CSR Continuum

One of the final requirements in our Corporate Social Responsibility (CSR) class is to assess our company’s positioning in the CSR continuum shown below.  

While reflecting where our company really is, I realized I made a wrong judgment of my current employer.  Before I took up my MBA degree, my perception of CSR is doing or giving back something to the community.  Tree planting is one of the most common activities when we talk about CSR, and with my 3 year stint with the company, I have not witnessed this program.  In one of my conversations with a colleague, also before taking up my MBA, we compared our company with the other organizations, and envied how big the CSR activities are for those companies.  We were somehow upset since our company does not give a big deal to these programs.  One perfect example is our cash donation to 2 big foundations.  During the actual giving of check, our only representative was our company nurse.  We compared that in other companies, donations are usually handed over by the top management, and of course, with well documented photos. 

This course gave me a whole new perspective of what CSR really is.  From having an impression that my company is apathetic in promoting CSR activities, I now give a high regard to my employer’s CSR values.  One of my key learnings in this course is that CSR is not about charity nor a public relations activity.  CSR is how companies contribute to society through good business practice, and how it forms part of the company’s core business.  CSR is more of how companies make or earn profit, and not how they spend it.  This framework makes a lot more sense than my initial perception of what CSR is.  Some companies may have good public image because of their charity and other related activities.  But if we try to further scrutinize, are their employees well taken care of?  Are they actually practicing a fair competition?  Are their employees given a just compensation and benefits?  Do employees have a conducive and safe working environment?  

In this course, I realized how CSR is being used as a facade by most companies.  I’m glad that our company is not among them.  My current employer may not have huge spending on charity activities, but I would say that responsible business practices are definitely being carried out.  In terms of production process, my employer ensures a high quality of our products.  Despite having a very minute size, our products perform a very critical role in automating various functionalities of a vehicle, from power to sensors and alarm.  Some of our products are as small as 1/8 of a thumbnail, but this small can damage the car and worse, a human life, if produced with a defective or low quality.  The manufacturing plant, in general, is a safe work place and pollution is controlled, as we want to avoid complaints from nearby residents.  Our employees are well taken care of.  Compensation is within the industry’s average, or at least our HR tries its best to align with the market rate; benefits exceed what the law requires, and employees in general are treated well by managers and supervisors.  Our HR department continuously improve its benefits package, and conducts more and programs to promote wellness and camaraderie of our employees.  Rather than spending money for donations and other external CSR programs, the company focuses itself instead on internal programs, for the welfare of our employees.  They are after all the most valuable asset of our company.  They are after all, the main drivers in ensuring the quality of our products.  

Gender Equality in the Workplace

One of the last topics covered in our MBA-CSR class was the gender equality in the workplace.  Gender equality, according to our slides, means “that the different behavior, aspirations, and needs of women and men are considered, valued and favored equally.”  In my current employer, I believe that if not nearly equal, we have more female than men employees.  This has significantly evolved from decades ago.  Since we are a manufacturing company, the manpower before used to be dominated by men.  One of the main reasons was that there were less automated machines in the past, and that the strength of men is needed to operate or lift the parts of some machines.  Aside from the gender preference, our company also used to require a certain height limit.  Yes, this is a form of discrimination.  But the justification of our managers was, they needed taller employees to reach certain parts of the machines. 

As years passed, the physical structures of our machines, as well as their functionalities have also evolved.  Alongside with this machine evolution, is the change in the gender and height preference of the company.  To reduce issues on discrimination, there were some modifications in the facility layout.  The height of some of our machines did not really change over the years.  But the modification made was to place some platforms, so that height requirement will no longer be an issue. Although lifting of some machine parts would really require male employees, more female employees are now hired for almost all other functions.  The strengths and weaknesses of both genders are acknowledged by the company, and that’s where the strategy on where to place them comes into place.  Male employees are usually assigned to processes which may require lifting of certain heavy tools and machine parts.  Females on the other hand, are usually assigned to visual inspections, since women in general have softer hands and have more attention to details.    In terms of management, we have about 100 managers, and I would say that women population for managers is almost the same as men.  However, the top management is still dominated by men. 

Another discrimination issue that we have also eliminated was the requirement on the educational attainment.  Several years ago, the company's minimum educational requirement for our operators is at least 2 years in college or vocational course.  When our HR was evaluating the turnover rates, they have realized that turnover rates were a lot lower before, when the minimum educational requirement was 'at least high school graduate.'  The management reflected that those who did not step in college have a higher loyalty than than those who had at least finished their 2nd year in college.  Because of this, the management decided to revert to its requirement a decade ago, which is to reduce the educational requirement for applicants.

Companies, like what my employer did, should continue to find ways and assess the value of equal opportunity in the workplace.  In setting requirements as to gender, educational background, height, religion, race, etc., companies should carefully evaluate why they really need such limitations.  Existing hiring policies should also be periodically reviewed, and management should evaluate what are the possible workarounds in meeting certain requirements, while eliminating discrimination.  

Labor Issues

For several years, I have been using IPhones and have tried 3 models already.  Although I’m not really a gadget-savvy, I’m a happy and satisfied Apple user.  However, my perception of Apple has changed after I watched the video featuring the labor conditions at Foxconn.  Foxconn is the major manufacturer of IPhones and other Apple products, Hewlett Packard, Dell, Motorola, Nintendo, Nokia and Sony (Wikipedia).   In the video, Foxconn is said to have violated a number of labor rights, resulting to riots and worse, suicide of some employees.  Employees are said to be working for excessive hours and not fairly compensated for their overtime.  Other allegations about Foxconn include cancelling of lunch breaks if targets are not met, limited day offs, child labor, and that employees are sometimes exposed to harmful substances.  It is really surprising to know that behind the most popular mobile brand, are some negative stories. 

First, I was quite surprised that there’s a highly manual operation involved in the manufacturing of Iphones.  I am also working in an electronic manufacturing company.  Although we have a large workforce, I would say that the jobs of our operators are not labor intensive.  Our employees work on a 12-hour shift, but they are properly compensated.  Most of them actually prefer to work on a 12-hour shift than on an 8-hour shift, because of a huge jump in their net pay.  Unlike Foxconn, our company is very careful in handling our employees.  We have encountered various labor cases already, and as much as possible, we want to avoid incurring costs on legal cases.  Aside from a negative public image, we are also subjected to high legal costs, both to our lawyers, and to the employee who had filed a complaint/case against us.  Aside from cost, there’s also a lot of time spent in facing these charges.  So, rather than a reactive approach, our company is more of doing a preventive approach, by ensuring compliance with the labor laws. 

At first, I wondered why Foxconn has managed to continue its operations despite the cases filed against them.  Then I realized that the government cannot simply cease the operations of very big companies.  Ceasing, or at least suspending the operations of these influential companies, not only would affect the employment rate of the country, but would also significantly affect the tax revenues of the government.  Although the government has the power to halt Foxconn’s operations, it would eventually backfire against them. 

Foxconn’s customers (e.g. Apple) on the other hand, should also have the responsibility in ensuring the sound business practices of their suppliers.  CSR is not limited to a company’s operations and programs, but also extends to the sound business practices of their suppliers and customers.  In other words, a true and effective CSR should be implemented in an ecosystem of the company and its stakeholders.  Accountability of implementing responsible business practices should be shared by suppliers, customers, employees, owners, and other stakeholders.  Countries and their governments also form part of this ecosystem.  Another issue involved here is that the approach to CSR is different between the supplier’s country (China) and its customers (US).  US on one hand is giving a high regard to CSR activities, but on the other hand, China’s approach to CSR needs more maturity.  It may be a big leap to reconcile the differences in these two powerful countries, in terms of their approach to CSR.  To reconcile differences, the safest approach is to ensure that the contracts between the suppliers and customers are adequately reviewed, and adequately include provisions on CSR matters particularly on labor and quality issues. 

CSR as a Government Requirement

“Do you think the government should require companies to have CSR programs?”  This was a question raised in one of our MBA-CSR sessions.  Personally, I don’t think this should be a government requirement.  Corporate Social Responsibility (CSR) programs should be sincerely and voluntarily implemented, rather than being forced to business organizations. 

In 2013, House Bill (HB) 306 was introduced by the former president, Gloria Macapacal Arroyo, as well as her son, Diosdado “Dado” Macapagal Arroyo.   This act is known as “Corporate Social Responsibility Act of 2013”, “an act encouraging corporate social responsibility, providing incentives therefor, and for other purposes”.  Under this bill, companies are encouraged, not required, to voluntarily contribute to sustainable economic development.  Section 43 of Batas Pambansa Blg 68, or the “Corporation Code of the Philippines” was amended as follows: “Stock corporations are prohibited from retaining surplus profits in excess of one hundred (100%) percent of their paid-in capital stock, except: (1) when justified by definite corporate expansion OR CORPORATE SOCIAL RESPONSIBILITY projects and programs approved by the board of directors…”.  Under this bill, the state shall “give national recognition and rewards to all business organizations for outstanding, innovative and world-class CSR-related services, projects and programs;”  spending for these CSR programs are also be entitled to full deductibility from gross income; local government units can provide assistance “necessary for business organizations to perform their CSR;” and that “all business organizations shall submit the list of their CSR activities as part of their annual or regular report to the Securities and Exchange Commission, the Department of Trade and Industry, or the Department of Finance.” 

When I first read about this HB, I was pleased that the government is actually promoting CSR to local organizations.  But on the second thought, I felt that there’s an underlying agenda on this HB, probably because of my bias on the authors of this HB.  As the public knows, our former president faced various plunder and graft cases.  And yet, I find it ironic that they are actually authoring this HB.  CSR, as I have learned in my MBA-CSR class, is how companies contribute to society through good business practice.  But have the authors of this HB done a responsible government practice during their term?  If the plunder and graft cases were true, how confident are we that this HB will be applied by the companies responsibly?  How good is the intention of the authors?  In this HB, companies can already use its CSR projects as a justification for retaining their surplus profits.  Should the companies exceed their surplus profits beyond their paid-in capital stock, and these are not justified, they will be subjected to certain taxes and penalties.  Because of my bias on the authors of this HB, I believe that this will just be used for some forms of concealment and tax avoidance.   

The HB also mentioned (but not limited to) the following activities as forms of CSR activities: “charitable programs and projects, scientific research, youth and sports development, cultural or educational promotion, services to veterans and senior citizens, social welfare, environmental sustainability, health development, disaster relief and assistance, and employee and worker welfare related CSR activities.”  CSR in general, should not be an exclusive project only, and it should form part of the company’s daily operations.  On accounting perspective, I find it hard how to distinguish the costs between CSR and non-CSR programs, particularly for organizations who are already embedding CSR in their core business operations.  Providing a safe workplace and fair compensation to employees are already forms of CSR.  Will our local government consider these as CSR activities as well?  CSR, based on one of the videos that we have watched in class, is how companies earn profits, and not how they spend it.  With this bill, the people will continue to perceive CSR otherwise, and be misled to believe that CSR is how companies spend money (on charitable or philanthropic giving), and not how they responsibly earn their profits.

PWD in the Workplace

Based on Philippine Statistics Authority’s 2010 Census of Population and Housing, the rate of Persons with disabilities (PWDs) in the population have increased from 1.23% (0.9m) in 2000 to 1.57% (1.4m) in 2010.  About 59% of the PWDs belong to the working age group, 18.9% for 0-14 age range, and 22.1% from the retirement age group.  While the largest chunk of PWD’s population are in the working age group, PWDs are often deprived of getting good and stable jobs, not just in the Philippines, but in other countries as well.  There’s a very few company I know that really open their doors and offer employment to PWDs.  In my 12 years of employment, I have worked for 5 companies already and only 2 of them have open positions for PWDs.   My third employer’s parent company hired an orthopedic-disabled receptionist.  The President strategically placed her in the front line to convey equality among the individuals.  Compared with other receptionists that I have met, she indeed had the sincerest morning greeting, which will definitely lighten up your mood the entire day.  My fourth employer, which promotes diversity in the workplace, also hired an orthopedic-disabled manager.  Except for their legs, the rest of their body parts are functioning well.  Their disabilities do not serve as barriers in communicating with their colleagues.

However, Lamoiyan’s manpower model is an exceptional one.  Lamoiyan is known for manufacturing the local toothpaste – Hapee.  In its manufacturing plant, 35% of Lamoiyan’s workforce are hearing-impaired.  Unlike 2 of my previous employers who hired a small percentage of PWDs, Lamoiyan’s PWD population is quite significant.  I’m also an employee of a manufacturing company, and I’m really impressed how Lamoiyan was able to embed this special program in its production process.  Miscommunication is already one of the most common problems in the workplace, even for physically normal people.  But despite this norm, Lamoiyan took a big leap in giving decent jobs to hearing-impaired employees.  It made me realize that his operations model is really sustainable, particularly for a manufacturing company.  Our company manufactures semiconductors, and I believe we have some jobs that are suitable for hearing-impaired employees as well.  As mentioned in Lamoiyan’s case, one of the strengths of hearing-impaired employees is the attention to details.  This strength can also be used by our company for some processes like manual visual inspection (MVI), a form of quality check. 

Lamoiyan proved that PWDs can be given equal opportunities with the normal people.  I guess two of the hindrances in our country are the government policies and local infrastructures.  Even for normal people, there’s already a high unemployment rate and a high competition in getting a job.  Scarcity of jobs is not only a problem of PWDs, but of normal workforce as well.  Should the government give more job opportunities to PWDs, the next concern is – do we have a PWD-friendly infrastructure and transport system?  Even there are available jobs, the system will not work well if we do not have a good infrastructure for PWDs.  One model that the local government can implement is Swedish Government’s disability policy, with special priorities on the justice system, transportation and IT.  In terms of transportation, “Swedish government has instructed the country’s municipalities to initiate moves to make facilities such as bus and tram stops more accessible,” wherein all citizens, both normal and PWDs, can “work, study, and take part in community activities on equal terms.”  In terms of IT, Sweden’s national IT strategy was to give new IT tools to PWDs, to promote a “greater degree of independence.” In order to provide more equal opportunities to Swedish citizens, the government also provides municipal grants to PWDs for housing modifications, car allowance and subsidies, funding for job hunting, financial assistance from Swedish Social Insurance Agency, and a lot more.  Philippines may still be very far from this ideal state, but it’s not too late to start with small steps to implement changes and improvements in the lives of Filipino PWDs.

(1)    Sweden’s disability policy.  Retrieved from https://sweden.se/society/swedens-disability-policy/

Women and Advertising Ethics

Nike, Adidas and other sports brands portray their women endorsers as strong and fit women.  This has probably evolved from 1980’s and earlier years wherein the sports advertisements are mostly endorsed by men athletes.  As a woman, it is flattering that the market is now less gender-discriminating, and is now recognizing and widely accepting women as sports endorsers.  However, it is also disappointing to know that some advertisers don’t respect the sacredness of women’s body.  Some companies are using women as sex objects, and not as endorsers per se.  There are also instances wherein the use of women as endorsers does not have any connection with the product. 

For instance, women endorsers and alcohol products.  The 2003 World Health Survey (Philippines) showed that 1.7% and 0.5% of the survey population are male and female heavy/hazardous drinkers, respectively; 13.2% and 1.6% are male and female episodic drinkers, respectively; and that out of 41.6% youth drinkers, 61.2% are males, while 23.9% are females (1) .  Given these statistics, men in general, are the target market of alcohol companies.  However, in their advertisements, women are more often used as alcohol endorsers, which they traditionally call as “calendar girls.”   And if you were to assess these women, they don’t like they are heavy drinkers either.   These women are more likely used as sex objects than actual endorsers of their products.  As a mother, I think I would be struggling if my son would ask me why are those sexy women used for calendars.  How would I explain the rationale behind it to a six-year-old boy?  As much as I want to shield my sons from some photos or advertisements that would possibly pollute their minds, it is really inevitable since they always pass by EDSA and C5, crowded with a lot of these materials. 

Aside from using women as sex objects in advertisements, other advertisers excessively manipulate the image of a woman and her body.  In Vatican’s paper on ethics in advertising, the first moral principle mentioned was the “truthfulness in advertising”.  Advertisements, magazines, social media and other publication do a lot of fabrication of women’s images, and most often, an exaggerated one.  As influenced by these advertisements, women tend to be too idealistic, and sometimes lead to lower self-esteem, anxiety, eating disorders, and living beyond their means.  There’s nothing wrong celebrating the beauty of women, but what’s wrong with some advertisements is when they deliberately distort the reality and mislead the audience.  Pope John Paul II noted that advertising can be a tool of the “phenomenon of consumerism” and that “it is not wrong to want to live better; what is wrong is a style of life which is presumed to be better when it is directed toward “having” rather than “being” (1).   Instead of appreciating God’s natural gift of beauty, some women tend become someone that they are not.  Women, even the young girls, are pressuring themselves to look better and become thinner, as they compare their bodies with the models appearing in advertisements and magazines. It’s good that some organizations are driving some changes in how media portrays its endorsers.  Change.Org for instance, started a campaign to “create positive change for young women by reducing photoshop in magazines.” (2)  According to the organization, the extreme post-production editing of images elevate the problem especially for young women.  Post-production edits portray too ideal bodies, which create high insecurities among women.  In one study for instance, “75% of ‘normal’ weight women think they are overweight and 90% of women overestimate their body size.” (3) Some women resort to excessive weight reduction and worse, health problems.  I do hope Change.Org’s campaign will become more popular, and that more celebrities will be ambassadors for these changes.  One good example was Kate Winslet, the famous “Rose” in the movie Titanic.  Before she turned 40 last year, she posted a make-up free picture in Facebook, urging her followers to “embrace who they are, including their perceived flaws.”(5)  If celebrities were used to influence the public to look flawless, celebrities can also be used to change mindset of the public, on how to perceive the real beauty and embracing their flaws. 

More than the celebrity endorsers, the main responsibility lies with the companies, followed by the advertisers and regulating bodies.  The companies and their contracted advertisers should respect the dignity of the endorsers, their target market, as well as the general public.  The regulating bodies on the other hand, particularly here in the Philippines, should revisit their guidelines when it comes to advertising ethics.  Lastly, the public audience, should take active participation in communicating to the government or regulatory bodies if some advertisements are offensive. 

(1)    Retrieved from http://www.who.int/substance_abuse/publications/en/philippines.pdf

(2)    Retrieved from http://www.vatican.va/roman_curia/pontifical_councils/pccs/documents/rc_pc_pccs_doc_22021997_ethics-in-ad_en.html

(3)    Retrieved from https://www.change.org/p/reduce-photoshop-in-magazines-to-create-a-better-world-for-girls

(4)    Retrieved from http://www.healthyplace.com/eating-disorders/articles/eating-disorders-body-image-and-advertising/

(5)    Retrieved from http://www.mirror.co.uk/3am/celebrity-news/kate-winslet-goes-make-up-6341038

Service Learning at Virlanie (Part 3)

Before our activity, my personal objective was to impart my knowledge on computers to the house parents. However, during and after our session, I actually gained more than what I have shared with them. My learnings were more on the realities of life, which are beyond my technical knowledge. Mr. Cenen, the program director, encouraged us to focus on our interaction with the house parents, than the actual computer program/lesson. Every day, the house parents interact with the kids. Interacting and being served by new people, like us, would be a new experience for them. It is very seldom that they entertain receive proposals wherein the beneficiaries of the programs are the house parents, and not the kids. 

Our group was assigned to the Daycare house. In between our computer sessions, we got a chance to ask the house parents about the stories of the babies in their center and how were they brought to Virlanie. As a mom of two boys, it is very difficult for me to accept that there are really mothers who abandon their children intentionally. Some babies were left in the parking lot, garbage areas, comfort rooms, and some of those babies even have fresh umbilical cords when they were discovered. I can’t help but really question why they were chosen to bear these babies, wherein other couples are really trying for years, and sometimes spending a lot of money just to conceive a child. I have two close friends and a relative, who have experienced this, and they should have been the chosen as the biological parents of those babies. God may only be the one who can answer these questions. I understand that those parents, particularly the mothers who abandon their child, have a lot of different stories, and probably most of them are financial problems. However, if these mothers believe that they cannot support the lives of their babies, they should have sought help from their families and friends. And if they cannot give proper guidance, they should have sought help from certain helplines, foundations, and institutions. In this regard, I realized that our country lacks awareness about the existence and the purpose of these institutions. Personally, I do not know any institution in the Philippines, who can provide free counsel, unless I browsed the net. Or if I knew of a helpline number, my next concern is, is the call free? If I, having an access to the internet, have these doubts, what more those ordinary mothers who do not have access to media or to internet? How would they actually know that there are institutions who could help them, or could lead them to proper institutions who could take care of their unwanted babies, rather than leaving them in a public place? Upon searching the net, I came across Natasha Goulbourn Foundation, who has partnered with Department of Health to formally establish “Hopeline Project”, to provide a “phone-based counseling service available 24/7 to any individual who suffer from crisis and depression (healthpromo.doh.gov.ph).” Our local government should exert more effort on these types of projects, not just to avoid abandoning of children, but to address the crisis and depression in general. To increase public awareness, the HOPELINE number should be advertised more through different forms of media, including billboards. 

Despite being abandoned, those children at Virlanie were very fortunate that they are well taken-care of. Aside from the donations from certain individuals, corporations and other institutions, the house parents really take care of them as if they were the biological parents. When asked if they cry when a child leaves and adopted, I was expecting a simple “yes”, but did not expect that they are really affected when a child leaves. During the debrief with Mr. Cenen, he said that house parents are being counseled as well, before a child leaves their institution and handed over to their new parents. There is really a program that weeks or months before a child will be adopted, there should be a certain “detachment period” to help the house parents adjust. I was not expecting that they become really attached to these kids, whom they took care of not just for months, but for years. For those children at Virlanie, God has really planned something better for them. Some of them might not be able to meet their real parents anymore, but a new set of parents would be able to give them a brighter future. 

I have also realized that the house parents’ work in the foundation is a lot more meaningful than my work. If our judgment time comes, and asked by God, how did you serve and touched the lives of other people? The house parents can easily answer this question, while I… may be struggling.

Computer Literacy Program at Virlanie (Part 2)

October 15 – the big day for our group.  I honestly got some jitters on the day since I was the one who organized the program, and I feel accountable if it will not turn out the way I wanted it to be.  Then we finally met Mr. Cenen “Mac” Milan, Jr., the Program Development Director.  He gave us an orientation of what Virlanie is and what he does.  Coming from a zero background about Virlanie and Mr. Cenen, our group was in awe as we listen to his stories and testimonials. 

If Virlanie was in a hospitality industry, it can be classified as a five-star hotel.  They had very high standards and high achievements, and yet they stay grounded, and as much as possible, they want to be away from the limelight.  Virlanie was established by Dominique Lemay in 1992, and as of 2014, it had cared for 819 children, 878 individual sponsors, 111 employees, 39 local volunteers and 76 foreign volunteers.  Inspired by the success in the Philippines, Virlanie was also established in other countries such as Belgium, France, USA, Denmark, Canada, Spain and Switzerland. 

One of Virlanie’s core programs was the Residential Programs, which provides various services and programs to empower a child’s life (usually street children, abandoned, or abused) and let him/her live life to the fullest.  Virlanie also have other programs like Family Reunification which helps children reunite with their families; Independent Living Program (ILP) which aims to empower and support young adults to become more sustaining; Balik Probinsya Program, which offers financial support to families so they can earn a living and go back to their province, and also provides a start-up livelihood like sari-sari store, tricycle, etc.; Mobile Unit, which provides non-formal education, educational assistance, medical services, psychosocial and social assistance in Divisoria and other streets in Manila; and other support services and sustainability projects. 

For the Residential Programs, Virlanie has about 7 houses, and I think 6 of them are located in Makati, while the other one is located in Cavite.  Each house, headed by “house parents” and assisted by house aunts/social workers and helpers, caters to a specific cluster based on the child’s age group.  Our group composed of 11 members, were further divided into 4 houses.  Our subgroup was assigned to Babies and Toddlers Home (0-4 years old), and other subgroups were assigned to Marco Polo Care Center (4-6 years old), Ella Yallah Home (male teenagers aged 13-18), and Elizabeth Home for girls who went through difficult situations such as physical and/or sexual abuse. 

Realizing how big and prestigious this foundation is, we were really thankful that our request to conduct our service learning activity was granted.  Mr. Cenen explained that he immediately granted our request, because it is very seldom that they receive proposals to serve and reach out to the house parents.  It is usually the kids who are targeted by the organizations, and not the house parents and social workers.  He also explained that his primary objective was to give a chance for the house parents to interact with other people…new people to talk to other than the kids.  He again emphasized not to dwell too much on the topic, but rather, just interact and talk to the house parents.

I realized at that point that no matter how big an organization is, there is always something that needs to be filled up, and needs to be given more attention.  I am thankful that this CSR activity focused on rendering service rather than just giving donations to the foundations.  Our contribution may not be as big as what Virlanie’s sponsors have given, but it was still valuable to a segment of their organization.   

Other than the success stories of Virlanie, Mr. Cenen shared with us some of his experiences in the Lasallian community.  He started studying in La Salle since gradeschool upto college, worked as a La Salle faculty, and almost joined the La Salle brothers.   Although it was not pushed through, he continued to live by La Salle’s teachings of serving the poor.  He worked at Virlanie to continue his mission and advocacy.  One of his most remarkable stories was when he shared his 17-day 1,500 km run from Davao to Manila, to launch a book-distribution campaign and tree-planting program in Davao.  Because of his advocacy and successfully finishing the 17-day journey, he was able to receive 90,000 books as a donation from a non-profit organization.   

This year, I have started and ran 2 ultramarathons with my husband.  First was Luneta to Tagaytay for 64 km, and our second ultra was Laguna to Tagaytay for 50 km.  My husband and I both struggled finishing this 12-hour and 8-hour journey.  But our experience was dwarfed by Mr. Cenen’s journey.  Our longest distance was only 5% of what he has ran.  Other than that, I came to realize….what am I really running for??? His run generated 90,000 books, but how about us?  Who benefits really when I run?  His story is actually a turning point in my running goals.  I realized that I run just for myself, to set me apart from others, to brag about what I have achieved.  I realized how selfish my goals are.  In my 64 and 50km, I was not able to raise even a single book.  At this point, it’s really a challenge revisiting my life and fitness goals.  I am planning to run an ultramarathon again in January or February, but how can those events benefit other people? Some events may have beneficiaries, but am I really running for them or just for myself? I am also planning to try running in barefoot…but for what cause?   

(to be continued - post program reflection)

Law, Ethics, Business and Practice

How I see it now:

How I see it should be:

The first diagram above represents how I see the reality, and the second diagram represents my personal “ideal” framework on the interconnection of Law, Ethics, Business and the actual practice.  Ethics is defined as “the principles, norms, and standards governing the organization” while Law is defined as the “society’s minimum norms and standards of business conduct”.   

For economic dimension, solid boundaries pertain to management’s and investors’, target income or profit and return on investment.  Thicker boundaries for legal dimension represent black and white rules and regulations, laws and policies set by the government.  Dotted boundaries for ethical dimension represent flexibility, openness and uncertainty. 

Reality

     In my perspective, business environment in general are bound by economic considerations and most often, bound by their desire for profits.  Business central focus is on the profit generation and return of investment.  Legal matters are embedded, but sometimes go beyond the economic bounds.  One perfect example for this is the current yet outdated tax bracket for individual tax payers.  Businesses comply with this tax code, but it no longer makes an economic sense.  Ethical dimension is overlapped with both economic and legal, but usually given less consideration.  Some legal considerations may not necessarily be ethical, and vice versa.  Since most of the time, there are no black and white rules on ethical standards, and that some factors do not overall or align with the legal matters, confusion and conflicting decisions are being made. 

Ideal

For me, legal, economic and discretionary considerations should all be within the bounds of Ethical considerations, and the latter should be given the utmost importance.  I agree that the “law should not be the only guiding principle for deciding what’s right”, rather, “Ethics” should prevail among the other factors.  Laws and regulations should be written and implemented, on the basis of common good.  Although the current president of the country is being criticized for his undue remarks, I am grateful that certain tax laws (like rationalizing the income tax brackets and rates, as well as increasing the rate and coverage of sin taxes) will be reviewed by the current administration.  These laws, if approved, will definitely benefit a larger part of the society. 

Economic on the other hand, should also be within the ethical bounds.   One example is the law on minimum wages.  Most businesses often restrict themselves on these minimum rates on their drive to minimize costs and increase profit.  However, businesses would always have the flexibility to go above the minimum rate set by the tax code/labor law.  Wages of the ranks and file are always considered for cost minimization, but sometimes, the company would feel a greater impact if the management’s compensation or benefits, or at least their number will be reduced.  Companies should have a regular review of the management’s functions, and if their compensation really commensurate the level or criticality of their work.   In some organizations, the cost of 1 manager personnel may be equivalent to the cost of 20-50 minimum wage earners.  If on the ideal world, economic and legal dimensions are “always” within the ethical boundaries, then every action taken by the company would have a positive ripple effect to the stakeholders and to the wider range of society.  

Computer Literacy Program at Virlanie (Part 1)

In organizing our group’s service learning activity, our primary concern was the location of our chosen institution.  We preferred that the location is within the Makati area, or at a nearby city so we can have a shorter travel thus we can maximize our time.  Since two of our groupmates are getting at the end of the month, followed by a long weekend (All Saints / All Souls Day), and followed by the Christmas season which might conflict with other charity events, our group decided to conduct our service learning activity on October 15, our CSR free day.  Upon searching for potential institutions, I came across Virlanie Foundation, Inc., one of the foundations located in Makati City.  I didn’t know much about Virlanie, neither my group. 

On October 3, I contacted their office and inquired if our group can render service learning activity to their community, which may be in the form of art and music class for the kids, or financial/computer literacy workshop to affiliated communities, or they can suggest what type of activity they would be needing.  Two days later, their Program Development Director replied to my email, stating that they are interested on the Computer Literacy Program for their house parents, and we can conduct in on October 15, our preferred date.  House parents are the main caretakers of the children, other than the helpers and other social workers. 

In the early part of our CSR class, we have watched the life of St. La Salle.  My reflection at that time was – how can I live by St. La Salle’s teachings in this modern world?  Yes, it can be applied as a Lasallian Business Leader.  But honestly, I can see myself more as a teacher rather than a business leader.  I believe that teaching would make my life a lot more meaningful. In teaching, I won’t be contributing to the profit of a company, rather, a profit on the student’s character and knowledge.   I initially wanted to teach accounting undergrads in DLSU after my MBA, but at some point, I realized that it won’t fulfill La Salle’s mission of educating the poor children.  I have actually thought of teaching street children instead, since earning extra income through teaching is not my primary consideration. 

Even if our participants are not ‘street children’ per se, this Computer Literacy Program really excites me.  I have handled Excel training sessions in my current and previous firms, and it just makes me satisfied knowing that I have imparted my knowledge and contributed to other people’s skills, and even more, to their increased efficiency.  I’m excited to impart these to non-corporate participants. 

I have some apprehensions though.  Is this new knowledge really helpful to our participants? Our group initially planned to include “creating a resume” as part of or hands-on exercises on Microsoft Word, and also planned to give them inspirational talks as to other possible job opportunities for them (like online jobs).  We then realized, this is probably not a good idea.  By orienting them on how to explore other job opportunities, they might leave their current jobs as social workers or house parents and our group might be blamed later on.  If not for better opportunities, what would be the benefits of our session to the house parents?  Will they be able to apply it in their work?  Well probably, it can be somehow used to push and inspire the children they take care of.  Or probably, they can use it later on for compiling data about the kids, or can use powerpoint for presentation to their community or to Virlanie’s management. 

Whatever the benefit may be, I am hoping that the event will turn out well.  According to the program development director, this program is just a kick-off or an introduction.  Virlanie will later on have more formal training programs to be conducted by French volunteers, probably starting in two weeks after our activity.  Given the limited time, we do not expect our participants to absorb everything in one blow.  Our objective now is to make sure they will get interested on the topic, and that they may somehow gain more confidence and familiarity before they start with their formal computer literacy program. We are advised anyway by the program director not to dwell too much on the technical side.  An overview would suffice.  

What happens next?  See Computer Literacy Program at Virlanie (Part 2)

Laws of Money

       I have first heard of Suze Orman when I attended a financial workshop in 2014,  but it was only now that I really had a chance to hear and read about Suze Orman’s lessons.  In her video, Suze cited 5 basic laws of money, which made me reflect on what I have done, currently doing and what will do next.  These lessons gave me more drive to pursue my chosen topic for my Management Action Research, which is to conduct Financial Literacy Program to our employees.  These are some lessons worth sharing with my friends, family members and colleagues:

Lesson 1:  Truth Creates Money, Lies Destroy It.

Suze has cited some examples which reflect the reality, and I was really guilty of.  First example is when your best friend asked you if it’s ok to borrow some cash to finance a certain loan or investment.  Deep inside, you know that she won’t be able to pay as promised, but you ended up lending her money because of your friendship.  For Suze, this is a form of a lie.  But in reality, particularly for Filipino culture, this is already a way of life.  Filipinos in general really value relationships, particularly the family.  If someone is in need, particularly if a close friend and a relative, most of us go out of our way just to extend help.  Oftentimes, Filipinos find it very hard to say “no”, even if in reality, we do not have means to extend financial help.   

        Another example she cited is when we purchase items using credit card, to feel good or feel that we can also afford what the people around us can afford.  Anyway, we will pay when the bill is due.  This is indeed very true and I am guilty of this since I’m a credit card user.  I admit that there were times wherein the truth is - I really can’t afford to buy a certain item.  But because we want to blend with the society, or because we don’t want to get insulted by the people around us, we are trying to project another image.  Thank God my husband helped me change this habit, and helped me control my purchases which I really cannot afford.  

Lesson 2: Look what you have, not at what you had.

Our decisions are usually based on past, and we are afraid to look forward.  I remember when I was still starting exploring the stock market.  I invested in Double Dragon at a very low price, but sold after a few months when I didn’t see an improvement.  A few months later, when I pulled out some more investments to finance other needs, Double Dragon’s value increased significantly.  I really regretted selling at an early stage, and now, I am hesitating to invest in the stock market again.  This is a perfect example of making my decision based on the past.  Instead of doing nothing about it and not making my money grow, I should look at what I have today, keep looking forward---invest----and wait more patiently.  

Lesson 3: Do what is right for you before you do what is right for your money.

According to Suze Orman, “The quality of your life can be affected just as much by how you feel about your decisions as it can by the decisions themselves” and that “Money flows through all of your life aspects, and you will not know what is best for your money until you know what is best for you.”  In the third lesson of her book, I have answered an assessment on “finding your unique balance.” Based on the results, I have a “high need for safety, comfort, and known quantities” in my life, I should consider them if making my decisions.  It also appeared that I have a “high interest in adventure, risk and challenge”.   Putting this into action, knowing that I have a high need of safety and that I have a high interest in adventure, risk and challenge, I should already start doing something in my investments. On the safety side, I should continue setting aside for my savings through a capital contribution.  This might not earn a high profit, but I am confident that it will just be there, safe and sound.  On the riskier side, I should start investing in the stock market or mutual fund again.  This will somehow create a balance in making my investment decisions.  

Lesson 4:  Invest in the known before the unknown.

Before making ‘unknown’ investments like investing in stocks, it is but appropriate to look at the ‘known’ items first like actual historical income and expenses.  What are the expenses that can be cut or avoided?  What are the other ways to increase the income?  For cutting the expenses, I am proud that I have already removed the habit of not paying 100% of the credit card due amount, and I have maintained such habit for more than 5 years already.  Despite receiving offers from various credit card companies, I opted to reject those and just stick with my current card, which is an extension of my husband’s.  In this way, knowing that someone monitors my expenses, I become more disciplined in handling my finances.  

Lesson 5: Always remember: money has no power of its own. 

I have what it takes to make my life more powerful, to make my money grow, to create what I deserve, and to keep what I have.  Money is just a tool and it doesn’t have the power to control me.  I firmly believe on this mantra, but I guess most people are not.  For most people, it’s actually not the money that controls them.  It’s their own greed for power and money that controls them, thus resulting to wrong decisions and actions.  

Jump and Run

MILLENIALS, per Wikipedia, are known to have too great expectations from the workplace, “look for the versatility and flexibility in the workplace, and strive for a strong work-life balance”.    I indeed belong to this generation.  In 12 years after I graduated from college, I jumped from 1 employer to another, and now on my fifth employer.  

My work life started as an auditor, where I gained experience and increased my market value.  Those were also the years of sleepless nights and weekends were weekdays.  I never regretted working in this firm, as I carried on its prestigious name in my CV.   After three years, I jumped to another audit firm outside the country.  Workload was the same, except that I was earning much higher but away from my family.  I cannot count the nights when I have to go home just to get some clothes, sleep in the office alone, take a bath in a nearby gym, and go back to office.  I may have struggled to have a work-life balance, but I was very thankful that God allowed me to work in these two firms during my first 5 working years.  Aside from being able to support my family and save something for my wedding, I have also learned to be more independent, stronger and resilient.  

I went back to Philippines to get married.  I started having my own family and worked in my comfort-zone company, but it did not last for long.  I may have achieved a work-life balance, but my earnings were not sufficient to support my growing family.  It was really hard for me to leave the job that I loved.  I jumped again to another company, with a higher income, but again struggled with a work-life balance.  I usually go home at 10 – 11pm, and there were times when my son did not want to sleep beside me, and chose to sleep with his Tita instead.   Those were my turning points, and my husband requested me to look for another job where I could spend more time with him and my son.  

Thankfully, God led me to my current job, where everything fell into the right place.  In my current job, I have managed how to balance my life.  In my first year with my current employer, I gave birth to our second child.  In my second year, I got hooked into fitness and running with my husband, and have also enrolled in a dressmaking course.  In my third year, I started with my MBA, got into ultra-marathons and got promoted.  Despite these various activities and busy lifestyle, I have still managed to regularly spend a quality time with my family.  

Looking back, now that I have achieved the kind of work and the kind of life that I wanted, I came into the following realizations:

• The main reason why I jumped from one organization to another, is really not about the money or the time that I wanted.  The main reason is that I was always trying to compare myself with others, who had a higher paying jobs, higher benefits, and a lot of time to spend on extra curricular activities.  It was actually the "envy" comparing my employer with their employer.  I have set very high standards, on what's the ideal job and company for me.  
• Balancing work, life, family, and relationship with God, really depends on a person's values, choice, strategy and outlook.  Probably in my early 'working' years, leisure or work-life-balance was not really my priority.  Perhaps my priority back then was really to be recognized for my work, and a sense of completion or achieving something.    
• Being in the right organization has a factor of prayer, luck and listening to someone else's advice.  Before I got employed byit  my current employer, I thought of accepting the offer of another organization, a start-up company.  Between the two, I preferred the start-up company but my husband let me realize that I may again struggle in juggling my role as an employee and as a family woman.  He let me to a more stable company, and I'm glad I listened to him.  Just recently, I heard that the start-up company is now closing and has laid off a number of employees.  
• Tone at the top and company's culture really matter in ensuring that employees achieves a work-life balance.  My previous superiors in prior organizations used to stay late in the office, and this was actually normal with the rest of the organization.   With my current employer however, at least 95% of the directors, managers, supervisors and staff, go home sharply at dismissal time.  This proves that an average person does not need to exert excessive effort to achieve the "ideal"balance between life and work. 

I may have jumped several times looking for a flat and safe ground...and when I got there, I started running to God's chosen path for me.   

The Vocation and the Ripple

When I was a child, I used to dream of becoming a doctor, realizing later on that this is not my dream at all.  As much as I want to save lives, I can’t stand the exposure to blood, or be accountable for not saving someone else’s life.     I chose to take another path…a business course.    I thought all the while that the job in the corporate world is not as critical as with the doctor’s job.  I thought all the while that being in the corporate world, I will not be directly involved in saving someone else’s lives.  My theory was wrong.  Every action of either the employer or employee, or both, may save the lives of the immediate stakeholders, and can be further rippled to the wider society.  For example, by merely employing someone, providing a fair compensation and benefits, and a safe work environment, an employer is not just saving his employee’s life, but his family or beneficiary as well.  The daily needs of the family members can be purchased from business and commercial organizations, which in turn also provides jobs to other people.  Taxes paid on income and purchases are then contributed to the government, which in turn builds infrastructure and ensures public safety for the common good of the society. 

It is therefore important for the companies, especially the business leaders, to properly reflect on the ripple effect of every action, before making a decision and implementing a change.  The book Vocation of the Business Leader: A Reflection, has pointed out 6 guiding principles for businesses to integrate LIFE, VIRTUES and business practices for the benefit of the society.   Almost all of these guiding principles were practiced by one company that I have worked for, which was led by a true Christian Business Leader, which I would like to call as Mr. J.  Mr. J is the president of Company ABC, a group of companies with distribution and retail businesses.  The Filipino translation of Company ABC’s real name is “human being”, and the Chinese translations are ‘way’, ‘path’, ‘doctrine’, and ‘principle’.  Below are some examples of how Mr. J has actually lived by these 6 guiding principles.

Meeting the Needs of the World through the Creation and Development of Goods and Services

1.      Businesses that produce goods which are truly good and services which truly serve contribute to the common good.

      One of the subsidiaries of Company ABC used to handle distribution of cigarettes.  This subsidiary is one of the biggest and top profit earners among his subsidiaries.  Despite this, he later on decided to drop this business.  Not because it is declining or starting to lose its market share, but because he believed that the product harms the people’s lives. 

2.      Businesses maintain solidarity with the poor by being alert for opportunities to serve otherwise deprived and underserved populations and people in need.

      Another subsidiary is handling retail of health supplements, targeting the middle and high-end market.  Realizing that he also needs to touch the lower market, he acquired another health supplement retail company to cater to this market. 

Organizing Good and Productive Work

3.     Businesses make a contribution to the community by fostering the special dignity of human work.

Mr. J’s primary mission in acquiring a company is to give jobs to the community.  Some people may be challenging him or recommending to him not to acquire Company B, an existing and almost bankrupt business, which has about 100+ employees.  Consultants and counsels believe that the return of investment will take a long time.  Despite these advices, Mr. J continued acquiring the business, not because of the desired profit, but to give jobs to the existing employees. 

4.    Businesses provide, through subsidiarity, opportunities for employees to exercise appropriate authority as they contribute to the mission of the organization.

In Mr. J’s head office, he has hired disabled female personnel with a very pleasing personality to be the receptionist.  In my 12 years of working experience in 5 companies, this receptionist showed the sincerest “good morning”.  This is actually one of Mr. J’s ways to remind everyone in his business community that all of us were created equal. 

Creating Sustainable Wealth and Distributing It Justly

5.      Businesses model stewardship of the resources, whether capital, human or environmental, that they have received.

6.      Businesses are just in the allocation of resources to all stakeholders: employees, customers, investors, suppliers, and the community.

      All employees under his community have fair compensation and benefits.  His businesses, big or small, are all housed in a safe working environment.  Mr. J has also established a foundation, which aims to “improve the state of public education in the country” as well as to support public sports programs and promote Filipino music.  This company has also partnered with DepEd to promote a technology-enhanced alternative delivery mode of learning.  Since 2010, its foundation was able to deploy this mode of education to 4 public schools in Luzon and Visayas. 

With Mr. J’s way of running his business and a mantra of “giving back to the community”, I realized that business leaders are also “doctors” of the society.  It may not be on a medical perspective, but business leaders can also save the lives of the employees, his family, and the community.  The profits and benefits of a business organization ripple to the stakeholders and to a wider society. 

For I know the plans I have for you, declares the Lord, plans for welfare and not for evil, to give you a future and a hope (Jeremiah 29:11)

References:

Company’s Ripple Effect
http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp0304/04RP04

Vocation of the Business Leader
http://www.pcgp.it/dati/2012-05/04-999999/Vocation%20ENG2.pdf