My Thoughts @ 23: February 2017

Reflection During Our Service Learning Activity

Honesty Store: Selling for a Purpose

5:31 PM

Today, February 25, we established our CSR project, the Honesty Store in CARD-MRI Development Institute (CMDI), located in Bay, Laguna. The location is around 3 to 4 hrs away from Manila, and the actual school location is far from the city. I actually wonder how students manage to go to school everyday due to its distance/proximity matters.

Upon arrival, one of our group mates, Neil Polinag, give us a short background about CARD MRI since he is part of this company. According to him, CARD MRI is a microfinance and social development institution which provides assistance towards the economically challenged families in rural areas, and promotes empowerment to women, particularly mothers, in the society. This group issues loans to mothers of the poor families, so that they can use it for their small time businesses and be able to provide for their families. They actually prefer to provide loans to women, since they believed that women are more family oriented than men. They also provide business training in order for the poor families to have their own small businesses. Aside from granting loans and providing business by microfinance, CARD MRI has now established a school for BS Entrepreneurship program and plans to have BS Accountancy as well in the future. Their college degree programs are accredited by CHED. These programs and services that CARD MRI offers are the result of its passion driven goal of uplifting the poor.

This motto is posted along the building of Card MRI

After knowing the background of the company, I realized that it is really possible to set up a company that uplifts the marginalized sector of the society, and at the same time be able to sustain the business. I actually searched in the internet how CARD MRI started, and I discovered that their mother company, CARD has an initial capital of only 20 pesos and a typewriter. From then the company grew out of several donations from different local and international organizations during the time of Cory Aquino wherein a lot of NGOs where established and the society is in the midst of rebuilding the Philippines out of dictatorship.

Up to this date CARD MRI delivers microfinance and financial services. But, they are now providing additional programs and services for the poor like microinsurance, livelihood, health, environmental, agricultural, and educational and other community development programs.

The Actual Service Learning

After the introduction of the company by Neil, we then proceed to planning the Honesty Store concept and operation. Since our program will be run by the officers of Block 7 BS Entrepreneurship students, we designated responsibility to each class officers. We also recorded the things that we donated, because we plan to go back and see where our goods gone through. We plan to evaluate if honesty was really practiced and see if the business is earning. Right after planning and organizing our thoughts, we now proceed to meet these college officers.

Photo of CARD MRI students with our donated goods.

These students have already started their honesty store, but their problem is that they are lack in items to sell. That’s why we decided to support their idea and give them the supplies they needed to run this business. Aside from the earnings they can get out of this store, they are actually promoting the value of honesty by this kind of initiative. Honesty is one of the values that is hard to maintain, but through this kind of initiative wherein honesty will be practiced each time students buy, we are hoping that honesty will be planted in their hearts and become one of their personal core value.

Our discussion with the students - where they share their experiences and stories in running the store for 3 weeks.

We spend time to meet the students and interview their experience in maintaining the store. It actually amazed me that they already have separation of duties and proper recording of inventory and expenses. As young as they are, they already know the basics of maintaining a business. They already have an assigned person for buying goods, counting inventory, and keeping the money.

Photo of wooden box for payment and record of income for their initial week.

However, they actually encountered a problem in dishonesty. On their first week of operation, someone has stolen their jar of money. Around 700 pesos was lost by this incident. After encountering that problem, they decided that instead of an open jar, they make a big wooden box with a caption "God is our security guard", that has a lock to prevent further stealing to happen. On a positive side, given that they have lost around 700 pesos initially, now that they are on the third week of operation, their profits are enough already to cover that loss. That really amazes us because in a span of two weeks they were able to recover what was lost. So we ask them how, and their response is that some people are paying in excess. Some customers pay higher than their designated item’s price. The students count this as “donation” in their balance records. That really amazes me because there are a lot of other stores within the area, but the people choose to buy in honesty store and even pays on a higher price.

Aside from that, I’m actually inspired by the students, not only because of the idea and the earnings, but also because the money they earned from the honesty store is also spent on a good use. They are using it for their community immersion or NSTP program. They are doing feeding programs, read along program for the children, and seminars for women. Initially, I thought that these earnings were used for their education and other necessities, but I’m wrong. It is being spent to help other people. They are selling for a cause.

A photo collage of the students' community immersion.

All in all, I believe that this honesty store is really a good way of promoting and encouraging others to practice honesty. It is very inspiring that through the initiative of students in setting up the store, the earnings they get are being used in funding their community programs. I hope that in the future, the new batches of students will sustain this, and that the store will continue its cycle of earning and helping. Through this, honesty will continue to be promoted and more people will be reached out.

Our CSR Team. From left: Nelson Opena, Neil Polinag, Gizella Almeda (myself), Emmie Merto, Tin Torno, Florisa Reyes, Lody Cruz, and Terrence Roque.

A peek at the mini store...

Reflection on Ethics of Consumer Production and Marketing

Pointing Fingers

7:40 PM

Yesterday in our business ethics class, we discussed about ethics on consumer production and marketing. It’s really an interesting discussion, because as consumers, it’s really our concern to ensure that the products we buy are safe and durable. That’s why we have trusted brands and preferred products to buy in the market. And if a product we buy is defective or caused us injuries, we appeal to the manufacturer because that is our consumer rights. However, the question is where do the consumer's duty to protect their own interests end and the manufacturer's duty to protect consumers' interests begin? It’s because sometimes we, as consumers, are the cause of our own injuries by using the product incorrectly or irrationally. That is why some producers include in their product labels some safety warnings so that consumers would be aware of a potential harm it can bring.

However, I believe that it is the moral duty of the producers to ensure that their products are safe. It’s because, as mentioned also in the class, it is only the producer who has a full knowledge on its own product. Like for example, in the recent Samsung Galaxy Note 7 issue wherein its batteries are exploding, even if they say that the reason for explosion could be the overcharging of the consumers, it is still Samsung’s fault. It’s because they are the one who manufactured it, they should have tested their products in different conditions before releasing to the public. The public only knows how to use the product but does not exactly care and know how it has been manufactured. That’s why for me, for situations like that, it should be the manufacturer that should be responsible. It’s actually a good decision that Samsung has started recalling and reissuing new phones for those who bought Samsung Note 7, because that’s the ethical thing to do. Even if it’s only the battery that’s causing the explosion, it is still Samsung’s fault, since they’re the ones who manufactured it. After all, the buyers bought it because it’s “Samsung” and not because of a good battery.

Similar to the Samsung scenario is the Ford vs Firestone Case - the case study we discussed in class. In this case, the product Ford Explorer is causing road accidents, and Ford and Firestone are pointing each other as liable for the case. Ford is blaming Firestone, saying that the cause of accidents is due to its tires. On the other hand, Firestone defends it by saying that the poor design of Ford Explorer is the one to blame. Moreover, the government also fails to do its role of protecting the welfare of its citizens by not reacting immediately and just let accidents to take place. Now, the big question is that who is really liable for the accidents?

For me, it is not actually important whose fault is this, since all of them have their own lapses and should respond immediately to the damages they made. But, if I were choose among the three, it will be Ford who is liable for this. People did not buy the Explorer because of the good tires, they bought it as “Ford” Explorer. The whole manufacturing process of the car is designed by Ford, they are also the one who chose Firestone as tire supplier. They should have performed testing of the product before releasing it to public. Although, I understand that Firestone has committed an error with their tires and that the government fails to respond fast, Ford should have ensured the quality and safety of its product.

Then, since I’m part of the interrogating group for this case study, we also analyze this case and below is our group’s recommended course of action:

Ford and Firestone should initiate total recall of defective units, and maintain their partnership by working together in coming up with improved and safer versions of their products.

Instead of blaming Firestone for the accidents, Ford should have recalled their defective units and started the issuance of an improved Explorer that has passed high quality and safety standards. The company should have taken the responsibility for the accidents that happened since they are the ones in charge of controlling the process of manufacturing the Explorer. On the other hand, Firestone should redesign their tires and ensure that it is fit for the Ford Explorer. The two companies should do their product testing and maintain open communication with each other since both their reputations are at risk.

In addition to that, the government should also impose safety standards for car manufacturers and investigate immediately when accidents happen. Prevention is better than cure. In order to prevent future accidents to happen, the government should imposed policies and pay attention to the quality and standards of the products produced by manufacturers.

Businesses should also work together with government, and follow all the imposed policies and requirements. Not just because they might be sued, but because their reputations are at risk and the perception of its buyers are dependent on the quality of the product they produce. Public trust is the key to success in business. That is why, good ethics means good business.

Reflection on Free Market and Brian's Case

Analyzing the Role of Government in Business

10:51 PM

Today in our Business Ethics class, we discussed about the role of government’s intervention in the society. Pro free market supporters believe that a market that is free from government intervention best protects individual rights and freedom. They do believe that supply will automatically meet demand and that government only interrupts the efficient movement of market. On the other hand, anti-free market people argue that the free market system promotes injustice and that free market will only work in markets with pure competition.

For me, I actually agree with the proponents of anti-free market. Government is made in order to protect each individual’s right, and if we omit the government in the market, suppliers will tend to abuse consumers since they are most concern only with profits. Best example is the zoning restriction of the government, wherein they designate residential areas free from commercial or agricultural use. If we are to think of it, considering that businessmen have full freedom with no government restrictions, we might have a farming land in the center of a business district or a smelly poultry beside our house, and that is ethically inappropriate.

In order to assess further in the class, we take Brian’s Franchise as our case study for this topic.

Image taken from: www.news.vice.com/article/medical-marijuana-patients-are-getting-fired-and-theres-not-much-they-can-do-about-it

Brian is an expert in planting and farming marijuana indoor. During that time, marijuana production has been a huge hit to US consumers, becoming the largest crop at that time. Brian decided to drop out school and start focusing in his marijuana indoor business. However, given its negative and addictive effects to consumers, the government imposed Campaign Against marijuana Planting (CAMP) and Green Merchant. Brian was then forced to sell his business and move to Amsterdam.

In that case, we can see that the government affects Brian’s marijuana business. Proponents of free market can argue that the government did not protect Brian’s right to establish a business he likes. However, this is for the betterment of the society. It is unethical to sell something that has a negative impact to its consumers.

For me, the best alternative course of action is for Brian to establish a new crop business, and leave marijuana in the hands of the government. Usage of marijuana should only be available for research and medicinal purposes. If marijuana has proven effective for health issues, it should be strictly supplied only to those who really need it and the government should determine its procedures in selling, since this product is prone to be sold in black market. Government should establish restrictions since it is its primary duty to protect the welfare of the society.

Reflection on Career Planning

Where am I heading?

10:09 PM

Photo taken from: www.careerchange.co.nz

One of the things discussed in our Business Ethics class is about career planning. Career planning is important because it enables us to assess all factors in our life and identify what factors should we focus on, which is our goals. In the class, in order to decide for our goals, it is recommended that we evaluate ourselves using SWOT analysis – we determine our strengths and weaknesses to know what are the possible opportunities and threats for ourselves. After we decided what goals we are taking in, we then determine what steps should we take and gather all the resources we need. As part of class requirement, we are then asked to make a 25 year life plan.

Reflecting on the discussion we had in the class, I now came up with my goal in mind:

25 years from now, I want to be a mentor. Assuming that I already achieve a lot of knowledge in investment through my work experience, it’s now time to share my knowledge to others. Financial literacy to low income groups is one of the things that I want to contribute to society.

But while having those plans in mind, I need to determine first my Mission. A mission statement is a declaration of what a person needs to be doing. Even if we divert and shift to another plan, our mission will always be our guide in our choices. Stated below my own personal mission:

Personal Mission Statement

As a Lasallian business leader, my mission is to enhance my knowledge and skills that God has given me, and to be a well-rounded person, capable of providing assistance to the poor, mentoring others, and spreading kindness to everyone.

As stated in the class, personal mission statement is where we affirm and declare what we were uniquely created to do with our life. My mission statement will serve as a constant reminder for myself of what my purpose in life is. This will motivate me whenever I encounter difficulties in achieving my goals, and will help me in every decision I make.

Along with our Mission is our Vision. Vision serves to give us a glimpse of what we want ourselves to become in the future. Below is my vision for myself:

Personal Vision Statement

To be a good mentor and leader to others through academic excellence and financial skills that I will acquire through time; and to be a leader of good value, respecting each individual regardless of who they are, in order to inspire others, spread Christianity, and make Jesus be known and loved.

After determining our Mission and Vision, our goals will be the intended fulfillment of it. On our 25 year life plan, we determine our goals and specific timelines for each of these categories: Artistic, Attitude, Career, Education, Family, Financial, Physical, Pleasure, Public Service, and Social.

By the time I finished writing my year plan, I actually realized that things are a lot simpler than what I’ve thought. I clearly stated to myself the timeline and the opportunities that I would take in the future. Although I know that, writing it down is a lot simpler than actually doing it, at least I now know what to do in the future and it is good to have a sense of direction on how I’m going to live my life.