We harness the synergies of our businesses to
create shared value for all our stakeholders. 

Our Value Creation Story

Our passion to anticipate the evolving needs of our customers is our driver in pursuing innovative solutions, providing products and services that cater to our diverse customers across all our business.

We optimize the value of our business ecosystem, providing access to both financial and non-financial resources that amplify business growth and collective positive impact.

Our diverse, agile and innovative network of teams enables us to capture opportunities and drive our growth.

Our holistic approach to corporate responsibility allows us to create impact in environmental sustainability and social development at scale.

Our commitment to practice prudent judgement in the management of our financial and non-financial capitals provides a stable resource and capital base.

We deliver quality, affordable and suitable products to our customers in a responsible way.

We provide a conducive environment for our people to harness their talents, develop their skills and find a meaningful career path. These skills allow our people to thrive amidst rapidly changing markets.

We find innovative ways to promote social and financial inclusion, providing opportunities for entrepreneurship and access to basic social services.

We find innovative ways to minimize our operational impact to the environment and help protect and conserve our natural resources and habitats.

We mobilize our resource in upholding regulatory standards and in pursuing sustainable development goals.

Our Framework

Our Materiality Matrix

In our materiality assessment, our stakeholders identified the aspects of our business that have the greatest impact for them. We deepened our analysis on those aspects by providing clear definitions per topic, launching an automated stakeholder feedback survey and conducting informal dialogues with our stakeholders. We aimed to have a better understanding of why our stakeholders considered the topics important and how each stakeholder group perceived the extent of the effects each topic had.

COMMUNITY INVOLVEMENT

Boundaries: Within SM and host communities

Description: How the Company helps provide access to social services such as education, healthcare, livelihood, shelter and disaster relief support

CUSTOMER RIGHTS AND WELFARE

Boundaries: Within SM, customers

Description: How the Company protects the rights of its customers through customer data privacy, customer satisfaction initiatives and customer engagement programs; and ensures the safety of its customers

Economic Performance

Boundaries: Within SM, host communities, business partners, government, investors

Description: How we deliver sustained returns to our shareholders, create economic value to our stakeholders and contribute to the economic development of the country

Market Presence

Boundaries: Within SM, customers, business partners.

Description: How we make the SM brand accessible and inclusive to a broad and diverse market

Inclusive Supply Chain
(MSME Inclusion)

Boundaries: Within SM, business partners.

Description: How we provide opportunities for MSMEs to be competitive in organized retailing

Employee Rights and Welfare

Boundaries: Within SM

Description: How we protect the rights, welfare and dignity of our employees through decent working conditions, fair compensation and benefits and employee engagement programs

Employee Training, Development,
and Career Pathing

Boundaries: Within SM

Description: How we develop talents, recognize contribution and achievements and provide long-term professional development

Occupational Health and Safety

Boundaries: Within SM

Description: How we ensure the health and well being of our employees, providing adequate health and insurance benefits

Diversity, Equal Opportunities
and Job Creation

Boundaries: Within SM

Description: How we provide inclusiveness in our manpower selection and employ equal remuneration regardless of gender, race or creed

Sustainable Operations and Business Continuity

Boundaries: Within SM, business partners and host communities

Description: How we efficienly utilize resources and minimize our impact on the environment

Leadership, Policy and Due Diligence

Boundaries: Within SM

Description: How we promote good governance in our policies, practices and code of ethics and how we comply with all relevant laws and regulations

Progressing with Our Commitments to
our Stakeholders

Our People

Our Business Partners, Suppliers and Service Providers

Investors, Shareholders, Provided of Capital

Customers and Clients

Our People

Creative Ways We Engage Them Their Concerns Our Commitment Our Progress
We maintain a balance of openness and professionalism and create a motivating working environment. Our engagement styles are conducive to various personality types. We engage them through surveys, dialogues, meetings, volunteerism activities and performances assessment and rewards. Economic Performance Performanced-based compensation and benefits Internal awareness campaigns
Market Presence Targeted benefits throughout the SM network Broader employee benefits cross business
Employee Rights and Welfare Uphold their rights and dignity of labor Signatory of the UNGC upholding human and labor rights
Occupational Health and Safety Focused Health and Wellness programs ISO 45001 in multiple business units

Our Business Partners, Suppliers and Service Providers

Creative Ways We Engage Them Their Concerns Our Commitment Our Progress
We see our suppliers as long-term partners for mutual growth. This motivates us to deal with them with the highest ethical business standards through our vendor selection process, get feedback through surveys, engage them in capacity building programs and demonstrate our appreciation of their product’s positive performance from various programs like the Customer's Choice Awards Corporate Governance Ethical and transparent supplier and service engagement process SM Code of Ethics
Market Presence Ecosystem for MSMEs to thrive in organized retailing Increased awareness campaign on how MSMEs can join SM Resilience Center

Investors, Shareholders, Provided of Capital

Creative Ways We Engage Them Their Concerns Our Commitment Our Progress
We provide accurate and relevant information for our investors to make informed decisions through Annual Stockholders' Meetings, investor roadshows, analyst briefings and ESG ratings and reports. Economic Performance Deliver sustained returns and generated shared value 12% Revenue Growth and 20% Net Income Growth
Corporate Governance Uphold highest standards of good corporate governance Ten of SM's companies are listed in the ACGS Initiative

Customers and Clients

Creative Ways We Engage Them Their Concerns Our Commitment Our Progress
Our customers come first. We aim to be their partner of choice in providing products and services that meet their evolving needs and their aspired lifestyles. We find creative ways to engage them through customer satisfaction programs and other social development programs where they can experience the SM brand in more meaningful ways. Customer Rights and Welfare Ensure customer data privacy and excellent customer service Developing on digital avenues for shopping convenience
Community Involvement Provide social and environmental customer engagement programs Engagement through SM Cares, SM Foundation, BDO Foundation, The Share Movement and other Corporate Responsibility Programs

Community Partners

Sustainable Development Partners and other Non-Government Organizations

Government Regulators

Media Partners

Community Partners

Creative Ways We Engage Them Their Concerns Our Commitment Our Progress
We share their vision of better standards of living, more equitable access to basic social services and empowered communities. We work with them on needs assessment analysis through formal and informal dialogues. Community Involvement/CSR Targeted social investments in education, healthcare, food security and shelter PHP706M of Community Investments in 2019 100th school building 160th public health center

Sustainable Development Partners and other Non-Government Organizations

Creative Ways We Engage Them Their Concerns Our Commitment Our Progress
We engage them as program partners in our social development programs while we align and collaborate with global sustainable development players in driving the global goals. Community Involvement Program partnership engagement DepEd, DOH, DSWD, BSP, WWF partnerships
Diversity, Equal Opportunities and Job Creation Uphold human and labor rights SM is a signatory of the UN Global Compact

Government Regulators

Creative Ways We Engage Them Their Concerns Our Commitment Our Progress
We support their mission of raising the bar of transparency and accountability by participating in stakeholder consultations and providing avenues that facilitate public-private sector dialogues. Corporate Governance Full compliance to regulations and active participation in multistakeholder consultations Ten of SM's companies are listed in the ACGS Initiative

All SM publicly listed companies issue annual Sustainability Reports aligned to SEC guidelines and GRI Standards
Diversity, Equal Opportunities and Job Creation Full compliance to labor laws SM is a signatory of the UN Global Compact

Media Partners

Creative Ways We Engage Them Their Concerns Our Commitment Our Progress
We invite them to all our public events, provide press kits, access to interviews and engage with them in fun activities. EconomicPerformance Accurate and timelyreporting Press Release of Quarterly Performance
Market Presence Engagement in lifestyle events Media presence in mall events

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