Rosemont Hills Montessori College

Sabang Deca Homes Danao City

SM

Case Study

CRIZZEL ABELLA

March 2018
 Case Study

SM was founded as a shoe store by Henry Sy, Sr., in October 1958 in downtown Manila. Mr. Sy,
who is known as the visionary of Philippine retail because of his innovations in the industry,
thought of establishing a chain of shoe stores with a store layout and merchandising concepts
never before tried in the Philippines.

Through careful planning and execution, SM takes inspiration from its millions of stakeholders
whose lives are shaped by their aspirations and constant desire for a better quality of life. As it
continues to build on these aspirations, SM fulfills its catalyst role by expanding through its core
businesses, generating employment, business activity and overall progress in its host
communities. SM stands firm in its commitment toward change by promoting more value and
greater convenience, stimulating growth and inspiring millions toward realizing their lifelong
dreams.

It simply means that SM companies go beyond their institutional missions by empowering the
marginalized sector of society to live a decent life.

More than financial aid, SMFI provides opportunities that help sustain livelihood. This year,
more lives have started to carve a path toward change because of SMFI’s continuous projects.

Apart from the scholarship grants, SMFI is also helping rebuild old school buildings and
classrooms, and donating new ones. The selection of schools is closely coordinated with the
Department of Education, which recommends schools that are short of classrooms and those
that need major refurbishment.

Health
Medical and dental missions around the country are made possible through SMFI’s mobile
clinics equipped with X-ray and ECG machines, with volunteer medical and health professionals
giving their time and effort to help underprivileged patients.

Code of Ethics
The Code of Ethics states the principles that guide SM’s Directors, officers and employees in the
performance of their duties and responsibilities, and in their transactions with investors,
creditors, customers, contractors, suppliers, regulators and the general public. The Code
underlines the importance of integrity in the relationships and dealings with business partners,
and highlights the Company’s duties regarding employee welfare, the rights of shareholders, the
protection of material company information and the importance of corporate social
responsibility.

Employee Welfare

In line with its mission and vision, SMIC strives to be an employer of choice and provides for the
health, safety and welfare of its employees. The Company has established policies and
programs that promote a safe and healthy work environment that caters to all cultures and
creeds and encourages employee development and growth.

Orientations and Training

SMIC remains committed to providing its directors, officers and employees opportunities for
growth and development through its various training and orientation activities.

Code of Ethics

Overview

Values have been the foundation of the Ayala Group of Companies over the last 175 years.
Beyond strategic, operational or financial success, the Ayala Group has been defined by its
continued commitment to doing things the right way even in the face of uncertainty.

History

SM City Cebu, also known locally as SM Cebu, is a large shopping mall located in Cebu City,
Philippines. It is the 4th shopping mall owned and developed by SM Prime Holdings, the
country's largest shopping mall owner and developer. It is the company's first shopping mall
outside of Metro Manila and the 6th largest shopping mall in the Philippines.[2][3] It has a land
area of 11.8 hectares and a gross floor area of 268,611 m2 (2,891,300 sq ft)[4][5]

On an average day, more than 100,000 people visit SM City Cebu, with the figure increasing to
140,000 to 150,000 on weekends.[6] Due to Cebu City's position as a transshipment point for
the Visayas and Mindanao, and SM City Cebu's location close to the city's port area, the mall
attracts a significant number of transient shoppers.[6]

As SM celebrates its 50th Anniversary as a retailer, it approaches this milestone with a new
vitality and energy to serve a new generation of shoppers, as well as the many customers that
have made it part of their lives.

SM was founded as a shoe store by Henry Sy, Sr., in October 1958 in downtown Manila. Mr. Sy,
who is known as the visionary of Philippine retail because of his innovations in the industry,
thought of establishing a chain of shoe stores with a store layout and merchandising concepts
never before tried in the Philippines.

The success of the shoe store led to its expansion as a full line store, and the first SM
Department Store opened in downtown Manila in 1972. With its exciting merchandise mix,
world class interiors, one stop shopping convenience, and service, SM has become part of the
lives of many Filipinos. Today, it has 32 branches strategically located around Metro Manila and
key cities around the country.

Through the opening of new stores, renovations of major stores, and the introduction of new
merchandising concepts, SM continues to make shopping at its department store chain an
exciting lifestyle experience.

From the dream of selling a good pair of shoes to every Filipino, SM founder Henry Sy, Sr. has
laid the groundwork and piloted the development and evolution of SM Investments Corporation
(SM) into one of the country’s largest holding companies in the Philippines today.
For nearly six decades, SM has demonstrated its leading presence in retail, banking, and
property development in the Philippines with a rising presence in China, innovating to provide
best-value in products and services across various customers.

Through careful planning and execution, SM takes inspiration from its millions of stakeholders
whose lives are shaped by their aspirations and constant desire for a better quality of life. As it
continues to build on these aspirations, SM fulfills its catalyst role by expanding through its core
businesses, generating employment, business activity and overall progress in its host
communities. SM stands firm in its commitment toward change by promoting more value and
greater convenience, stimulating growth and inspiring millions toward realizing their lifelong
dreams.

MILESTONES IN SM’s HISTORY

1958 Founder Henry Sy, Sr. opened a shoe store along Rizal Avenue called Shoemart and a
second one on Carriedo, Manila.
1963- The shoe store, Shoemart Makati, opened its doors to the public in 1963. Without losing
1967 momentum, Shoemart Cubao opened five years later.
1972- Launched in 1972, Shoemart Manila on Calle Echague was transformed into the first of
1978 Mr. Sy’s department stores. The opening of the department store, SM Makati in 1975
was a accompanied by a dramatic corporate rebranding where Mr. Sy’s stores would be
rechristened as SM from SM Department Store. From its racks would spring fashion
trends that would define fashion in the metro. In 1978, SM Cubao opened, tapping into
the large pedestrian population of that area.
1980- Despite ongoing political and economic challenges, there was marked growth in SM as
1984 new department stores opened in Cubao, Quezon City and Harrison in Manila at this
time.
1985 The natural progression of store to mall happened when Mr. Sy opened his first mall on
EDSA in November 1985. SM North EDSA, a 125,000 square meter-mall, opened at a
time when the country was plunged into one of the most turbulent periods of political
history.

SM Supermarket also became one of the anchor stores in SM North EDSA alongside SM
Department Store.
1991- The 1990s could be characterized as the start of the malling phenomenon as SM built
1993 one new mall after another. SM opened SM City Sta. Mesa in 1990, SM Megamall in
1991 and SM City Cebu in 1993.
1994 SM Prime Holdings, Inc. was incorporated to become the vehicle for SM's mall
operations. It went public this year to enhance its funding capabilities and increase SM
Prime's growth momentum in mall development.
2001 SM's first mall in China opened in Xiamen, then owned by the Sy family with a gross floor
area (GFA) of 128,000 square meters (sqm.), almost similar in size to SM City Sta. Mesa
and is 100% occupied.
2003 SM Development Corporation, SM's property developer, unveiled its maiden
condominium project, the Chateau Elysee in Bicutan, Paranaque, marking its foray into
the residential space.
2005 SM Investments went public and raised over USD500 million and was considered the
largest IPO at that time.
2006 SM Mall of Asia, SM Prime's flagship and the country's largest mall back then, was
opened fronting the scenic Manila Bay in Pasay City. The mall was the anchor
development in the 60-hectare reclaimed property now known as the Mall of Asia
Complex.

Later in the year, SM bought a majority stake in Equitable PCI Bank and merged it with
 BDO.

This year saw the acquisition of the supermarket and hypermarket businesses by SM
from the Sy family.
2007 SM launched Hamilo Coast, a large-scale eco-tourism project in Batangas.

SM Hotels was also organized to oversee various hotel investments of the group in line
with the SM's tourism initiatives.

SM Prime acquires three projects in China --Xiamen, JinJiang and Chengdu from the Sy
family. The move allowed SM Prime gain a foothold in China's fast-growing economy for
long-term growth outside of the Philippines.
2013 SM Prime Holdings announced a landmark merger of all SM's property assets to create a
company that holds interests in malls, residences (under SM Development Corporation),
offices, hotels and convention centers (SM Hotels and Conventions Corp.) as well as
leisure-related developments (Costa del Hamilo, Inc.). The merger resulted in the
creation of one of the largest property conglomerates in Southeast Asia.

SM launched its American Depositary Receipt (ADR) Level 1 program. Under this, ADR
securities issued in the US representing SM common shares can be traded over-the-
counter. This allowed US investors to trade SM common shares in their own time zone
and to settle transactions locally.
2015 SM Prime opens SM Seaside City Cebu, the anchor development in the 30-hectare
integrated property on reclaimed land in that province. SM Seaside Cebu, with a gross
floorplate of 430,000 square meters is envisioned to be a premier destination in the
Visayas and Mindanao regions.
2016 SM Investments Corporation announced the merger of its retail arm, SM Retail Inc. (SM
Retail) with several related retail companies that will include a diverse portfolio of food,
household appliances, DIY, furniture, apparel, footwear, pharmaceuticals/cosmetics and
specialty retailing stores.
OUR COMPANY

Corporate Profile

Our History

50th Anniversary

Vision and Mission

Board of Directors

Awards and Citations

Our Investments

Retail

Property

Banks

Portfolio Investments
CSR

SM Foundation: CSR with a human touch

Oct 15, 2012 - ABANTE

It is expected of companies to engage in corporate social responsibility, but SM Foundation, Inc.

(SMFI) takes a step further by giving its programs the
human touch.

It simply means that SM companies go beyond their

institutional missions by empowering the
marginalized sector of society to live a decent life.

More than financial aid, SMFI provides opportunities

that help sustain livelihood. This year, more lives
have started to carve a path toward change because
of SMFI’s continuous projects.

Education
SMFI empowers the youth through the SM College Scholarship. A dedicated team makes sure
that the most financially challenged but most deserving students get their chance at formal
education.

As of today, 1,300 scholar graduates are now working professionals both here and abroad. Half
of them graduated from their respective colleges with Latin honors. Unlike other scholarship
grants, SMFI’s college program does not require scholars to work in any SM company.

For the current school year, more than a thousand college and vocational course scholars were
enrolled and hope to graduate by 2013. Applications for SY 2013-2014 are now being accepted
at service counters of SM Supermalls, SM Department stores, SM Supermarkets, and Savemore
Markets nationwide. Deadline for submission of requirements is December 20, 2012.
Apart from the scholarship grants, SMFI is also helping rebuild old school buildings and
classrooms, and donating new ones. The selection of schools is closely coordinated with the
Department of Education, which recommends schools that are short of classrooms and those
that need major refurbishment.

There are 41 school buildings donated throughout the country so far, with nine of them installed
with internet connection. By the end of this year, seven (7) school buildings with sixteen (16)
classrooms combined will be turned over to various public elementary and secondary schools in
Cagayan de Oro, General Trias (Cavite), Olongapo, and San Fernando (Pampanga).

Health
Medical and dental missions around the country are made possible through SMFI’s mobile
clinics equipped with X-ray and ECG machines, with volunteer medical and health professionals
giving their time and effort to help underprivileged patients.

These mobile clinics go around communities surrounding SM malls and stores to serve patients
who do not have access to health facilities due to poverty. Those who have severe illnesses are
provided with at least P5,000 and referred to accredited hospitals.

More than 600 medical missions have been conducted since 2001, with eight to ten more
scheduled until December of this year. Aside from these medical missions, SMFI also helps
refurbish health establishments, mostly public hospitals that either have dilapidated facilities or
none at all.

Those that cater to adult patients are called the Felicidad Sy Wellness Centers, while those
dedicated to children are referred to as Hospice Centers.

SMFI’s health advocacy has earned the Best in Health Special Award during the 2nd
Management Association of the Philippines Corporate Social Responsibility (MAP-CSR) Challenge
of 2011.

More work is needed to keep this going, so volunteers are encouraged to sign up and be part of
this worthy crusade. Interested practitioners and other health workers may get more
information by contacting the SMFI at tel. no. 831-1000 local 1494 & 1498.

Livelihood
Farmers and their families also get to benefit from SMFI’s livelihood programs. This year’s
KabalikatsaKabuhayan Farmers Training Program is now in its final phase, with 483 recipients
expected to graduate in Lucena City, Cagayan de Oro, and Calamba after the 3-month course.
Farmers are given technical skills and know-how training, with free seeds to start them off.

Thus far, the program has produced 4,000 graduates. They get to have linkages to market
opportunities courtesy of SM’s supply chain. One way to showcase the farmers’ produce is
through Harvest Festivals, whichwill be held at the SMFI-KSK demo farms.Graduation
ceremonies will be held in SM Malls.

Other livelihood projects implemented this year are the animal dispersals in Nasugbu, Batangas;
Hospitality training; and the 3rd PistangPinoy, which will be held on December 5. Part of the
activities held in Nasugbu this year was the planting of 31,000 trees.

The prestigious Anvil Awards has recognized SM Cares, the Corporate Social
Responsibility arm of SM Prime Holdings, Inc., for its outstanding achievements in
promoting its pioneering and innovative CSR programs that uplift communities and
effect nation-building.

In stellar ceremonies held at the Makati Shangri-La Hotel in Makati City, SM Cares, a
division of SM Foundation, Inc. (SMFI), bagged 3 awards at the 51st Anvil Awards
spearheaded by the Public Relations Society of the Philippines (PRSP).

The Anvil Awards is the PR profession’s most distinguished award that recognizes and
raises the bar of PR practice as a fundamental part of businesses and organizations as
well as promoting social responsibility.

The Special Movie Screening for the Blind and Deaf, SM’s Casual Employment Program
for Senior Citizens and the SM Cares Housing Project for the Survivors of Typhoon
Yolanda were given the Anvil awards for showcasing exceptional public relations
practice.

SM has always endeavored to make CSR as integral part of its operations. It has been
leading efforts to execute and promote pioneering programs that aim to make a difference
in the lives of the Filipino people.

The Special Movie Screening for the Blind and Deaf is the first of its kind in the country
where movies are fitted with audio-description and closed captioning to allow the visual
impaired and hard at hearing a chance to enjoy going to the cinemas. The project is in
partnership with the Deaf Blind Support Philippines (DBSP).

The Casual Employment Program for Senior Citizens gives senior citizens a chance to
regain their self-worth by giving them employment opportunities in SM malls. This
initiative is in partnership with the Office of the Seniors Citizens Affairs (OSCA).
The SM Cares Housing Project for the Survivors of Typhoon Yolanda is a distinct
manifestation of the Filipino’s bayanihan spirit in the face of adversity. An initiative that
was spearheaded by SM Prime President Hans Sy in the aftermath of super typhoon
Haiyan (Yolanda) in 2013, the project gathered together the donations of SM’s business
partners, tenants and other groups and individuals to raise P200 million to build 1,000
disaster-resilient houses in the areas badly hit by Yolanda in the Visayas region. The
houses are given to survivor-beneficiaries for free.

In receiving the awards, Annie Garcia, President of SM Supermalls said “We are deeply
honored to have been recognized by the PRSP with these Anvil Awards as these
programs are truly aimed at supporting communities. We hope that through these
projects, we are able to serve more of our countrymen towards our goal of helping the
country in nation building. We share these awards with the men and women who have
continuously inspired us to do better in serving the Filipino people.”

Last year, SM also won various awards for its CSR programs, notably from the
Apolinario Mabini Awards, the Global CSR Awards and the Emilio Abello Awards for
the Environment.

Business Ethics

Code of Ethics

The Code of Ethics states the principles that guide SM’s Directors, officers and employees in the
performance of their duties and responsibilities, and in their transactions with investors,
creditors, customers, contractors, suppliers, regulators and the general public. The Code
underlines the importance of integrity in the relationships and dealings with business partners,
and highlights the Company’s duties regarding employee welfare, the rights of shareholders, the
protection of material company information and the importance of corporate social
responsibility.

Employee Welfare

In line with its mission and vision, SMIC strives to be an employer of choice and provides for the
health, safety and welfare of its employees. The Company has established policies and
programs that promote a safe and healthy work environment that caters to all cultures and
creeds and encourages employee development and growth.

Orientations and Training

SMIC remains committed to providing its directors, officers and employees opportunities for
growth and development through its various training and orientation activities.

Code of Ethics

Overview

Values have been the foundation of the Ayala Group of Companies over the last 175 years.
Beyond strategic, operational or financial success, the Ayala Group has been defined by its
continued commitment to doing things the right way even in the face of uncertainty.

To that end, Ayala Land, Inc. has established a Code of Ethical Behaviour for all employees. In
addition to this, all the members of the procurement organization in ALI and its subsidiaries
subscribe to the Principles and Standards of Ethical Supply Management Conduct set by the
Institute for Supply Management and this is available for public viewing at this web link: ISM –
Tools – Principles and Standards of Ethical Supply Management Conduct – with Accompanying
Guidelines

ALI expects that its vendors will share and embrace the letter and spirit of our commitment to
these sets of standards and principles.

While the Company understands that vendors are independent entities, their business practice
and actions may significantly cause an impact on its valued reputation. Hence, ALI expects all
vendors and their employees, agents and subcontractors to adhere to this Vendors’ Code of
Ethics (the “Code”) during the conduct of business with and/or on behalf of ALI. All vendors
should educate their representatives to ensure they understand and comply with the Code.
ALI is committed to the highest standards of quality and business integrity in its dealings with
vendors and ensuring that working conditions in its sites are safe, that workers are also treated
with respect and dignity, and that its real estate projects and properties are environmentally
and socially responsible.

As ALI endorses this Code, it enjoins all vendors to support this Code.

Compliance with the Code Of Ethics

ALI expects compliance with all standards and provisions set in this Code from all vendors.
Vendors are expected to do what is necessary to comply with this Code. Vendors are expected
to be familiar with the business practices of their own vendors and sub-contractors and ensure
that they operate consistent with the guidelines contained in and the provisions of this Code.
Failure of a vendor to comply with this Code may result in the discontinuance of its business
relationship with ALI.

At the outset, it is imperative to understand that a business, in all of its activities, must operate
in full compliance with applicable laws, rules and regulations. This Code encourages vendors to
Livehood
go beyond legal compliance and draws upon internationally recognized standards, in order to
advance socialand
Farmers andtheir
environmental responsibility.
families also get to benefit from SMFI’s livelihood programs.
This year’s KabalikatsaKabuhayan Farmers Training Program is now in its final
Compliance With Client’s Code Of Ethics
phase, with 483 recipients expected to graduate in Lucena City, Cagayan de Oro,
and Calamba
The Company after
expects thean
that 3-month
engagedcourse.
vendorFarmers are given
will comply technical
with all skills and
the applicable rules, policies,
know-how training, with free seeds to start them off.
procedures, or codes of conduct maintained by such client, even if they are more restrictive
than the provisions of this Code. If a vendor believes that a client rule conflicts with any
provision of the Code, the vendor is expected to resolve the situation in a mutually satisfactory
manner with his/her primary contacts with ALI and the client

inaorder to resolve the situation in a mutually satisfactory manner.

Summary ;
Education
History of SM: Founder by Henry Sy, Sr., in October 1958 in downtown Manila.
SMFI empowers the youth through the SM College
Scholarship.
CSR of A dedicated
SM: Education , Healthteam makes sure that the most
, Livehood
financially challenged but most deserving students get their
Business Ethics
chance of SM:education.
at formal
 Code of Ethics

The Code of Ethics states the principles that guide

SM’s Directors, officers and employees in the
performance of their duties and responsibilities, and in
their transactions with investors, creditors, customers,
contractors, suppliers, regulators and the general
public. The Code underlines the importance of integrity
in the relationships and dealings with business
partners, and highlights the Company’s duties
regarding employee welfare, the rights of shareholders,
the protection of material company information and the
importance of corporate social responsibility.

Employee Welfare

In line with its mission and vision, SMIC strives to be an

employer of choice and provides for the health, safety
and welfare of its employees. The Company has
Health
established policies and programs that promote a safe
10 Questions: Medical and dental missions around the country are made possible through
and healthy work environment that caters to all cultures
SMFI’s mobile clinics equipped with X-ray and ECG machines, with volunteer
and creeds and encourages employee development
medical and health professionals giving their time and effort to help
and growth.
underprivileged patients.
1. When the SM implemented ?

Orientations and Training

2. The SM company is good for the people?
SMIC remains committed to providing its directors,
officers and employees opportunities for growth and
development through its various training and
3. Who is the founder of the SM company?
orientation activities.

4. The SM company are had a lot of location ?

Code of Ethics

Overview
5. The CSR of the SM company are very important ?
Values have been the foundation of the Ayala Group of
Companies over the last 175 years. Beyond strategic,
operational or financial success, the Ayala Group has
been defined by its continued commitment to doing
things the right way even in the face of uncertainty.
6. Are those Business Ethics of SM company are very important to?

7. Where is the place the first SM company founded?

8. What are those kinds of CSR ?

9. Are SM company was sustainable?

10. Where is the biggest SM company?

Answers:

1. October in 1958

2. Yes because the item of SM company are good and nice.

3. Founded by Henry Sy, Sr

4.Yes certainly like in Cebu and somew

here.
5. Yes it is because how you may know that the SM was a good company or how you can
determine that they have an responsibility.

6.Defenitly Yes.

7.Downtown Manila.

8.Education , Health & Livehood

9.Yes for the customer and also the item.

10. Downtown Manila

Conclusion

SM company was good idea of Henry SY , SR. As SM celebrates its 50th Anniversary as a retailer,
it approaches this milestone with a new vitality and energy to serve a new generation of
shoppers, as well as the many customers that have made it part of their lives.

The success of the shoe store led to its expansion as a full line store, and the first SM
Department Store opened in downtown Manila in 1972. With its exciting merchandise mix,
world class interiors, one stop shopping convenience, and service, SM has become part of the
lives of many Filipinos. Today, it has 32 branches strategically located around Metro Manila and
key cities around the country.

Through the opening of new stores, renovations of major stores, and the introduction of new
merchandising concepts, SM continues to make shopping at its department store chain an
exciting lifestyle experience.
From the dream of selling a good pair of shoes to every Filipino, SM founder Henry Sy, Sr. has
laid the groundwork and piloted the development and evolution of SM

It simply means that SM companies go beyond their institutional missions by empowering the
marginalized sector of society to live a decent life.

Through careful planning and execution, SM takes inspiration from its millions of stakeholders
whose lives are shaped by their aspirations and constant desire for a better quality of life. As it
continues to build on these aspirations, SM fulfills its catalyst role by expanding through its core
businesses, generating employment, business activity and overall progress in its host
communities. SM stands firm in its commitment toward change by promoting more value and
greater convenience, stimulating growth and inspiring millions toward realizing their lifelong
dreams.