestral Domain Title (CADT), covering 5,700 hectares of land and benefitting 840 Mangyan families.

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Ayala Land, Inc. Ayala Land (ALI) is committed to creating communities that raise the standards of sustainable living. Its campaign for sustainability, BeneficiALI, steers the companys course towards sustainable development and increased stakeholder value. The company commits to six key sustainable practices: developing land responsibly, pursuing green building design, employing sustainable construction practices, progressing on efficient power and water use and solid waste management, community stewardship, and conservation practices. With these sustainability cornerstones, ALI envisions master-planned developments that meet the demands of the community and renew or preserve critical resources. ALIs sustainability programs harness the power of partnerships to achieve its goals. Its partnership with the World Wide Fund for Nature-Philippines (WWF-Philippines) has enabled ALI to manage environmental issues and respond to complex stakeholder concerns with greater efficiency. ALI and WWF-Philippines have been collaborating on Nuvali, ALIs pilot project in sustainable land development in Canlubang, to ensure greater sustainability for the future community in terms of food, water, and energy. As a flagship project, Nuvali will be a development that encourages environmental stewardship in its communities. ALIs 320-hectare Anvaya Cove project in Morong, Bataan is also benefiting from the companys partnership with WWF through activities in coastal resource management, biodiversity assessment, and ecological footprint studies. These activities allow ALI to maintain the environmental integrity of Anvaya Cove while facilitating the equitable use of the areas resources. With the aim of creating livelihood opportunities for its communities, ALI has started sourcing manpower requirements from the immediate areas where its projects are located. The move follows the hiring policy of Makati Development Corporation, the construction arm of ALI. In 2007, out of a total headcount of 4,060 personnel working in 33 residential and shopping center development projects, 34% or almost 1,400 were hired from neighboring communities. All strategic business units of ALI that fall under this hiring policy were able to post figures exceeding ALIs 20% target. As a way to further involve its communities in its vision of development, ALI has teamed up with Partnerships for Integrated Services and Social Development (I-Serve), a tenured NGO involved in community organization projects that facilitate the meaningful participation of the poor in social development. In 2007, ALI and I-Serve pioneered a community-rebuilding program for over 450 families living in the various settlements within the companys biggest development south of Manila.

Manila Water

ALI also supports projects of the Bonifacio Arts Foundation, Inc. (BAFI), which is at the heart of transforming Bonifacio Global City (BGC) in Taguig into a City with a Soul through the promotion of the arts and sciences. A major project now in the pipeline is the construction of The Mind Museum, the Philippines first world-class science museum. The Mind Museum is envisioned as a national landmark institution and learning center that will benefit the Filipino by contributing to the public understanding of science and supplementing the education of science students and teachers. Aside from ALI, major donors to this project include Ajinomoto Philippines, Bank of the Philippine Islands (BPI) and BPI Foundation, Del Monte Philippines, Globe Telecom, IMI Group of Companies, Manila Water, NutriAsia, and R.A. Mojica and Partners.

Manila Water remains firmly anchored on the principles of sustainable development as it pursues its vision of being the leader in providing water and wastewater services in ways that respect peoples rights, help build sustainable communities, and protect the environment. Manila Waters flagship program is the Water for Low-Income Communities or Tubig Para sa Barangay (TPSB), which reflects a perfect intersection of business activity and CSR. Access to potable water is an important component of anti-poverty programs. However, many low-income communities that have the greatest need for quality water services do not have the capacity to avail of them, a fact that Manila Water recognizes and seeks to address. Manila Water is committed to making water and sanitation accessible and affordable for these communities. The result is 24-hour water service to more than a million residents of urban poor communities. The program has helped minimize illegal water connections, one of the biggest threats to the sustainability of

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Manila Waters business. The program safeguards the companys interests while integrating the poor communities to Manila Waters piped-in connection line. This gives them better water quality, as well as affordability, convenience, and access. Along the same line of providing quality water and sanitation services to those who need it most, the company has the Lingap (We Care) program, or Water and Sanitation for Public Institutions program. Lingap has strategy-based social schemes that ensure the high quality of water in heavily populated communities within its concession area. This program targets various public institutions and densely populated areas, and involves the installation of drinking fountains, wash areas, and fire hydrants; regular quality testing and desludging services; rehabilitation of pipes; and in some cases, the repair of public toilets. Manila Water has also ventured into entrepreneurship programs through its Kabuhayan Para sa Barangay (Livelihood for the Community) project. The program aims to incorporate low-income community cooperatives into the companys supply chain. By providing qualified groups with start-up capital, training, and supervision, Manila Water has created a symbiotic relationship with the community it serves. These cooperatives in turn act as suppliers of some products used in Manila Waters operations.

Manila Water has continuing partnerships with six such cooperatives and has purchased a total of P20M worth of products from them. On a wider scale, Manila Water has also developed several small and medium-scale entrepreneurs into world-class contractors. These mom and pop businesses have scaled up their contracting capacity by as much as five times, due to Manila Waters assistance in providing guaranteed work, funding support, and supervision and training. Manila Water has developed several sustainable development initiatives to address the environmental issues connected to its operations. To address the issue of water resource sustainability, Manila Water actively supports the reforestation efforts in the La Mesa watershed through its partnership with Bantay Kalikasan. This partnership is now focusing on the greater task of reforesting Ipo Dam. As the company continues to develop long-term solutions to bringing water resources closer to the expansion areas, there are also efforts to optimize available resources through reduction of water losses and recycling of treated wastewater. The company has adopted a Climate Change Policy, paving the way for increased energy efficiency and use of sustainable energy sources, the development of a Carbon Management Plan, the establishment of climate change mitigating measures, and the reforestation of watersheds to fight the effects of global warming. At the Makati South Sewage Treatment Plant, Manila Water has established a clean development mechanism that will turn waste to energy by recovering methane gas from sludge. This move towards energy selfsufficiency will be replicated in all of Manila Waters sewage treatment plants. Manila Water is also in the process of establishing an environmental management system (EMS). At the forefront of Manila Waters environmental programs is the provision of wastewater management services. At present, only 16 percent of the concession area has access to wastewater treatment systems; the Sanitasyon Para Sa Barangay desludging program covers those areas with no access to wastewater management

On a wider scale, Manila Water has also developed several small and medium-scale entrepreneurs into world-class contractors.

facilities. In the near to medium-term, Manila Water aims to cover most of the East Zone with wastewater systems. Manila Water has also established the MWC Foundation. The MWC Foundation is envisioned as the companys social and environmental arm. Although it is a fairly young foundation, registered with the Securities and Exchange Commission (SEC) in 2006, it has been able to implement a feeding program for the Balara Elementary School, benefiting 65 Grade 1 students. The foundation was able to obtain funding for this through Childrens Hour Philippines. The foundation has also secured a P100,000 grant from the World Bank for a two-hectare reforestation program in the Ipo Watershed. Manila Water is committed to fully integrating the principles of sustainability into the way it conducts its business. With the support of its stakeholders, the company will continue its pursuit of improving lives through its services. Bank of the Philippine Islands

BPI Foundation, the social responsibility arm of the Bank of the Philippine Islands (BPI), has been at the forefront of microfinancing initiatives in the country for the past 12 years. The foundation focuses on strengthening institutional capacities for the expansion of outreach and continued provision of credit to microentrepreneurs. In partnership with the Ateneo de Manila University, BPIs Building Capacities of MFIs program has been able to reach out to MFIs that need assistance in the financing of capacity building activities for their management staff, expanding branch networks, and the development of effective information systems. The foundation works with the Social Enterprise Development Partnerships, Inc. (SEDPI) for support and technical assistance in organizational appraisal and intervention. Through

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these programs, BPI enhanced the competencies of over 80 MFIs and their personnel in various areas such as Davao, Albay, Cebu, Iloilo, and Zamboanga in 2007. These initiatives complement BPIs microfinance operations, which have made available more than P730 million in credit facilities to MFIs of all sizes. The company also supports small and medium enterprises (SMEs) through its Show Me, Teach Me, SME-Empowering Entrepreneurs, a free learning program designed to empower small enterprises, especially those outside Metro Manila. The program assists small business owners in effective financial management to ensure their access to credit. Together with the Department of Trade and Industry (DTI), the foundation conducted seven financing and credit literacy sessions for a total of 276 attendees from 221 business establishments or small and medium-enterprises within the period covered by this report. BPI employees with expertise in the fields of finance and credit are in charge of conducting these sessions. The bank is also involved in programs related to education. Believing that science, research, and technology development are essential components in nation building, BPI partnered with the Department of Science and Technology (DOST) in establishing the BPI-DOST Science Awards, a program that encourages promising scientists and researchers to reach higher levels of excellence in their respective fields. The BPIDOST Science Awards program, now on its 19th year, has produced over 500 awardees from its ten partner universities. In 2004, the program expanded to include the BPI-DOST Best Project of the Year Award, wherein the top six projects vie for the award. BPI also made donations of outdated but working computers to schools and educational institutions through its e-Donate program. The company also provides scholarships to deserving children of employees through the BPI College Scholarship Program. All social undertakings of the foundation are sustained through the initiatives of the bank, which has embedded responsible corporate citizenry as an integral part of its corporate mission.

Globe Telecom

Globes commitment to CSR is sustained by solid programs that form an integral part of the companys corporate governance and strategy. The companys flagship CSR program, Globe Bridging Communities, implemented various community and enterprise development projects in 2007 that empower local leaders and microentrepreneurs. The company also supported a considerable number of education programs by sharing its expertise in mobile and information technology, and by engaging the youth. For Globe, entrepreneurship is a key driver to achieving community and corporate sustainability.This is best exemplified through the Globe BridgeCom Sa Bayan program, which helps identify potential microenterprises and provides entrepreneurs with training on strategic planning, marketing, and financial management. Globe provides technology, funding, capacity building, and venues for microentrepreneurs to build and expand their network. It also facilitates marketing opportunities for these entrepreneurs. By making enterprise skills development available in far-flung areas, Globe BridgeCom Sa Bayan has democratized access to livelihood for small entrepreneurs in the countryside. This project is implemented in partnership with ABSCBN Bayan Foundation. The BridgeCom Sa Bayan enterprise development program gave community-based capabilitybuilding assistance to barangays where Globes almost 6,000 cellular sites are located. The Globe BridgeCom Entrep Fairs provided sales and marketing opportunities for micro-enterprises, including advanced learning in entrepreneurship, and practical opportunities for micro-enterprises to gain market share, expand their networks, and develop their competencies. Globes CSR programs in education also include Globe Tulong Eskwela, a Globe employee volunteer program involved in school adoption, remedial classes, and youth development activities. This program is funded by Globe employees and has benefited schools in Metro Manila and Cebu.

Globe and its employees also actively support Gawad Kalinga (GK), by volunteering to build homes and providing other assistance projects for the benefit of GK communities. To ensure sustainability in the GK communities that Globe helped build, the first Globe-GK Productivity Center and Farming Institute was established in Bacolod City. This was followed by another productivity center in Malaybalay, Bukidnon. Globe leaders provided support to Gawad Kalinga by providing advice on strategies for sustainability, community marketing, and leadership development in the communities. In the area of youth development, Globe supports various youth leadership programs. Each year, the company gathers promising students in management and technology-based courses for the Globe Future Business Leaders Conference. Globe also sponsored the Wiwag Business Week, a one-week business management training program for promising students. Nine hundred fifty youth from Bohol and Iloilo participated in Globes Youth Heritage Camps. The camps allow the participants to gain a better understanding of issues related to heritage preservation, livelihood, and entrepreneurship. In partnership with Voluntary Service Overseas and The British Council, Globe organized the Global Xchange, a nine-month global citizenship program for local

and international volunteers. Globe also supports the activities of the Ayala Young Leaders, which are reported in detail in another section. In order to prevent electronic waste (e-waste) from piling up in landfills and contributing to further environmental degradation, Globe has partnered with the Department of Environment and Natural Resources, ABS-CBN Foundation, Philippine Recyclers Inc., and Bantay Kalikasan, for the Globe Bantay Baterya Program, which advocates for the proper recycling of used lead acid batteries. A total of 454.67 tons of used batteries have been collected through the programs efforts, resulting in the donation of P5.7 million to ABSCBN Foundation in support of other environmental programs such as the Save the La Mesa Dam campaign. Globe has also involved its employees nationwide in various environmental programs.

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Integrated Microelectronics, Inc. The Code of Conduct of Integrated Microelectronics, Inc. (IMI), adopted in 2007, set the direction of the companys CSR policy, which prioritizes the health, safety, and dignity of its employees, and ensures that the companys manufacturing processes do not in any way harm the environment. Volunteerism among employees is highly encouraged in IMI. A considerable number of IMI personnel donate a portion of their salary to help fund the projects of Childrens Hour, an Ayalainitiated fundraising and grant-giving organization that promotes the welfare of Filipino children. To protect the countrys election process, a total of 1,120 IMI volunteers led NAMFRELs Operation Quick Count in Muntinlupa City during the last national elections. IMIs relationship with NAMFREL dates back to the 1986 snap elections. Since then, IMI has improved NAMFRELs participation in the electoral process from poll watching to leading the Operation Quick Count. IMIs employee volunteers have also joined various social development and environmental campaigns. They have participated in relief operations during times of calamity and joined medical and dental missions, as well as a tree-planting activity. In order to meet industry standards in environmental management, IMI continues to implement programs in energy and water conservation and material resource management, particularly chemical control, waste management, and hazardous substance-free programs. IMI has established energy and water conservation measures to cut down on utility expenses and contribute to the protection of the countrys natural resources. IMI has successfully reduced its energy consumption by 7.08 percent on apparent Kw -hr consumption through the following measures: re-piping of CDA machines; optimization of drytype transformers; re-insulation and correction of leaks; use of low-wattage lamps and motors with high-efficiency; and reduction of air-conditioning unit loads. The company has also been able to significantly drive down its use of water through the use of non-chemical water treatment methods, a wastewater-recycling program, the detection of leaks, and a water-regeneration program.

Ayala Automotive Holdings Corporation

Ayala Automotive Ayala Automotive, composed of Honda Cars Makati, Inc. and Isuzu Automotive Dealership, Inc., supports various educational and environmental programs that are aligned with the companys business strategy. In 2007, Ayala Automotives partnership with Dual Tech provided training for 14 graduating students to prepare them for future employment. The tie-up gives young people from poor and socially disadvantaged families the chance to train for a technical occupation. The Ayala Honda dealerships eventually hired 11 students from the training program. In cooperation with Technical Education and Skills Development Authority (TESDA), the automotive dealership was also able to grant scholarship vouchers for immediate family members of the companys employees. To heighten customer awareness on the importance of defensive driving, Ayala Automotive mounted 36 driving orientation seminars in 2007 for its Safety on the Road Campaign. The program also equips customers with basic knowledge in car care and troubleshooting to prevent accidents on the road. Ayalas vehicle dealerships also focused on the problem of garbage and pollution in the city through Agap Basura, a program, which provides trash drums to communities that live in areas where the dealerships are located. The group donated a total of 74 garbage drums to the barangays located near the dealerships in 2007.

Ayalas vehicle dealerships also focused on the problem of garbage and pollution in the city through Agap Basura, a program, which provides trash drums to communities that live in areas where the dealerships are located.

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Looking Forward
Ayala has survived and succeeded through its 174 years by constantly reinventing itself, anticipating and responding to changes and shifts in the needs and dreams of its communities. As the business model of Ayala has evolved, so too has its approach to corporate social responsibility. Today, Ayala Social Initiatives (ASI) is the Groups rallying call for FOCUS, IMPACT and SCALE, as well as the effort to integrate CSR into the way the companies do business. We seek to channel the expertise and experience that has led to the success of our companies into social development programs that work, that are sustainable and that succeed in effecting significant changenot just in the lives of individuals but in entire communities and sectors. Only in this manner can we assure our stakeholders and ourselves that, as prudent stewards of our resources, we are using them in the best possible way to improve the quality of life of the Filipino. This we do to address the needs of educating the Filipino, protecting the environment, and harnessing and enhancing the entrepreneurial spirit. We encourage our employees and invite our partners, clients, suppliers, and NGOs to join us in these efforts in order to create the synergy needed to solve the daunting problems in these three areas. We look forward to their positive response and offer these plans for some of our major projects in the hope that they find the programs worthy of support. With the guidance and involvement of the consortium partners, GILAS will continue to work towards the complete connectivity of all public high schools in the Philippines. With its new partnerships in 2007, CENTEX progresses towards the expanded adoption of its best practices in other schools. Through the Ayala-AIM Environmental Capacity Building Program, a course on environmental sustainability for urban planners and building designers from the government and private sector will be developed. The program is expected to evolve into the catalyst in shaping our urban environmental policy and stimulating sustainable practices. Through strategic partnerships, Manila Water prioritizes the management and protection of watershed areas and the conservation and protection of groundwater sources. Additional wastewater treatment facilities will be installed as well. This community report signals the commitment of the companies in the Ayala group to continue improving their CSR practice, with programs that are a natural result of their unique businesses and engagements with their respective communities and stakeholders. We commit to pursue the accounting and reporting of our CSR performance using the rigorous global standards for disclosure, such as the GRI. Our individual companies will pursue sector-specific reporting on their core businesses, while an integrated community report, covering our CSR programs and core businesses, will be released to the public on a biennial basis. Finally, we will work towards an employee volunteerism program that is better aligned to the businesses we are in and helps manage our impact on our communities and the environment. We seek to achieve this by positioning employee volunteerism programs as opportunities to effectively cascade our CSR philosophy to the front-line operations of our businesses. We commit to track the results of these programs and to improve on existing metrics. In this way, we can ensure that our initiatives will be guided responsibly and accurately, so that we can work towards truly strategic and sustainable CSR.

GRI Index
GRI G3 C LEVEL
Profile Disclosure Items 1. STRATEGY AND ANALYSIS 1.1 Statement from the most senior decision maker(s) of the organization 2. ORGANIZATIONAL PROFILE 2.1 Name of the organization 2.2 Primary brands, products or services 2.3 Operational structure and major divisions 2.4 Location of the company headquarters 2.5 Countries of operation 2.6 Nature of ownership and legal form 2.7 Markets served 2.8 Scale of the reporting organization 2.9 Significant change during the reporting period 2.10 Awards and recognition received during the reporting period 3. REPORT PARAMETERS 3.1 Reporting Period 3.2 Date of most recent previous report 3.3 Reporting cycle 3.4 Contact point for questions about the report and its contents REPORT SCOPE AND BOUNDARY 3.5 Process for defining report content 3.6 Boundary of the report 3.7 Limitations on the scope or boundary of the report 3.8 Basis for reporting on joint ventures, subsidiaries, and other related entities 3.9 Explanation of the effect of any re-statements of information provided in previous reports 3.10 Significant changes from previous reporting period GRI CONTENT INDEX 3.11 GRI Content Index Page 4. GOVERNANCE, COMMITMENTS AND ENGAGEMENT 4.1 Governance structure of the organization 4.2 Indicate if the Chair of the highest governance body is also an executive officer 4.3 Number of independent and non-executive members 4.4 Mechanisms for shareholders and employees to provide recommendations STAKEHOLDERS ENGAGEMENT 4.5 List of stakeholders groups 4.6 Basis for identification and selection of stakeholders groups Explanatory Notes to the Report 1. The Ayala Social Initiatives is the Ayala Group of Companies consolidated approach to CSR. Metrics disclosed in this report focuses on performance of projects under the Ayala Social Initiatives. 2. Reporting core and additional performance indicators under the GRI G3 Sustainability Reporting Guideline will be done under a separate Group Sustainability Report to be published in the first half of 2009.

REFERENCE

Foreword from Our Leaders, pp. 02 05 Group Information, pp. 06-07 Group Information, pp. 06-07 Group Information, pp. 06-07 Group Information, pp. 06-07 na Group Information, pp. 06-07 Group Information, pp. 06-07 Group Information, pp. 06-07 Group Information, pp. 06-07 Awards and Recognition, Group Information, pp. 10 About Our Report, p. 01 na About Our Report, p. 01 About Our Report, p. 01 About Our Report About Our Report, p. 01 About Our Report, p. 01 na na na Inside back cover p. 06-07; individual company websites p.06-07; individual company websites p.06-07; individual company websites p. 06-07; individual company websites Stakeholders Involvement, p. 10 Stakeholders Involvement, p. 10

Acknowledgments
Lead Organization Ayala Foundation Victoria P Garchitorena, President . Guillermo M. Luz, Executive Vice President Mario A. Deriquito, Director, Center for Social Development Adelia R. Licos, Manager, Ayala Social Initiatives CSR Reporting Consultant Maria Fatima Reyes, CPA, MBA, Founder and Principal, Sustainability Strategics Writers Mariel Q. de Jesus, Ayala Foundation, Inc. Mabi David-Balangue, Sustainability Strategics The Ayala CSR Council Jocelyn A. Aldon, Anna Romelyn R. Almario, Myra G. Almogino-Calara Eleanor B. Misa, Jorge T. Marc, Jeffrey O. Tarayao Concept and Design K2 Interactive (Asia), Inc.
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This Ayala Social Initiatives Corporate Social Responsibility Report cover is printed on FSC-certified Beckett Expression 30% PC, which is made with 30% process chlorine-free post-consumer recycled fiber with the balance comprised of elemental chlorinefree virgin fiber. This paper is made carbon neutral with Mohawks production processes by offsetting thermal manufacturing emissions with Verified Emission Reduction Credits (VERs), and by purchasing enough Green-e certified Renewable Energy Certificates (RECs) to match 100% of the electricity used in our operations. This paper is also certified by Green Seal.