Dear Enron: An Open Letter 14 Years In The Making

Dear Enron,

It was October of 2001 when your scandal was revealed. I was in my sixth grade then. I remembered Papa watching you on our television set. Hello! Mind you, I didn’t take you up seriously then.

2006, I encountered you again.  Yes, on the pages of one of my accounting books. You were actually a star. I gave you more attention now than then. You were part of my exam after all.

Years passed and overtime I learned how to manage hearing your name without reciting the issues that led to your demise. But with a sudden twist of fate, here we are again. How are you? How are they? 

Your story is a page turner. Big shot energy firm with high market value per share plummeting down the drain, executives living lavish lifestyle then held captive for corruption, greed, fraudulent transactions, window dressing, obsession with money, conflict of interest, poor governance, depreciating sense of corporate culture, manipulation of accounting records and books, and insider trading. Bam! It all boiled down to loyal employees losing their jobs, investments, and retirement benefits. It has all the elements to win a Nobel. 

Looking at you after 14 years while I am in graduate school proves that you are the best example of an ethics lesson. Thanks to your story, I was able to learn that:

People are people. We are made of different beliefs, goals, and interests. Most of the time, we have conflicting views and in business these conflicting views can be detrimental not only on the company but for each of its employees. We do not serve only ourselves but others as well.

Corporate culture starts from up then goes down. Upper management has the responsibilities and obligations to establish a culture that is based on good ethics and governance.  What it sets as an example will cascade down to its employees. We don’t want blind people navigating our spaceship towards a meteorite. Be good, be always good!

Profits are just mere figures. People are the real value. I know that I cannot compete with traditional idea that business is for profit. However, I don’t want to be boxed inside its four corners without having to say my piece. There is no need for convincing. I do not need to convince you, my dear, that what you have done for profit with your people at stake was wrong. No. There is no need. Because you are completely wrong from the very beginning. 

Businesses and business persons nowadays do not need to wait 14 years to hear and learn from your story. Everything is just a matter of mindset and ethical behaviour. But the sad part is not everyone are like that. I know, somewhere out there, there are firms that are like you. And so, I am knocking on each door for them to hear me. 

Above all, everyone can be a change agent for the good.

Regards, 

Anne

Service Learning Day 2: An Early Christmas Treat

Since December was near and the holiday season was getting closer, our group’s second Service Learning activity dwelt on this idea as we gave the 51 children of Barangay Oranbo an early Christmas treat.

The activity includes: Stop Dance, Newspaper Dance, and Kalamansi Relay

There was also performances from the talented kids of Oranbo

And lots of gift giving.

At the end of the day, I felt delighted. It really is a great feeling when you give and share your blessings to others. It was complete happiness when I saw the children enjoying the party and appreciating every bit of it. My heart also felt an instant joy when we were asked by the Pastor to continue with our CSR activities and even invited us to do it again on their community. Our efforts for making them happy succeeded.

For A Better World

Let’s open our eyes to a better a world - a place of safety, harmony, and unity.

Let’s learn how to appreciate life and give back.

Small, minute, material.

Let’s change for the better.

Let’s change for ourselves and others.

Let us be the spark, let us be the light. 

Service Learning Day 1: A "Profitable" Experience

       Coming from a banking institution and with business as a background, I found our first day of Service Learning (SL) a recap of what I used to impart to other students when I was in college and a continuation of our institution’s advocacy for financial education.

Our group’s first SL activity is entitled “Tara, Ipon Na’t Kumita Tayo”. 

It was divided into two segments with the Ipon Session as the first part, discussed and presented by me, KR, and Dianne. We were chosen for this part because we are all from the banking sector. The second part catered to the Kumita segment and was presented by Emy, Snow, Candy, and Lizette. Jan, Nikki, and Xiel were the overall in charge/supervisors of the event.

IPON Part - discussion about why we need to save, basic know-how on how to save, and    where to save. 

   There was also an activity on financial planning where mothers of Barangay Oranbo made a monthly income and expense sheet that could help in saving.

KUMITA PART - discussion about what we can do with our savings and business opportunities. The participants were taught how to plant tomato seeds, and make pizza rolls and graham balls. 

In conclusion, I was able to see money and banking in a different light. Most of the participants do not have enough money to consider as savings and some have negative net worth or deficit that they do not know when and how to start saving. It was also an opportunity for me, as someone who has the skills in banking, to share my knowledge and impart some tips that could help the participants on their quest for financial freedom. I hope that I was able to open their minds on the idea that saving for the future is important as breathing and that time is of the essence when we talk about money and investments. Above all, the activity is a learning experience for me and my teammates because it made us see that using our talents and background, we were able to improve something that we thought we cannot be improve - that is the money mindset of many. 

Bridging the GAP

        As a member of the female species, retail therapy can be one of the many highlights of my life. I mean, who doesn’t like the scent of a store, a touch of a new fabric, or simply a new garment sitting inside one’s closet?

On the outer shell, I may be perceived as someone who only gives importance on clothing. However, business school taught me that the dress sitting pretty inside my wardrobe is a product of not only of the brand but by sweat of workers and seams of materials and these things are far greater than the output itself.

Corporation branding is not synonymous to responsible corporate branding. Companies must learn that aside from hitting the target and quotas, and delivering consumer goods and services, they also have duties and responsibilities towards the people who really created the true value for their brands. They must be given appropriate and good working condition, wages that can truly provide for a quality life, and satisfying job that maximise the employees’ potential.

A very relevant case on this issue is the case of Gap, Inc. Gap, Inc. is a retail brand that offers clothing, accessories, and personal care for kids, women, and men. Under their corporate umbrella are other brands like Gap, Old Navy, Banana Republic, Athleta, and Intermix. The company has a global niche as evidence by its 3,300 branches in 90 countries and 400 franchise stores.

In 1995, Gap, Inc. outsourced the production of its apparel for cheap labor in El Salvador to meet import demands. The firm rested the fate of its products and workers on the hand of Mandarin International, its partner supplier, who ran the El Salvador plant. The condition in the El Salvador plant was harsh and was never good for Gap, Inc.’s workers. As an example, the employees were only paid $0.56 per hour, made them produced goods and worked for more than 12 hours, were not allowed to have restroom breaks, and union members, even the female members, were treated badly. Employees were also threatened not to join any labor union.

Reports of these incidents reached Gap, Inc.’s head office. In line with the issues, the company sent one of its SVP to investigate. However, Gap, Inc.’s SVP after several investigation presented similar conclusions that there was nothing wrong with the working condition in its El Salvador plant. 

Looking at it, the case can be viewed as open ended one. But why would we let it hanging?

This is a challenge that can be posed not only for corporations but for individuals as well. To what extent do we prioritise profit over people? On what degree do we need to stop and think about our employees’ welfare and condition? The answer is NOW. It is about time to bridge the gap between different company priorities of profit, people, and planet. It is not only the big firms’ duty, it is OUR duty.  It is time to, well, 

2015 Thousand Books Project

I know it is still October and Halloween is also around the corner but we, the members and volunteers of Thousand Books Project, are already making a noise to signal the start of our book drive campaign for the Gawad Kalinga children. Thousand Books Project aims to raise more than a thousand books, hence, its name.

So, this 2015, we are gunning for:

MORE BOOKS. MORE COMMUNITIES. MORE DREAMS

MORE BOOKS. English to teach our kids basic English grammar.

MORE COMMUNITIES. Last year, we covered Southern Manila. This year, we are going to GK villages in the north of Manila, more specifically GK Palates.

MORE DREAMS. We are adding "self-concept" and goal-setting as part of our themes.

We are now accepting donations! See "How Can I Help?" below for details.  Also, if you want to volunteer, give us a shout. We promise you'll enjoy it!

More details to come soon! If you want to be part of this amazing movement, feel free to message us! Visit and like our Facebook page https://www.facebook.com/thousandbooks

The Ford/Firestone: A Case of Finger Pointing

http://www.sptimes.com/News/webspecials/firestone/qa.shtml

        

The Ford/Firestone case is one good example of a violation of business ethics, the governing principles of a company's action. As stated, it was one big deadly combination with numerous reported accidents involving the Ford Explorer, and its instability. The controversy explored the realm of corporate responsibility being put on top of the heads not only of the biggest firms, but also of the whole automobile industry and other industries as well. 

http://www.cbsnews.com/news/ford-firestone-settle-rollover-suit/

Background:

Ford and its engineers worked on a new vehicle, the Ford Explorer. The Explorer resembled Ford's truck "The Ranger", also with its Twin I-Beams, which is very famous among Americans, with the classiness of a sedan. The Explorer was built with Firestone tires. This was the Ford Explorer then. 

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The Ford engineers, in their test of the prototype Explorer, found out that the vehicle had an issue with its stability. Said engineers recommended possible solutions to cure the vehicle's stability problems, such as lowering the car's centre of gravity, widening its wheel, and using smaller tire. However, the Management of Ford did not want any derail in its plan to launch the vehicle to the market. To partially solved the problem, they opted to set the tires' inflation pressure to 26 psi. 

After this and the market launch of the Explorer were the reports of Explorer-related accidents. These accidents happened when the tires' tread separated from the body and cause the car to roll over. Said incidents did not only occur in the United States alone but also in other countries like Saudi Arabia and Venezuela. 

Ford blamed Firestone for this and decided to replace the tires with Goodyear tires. It was at this instant, coupled with the recalls, that Firestone suffered losses, thus, entered Bridgestone, a Japanese-owned company. However, Bridgestone failed to revolutionise Firestone's culture and this led to employee strikes and unions that resulted in Bridgestone employing non-experienced workers and production of poor quality tires.


My Assessment: A More Intensive Analysis

This case is not merely a technical vehicular issue but a deeper one. Ford and Firestone are morally responsible to the victims, the victims' families, and the rest of its customers and they contributed to all Explorer-related accidents. Firestone knew the best psi for the Explorer and yet it failed to influence Ford in using it. Ford, on the other hand, chose its personal interest and gain (as evident by its decision to resolve simpler and more short-term vehicular issues) than the interest of its customers and the public.

Both companies failed to perform their moral and ethical responsibility towards the common good and address their problems as they just pointed out their fingers. 


Conclusion

The Ford/Firestone case is a realisation that companies' roles in the society go beyond maximisation of profit. Industries nowadays should bear in mind that there is a deeper meaning to their existence - people. People inside and outside the organization. It is their responsibility to take care of them and bring utmost security to protect them. People, after all, is considered the a firm's most important asset.