Intel to continue CSR plan despite closure of plant

MANILA, Philippines - Intel Corp. will continue its corporate social responsibility (CSR) programs in the country even after it announced that the company will be closing its plants here. "Our major social responsibility programs in the Philippines will...continue," the company said in a statement. At last year's Asian Forum on Corporate Responsibility, Anjan Ghosh, an Intel Asia Pacific executive said "corporate responsibility at Intel reflects our deep respect for people and for the world around us." Intel's active participation at the Asian Forum, Asia's premiere gathering of CSR players, is part of its conscious effort to spread the notion of CSR as the right way of doing business, a company press release before the forum said. Intel Corp., the first US semiconductor firm that established a facility in the Philippines, will shutter its Cavite factory, laying off 1,800 workers and an undisclosed number of executives this year. Intel's announcement was made on Thursday afternoon, a week after the Santa Clara, California-based company reported a 90 percent drop in fourth-quarter profit last week. "The impact of the economic downturn on our business was more severe than we anticipated and the outlook is uncertain," Intel Philippines said in a statement. The company has "decided to restructure some of our manufacturing operations by taking older capacity off line and closing five factories during the course of 2009," it added. Intel is working with the Department of Education to promote technology-assisted teaching in grade schools under the Intel Teach program. The company even developed a low-cost notebook for young students that was later released commercially in partnership with Neo Manufacturing and Services, Inc. Intel is also helping leading universities improve their engineering curricula to provide students with access to world class research leadership, direct technology support and technology entrepreneurship skills. Earlier, Intel Corp. announced that aside from the assembly test facility in Cavite, it also decided to close its assembly test facilities in Penang, Malaysia; and two wafer fabrication facilities in the United States. In the Philippines, the 1,800 employees to lose their jobs will be offered "a severance package and a range of transition services." "We know this is a difficult time for our employees and their families and we will make available the best support systems to ease the transition," the company said. Intel has been operating in the Philippines for 35 years. Officials have so far declined requests for further comment. "The impact of the economic downturn on our business was more severe than we anticipated and the outlook is uncertain. As a result, we have decided to restructure some of our manufacturing operations by taking older capacity off line and closing five factories during the course of 2009," Intel said. Some workers were to be offered positions at other facilities, Intel said. - GMANews.TV