Donation of diapers in Chile
In July 2018, the Income Tax Service (Servicio de Impuestos Internos, SII of Chile) introduced a modification to the tax legislation that allowed diapers that were not suitable for sale due to minor damage in packaging incurred during transport to be donated to non-profit institutions to help persons in vulnerable situations. This change in regulations allowed the companies that donated such products to deduct their value from total taxable earnings.
Prior to this modification in the law, diapers and other first aid articles now covered by the new law had to be destroyed or taken to sanitary landfills even though they could still fulfill their purpose. Despite the fact that they could not be sold due to quality issues, their function remained unaltered.
The fact that they could not be sold or donated increased the amount of waste produced by the Company since they could not be used anywhere else. Therefore, this initiative signified an opportunity from both social and environmental perspectives.
Since then, CMPC has been donating baby and adult diapers through the Softys Division. The donation is coordinated through the Food Network, a private non-profit organization that has been present in Chile since 2010 as the first Food Bank and is supported by CMPC. To date, the organization coordinates donations from 90 companies to 223 charitable organizations. The Food Bank rescues products still apt for human consumption that previously used to be thrown away and distributes them to people in places of greater need.
CMPC also donates directly to foundations diaper products that still serve their purpose.