PNOC Energy Development Corporation (Case Study)

Energy Development Corporation (EDC) used to be a subsidiary of Philippine National Oil Company. PNOC EDC is the largest producer of geothermal energy in the Philippines and the second largest in the World. It is involved in geothermal, hydro and wild energy projects. EDC was formerly owned by the Philippine National Oil Company, a state corporation owned by the Republic of the Philippines engaged in the exploration of resources, production of energy and distribution of power supply to smaller electricity distributor. It was privatized and sold to First Philippine Holdings Corporation, a Lopez-owned and controlled corporation involved in energy and power supply generations business.

Reference: https://en.wikipedia.org/wiki/Energy_Development_Corporation

To give a brief background, a tragic incident happened at dawn of March 26, 2004, a band of about 60 armed extremists seized the company’s P100-million Rig 8 in Barrio Tongonan in Kananga, Leyte demanding ransom payment. PNOC EDC ignored the extremists’ demand, the extremists killed some regular workers who were coming to work. Aquino, who had just president of the company a month before, noticed that there were full of onlookers and just curious at what was going on and no sympathy for the bereaved families. To find out why the townsfolk seemed unconcerned about the tragic incident, Aquino had an informal survey done. The survey showed that residents of the host communities did not relate to PNOC EDC or to its employees. To them the company only exploited the area without giving back anything to the local residents. Local people considered PNOC EDC employees aloof and supercilious.

The issue with the case is that there’s a wall between PNOC EDC and the community. In my opinion, the company should start by opening up the camp to the children of the community and build friendship with them so that the children can tell to their parents.

At the end of the day, I’ve learned that CSR should start from home (within your organization) then going out to the community. The company should practice internal equity such as employee participation in which the employees where updated, to have a better understanding on what’s happening in the plant.

Image Credit: https://s-media-cache-ak0.pinimg.com/236x/3b/68/06/3b6806bd945f70e0eef00ec0e002485e.jpg

Corporate Social Responsibility

What is Corporate Social Responsibility or CSR for short?

Image Credit: http://image.slidesharecdn.com/csrawarenessoverviewin35slides-090930070439-phpapp02/95/csr-awareness-overview-in-35-photos-statements-10-638.jpg?cb=1386476847

To sum up the video (Little Green Bags Corporate Social Responsibility by Prof. Dr. Thomas Beschorner, Director of the Institute for Business Ethics at University of St. Gallen) that was shown to us, First, CSR stands for Corporate Social Responsibility. Second, CSR is based on the question of “good business” for a “good society” – today and tomorrow. Third, Corporate Social Responsibility is not charity; it is about how companies earn their profits, not how they spend them. Fourth, it takes employees integrity and appropriate organization structures to realize CSR. It is a matter of individual and institutional ethics. Fifth, politics continue to play an important role, but in a globalized world the effects of regulation can be limited. Sixth, companies play an increasingly important role. Seventh, “soft laws” are new governance mechanisms based on companies’ self-commitment. Finally, CSR has arrived in business practice. It is necessary to support these development professionally, but also to provide critical perspectives with respect to them. Research on issues of corporate responsibility is still beginning and future developments will be exciting to see. It is unclear whether a good and fair society can be created with the help of companies. But it can’t be created without them. Besides, corporate social responsibility, there’s also consumer responsibility.

Sustainability is the key to CSR. The most recognized and quoted definition of sustainability is, “development that meets the needs of the present without compromising the ability of future generations to meet their needs” as was devised in 1987 by the United Nation World Commission on Environment and Development. Incorporating corporate sustainability into businss makes good business sense and creates unique business value.

(Reference: http://hubpages.com/business/What-is-Corporate-Sustainability-or-Corporate-Social-Responsibility)

The purpose of corporation is not only for profit but should be partners in economic growth. We should not rely on government, we should work together to alleviate the poverty.

The Gap Labor Problem (Case Study)

The Gap, Inc. is a chain of retail stores that sell casual apparel, shoes and accessories for men, women, and children. The stores headquartered in San Francisco and operate under a variety of names including: Gap, Banana Republic, Old Navy Clothing Company, GapKids and babyGap. All merchandise sold by the chain is private label. Gap had 1348 well-located stores in the US and Puerto Rico, 72 in Canada, 49 in the United Kingdom, and 3 in France.

Apparel stores like Gap purchased their clothes from manufacturers in the United States and around the world. The Gap contracted with over 500 manufacturers around the world who made the Company’s private-label apparel according to Gap’s specification. Gap purchased about 30 percent of its clothes from manufacturers located in the United States and 70 percent from vendors located in 46 foreign countries.

Among the suppliers from whom the Gap sourced its clothes was one in El Salvador run by Mandarin International, a Taiwanese-owned company. A worker there were was paid approximately 12 cents for assembling a Gap T-shirt which retailed at abount $20 in the United States. Wages at Mandarin plant averaged 56 cents an hour, a level that was claimed to provide only 18 percent of the amount needed to support a family of four.

The issue with the case is that Gap cover up the situation at Mandarin such as long hour of work for 56 cents an hour; violence against union supporters; sexual harassment from supervisors; lack of clean drinking water; not being allowed to use rest rooms; and being forced to sweep the factory grounds under a torrid sun as a punishment.

I think Gap should pay more to their suppliers. Companies like Gap should force their suppliers to provide maximum work place safety, by eliminating job risks, compensation for high risk jobs and full awareness of the hazards of a job to employee.

I’ve learned that the goal of a business should not just for profit. It should also think of its suppliers as well as the employees of their suppliers. At the end of the day, everybody has to do their part. 

Image Credit: http://marketingsocial.esadeblogs.com/files/2014/03/quote-Elvis-Presley-values-are-like-fingerprints-nobodys-are-the-106124.png

Individual in the Organization

What is the relationship between the employer and employees? When the employer hire new employees, he is not only a new member of the workforce, they necessarily develop relationships. A strong relationship can lead greater employee happiness and even increase productivity. Employees’ work is voluntary, as worker we should be honest and not to take bribes. We should also work with reasonable care and skill. While employer has a moral obligation to look out for the welfare of their employees. There should be a real and enduring concern for their employees.

SAS Institute is one of the best companies to work. Our Professor show us the video of SAS Institute. The culture of SAS honors the importance of family work/life balance and enjoyment of workplace. They help their employees as well as the family of their employees by providing resources and educational programs.

How should you know that you have caring organization? Do you feel that you are important? Are you encourage to grow? Can you see yourself balancing, like allowing to have activities to your families? Are you well compensated? Do you have recognition?

The important lesson that I’ve learned is that the most important part of the business are the employees. No business can effectively run without their employees. Employers need to manage their relationship with their employees and they should value them.

Image Credit: http://trackur.trackur.netdna-cdn.com/wp-content/uploads/2013/07/jim-goodnight.png

Online meeting – Service Learning

#walangpasok due to typhoon Lando as announced by respective local government. What did we do? Our group have online meeting from 6pm to 9pm, we discussed our service learning project.

                                            

Image Credit: http://thumbs.dreamstime.com/z/minutes-meeting-coffee-engineering-drawing-34190551.jpg          

Here’s the "discussion"  minutes of our online meeting: (posted by nikki from our group fb)

A. HOW TO SAVE

- updates:
   - seminar has 3 parts:

      - bakit? - importance of saving
      - paano? - see file for acronym of topics to be covered + including tips 
      - saan? - aside from saving in alkansya/banks, where else can they put 
                     their money

  - needs:
      - training workbook with print-outs and videos (c/o ANNE)

     - look for materials for presentation (ANNE & KR) 
  - deliverables:
     - Anne will update the group tom. evening RE request for materials for 
                       our seminar
     - “saan?” part for brochure (c/o KR) - when can you send it?

B. ADDITIONAL INCOME / NEGOSYO   (c/o SNOW,EMY,LIZETTE)
- updates:
    - file has been uploaded in fb group
    - for pizza rolls - during seminar, make them aware that they can use their gas
      for business, aside from personal use. mention that gas isn’t part of costing.
- needs:
    - ano yung iddemo? 

    -  suggestion: 1 food item, 1 planting
    - materials
    - our costs
    - video to be presented (tagalog dapat)

- deliverables:
      - revision of file uploaded. provide costing for tingi and for box 
      - check pricing (compare w/ emy’s and xiel's)

      - concerns on planting - garlic

While researching on additional income, I have learned that we should strive hard so we can earn and patience is a virtue. As mentioned by Dely Atay-Atayan to Dolphy in John en Marsha, "magsumikap ka!"  ^_^

Until next time….God Bless!!!  Cheers!

Planning Stage - Service Learning

Image Credit: http://www.naukrigulf.com/careercafe/wp-content/uploads/2014/04/11-Simple-Tips-to-Improve-Self-Confidence-5.jpg

After our class last Monday, our group in service learning discussed the activities that we will be doing for this week. Each one has an assignment. I together with Lizette and Snow were assigned to search on how to earn additional income.

Here are some of our activities:

(M) October 19, 2015 – Posters shall be up
(M) October 26, 2015 – preparation
(M) November 02, 2015 - preparation
-------------------------------------------------

November 08 & 15

1) HOW TO SAVE (ipon/impok) – Why do we need to save?
2) EARN ADDITIONAL AND SUSTAINABLE INCOME
• Put up posters on the seminar
• Concept needs to be approved by the brgy captain
3) Early christmas for the kids.

Everyday, we coordinate and update. We suggested some title for our poster and finally we come up with “Tara, Ipon Na’t Kumita Tayo!”.

Why do we plan? Planning is preparing a sequence of action steps to achieve some specific goal. I have learned that by doing this effectively, we can see how much we progressed towards our project goal. (reference: http://www.time-management-guide.com/planning.html)

I have learned that to be successful in planning, all members should cooperate. We all have different priorities but as MBA student, I think we should have to cooperate with the group. 

We are all excited and we can’t wait to start and go to the community. May God help us on our community service.

How Safe is Safe Enough?

How safe is safe enough? What is the responsibility of the manufacturer? Consumers? Each and every one of us? How should people be treated?

The three (3) topics of ethics namely: the ethics of consumer production and marketing; and the ethics of Job Discrimination were discussed in our CSR.

                                                                                                             

THE ETHICS OF CONSUMERS PRODUCTION

Consumers is the one who pays to consume goods and services produced. Without consumer demand, producers would lack to produce and sell to consumers. Consumer responsibility is to substantiate the complaint against the seller of the product, it should be specific and support by appropriate evidence. Complaints should not be vague or unsubstantiated.

Some consumers take into consideration the social aspects of their purchasing behavior and care about a company’s CSR policies. Most consumers do not care enough to pay a higher price. The consumer should become a knowledgeable participant and not a reader of labels. Firms should help their consumers to become more socially conscious in their purchasing. This will give consumers more tangible and reliable information about the health, social and environmental benefits of their products and services.

Image Credit: https://s-media-cache-ak0.pinimg.com/236x/61/92/97/6192974356427640597fad1d9e52d2e0.jpg

As one of the consumers, I should be responsible when it comes to buying decisions. I should check the labeling before buying to ensure the brand is either included sustainability claims on packaging or actively promoted their sustainability actions through marketing efforts.

Remember that consumer responsibility comes down to us. The environmental, health and ethical aspects depend on our personal choices that we make every day.

References:

https://en.wikipedia.org/wiki/Consumer
http://www.enotes.com/homework-help/explain-why-role-consumer-important-an-economic-171457
https://www.safaribooksonline.com/library/view/business-ethics-and/9789332511255/xhtml/c3s10.xhtml
http://www.policyinnovations.org/ideas/briefings/data/000199

THE ETHICS OF MARKETING

What is marketing and what kind of marketing should companies practice? Marketing is the management process through which goods and services move from concept to the customer. Marketing responsibility should be honest and not misleading to consumers. Business should create products and services that specifically meet consumer needs. Any product or service that could be hazardous to the health conditions of people, animal or environment should have clear advisories and warnings.

Image Credit: http://www.brandingstrategyinsider.com/images/2013/10/Brand-Strategy1.jpg

The reason that companies advertise is to introduce and promote the product or service they offered. In order to create awareness and consumers interest. It also intend to boost their sale. But many industries today use advertising materials that consist of bad meaning that corrupt especially the minds of the youth. Some promote their product through manipulation and deception of customers.

I have learned that business should be socially responsible. They should be concerned to people, society and environment with whom and where it conducts business. It is the responsibility of the businessmen to provide quality goods and reasonable price as well as ethically responsible for the advertisement of their products. We should remember that Customer is the foundation of business.

References:

http://www.businessdictionary.com/definition/marketing.html

http://www.entrepreneurial-insights.com/social-responsibility-ethics-marketing/

THE ETHICS OF JOB DISCRIMINATION

What is discrimination? Have you experienced discrimination? Discrimination is a bias or prejudice resulting in denial of opportunity of unfair treatment regarding selection, promotion or transfer. Discrimination is practiced commonly on the grounds of age, disability, ethnicity, origin, political belief, race, religion, sex, etc. factors which are irrelevant to a person’s competence or suitability.

People have the right to be treated as free and equal opportunities, without discrimination or harassment. Job discrimination is immoral. Discrimination often prevents qualified people from attaining the jobs they would best serve. As a result, it also harms customers and investors who depend on the company to hire and reward the most qualified employees who can provide the best products and services in the most efficient way available.

How would you feel if another man said or did the same things to you? Does it need to be said or done at all? At the end of the day, each one of us bear responsibility for our actions.

Reference: http://www.businessdictionary.com/definition/discrimination.html

Image Credit: https://ramosmaureen.files.wordpress.com/2014/12/discrimination_2.jpg

The Ford Firestone Debacle (Case Study)

This is the case of two famous corporation, Ford (US automobile giant) and Bridgestone/Firestone (Japanese tire manufacturer).

The Ford Motor Company was founded by Henry Ford in 1903 in Dearbon, Michigan. It is one of the largest family-controlled organizations in the world and has been under control for more than hundred years.  While the Firestone Tire and Rubber Company was established by Harvey S. Firestone in 1900 in Akron, Ohio. Firestone is now part of a Japanese global tire company purchased by Bridgestone Corporation. Henry and Harvey had a historically strong relationship, aside from being personal friend, the two families linked in marriage with their respective grandchildren. Their partnership began when Firestone supplied Ford with tires for their new model T.

But the sad part of the story, there were injuries and death due to Ford-Firestone product failures. War of finger pointing and recrimination had unfolded between the two companies. Ford executives managed to put some blame on Firestone by saying that the accidents and death occurred mainly due to tire blowouts and therefore it’s not a vehicle problem and recalled the tires for replacement. On the other hand, Firestone argued that many of the accidents were mainly due to the vehicle’s lack of stability and were not due to its tires.

In public, the two companies tried to portray themselves as working closely together. Ford told their customers and dealers that the tires on the Explorer could be inflated to anywhere in a range from 26 to 30 pounds per square inch. This is based on the assumption that Explorers rarely are driven off road and the lower inflation provides a smoother rider. Firestone recommended 30 pounds per square inch while Ford stuck to the range of 26 to 30.

Why does inflation matter? If a vehicle’s tires were initially inflated to 26 pounds per square inch, then over time the pressure might decrease to 23 or 24. The lower pressure would put more of the rubber in contact with road surfaces that would generate more heat and could result to tire blowout.

I think both companies should work together to solve the problem and stop blaming each other. Most of all be responsible for what happened. They should be responsible to fix the problem before pointing out their fingers.

I have learned that business should take care of their companies as well as their customers. In any relationship, we built trust and mutual respect. When responsibility for a problem is not shared by companies, trust is lost not only between them but also with their customers. Remember that if both companies cannot even trust each other, why would customers trust them? Our goal in business should not be simply for money. Avoid the temptation of greed and we should stand by our core values despite the cost.

Mark 8:36 ”What good is it for a man to gain the whole world, yet forfeit his soul?”

                                                         

Image Credit: https://rebeccaluellamiller.files.wordpress.com/2014/07/worship-the-dollar.jpg?w=300&h=300

References:

http://www.wsj.com/articles/SB965870212891028108

https://en.wikipedia.org/wiki/Firestone_and_Ford_tire_controversy

Business System Ethics in the Marketplace

Image Credit: http://thumbs.dreamstime.com/z/business-ethics-road-sign-illustration-design-over-white-background-29879761.jpg

Business System refers to the value-added chain, which describes the value-added process, meaning the supply of goods and services. Business is a feedback system. The members of the system are the capital owners, employees and consumers. To the owner of the company, the purpose of business is to yield profits and appreciation of capital; to employees, the purpose is to afford them a living; and to consumers, furnishing them goods and services. Business should do the right thing and must keep the wishes of the societies it serves.

What role should the government play in the business system? When should government intervene? I have learned that the government’s role in business includes protecting the consumers or customers and the government should intervene to promote general economic fairness.  

I think getting into the marketplace is a challenging but it is fulfilling if you do it right. In the marketplace, we should always consider the welfare of the consumers and it’s important to have laws in the government to ensure that business are not overpricing and that they deliver product and services of fair value.

References:

https://sourcemaking.com/uml/modeling-business-systems/business-processes-and-business-systems

https://hbr.org/1983/11/the-ethical-roots-of-the-business-system

Our Group Final Selection - Service Learning

Image Credit: http://bonitakolb.com/wp-content/uploads/2015/08/Community-2.jpg

Finally, our group in service learning have chosen that our group will serve the parents such as drivers, housekeeping personnel, street sweepers, house helpers and contractual barangay staff. Our objective is to create awareness in the community on the importance of savings, why this should be done and how it can achieved. Another is to inform the community that there is a possible ways on how to earn additional and sustainable income.

We all have great ideas but as a group we should consider our groupmates location, our availability since most of us have work and have other class; and most of all the community that we will be helping. 

I am looking forward for our service learning and hopefully that in our little way, we can help the parents.

Group Case: Brian's Franchise

I am fortunate and proud to my groupmates that they gave their time so we can discussed our case.

Case 1 is about Brian’s franchise, he became expert in breeding and raising marijuana indoors and his action towards the restrictions imposed by the Government on marijuana farming.

Science has proven that marijuana had medical benefit. However, excessive use lead to addiction. Here are some medical benefit of marijuana.

1)  Weed can be used to treat Glaucoma – marijuana decrease the pressure inside the eye (according to National Eye Institute)

2) It may help reverse the carcinogenic effects of tobacco and improve lung health - marijuana does no harm to the lungs, unless you also smoke tobacco, and one study published in Journal of the American Medical Association found that marijuana not only doesn't impair lung function, it may even increase lung capacity.

(Reference: http://www.businessinsider.com/facts-on-marijuana-and-health-2015-4)

The business goal needs to make profit while maintaining its social and moral obligation. Legalizing marijuana would create several jobs and creating an environment where the industry is regulated that will ensure the product is safe. Farms would need to hire workers to plant, care for, and cultivate the product. However, when legalizing marijuana, the person who uses it should know the consequences of taking the drug and should be aware of the side effects of it.

From this case, our group has learned so much about business systems and why government intervention is needed in economy, as well as business ethics and the ethical standards to consider in running a business. The most important learning point tackled in this case, is how to become an ethical businessman. And at the end of the day, promotion of common good must be the focus of both market and government.