MORE THAN JUST COFFEE CORPORATE SOCIAL RESPONSIBILITY Rocky Mountain Cares Rocky Mountain Cafe Inc. POLICY STATEMENT CORPORATE SOCIAL RESPONSIBILITY We in Rocky Mountain Cafe aspire to create a positive impact on Philippine society and on our host community. As a socially responsible member of society, we do our share in achieving sustainable development. In concrete terms, this means contributing to socioeconomic progress through the creation of stable jobs for Filipinos, the promotion of gender equality and the provision of opportunities and benefits to women and men, the use of local raw materials and labor whenever possible, collaboration with the communities in the promotion of local industries, corporate sponsorship of health, education and social welfare projects in the upland barangays, and the promotion of local indigenous culture. We believe that taking concrete steps to improve the quality of life of the Filipino people is not just important, it is necessary for a company like ours whose greatest assets are our people, and whose existence depends on the community that hosts us. 1 EDUCATION SUPPORT Ready for School June is always an exciting month for the Benguet coffee farmers and their schoolchildren. First of all, with June come the rains, signaling the start of the Arabica coffee planting season in Tuba and the rest of Benguet Province. Second, June means the opening of classes for millions of Filipino schoolchildren. For some boys and girls in Tuba, Benguet, June 2010 was especially memorable because Rocky Mountain Café lent parents a hand in preparing the kids for the start of classes. Children of Rocky Mountain Café Benguet Arabica Farmers Cooperative received schoolbags, notebooks, pencils, paper and other basic school needs in a simple turnover in Barangay Upper Tadiangan, Tuba municipality. 2 About 40 kids in elementary and secondary school each received the gifts. Their parents, all members of the cooperative, were as delighted as the young ones. This activity is part of the School Support Program of Rocky Mountain Café in collaboration with the RMC Benguet farmer’s cooperative. Other education support projects identified by the local folks are in the pipeline and will be implemented soon, such as a scholarship program in Benguet State University. These support programs and projects are spearheaded by the RMC Benguet Arabica Farmers Cooperative. Such ventures are intended to help the Ibaloi and Kankanaey coffee farmers in Benguet help themselves, in line with the goal of Rocky Mountain Café to be a socially responsible member of the community. 3 One Fine Day for T’boli School Children The six-year old T’boli children of Tabotong Primary School in Tabotong, Barangay Nalus, Kiamba Municipality in Sarangani Province had the surprise of their young lives when a Canadian visitor passed by their one-room school in October 2009. The guest was accompanied by then Mayor Rommel Falgui and his security escorts. Mr. Pierre Yves Cote, Rocky Mountain Café President, spoke with their teacher, Mrs. Noemi Sugia and viewed the premises. Mr. Cote was in Kiamba for the development of the company’s Arabica plantation in the municipality and wanted to interact with local residents. He found out that the students of Tabotong Primary School badly needed books and school materials. What they had was not even the bare minimum in a primary school that aims to produce quality students. Ms. Sugia sometimes had to use her own money for the teaching materials she needed. 4 Believing in making a positive difference in its host communities, Rocky Mountain Café recognized the dedication and commitment of Ms. Sugia to educate her students. RMC complemented her efforts by sending from Manila to Kiamba two boxes of books and various school materials for grade one students. These included story books for children, notebooks, paper, pencils, art paper, cartolina, and crayons. The school even requested toothbrush and toothpaste for the 6-year olds, which each of the students received. November 17 was a happy day when Mayor Falgui brought the boxes of school materials from Rocky Mountain Cafe to Tabotong Primary School. Ms. Sugia thanked the mayor and Rocky Mountain Café, adding, “The children look forward to the next visit of RMC to personally say thank you.” 5 HEALTH PROMOTION Free medical consultation held for RMC Benguet Cooperative members and their families For many of the Ibaloi families who attended the RMC Benguet Arabica Farmers Cooperative medical mission, it was their first time in years to see a doctor. On October 2, 2010, about a hundred men, women, and children trooped to the Barangay Yagyagan Multi-purpose Hall in Yagyagan, Tuba to have their medical check-up, at no cost to them. The free medical consultation, led by a doctor, a nurse, a paramedic, and a barangay health worker, is one of the many benefits of being a member of the RMC Benguet Arabica Farmers Cooperative. 6 The coop members had their blood pressure checked and weight and pulse taken. More importantly, those who had health complaints or who felt certain symptoms had the opportunity to consult a doctor and to receive treatment. They went home relieved and more aware of how to manage their health. Free essential medicines were provided in the medical mission, a critical component of the check-up because the families normally cannot afford the drugs. Free regular medical check-ups are planned for the coop members throughout the year. This activity is a component of the health improvement program of the cooperative. 7 EMERGENCY ASSISTANCE Rising from the ruins in Benguet Typhoon Pepeng (international code name: Parma) is, by far, the most destructive typhoon to hit Benguet Province. On October 10, 2009, the rains brought by the slow-moving typhoon loosened the mountain soil and caused massive landslides, burying houses and families in the province, and destroying roads and bridges. The typhoon did not spare the coffee farms of Tuba residents. Among the most affected was Glorie Barrientos, 46, of Sitio Cashit, Barangay Yagyagan, Tuba Municipality. More than 1,000 Arabica coffee trees planted in the backyard farms of Glorie and her two siblings were washed down in a landslide at the height of the typhoon. “The coffee berries were ready to be harvested,” Glorie laments. The farmers could not recover the berries or the trees. The landslide in Sitio Cashit loosened the soil and washed away bearing coffee trees. 8 Glorie Barrientos at home with her daughter. Eugene Bilaw, Operations Manager of RMC, handing over the Arabica seedlings to Glorie to rehabilitate her and her siblings’ backyard coffee farms in Sitio Cashit, Barangay Yagyagan. Rocky Mountain Café responded to Glorie’s request to rehabilitate her coffee farm. The company gave her 220 Arabica seedlings, which she has already planted. Rocky Mountain also gave her sisters additional seedlings for free so that they, too, can rebuild their farm and their source of livelihood. Glorie sees hope for recovery for her and her four children, aged 11 to 21 years old. Although supported financially by her husband, a mechanic working in Saudi Arabia, she has to manage home and hearth by herself. On November 28, Glorie joined her neighbors and relatives in Yagyagan in the first organizational meeting of the RMC Benguet Arabica Farmers Cooperative. Gloria was eventually elected by the general assembly to the Board of Directors. She joins the other directors in creating strategies to achieve the RMC cooperative goal of developing sustainable socio-economic programs for the Arabica farmer community. 9 FARMERS TRAINING Thirty-five men and women Ibaloi farmers, all members of the RMC Benguet Arabica Coffee Farmers Cooperative,received a training on “Arabica Coffee Production Under Agroforestry Systems in the Cordilleras.” The activity, held on October 29, 2010 at the RMC-BSU Training Center in Bektey, La Trinidad, is the first of a series of technical training modules planned by RMACC and the cooperative for the yield improvement program of the cooperative farmers. The objective of the program is to provide training to the farmers on Arabica coffee production and processing in the Cordillera Region, eventually increasing both the quantity and quality of the coffee they produce. 10 Prof. Valentino Macanes, Benguet State University Tuba Coffee Farmers Prof. Val Macanes, Director of the Institute of Highland Farming Systems and Agroforestry of Benguet State University, was the resource person and trainer. Part one of the training consisted of discussions on seed selection, seed preparation, nursery establishment, field planting and maintenance, common pests and diseases of Arabica coffee and their management, harvesting, postharvest processing, and coffee tree rejuvenation. The second part of the module was a demonstration of the techniques learned at the RMC-BSU Bektey plantation. Rocky Mountain Cafe partners with Benguet State University (for Luzon) and Xavier University (for Mindanao) to provide technical training to indigenous coffee farmers on the best practices in Arabica production and processing. 11 GENDER EQUALITY Women take care of our coffee. We take care of our women. Rocky Mountain Cafe believes in the equitable sharing of benefits from an equal opportunities work environment. All Rocky Mountain employees and partners, regardless of sex, are offered technical training and other opportunities for personal and professional development. The key positions of General Manager, Executive Assistant, and Business Development Officer are occupied by women. Women work alongside the men in our farms and workplaces, often occupying leadership and decision-making positions. Even the RMC farmer cooperatives are led by women officers. In our central office, women managers chart the direction of the firm. Key positions in the Accounting Department are occupied by women. 12 It is the policy of Rocky Mountain to provide employment and livelihood opportunities to women coffee farmers, regardless of their age, marital status, ethnic identity, or physical disability. The cultivation of coffee in thousands of backyard farms in the Philippines has always been done by women. Recognizing the importance and participation of women in the coffee industry, Rocky Mountain integrates and promotes gender equality in its plantations, its coffee mills, and its distribution activities. 13 COOPERATIVE DEVELOPMENT Rocky Mountain Arabica Coffee Company organizes a coffee farmer’s cooperative in each of the plantations it develops in the Philippines. These cooperatives are established to enable the members to increase the quantity and quality of the Arabica coffee produced in their farms and to partner with a reliable buyer of their produce. The cooperatives provide a venue for unifying the farmers’ efforts to uplift their socioeconomic conditions through social development programs as well as incomegenerating projects. These programs and projects ultimately contribute to the financial independence and sustainability of the organization. 14 All corporate social responsibility activities of Rocky Mountain are implemented through the cooperatives as partners. The community members are involved in the planning and implementation of health, education, technical training, livelihood and other socio-economic programs and projects. Members are given organizational development seminars and exposure to best practices in coffee production and processing by a cooperative. The farmers determine how the cooperative operates and decide which policies and actions yield the maximum benefits for everyone. Rocky Mountain collaborates with the National Confederation of Cooperatives (NATCCO) to implement capacity building programs for RMC Cooperatives and finance the development of coffee mills nationwide to empower coffee farmers. 15 PROMOTION OF INDIGENOUS CULTURE The upland indigenous peoples of the Philippines are our partners in producing world-class Arabica coffee. We are proud to work with the Ibalois and Kankanaeys of Benguet, the T’bolis of Sarangani and Cotabato, the Higaonons, Bukidnons, and Talaandigs of Bukidnon, and the Mandaya and Mansaka of the Davao Region. 16 Rocky Mountain recognizes that the lives of the indigenous peoples are closely linked to their land. We manifest our profound respect for the indigenous cultural communities and their natural heritage by ensuring that our operations do not degrade the land and its precious resources. Rocky Mountain respects indigenous farming practices and at the same time integrates new farming technologies that make the lives of the men and women coffee farmers easier. The company upholds the heritage and traditions of the tribes in all its operations in the Philippines. We use indigenous architecture in the design of our plantation offices and mills. We adopt ethnic patterns and style in our farmers’ uniform. We use indigenous materials, such as abaca for our coffee harvest baskets and sinamay and buri for the packaging of our finished products. We are honoured to promote worldwide Philippine Arabica coffee and the unique culture of each Philippine indigenous community that produces it. The identity of Rocky Mountain Arabica Coffee Company is enriched by the Philippine indigenous peoples who nurture our coffee. 17 CHARACTER DEVELOPMENT Rocky Mountain supports character development through sports and adventure activities that build self-confidence, leadership, respect, and friendly competition. Rocky Mountain sponsors the Rocky Mountain Café Ice Hockey Team, which is a leading member of the Manila Ice Hockey League (MIHL), based in the SM Mall of Asia. The RMC Ice Hockey League is the defending champion in this year’s games. Rocky Mountain also upholds adventure sports such as mountain climbing. The company is a sponsor of “A December to Remember”, an annual organized climb of Mount Pulag, the highest peak in Luzon. We are proud to sponsor with the Municipality of Kabayan in Benguet such a highly anticipated activity that draws climbers, young and old, men and women, beginners and advanced, from all over the Philippines and Asia. 18 INSTITUTIONALIZATION OF CORPORATE RESPONSIBILTY Being responsible to society and to the environment is part of the corporate culture of Rocky Mountain Café Inc., elevating this important function to the highest policymaking body, the Board of Directors, by appointing a Director for Corporate Responsibility. The Director ensures the integration of social and environmental responsibilities and accountability in the policies and activities of the firm and exercises broad decision-making powers that influence the corporate direction of Rocky Mountain, its priorities, and the allocation of resources. The officers and managers of Rocky Mountain Café are guided by an overall corporate responsibility framework that is reviewed and approved by the Board of Directors and implemented by its managers and personnel. Carmeli Chaves , RMC Director for Corporate Responsibility, with His Excellency Peter Sutherland, Canadian Ambassador to the Philippines, after receiving a Gold Pin for her lifetime achievements in promoting environment protection and corporate responsibility in the Philippines. 19 NATIONWIDE BENEFITS Mountain Province Ifugao Bektey Camp John Hay Tuba Atok Mindoro Negros Bukidnon Cotabato Davao Sarangani 20 Rocky Mountain Cares Yvan Masse, a shareholder of RMC, is assisted by Nelly Bulahao, an Ibaloi farmer, in planting an Arabica coffee tree. Rocky Mountain Cafe Inc. Suite 306, Prestige Tower Emerald Avenue, Ortigas Center, Pasig City 1605, Philippines Tel.: +63 2 638-3768 • Fax: +63 2 638-3840 Website: www.rmacc.ph