COA’s CSR towards a More Sustainable Operations

Corporate Social Responsibility

Corporate Social Responsibility is an advocacy worldwide supported by socially responsible frameworks and principles to promote organizations’ commitment to human development and environmental rehabilitation and restoration. Corporate Social Responsibility (CSR) is defined by World Bank (House Bill No. 305, 2013) as “the commitment of business to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for business, the sustainable development agenda, and society at large.” It is also illustrated in the Carroll’s CSR Pyramid that social responsibility has different levels and that contribution of resources for life improvement is the highest.

Figure 1: Carroll’s CSR Pyramid

Another model that shows company’s responsibility to human development is Dr. Teehankee’s “Boat of Life” that depicts an illustration of a boat where most of the society’s members are experiencing exploitation and drowning and companies must do something to uplift these people to obtain integral human development.

CSR engagement is not only popular in private companies but also is encouraged to be applied by public entities because the government is task to regulate and coordinate with such CSR activities. Section 2 of the House Bill 305 dated July 01, 2013 – An Act Encouraging Corporate Social Responsibility, Providing Incentives therefor, and for other purposes states that:

Sec.2. Declaration of Policy. – The State recognizes the vital role of the private sector in nation building and shall encourage its active participation in fostering sustainable economic development and environment protection in the Philippines. Towards this end, the government shall mobilize its various agencies, in coordination with non-government, and people’s organizations, to work hand in hand for the integration, promotion, and strengthening of corporate social responsibility in all business organizations.

Constitutional Mandates of the Commission on Audit (COA)

The Commission on Audit (COA), designated as the Supreme Audit Institution of the Philippines is created under the provisions of Article 1X-D of the 1987 Constitution.

Section 2(1).The Commission on Audit shall have the power, authority, and duty to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the Government, or any of its subdivisions, agencies, or instrumentalities, including government-owned or controlled corporations with original charters, and on a post-audit basis: (a) constitutional bodies, commissions and offices that have been granted fiscal autonomy under this Constitution; (b) autonomous state colleges and universities; (c) other government-owned or controlled corporations and their subsidiaries; and (d) such non-governmental entities receiving subsidy or equity, directly or indirectly, from or through the Government, which are required by law or the granting institution to submit to such audit as a condition of subsidy or equity. However, where the internal control system of the audited agencies is inadequate, the Commission may adopt such measures, including temporary or special pre-audit, as are necessary and appropriate to correct the deficiencies. It shall keep the general accounts of the Government and, for such period as may be provided by law, preserve the vouchers and other supporting papers pertaining thereto.

Under Article IX-D of the 1987 Philippine Constitution, the Commission on Audit is mandated to perform the following:

1.Examine, audit and settle all accounts pertaining to the revenueand receipts of, and expenditures or uses of funds and property owned or held in trust by, or pertaining to, the government.[Section 2(1)],

2.Promulgate accounting and auditing rules and regulations including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant or unconscionable expenditures, or uses of government funds and properties.[Section 2(2)],

3. Submit annual reports to the President and the Congress on the financial condition and operation of the government. (Section 4),

4.Recommend measures to improve the efficiency and effectiveness of government operations. (Section 4),

5. Keep the general accounts of government and preserve the vouchers and supporting papers pertaining thereto. [Section 2(1)]

Section 9 of THE 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES states that “The State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all.” This statement is lifted from the 1987 Constitution which also created COA and is also consistent with CSR’s definition. Therefore it is worthwhile for COA to participate in CSR activities.

Current State of COA’s CSR

COA in its social responsibility continuum, is involved in various CSR activities in the country and in international endeavors, from providing calamity help, supporting values formations and livelihood programs to environmental audit. Among the activities of COA that promotes social responsibility and human development are its programs and projects in Gender and Development (GAD) and its implementation of Citizen Participatory Audit (CPA). These activities are headed by our current Chairman, Maria Gracia Pulido-Tan and COA officials.

Gender and Development (GAD)

Sec. 27. Programs/Projects Related to Gender and Development (GAD). In consultation with the National Commission on the Role of Filipino Women (NCRFW), all departments including their attached agencies, offices, bureaus, agencies, state universities and colleges, government-owned and controlled corporations and other instrumentalities, shall formulate a GAD Plan, designed to empower women and address gender issues, in accordance with R.A. 7192 and the Philippine Plan for Gender-Responsive Development (PPGD), 1995-2025. The cost of implementation of the GAD Plan shall be at least five percent (5%) of the agency’s total FY 2000 budget appropriations.

All concerned government entities shall submit their GAD plan to the NCRFW for review. They shall likewise submit annual reports to the Congress, the Department of Budget and Management (DBM) and NCRFW, indicating the accomplishments and amounts utilized to implement programs/projects/activities addressing gender issues and women empowerment. The evaluation of agencies’ utilization of the GAD budget shall be performance-based.

In addition to Joint Circular 99-4 issued by the National Economic and Development Authority (NEDA), the DBM and NCRFW, additional sets of guidelines, as deemed necessary, shall be formulated, for the implementation of GAD-related programs/projects/activities.

COA GAD Plan and Budget

The COA GAD Plan and Budget is a two-year plan which aims to put into place effective mechanisms and measures for gender mainstreaming throughout COA. It spells out the issues and concerns on gender, establishes strategies and instruments with reachable targets for the Focal Point. It also reports the corresponding budget to be carried out in implementing GAD PAPs.

The plan builds on lessons learned in the implementation of the previous plans and the observations of the GAD advocates and by the NCRFW.

Accomplishment Report

The accomplishment report presents the programs/projects achieved by the gender Focal Point in a certain financial year and the corresponding cost in implementing the same.

For the year 2005, highlights of the Focal Point’s accomplishments are as follows:

On Policy Development:

• Submitted the proposed "Implementing Guidelines on Anti-Sexual Harassment Act of 1995 (Republic Act 7877) to the Commission Proper; and
• Conducted research and analysis of the survey results on "gender audit"

On General Administration and Support to Human Capital Development

• Conduct of GAD seminars
• Full management of the Day Care Center
• Conduct of lectures on common diseases and prevention thereof
• Spot check and ocular inspection of the COA canteen to improve canteen services and hygiene of canteen workers

COA Citizen Participatory Audit

The Citizen Participatory Audit (CPA) is an idea initiated by COA Chairman, Maria GraciaPulido- Tan in including the Filipino citizen in the COA audit process. The CPA started its operation through the Citizen’s Desk located under the office of the COA Chairman. Citizens are encourage to report, comment and suggest their ideas and knowledge about government projects in texting and contacting the hotline manned by a COA staff in the Citizen’s Desk. The audit team will include two to three ordinary citizens from the locality of the project site and they will be trained to perform low-technical aspects of the audit (par. 18). Tan added that with CPA, citizens will have an increased awareness and knowledge of the government, their ownership of public funds that came from their taxes will be strengthened, they will be part of government decisions, and public service delivery will be improved.

According to Chairman Tan (2014), recent implementation of CPA could be seen based on the pilot audits on the CAMANAVA Flood Control Project, the Conditional Cash Transfer (CCT) and Barangay Health Centers, and the Solid Waste Management Project of Quezon City.  CPA is also engaged with the Concerned Citizens of Abra for Good Governance (CCAGG), “a non-governmental organization that monitors government projects in the Abra region of the northern Philippines” (COA, 2005).

Identification of a potential CSR activity and its adaptability

COA has no separate sector for CSR (as illustrated by its organizational chart) and most of its CSR activities are only based on invitations of other organizations and suggestions of its officials. Thus, for COA to increase its commitment in promotion of public accountability, transparency and good governance, and with its recommendatory powers mandated under the constitution, the inclusion of CSR in its audit functions and to audit the CSR activities of the government in collaboration with these government agencies as well as international organizations such as United Nations is a good idea because at the present, GAD has already been included as one of the audit areas in government agencies.

One of the areas on which COA could focus its CSR activities is on the field of education and employment. It can provide college scholarship programs in accounting, engineering and information technology courses for deserving students who will have the opportunity to be eventually employed in COA after successfully finishing the program. In this view, COA could respond to Commission on Higher Education (CHED) concern that more high school students could not afford to continue their studies in college because of increasing tuition fees (Montenegro, 2011) and to increase the employment rate of 59.4% (employment to population ratio, ) in the Philippines.

Professional and Institutionalized Development Sector (PIDS) is a sector of COA that is in charge of establishing and implementing the relevant training for COA employees as well as for non-COA government employees. Its training programs and seminars also extended in other government agencies, professional organizations and international bodies. This will be the sector which will help in the fulfillment of the scholarship program in coordination with the Human Resources Sector for the employment concern.

On the other hand, COA also has an opportunity extending its audit by the environmental audit adoption since it is involve in auditing the Department of Agriculture and the Department of Environment and Natural Resources. Recently COA joined the International Organization of Supreme Audit Institution (INTOSAI) in the zero waste management of Marikina (COA, 2013).

As observed, COA has no extensive CSR activity aside from GAD and CPA. It has no planned regular CSR engagements except when invited by other government agencies and international organizations. With the proposal of including CSR in its audit services in addition with GAD and CPA, COA CSR efforts will be integrated in its audit functions and mandate.

COA, having the recommendatory powers and fiscal autonomy can initiate this CSR integration within its strategic plan.

COA: An Organization Exercising Human Rights

A right is an individual’s permission or empowerment to do something and an entitlement to have something done for them (Velasquez, 2006). Rights are not universal and can be delimited by the jurisdiction of the legal system existing in a country. In our country, the Philippines, our rights are specified under the bill of rights of the 1987 Constitution.

Article III of the Bill of Rights states that:

Section 1. No person shall be deprived of life, liberty, or property without due process, nor shall any person be denied the equal protection of the laws.

Section 2. The right of the people to be secure in their persons, houses, papers, and effects against unreasonable searches and seizures of whatever nature and for any purpose shall be inviolable, and no search warrant or warrant of arrest except upon probable cause to be determined personally by the judge after examination under oath or affirmation of the complainant and the witnesses he may produce, and particularly describing the place to be searched and the persons or things to be seized.

Section 3. (1) The privacy of communication and correspondence shall be inviolable except upon lawful order of the court, or when public safety or order requires otherwise, as prescribed by law.2) Any evidence obtained in violation of this or the preceding section shall be inadmissible for any purpose in any proceeding.

Section 4. No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of the people peaceably to assemble and petition the government for redress of grievances.Section 5. No law shall be made respecting an establishment of religion, or prohibiting the free exercise thereof. The free exercise and enjoyment of religious profession and worship, without discrimination or preference, shall forever be allowed. No religious test shall be required for the exercise of civil or political rights.

Section 6. The liberty of abode and of changing the same within the limits prescribed by law shall not be impaired except upon lawful order of the court. Neither shall the right to travel be impaired except in the interest of national security, public safety, or public health, as may be provided by law.

Section 7. The right of the people to information on matters of public concern shall be recognized. Access to official records, and to documents and papers pertaining to official acts, transactions, or decisions, as well as to government research data used as basis for policy development, shall be afforded the citizen, subject to such limitations as may be provided by law.

Section 8. The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged.

Section 9. Private property shall not be taken for public use without just compensation.

Section 10. No law impairing the obligation of contracts shall be passed.

Section 11. Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty.

Section 12. (1) Any person under investigation for the commission of an offense shall have the right to be informed of his right to remain silent and to have competent and independent counsel preferably of his own choice. If the person cannot afford the services of counsel, he must be provided with one. These rights cannot be waived except in writing and in the presence of counsel.

(2) No torture, force, violence, threat, intimidation, or any other means which vitiate the free will shall be used against him. Secret detention places, solitary, incommunicado, or other similar forms of detention are prohibited.

(3) Any confession or admission obtained in violation of this or Section 17 hereof shall be inadmissible in evidence against him.

(4) The law shall provide for penal and civil sanctions for violations of this section as well as compensation to the rehabilitation of victims of torture or similar practices, and their families.

Section 13. All persons, except those charged with offenses punishable by reclusion perpetua when evidence of guilt is strong, shall, before conviction, be bailable by sufficient sureties, or be released on recognizance as may be provided by law. The right to bail shall not be impaired even when the privilege of the habeas corpus is suspended. Excessive bail shall not be required.

Section 14. (1) No person shall be held to answer for a criminal offense without due process of  law.

(2) In all criminal prosecutions, the accused shall be presumed innocent until the contrary is proved, and shall enjoy the right to be heard by himself and counsel, to be informed of the nature and cause of the accusation against him, to have a speedy, impartial, and public trial, to meet the witnesses face to face, and to have compulsory process to secure the attendance of witnesses and the production of evidence in his behalf. However, after arraignment, trial may proceed notwithstanding the absence of the accused: Provided, that he has been duly notified and his failure to appear is unjustifiable.

Section 15. The privilege of the writ of habeas corpus shall not be suspended except in cases of invasion or rebellion, when the public safety requires it.

Section 16. All persons shall have the right to a speedy disposition of their cases before all judicial, quasi-judicial, or administrative bodies.

Section 17. No person shall be compelled to be a witness against himself.

Section 18. (1) No person shall be detained solely by reason of his political beliefs and aspirations.

(2) No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted.

Section 19. (1) Excessive fines shall not be imposed, nor cruel, degrading or inhuman punishment inflicted. Neither shall death penalty be imposed, unless, for compelling reasons involving heinous crimes, the Congress hereafter provides for it. Any death penalty already imposed shall be reduced to reclusion perpetua.

(2) The employment of physical, psychological, or degrading punishment against any prisoner or detainee or the use of substandard or inadequate penal facilities under subhuman conditions shall be dealt with by law.

Section 20. No person shall be imprisoned for debt or non-payment of a poll tax.

Section 21. No person shall be twice put in jeopardy of punishment for the same offense. If an act is punished by a law and an ordinance, conviction or acquittal under either shall constitute a bar to another prosecution for the same act.

Section 22. No “Expost facto Law” or bill of attainder shall be enacted.

I am thankful enough that my organization, the Commission on Audit (COA) follows the above declaration on human rights and has observe the right of its employees by allowing us to (1) form a union; (2) providing us an adjudication board to defend us in courts; (3) giving us the freedom on decision making in our responsibility areas; (4) providing us a decent salary and a secure office to work with; (5) addressing the needs of women and the employees’ family and (6) encouraging a participative environment among audit groups.

Currently, COA is active in its campaign in condemning discrimination against women and gender inequalities. COA’s recognition on human rights can also be magnified by the inclusion of the Human Rights Victims’ Claims Board (HRVCB), an independent and quasi-judicial body which shall be attached to but shall not be under the Commission on Human Rights, as part of its audit.  

COA’s Boat of Life

I am always been afraid of the deep water. This is why I failed to learn how to swim despite the fact that I took swimming lessons in physical education in my undergraduate studies. I imagine myself being drowned and lost under the sea. I am scared of the experience to lose my life in water without anyone saving me. Thus, I needed a life vest or a floater and I have to wear it every time I am in boat doing an island hopping with friends so that I can remain calm--that I would have a chance of survival in case the boat will sink. Isn't it comforting to know that there is something or someone who will help you survive or float and somehow will help you breath when you are already drowning? 

Our life today has become tougher as economic and environmental crisis continue to unfold (Taylor, 2009). Commodity prices increase leading to lesser value of money and environmental resources are threatened because of higher consumption of economic activities. In this kind of life status, it is a necessity for people to have a support from the government and organizations to uplift their living similar to a boat, life vest and a floater that ascertain survival from drowning.

In La Sallian Business Leadership and Corporate responsibility, there is a concept called 'The boat of life' where human development is integrated in organizations to uplift the status of living for people who are experiencing exploitation and are drowning beneath the threshold of human development. The boat of life is an illustration of a boat symbolizing an organization. Ideally this boat together with its people should float within the threshold to support social justice and to show care to its people.

Scared of dying under deep water, I believe that the company where I am right now, the Commission on Audit (COA) supports the concept of the boat of life and maintains the human development endeavor. It has an enough package of benefits that caters its employees' needs. COA Memorandum Circular No. 2013-003 dated January 30, 2013 provides the following table of employee benefits, allowances and incentives as allowed by law:

     

As part of COA, I am already contented with its employee package of benefits and allowances. I could say that I could survive the challenges of today's life crisis with COA's employee benefit plan that serves as my life vest, floater and boat. However, improvement and opportunities for enhanced human development and employee empowerment should be a continuous endeavor especially in the area of training because as of now training allowance has not been stated in the table and has not been the focus of the Commission as experienced.

Prioritizing Personal Interest: A Conflict of Interest in the Government

Some of our government officials and employees have neglected their oath of public service at the time of their appointment in the government and have stained their integrity for public trust by engaging in activities that create a conflict of interest.

A picture of a government officer playing solitaire in her desktop while there is a queue of people waiting to be served outside of her office has become viral lately in social media.  

This is a frustrating scenario for the people patiently waiting outside of the government-officer’s window. These people may have to come early and endure a long time of waiting unaware that the officer who should be dealing with their transactions is busy with her recreational activity and not doing her duty as a public officer by serving government’s people above her personal interest. I also did experience the same scenario when I was applying for a replacement of a government identification card (ID) and then the personnel at that government office said that they cannot process my request because it was already their lunch time and I should go back by 1PM for the ID replacement. Ha? It was only 11AM? Lunch time should be at 12 noon. Surprisingly, when I came back at this office by 1PM, the said government personnel was at his siesta time. This made me sick of the realization that some of government employees are not serious in doing public service because they are not mindful of the promise of “public office is a public trustEand that they are paid to do so.

Section 1 of Article XI- Accountability of Public Officers states that:

“Public office is a public trust. Public officers and employees must, at all times, be accountable to the people, serve them with outmost responsibility, integrity, loyalty, and efficiency; act with patriotism and justice, and lead modest lives."

The above accountability statement should be kept in mind at the time a government employee receives his letter of appointment to office and he/she should take an oath to be accountable to the people of the government and whenever he/she committed an act violating the statement of accountability creates a scenario of conflict of interest between the interest of the government against the vested interest of the government employee. Conflict of interest arises when an employee in a certain job have an interest that might motivate them to do that job in a way that may not be in the best interests of the firm (Velasquez, 2006).  

In addition, Section 4-Norms of Public officials and employees of Republic Act No. 6713 declares that every public official and employee shall observe the following as standards of personal conduct in the discharge and execution of official duties:

(a) Commitment to public interest. - Public officials and employees shall always uphold the public interest over and above personal interest. All government resources and powers of their respective offices must be employed and used efficiently, effectively, honestly and economically, particularly to avoid wastage in public funds and revenues.

(b) Professionalism. - Public officials and employees shall perform and discharge their duties with the highest degree of excellence, professionalism, intelligence and skill. They shall enter public service with utmost devotion and dedication to duty. They shall endeavor to discourage wrong perceptions of their roles as dispensers or peddlers of undue patronage.

(c) Justness and sincerity. - Public officials and employees shall remain true to the people at all times. They must act with justness and sincerity and shall not discriminate against anyone, especially the poor and the underprivileged. They shall at all times respect the rights of others, and shall refrain from doing acts contrary to law, good morals, good customs, public policy, public order, public safety and public interest. They shall not dispense or extend undue favors on account of their office to their relatives whether by consanguinity or affinity except with respect to appointments of such relatives to positions considered strictly confidential or as members of their personal staff whose terms are coterminous with theirs.

(d) Political neutrality. - Public officials and employees shall provide service to everyone without unfair discrimination and regardless of party affiliation or preference.

(e) Responsiveness to the public. - Public officials and employees shall extend prompt, courteous, and adequate service to the public. Unless otherwise provided by law or when required by the public interest, public officials and employees shall provide information of their policies and procedures in clear and understandable language, ensure openness of information, public consultations and hearings whenever appropriate, encourage suggestions, simplify and systematize policy, rules and procedures, avoid red tape and develop an understanding and appreciation of the socio-economic conditions prevailing in the country, especially in the depressed rural and urban areas.

So why those government officers and employees still afford to do such acts that contradict their public duty and still continue to prioritize their personal interest against public interest? Perhaps there is really a lack of commitment for public service among those people and they thought that such practice is acceptable in our society because people tolerate it and do not implement sanctions to stop such acts. I think our country could have been a better place to live, when every government officers and employees could see the impact of their work and adhere to their oath of public service and work ethics.

Ethical Advertising: Applicable in Private and Public Transactions

Advertising has been a medium for profit-oriented companies to promote their products and services. It is defined as the dissemination of information or messages for a business purpose usually intended to promote commercial transactions or to enhance a business’ general standing in the marketplace or the community under the Philippine Advertising Code of Ethics Manual. In this context, the Advertising Board of the Philippines adopted the Advertising Code of ethics with the following purposes:

1. To promote truthful and informative advertising for the benefit of consumers and the

public in general.

2. To upgrade the practice of advertising in order to develop public confidence in advertised products and services and in the credibility of advertising as an economic activity.

…

In the case of the Commission on Audit (COA), a government institution mandated to audit government agencies and funds, advertising through media has become part of promoting transparency and accountability in the government. One particular government transaction whereby advertising is a critical component and has the attention of COA is within the context of competitive bidding process.   

Competitive bidding refers to a method of procurement which is open to participation by any interested party and which consist of the following processes: advertisement, pre-bid conference, eligibility screening of bids, evaluations of bids, post - qualification, and award of contract, the specific requirements and mechanics of which shall be defined in the implementing rules and regulations to be promulgated under Republic Act 9184- The Government Law on Procurement.

COA observes the competitive bidding procedures undertaken by the government to ensure that government procurement of goods, services and infrastructures are in accordance with the Government Procurement Policy Board (GPPB) and RA 9184. These laws dictate that advertising is an initial step for a competitive bidding.

Section 21. Advertising and Contents of the Invitation to Bid provides that:

In line with the principle of transparency and competitiveness, all Invitations to Bid contracts under competitive bidding shall be advertised by the Procuring Entity in such manner and for such length of time as may be necessary under the circumstances, in order to ensure the widest possible dissemination thereof, such as, but not limited to, posting in the Procuring Entity's premises, in newspapers of general circulation, the G-EPS and the website of the Procuring Entity, if available. The Invitation to Bid shall contain, among others:

(a) A brief description of the subject matter of the Procurement;

(b) A general statement on the criteria to be used by the Procuring entity for the eligibility check, the short listing of prospective bidders, in the case of the Procurement of Consulting Services the examination and evaluation of Bids, and post-qualification;

(c) The date, time and place of the deadlines for the submission and receipt of the eligibility requirements, the pre-bid conference if any, the submission and receipt of bids, and the opening of bids;

(d) The Approved Budget for the Contract to be bid;

(e) The source of funds;

(f) The period of availability of the Bidding Documents, and the place where these may be secured and;

(g) The contract duration; and

(h) Such other necessary information deemed relevant by the Procuring Entity.

The purpose of advertisement in the competitive bidding process is to inform the public regarding the procurement activities of the government and to allow prospective bidders to participate in competitive bidding. Posting of this advertisement in newspapers of general circulation and on the website of the procuring entities promotes transparency and accountability in government transactions. Omission and ambiguity of advertisement in the bidding process has corresponding sanctions and penalties on the part of the procuring entity. On the other hand, section 3 & 4 of the Philippine Advertising Code of Ethics state that the purpose of advertisement is to provide the general public with relevant and truthful information on products and services and to encourage healthy competition that promotes free enterprise. Both agree that advertisement is for the promotion of transparency and fair competition. In this way we can conclude that both private and government transactions advocate the practice of ethical advertisement.