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Can’t deny D&I: Why diversity and inclusion matter

Diversity and inclusion (D&I) are increasingly becoming a business priority. In a time of great changes and disruption, business leaders are pressured to keep up by attracting and retaining the best talent, serving their customers better, and increasing their stakeholders’ trust — all of which are benefits that D&I can offer.
Numerous social changes have drawn the attention of business leaders towards D&I. More than ever, the general public is more vocal about social justice issues, engaging in political discussions, and fighting for social change. Popular movements such as Me Too, Pride, and Black Lives Matter — to name a few — were formed to support women, the LGBT+ community, and African-American minorities. With the pervasiveness of social activism, D&I has become a reputational risk that businesses cannot simply ignore.
Business, talent, and societal challenges are among the tremendous forces working together that reshape how leaders run their businesses. Our world grows increasingly complex and polarized by the day, thereby making D&I a key imperative of modern-day business. Those who embrace it are more ready to respond to an ever-changing world and are in the best position to reap the growth opportunities and benefits offered by a diverse and inclusive workforce.
THE BENEFITS OF D&I
There are proven benefits to building a diverse and inclusive workforce. D&I helps businesses address challenges and leverage opportunities around talent, customers, and investors.

1. Attracting and retaining talent

Globally, the war for talent is increasingly competitive. Talent with the right skills is even more difficult to attract and retain. PwC’s 20th Global CEO Survey shows that 77% of CEOs are concerned about the availability of key skills and see it as a threat to their business goals.
In a competitive labor market, employees are increasingly looking for organizations whose values are aligned with theirs. PwC’s 2017 Inclusive Recruitment Survey shows that employers’ attention to D&I is a key consideration of potential talent when looking for work. Some 54% of women and 45% of men surveyed said that they research a company’s D&I policies before deciding to accept a position. This is also true for LGBT+ and millennial talent. Based on PwC’s Out to Succeed Survey, more than 80% agree that policies on diversity, equality, and inclusion are critical factors in deciding to work for a specific employer. Locally, some companies are responding to this by offering benefits for partners of their LGBT+ employees.
It can be reasonably concluded that organizations which do not prioritize D&I are unable to fully maximize the vast talent pool in the market. It also proves that D&I is a powerful brand differentiator that can help businesses become an employer of choice.
Embedding D&I in organizational recruitment, retention, and development policies will help businesses expand their horizons, allowing them to look for the best talent even in the most unexpected places, and to retain them whoever and wherever they are.

2. Closer to customers

There are increased expectations from the public for businesses to mirror the diversity of the society that they serve. Failing to do so hinders organizations from fully understanding and addressing their customers’ evolving needs.
Businesses are starting to acknowledge how a diverse and inclusive workforce allows them to win the trust of different communities, provides opportunities to understand customers better, and enables them to create more targeted products and services. In fact, a 2018 LinkedIn report shows that 49% of surveyed employers are focusing on diversity to better represent customers.
D&I also nurtures customer loyalty. Businesses have started to advocate social change to address the more socially and politically-conscious consumer. Case in point: with the growing spending power of LGBT+ consumers and allies, some organizations have responded by creating more inclusive and LGBT+ friendly marketing campaigns.

3. Enhancing trust

Disclosures on diversity and inclusion are becoming more and more important to shareholders and investors. These stakeholders want to ensure that they are investing in businesses with stable reputations.
An organization’s transparency about D&I, no matter how bad or good its track record is, enhances the trust of stakeholders. To this end, numerous global companies (including tech giants Google and Apple) have started publishing diversity and inclusion reports on their corporate websites.
MOVING FORWARD WITH D&I
To move forward with D&I requires businesses to realize that diversity and inclusion are two different concepts that must go hand in hand.
Diversity brings together individuals of different backgrounds, experiences, culture, and preferences. Inclusion cultivates a workplace environment where individuals can be their true selves, where they feel that they belong and are supported, and where their contributions are valued.
It is not enough to prioritize workforce diversity alone. Businesses must also foster an inclusive culture where people feel welcomed, valued, and accepted for who they are. Neglecting inclusion to prioritize diversity may lead to disappointing effects that can undermine an organization’s D&I efforts.
For organizations that are about to start their D&I journey, embedding D&I in the culture should come first. To make this happen, organizations need a D&I program that will propel culture, behavior, and consequently, processes.
To build a D&I program, organizations must:

1. Understand the facts of today — Initiate a continuous process to understand what is happening in your organization. Gather, analyze, and share data to determine your baseline on D&I and identify improvement opportunities.

2. Develop an inspirational strategy — Create a business-focused vision and strategy for D&I that is action-oriented and widely-communicated.

3. Engage leadership — Engage leadership around an inspirational D&I strategy. Hold leaders accountable for D&I results. Make D&I a sustainable C-suite priority fundamental to the success of the business.

4. Create sustainable movement — Execute D&I strategy across all elements of your business and talent ecosystem. Monitor progress.

A successful D&I program will not happen overnight. For many organizations, there is still a long way to go. Realizing the full benefits of D&I requires a good understanding of an organization’s workforce mix and the ability to align it with business strategy. Nevertheless, the benefits from D&I make the journey worthwhile and acting now will surely result in greater long-term gains.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Louise Margareth O. Luarca is a senior associate with the Management Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845-2728
louise.margareth.luarca@ph.pwc.com

Red October plot a fantasy from Tom Clancy — Senator

SENATORS ON Wednesday weighed in on an alleged “Red October” destabilization plot involving the political opposition, with the minority leader dismissing the alleged plot as a “fantasy tale taken from a Tom Clancy thriller.”
But at the House of Representatives, its leader, citing her experience as Philippine president, gave President Rodrigo R. Duterte’s claim of such a plot the benefit of the doubt, saying he is “working from good information.”
TOM CLANCY
In a statement, Senate Minority Leader Franklin M. Drilon said of Mr. Duterte’s ouster claim, “This opposition-communist ‘Red October’ destabilization plot is a discredited fantasy tale taken from a Tom Clancy thriller and being peddled by those who undermine our democracy to justify the declaration of a so-called revolutionary government.”
The Hunt for Red October is one of many espionage thrillers by best-selling author Tom Clancy. The book was adapted into a film in 1990 starring Hollywood stars Sean Connery and Alec Baldwin.
“This is an old familiar tune and it sounds like a broken record,” Mr. Drilon also said. “We in the Liberal Party strongly deny being part of any destabilization plot. We adhere to the rule of law and the supremacy of the 1987 Constitution.”
For his part, Senator and LP president Francis N. Pangilinan said those who give the President false intelligence reports must be fired.
“Billions are spent on intelligence funds for fabricated information….Instead of finding solutions to the worsening crisis in the price of rice and the economy, ways are being made to divert attention from the real problem of the country,” Mr. Pangilinan said in a statement.
In a media interview during his visit in a Sulu military camp last Monday, Mr. Duterte said “some soldiers” in the military are conniving plotting with the opposition to overthrow him.
“Diyan ako naghihinakit sa kanila, ‘yung mga sundalo na ‘yan. Hindi na bale magalit sila sa akin, wala ‘yon. But to go into cahoots with the kalaban… Ako isa lang ako eh,” Mr. Duterte said. (That’s my misgiving to them, those soldiers. Never mind if they’re angry at me, that’s nothing. But to go into cahoots with the enemy,…I’m just one.)
For his part, Senator Panfilo M. Lacson said, “There’s nothing unusual. While the President is very supportive and consistently at that, upon his assumption, with the all the goodwill he gave to the Armed Forces, he cannot have 100% or absolute support from all the soldiers and officers.”
Mr. Lacson, an alumnus of the Philippine Military Academy and former chief of the National Police, also said, “The AFP (Armed Forces of the Philippines) should be conducting loyalty check by way of counter-intelligence and other built-in mechanisms available to them, even without being directed by the President.”
Senator Gregorio B. Honasan II, for his part, said, “The mandate of the AFP is stay in the center. Loyalty check is a direction….I am not in favor of exposing the strengths and weaknesses of our systems, our institutions to temporary flaws.”
“We should trust all our institutions….They should not do what we did in 1986,” Mr. Honasan also said, referring to the military breakaway in the People Power Revolution in which he took part.
‘GOOD INFORMATION’
But for her part, former Philippine president and present House Speaker Gloria Macapagal-Arroyo on Wednesday said, “You know let me just say, again going from my experience as President, the President usually has access to information that not all of us have access to.”
“So if the President believes that there is a threat, he is working from good information. So we should believe whatever (he says),” the Speaker added.
Opposition groups including the Magdalo party identified with Senator Antonio F. Trillanes IV have criticized Mr. Duterte’s claim of a destabilization plot against him.
Also on Wednesday, the Department of Justice (DOJ) on Wednesday submitted its reply to the Makati City Regional Trial Court (RTC) Branch 148, regarding Mr. Trillanes’s comment on the DoJ’s motion for the issuance of arrest warrant and hold departure order (HDO) against him.
The prosecution said the affidavit submitted by Col. Josefa C. Berbigal is “not accurate, if not downright false,” as she only mentioned that she received Mr. Trillanes’s application form and asked him to read a statement which contained a general admission of guilt.
“She did not categorically state having received a narration of fact by Trillanes of his involvement/participation in the Oakwood Mutiny on July 7, 2003 and the Peninsula Manila Hotel Incident on November 29, 2007, as required in the application form,” the reply read.
The DoJ also said that the affidavit of former defense undersecretary Honorio S. Azcueta — regarding the discussions by the Department of National Defense (DND) Ad Hoc Amnesty Committee on the amnesty applications — was belied by the Records Division of the DND as there were no minutes of the said deliberation.
“As it were and as it is, accused and his witnesses conveniently disregarded this requirement of submission of narration of facts of their involvement in the crimes of coup d’etat and rebellion,” the DoJ said.
For his part, Justice Secretary Menardo I. Guevarra told reporters that the government is not singling out Mr. Trillanes, adding that it is “natural” to start the review of the granting of amnesty with him, in connection with the 2003 Oakwood Mutiny, 2006 Marine Standoff, and 2007 Manila Peninsula Siege.
“We cannot take away that risk that (his accomplices are) found to be deficient or noncompliant with the requirements for the grant of amnesty, then any other person who might have not complied may suffer the same situation of Senator Trillanes. But for now, we are dealing with his particular case so we’re focusing our attention on that (first),” Mr. Guevarra said.
“We’re not saying that the government is picking on him and being selective, it just so happened that he’s the most vocal and he’s the leader of the pack, so to speak. So it was just natural, if not logical, to start with him,” he added.
On Sept. 25, Judge Elmo M. Alameda of Makati RTC Branch 150 issued an arrest warrant against Mr. Trillanes in connection with his rebellion case from the 2007 Manila Peninsula Siege. The Senator, however, posted P200,000 bail the same day.
President Rodrigo R. Duterte on Aug. 31 issued Proclamation No. 572 voiding the amnesty granted to Mr. Trillanes in 2011. — Camille A. Aguinaldo, Vann Marlo M. Villegas, and Charmaine A. Tadalan

SWS: Nearly half undecided on police claims of resistance

By Camille A. Aguinaldo Reporter
NEARLY HALF of Filipinos are undecided on the truthfulness of police claims of resistance (“nanlaban”) by drug suspects, according to a second-quarter survey by the Social Weather Stations.
The noncommissioned Second Quarter 2018 Social Weather Survey showed 47% of respondents saying they are “undecided,” while 26% say the police are not telling the truth (13% definitely not telling the truth, 14% probably not telling the truth, correctly rounded), and 27% say police are telling the truth (17% probably telling the truth, 9% definitely telling the truth, correctly rounded).
The net opinion of the truthfulness of the police slightly improved to net zero, compared to the -1 in September 2017. It was at -20 when SWS first asked the question in December 2016.
The survey also showed that net truthfulness of the police’s nanlaban claims was lowest in Metro Manila at -25, followed by Balance Luzon at -6, Visayas at -4, and Mindanao at +31.
Some 96% of Filipino respondents maintained that drug suspects must be captured alive, a point higher than the 95% recorded in September 2017. Metro Manila was the most dominant with the said opinion, followed by Balance Luzon, Visayas, and Mindanao, the survey also added.
Meanwhile, some 86% said it was important for the police to capture drug suspects alive. This opinion was most expressed in Visayas, followed by Mindanao, Balance Luzon, and Metro Manila.
The June survey also noted that President Rodrigo R. Duterte received a net lower satisfaction rating among those who believe that the police claims were definitely untrue at +3, compared to the +77 net rating among those who believe the police are definitely telling the truth.
The same pattern was found among respondents when asked of their level of satisfaction with the administration in its campaign against illegal drugs. Those who do not believe the police had a +41 net satisfaction rating, while those who believed the police had +77.
The Second Quarter SWS survey was conducted on June 27-30 via face-to-face interviews of 1,200 adults nationwide with sampling error margins of ±3% for national percentages and ±6% each for Metro Manila, Balance Luzon, Visayas, and Mindanao.

Dealing with the food we waste

In this day and age, people tend to buy and consume more than they actually need. Technology, both in production and storage, has allowed us to build up surpluses both in stores and in homes. Take the case of rice. While cheap NFA rice may be in short supply, to the detriment of the poor, Metro Manila stores are flooded with commercial rice. More affluent homes are stocked with grains as well.
In reaction to supply bottlenecks and rising food prices, the government has moved to take out so-called “barriers” to the importation of farm produce, meats, and other agricultural products. This lever pulled deals mainly with supply from abroad. Meantime, the DA has also moved to “import” into Metro Manila surplus farm produce from Mindanao.
I commend both initiatives, which appear to have become necessary to mitigate rising food prices. I am certain there are pros and cons to both efforts, and both will have their share of supporters and critics. But both are short-term moves, more tactical and strategic, and seemingly promotes ensuring supply at whatever cost.
Just to move farm produce from Mindanao to the National Capital Region will cost DA a lot of money. And the initiative is open-ended; there is no certainty as to when farms in Central and Northern Luzon can resume supplying the Luzon market. More than that, the program may not have been originally budgeted for 2018, and this may entail emergency procurement. And we all know how “risky” and “costly” that can be.
As for importing more food, there is also the risk of other things — like illegal drugs — coming along with the farm produce. There were rumors in the past when drugs would allegedly be brought into the country along with imported meat in refrigerated containers. Then there are rice imports, which have been the subject of corruption rumors.
More than these, allowing the entry of imported fish, meat, and other farm produce always leads to issues with local producers and farmers. Moving to protect the interest of consumers is almost always contrary to protecting the interest of farmers. Allowing food industries to import more sugar or substitutes, for instance, always leads to heated arguments between users and producers.
And the most critical factor as to why initiatives like these will always be short term is that farm produce and agricultural products have a limited shelf life. Farm produce are perishable, and unless preserved or stored, supply is also limited by produce life itself. Then supply, whether imported or local, is also subject to seasonality. The weather will always have a say in things.
It is in this line that I hope the government, or even local governments, can consider additional initiatives to help address supply bottlenecks. I believe one way of boosting supply, or at least ensuring sufficiency in supply to a broader market, is to cut down on waste. And, I believe that doing so can go a long way in adequately providing for the needs of both the rich and the poor.
Recall how local governments actually started the initiative to ban plastic bags in supermarkets? Even the ban on the use of plastic utensils and plastic straws is enforced more at the local rather than the national level. In this regard, perhaps there can be local enforcement as well with respect to dealing with excess or surplus produce that cannot be sold by supermarkets.
A 2016 story that appeared in the UK Telegraph, by Helena Horton, narrated how UK supermarkets threw away at least 115,000 tons of “perfectly good food” every year, and how a “food waste” supermarket was opened that year and began working with other supermarkets to put this food to good use.
wasted food
I took note of this UK project initially after hearing a couple of stories regarding food. One story involves a local farmer in Cavite who goes around collecting food wastes from restaurants in his area. He serves the food businesses’ need for waste disposal, but at the same time gathers practically free but clean and safe food for his livestock.
And then there was this other time when I visited a supposed farmers’ market that was selling lettuce at P400 per kilogram, when the supermarket right beside it was selling an entire salad for P300 per kilogram. The farmer brought home his unsold lettuce, and presumably fed it to his pigs. But I am uncertain as to how the supermarket disposed the unsold salad.
My point is, we are wasting food as we are probably just throwing away unsold items. Wasting food has just as much impact on food supply, particularly to the poor, as a shortage. We should deal not only with supply bottlenecks but also unnecessary waste as well. One can only imagine how much unsold food end up in the disposal every day, both from supermarkets and from producers themselves.
The way it works in the UK is that “The Real Junk Food Project” opened its first warehouse in the town of Leeds in 2016, and the warehouse served as a “food waste supermarket.” The poor or “the needy can take food which would otherwise have been thrown in the bin.” The project, to ensure supply, forged deals with chain supermarkets like Sainsbury’s, Morrisons and Ocado. It also works with local cafés, food banks, and caterers.
The Horton story also noted the following: people are expected to pay what they can afford, or can donate their time in volunteering for the project instead; food past expiration date are rechecked if they are still fit for human consumption; and food also get sent to partner cafés and restaurants, which cook them and sell the cooked food also to the needy.
Also, in 2016, France became the first country in the world to ban supermarkets from wasting food. Under a French law passed that year, supermarkets were prohibited from throwing away or disposing food that were nearing their best-before dates. Such food must instead be donated to charities and food banks, where they could be used to produce meals for the poor.
Supermarkets that violated the ban could be fined, and their owners or corporate officers could be jailed. Supermarkets with a footprint of 400 square meters or more are made to sign donation contracts with charities, or face a penalty. Food banks and charities, in turn, were obliged to collect and stock the food in properly hygienic conditions and distribute them. Food industries were also encouraged to give excess products directly to food banks from factories.
I believe similar initiatives can actually be done locally, even initially in places like Makati, Alabang, San Juan, and Quezon City. Of course, safeguards are needed to ensure that those availing themselves of cheap food are actually consuming them and not selling them. Limits can be set. The project can be led by the private sector or local governments themselves.
The local government can take the lead in a “feeding” program that will prioritize the poor as well as seniors. Idle government land or buildings can be turned into temporary stores or weekly “tiangges,” and the logistics of picking up and delivering food can be outsourced to local logistics companies in exchange for local tax breaks.
An option is for big corporations, particularly food companies, can support by making the food project part of their CSR activities. They can sponsor regular food events or food sale, and lend their expertise in using technology to better store and prepare food in affordable manner. Excess food can also be donated as animal feed, while those unfit for consumption can be composted and turned into farm fertilizer.
There are ways of doing these things, if only there is a will to actually do them. An integrated food-farm feed project that focuses on limiting retail waste, and “recycling” food that will otherwise become garbage, can go a long way in providing for the needs particularly of the poor in these uncertain times.
 
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council
matort@yahoo.com

Duterte inflation in prices and political insecurity

President Duterte’s government can be described currently as having double inflation in both consumer price index (CPI) and political insecurity index.
His economic managers’ usual and repeated alibi on why the country’s inflation rate is high is mainly because of external factors like high world oil prices and high US interest rates. This is a half-truth. The main reason is the TRAIN law that was implemented starting January this year.
From the monthly data of inflation rate, the January to August 2018 or year-to-date (ytd) average is taken. These Asian economies have complete data until August. Those with incomplete data (Cambodia, Bangladesh, etc.) are not included here (see table).
So while world oil prices and US interest rates increase, five countries have experienced lower inflation this year compared to 2017, between -0.2 (Singapore) to -2.5 (Malaysia) percentage points. Four countries have mild increase of up to 0.5% in 2018 compared to 2017: Japan, Thailand, China and Pakistan.
The Duterte government’s dishonesty in admitting the significant contribution of their TRAIN law — especially the tax hikes of oil products — disables them to realize that part 2 of oil and coal tax hikes this coming January 2019 will create another round of higher inflationary pressure.
The political insecurity index of the Duterte administration can be proxied by the latest Pulse Asia survey on the Approval and Trust ratings of the President. Its Approval rating has declined from 88% in June 2018 to 75% in September 2018 while its Trust rating has also declined by similar figures for the same period.
The consistent persecution and jailing of very vocal opposition legislators — first Senator De Lima and now Senator Trillanes — is one proof of President Duterte’s political insecurity and intolerance. While Sen. Trillanes has posted bail and is free temporarily, he can still go to jail if the administration will find other ways. After all, the coup d’etat charge again confronting him is a non-bailable offense.
They cannot arrest the spiraling inflation — only 2.9% in 2017, 3.4% in January 2018 or first month of TRAIN law, up to 6.4% in August 2018 — so they arrest vocal opposition leaders.
The government’s performance can be depicted in this hypothetical chart.
Consumer Price Index
Instead of aspiring to be in point A, the administration further moves away, outwards to point B where both price index and insecurity index are high.
One important policy that the government can undertake is to reduce VAT from 12% to 8% with very few exempted sectors. There is a concrete and very recent example why this policy can work.
Malaysia abolished its gross sales tax (GST), the equivalent of our VAT, as a result of an election promise in May 2018 fulfilled by PM Mahathir. With GST of 6%, Malaysia inflation rate was 1.4% in April then 1.8% in May 2018. When GST moved from 6% to zero last June, inflation rate significantly declined to 0.8% in June, 0.9% in July, and 0.2% in August. Massive, large-scale price decline across many sectors by the simple abolition of GST.
So President Duterte and his economic team can try the Malaysian model so that it can hopefully move towards point A in the illustration. Cut the VAT rate from 12% to 8% with very few exempted sectors.
 
Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers and a Fellow of Stratbase-ADRi.
minimalgovernment@gmail.com.

SC dismisses Peter Lim petition for TRO over DOJ investigation

THE Supreme Court has dismissed the petition of businessman Peter Go Lim seeking a temporary restraining order against Department of Justice (DOJ) resolutions dated March 19 and Aug. 27 ordering that he be investigated.
“…the Court resolves to dismiss the petition for failure to show any grave abuse of discretion in rendering the challenged order and resolution which, on the contrary, appear to be in accord with the facts and the applicable law and jurisprudence,” the resolution dated July 23 read.
The Department of Justice initially dismissed the complaint against Mr. Lim, for inconsistencies in evidence.
But the DOJ in August formally charged him with violation of the Comprehensive Dangerous Drug Act of 2002 for “conspiracy to commit illegal drug trading.”
Makati City Regional Trial Court Branch 65 in August issued a warrant of arrest against Mr. Lim but he has yet to be nabbed.
On Sept.14, Justice Secretary Menardo I. Guevarra disclosed that the government would give a reward worth P500,000 to anyone who will give information to the whereabouts of Mr. Lim, provided that it would lead to his arrest. — Vann Marlo M. Villegas

Zurcaroh’s Golden Buzzer Act

As a professor teaching millennial students, I always want to make sure that my class would have “balanced programming” during our 1 ½ hours of contact time. This means that the whole 1 ½ hours is spent not only on lecturing about the chapter, but also on playing team or individual games, viewing video clips, analyzing case studies, and other student-centered learning activities.
When I first had to teach the class talent management and the role of Human Resources (HR) in strategy, I was stumped on how to simplify the topic — until I saw this America’s Got Talent (AGT) clip in my Facebook newsfeed. The AGT clip was of the performance of Zurcaroh, an Austrian acrobat group, which was so compelling that the show’s host, Tyra Banks, gave it the much-coveted golden buzzer.
I now use Zurcaroh’s act as a metaphor to explain talent management, defined as “getting the right person at the right job at the right time.” The group’s act is also a metaphor for other HR functions such as training and development and performance management. Zurcaroh’s jaw-dropping act was perfectly executed because the right performers were doing the right stunts at the right time after they had brainstormed on their moves and undergone rigorous practice. In short, they managed their “human resources,” in the same way that companies do. As a result, the group earned a golden buzzer for its unique and well-executed performance and a slot in the final round. In other words, the group formulated and implemented a strategy in order to win.
Just like Zurcaroh, companies, in order to achieve profitability and growth — the traditional measures of success — must come up with strategies, including HR strategies, that add value to them instead of just simply copying the industry’s best practices.
Noe, Hollenbeck, Gerhart, and Wright, authors of the textbook Fundamentals of Human Resource Management, point out that when it comes to strategy making, HR can be viewed in four ways: administrative, or doing day-to-day activities; two-way, with HR providing inputs to strategy formation and implementation; one-way, with HR simply implementing what it is told to do; and integrative, with HR being involved in every step, from strategy creation to strategy evaluation. They suggest that firms be integrative in their strategy formulation and evaluation so that HR can customize its practices to benefit not just the shareholders of the firm but also every employee in the organization.
Vivien Supangco of the University of the Philippines studied the sales performance, operating profits, new markets/products, and human resources of 36 Metro Manila-based organizations, and concluded, like Noe et al., that having HR play a role in strategic planning and corporate governance increases a company’s likelihood of success.
Because HR personnel manage the most important resource of the firm, they should participate in management decisions that impact employees. HR personnel, using HR analytics, can provide employee data, knowledge of labor laws, and their skill in succession planning; without HR, firms might do whatever they want, such as letting go of 100 employees without realizing or caring about the consequences to these employees and their families. Therefore, HR has a stake in the strategies of the firm.
But success should be measured not only in terms of profit and market share, but also in terms of how well an organization develops its people. Employees deserve to be valued and given dignity through work. Article 23 of the UN Universal Declaration of Human Rights, of which the Philippines is a signatory, states:
Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment.
Everyone, without any discrimination, has the right to equal pay for equal work.
Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.
Everyone has the right to form and to join trade unions for the protection of his interests.
Firms must adhere to this commitment. However, it will be impossible if owners are in business just for profit. In the end, just like the Zurcaroh acrobat performers, managers, with the help of HR, must do a “balancing act” to make sure that employees, because they are given dignity in the workplace, are positively motivated in producing and delivering jaw-dropping products or services to their customers.
 
Alvin Neil A. Gutierrez is a DBA student of De La Salle University. He earned his Master in Human Resource Management degree as an AUSAID scholar from The University of Sydney Business School. He is also an Assistant Professor of the Ramon V. Del Rosario College of Business, where he teaches Strategic Human Resource Management and Corporate Social Responsibility and Governance.
alvin.gutierrez@dlsu.edu.ph

Lagman challenges dismissal of impeachment complaint vs SC justices

By Charmaine A. Tadalan, Reporter
REPRESENTATIVE Edcel C. Lagman of the first district of Albay challenged the validity of the House Justice Committee’s decision to dismiss the consolidated impeachment complaints against Chief Justice Teresita Leonardo-de Castro and six other Supreme Court Associate Justices for lack of votes.
With 22 affirmative votes and zero negative, the Committee on Tuesday formally adopted the committee report, carrying the decision to dismiss the complaints filed by some members of the opposition bloc Magnificent 7.
“The aforesaid recorded 22 votes did not constitute an absolute majority of 35 votes out of a total of 68 members, 34 regular members and 34 ex-officio members, as required under Section 8 of Rule III of the House Rules of Procedure in Impeachment Proceedings,” Mr. Lagman told Panel Chair Salvador C. Leachon of the first district of Oriental Mindoro in a letter, dated Sept. 26.
In response, Mr. Leachon said the absolute majority of the Committee is based on the total number of regular members.
“Our total membership is 33 and not 68 as he claimed,” he told reporters in a phone message.
“So absolute majority is 17 and since the votes approving the committee report was 22, the proceedings adopting the report was perfectly legal and binding,” he also said.
The panel chair noted the misunderstanding had already been cleared with the complainant. “Cong Lagman has been alerted. He’s just misinformed,” Mr. Leachon said.
The Committee on Sept. 11 dismissed the complaints after finding it “insufficient in substance.”
The impeachment complaints stem from the seven SC justices’ decision to grant the quo warranto petition that ousted Ma. Lourdes P.A. Sereno as Chief Justice.

GOCC development body in CamSur abolished for consistent losses

PRESIDENT RODRIGO R. Duterte has abolished the Partido Development Administration (PDA), a Government-Owned and Controlled Corporation (GOCC) created to boost development in lagging regions, “for consistently operating at a loss for several years.” Signed on Sept. 25, Mr. Duterte’s Memorandum Order No. 29 directs the abolition of the PDA after the Sangguniang Panlalawigan of Camarines Sur, through a resolution, urged the President and the Governance Commission for GOCCs to cause its “immediate abolition” for failing to “serve the lawful purpose for which it was created.” The PDA, established in 1994 through Republic Act 7820, was intended to assist the CamSur 4th District towns of Sagnay, Tigaon, Goa, San Jose, Lagonoy, Tinambac, Siruma, Presentacion, Garchitorena, and Caramoan. The memorandum notes that “despite the operation of the PDA for almost 20 years,” the district has “the highest poverty incidence level compared to other districts, and has a higher poverty incidence compared to the average for the entire Bicol Region.” — Arjay L. Balinbin

China sets new renewables goals, penalties in revised plan

CHINA is stepping up its push into renewable energy, proposing higher green power consumption targets and penalizing those who fail to meet those goals to help fund government subsidies to producers.
The world’s biggest energy consumer is aiming for renewables to account for at least 35% of electricity consumption by 2030, according to a revised draft plan from the National Development & Reform Commission (NDRC) seen by Bloomberg. Previously, the government has only set a goal for “ non-fossil fuels” to make up 20% of energy use by 2030.
The NDRC and National Energy Administration didn’t immediately respond to faxed requests for comment, and calls to their press offices went unanswered. The new plan, known as the Renewable Portfolio Standard (RPS), is an update of an initial draft published in March.
The standard — which sets minimum consumption levels of electricity produced from renewable sources — is among efforts to ease the nation’s reliance on coal and combat pollution that blights the world’s most populous nation. While helping to boost consumption of renewable energy, the policy also seeks to alleviate the government’s subsidy burden by raising revenue through penalties for noncompliance.
‘MORE FAVORABLE’
“We see the new RPS consultation paper having more implementation details and is more favorable to operators,” BOCI Research Ltd. analysts including Tony Fei wrote in a report Tuesday. The plan focuses “on improving the consumption of renewable energy, which is the major long-term purpose of the RPS mechanism.”
The NDRC also increased 2018 and 2020 non-hydro power consumption targets for some provinces, including requiring Inner Mongolia to increase its use to 18% this year from a previous goal of 13%. Targets for regions such as Yunnan and Xinjiang have also been raised.
The latest document also called for noncompliant firms to pay compensation fees to grid companies, which will be used to cover government subsidies for renewable projects. In recent years, China has pumped more money into renewable energy than any other country, leaving the government with a hefty subsidy bill.
“This also leaves us optimistic that the NEA may be mulling other ways to address the subsidy deficit issue,” BOCI said, adding the new plan may help to dismiss concerns about full subsidy payments to existing projects. “We expect the final version to be announced before end of 2018 as the NEA previously guided.”
Other details from the plan, according to the draft document and BOCI report, include:
Extends RPS compliance to local grid companies that aren’t under State Grid Corp. of China or China Southern Power Grid Co., as well as power sales companies. Feedback on the plan due Oct. 15. Renewable power credits, known as green certificates, will be issued to renewable energy producers, who will transfer them to grid companies when they dispatch power. Green certificates may also be transferred to direct power purchasers if the agreed price includes the certificates. The price of renewable power traded across regions or provinces must include price of the certificates. Revenue from green certificates will be deducted from subsidies paid to operators.
 
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Smartmatic among bidders for voter verification project

By Gillian M. Cortez
THE COMMISSION on Elections (Comelec) announced yesterday that SMMT-TIM 2016, Inc./Smartmatic International Holding BV (Smartmatic) is one of the interested bidders in the voter registration verification project for next year’s mid-term elections despite alleged alterations in the 2016 polls.
“They have not been blacklisted and there is no proceedings blacklisting them so they are still eligible to participate subject to the conditions as provided in the TOR (Terms of Reference),” Comelec Special Bids and Awards Committee Chairperson J. Thaddeus P. Hernan said during a press conference on the opening of bids.
He added, «They’re not blacklisted by any government agency for that matter.»
Other companies that submitted bid documents were Megadata Corporation, NextIX Inc. and Gemalto Ph., and Dermalog ISMS.
The Special Bids and Awards Committee board is currently in the preliminary procurement proceedings.
The next step would be reviewing the bids before conducting a post-qualification proceedings.
After post-qualifications, the lowest calculated qualified bidder will be awarded the contract.
The project, Mr. Hernan said, requires “a single voter registration verification management system that shall effectively manage the data for all cities and municipalities.”
The poll body has already purchased more than 97,000 vote counting machines (VCM) from Smartmatic worth P8.1 billion for next year’s elections.
Smartmatic was investigated in the past for allegedly altering their script in the servers during the transmission of votes in 2016, but no sufficient evidence was found proving related fraud.
Meanwhile, Mr. Hernan said the automated system of verification that will be used in the 2019 national and local elections will be able to prevent “flying voters”.
“There will be no more discretion on the part of the electoral board as to the voters,” he said, because the finger scanning system will verify the identity.
Comelec plans to hold a mock election to test the system after awarding the contract.

Marquez downplays Davao mayor opposition to his SC application

By Vann Marlo M. Villegas
COURT ADMINISTRATOR Jose Midas P. Marquez, who is in the line-up of applicants for Supreme Court (SC) associate justice, has downplayed the opposition filed by Davao City Mayor Sara Duterte-Carpio against him.
Ms. Carpio, daughter of President Rodrigo R. Duterte, claims that Mr. Marquez was trying to find favor by meddling in her disbarment case.
In his interview yesterday with the Judicial and Board Council (JBC) for the associate justice post, Mr. Marquez said he was not involved in the filing of the withdrawal of the disbarment case.
“The allegation that I talked to the complainants, the witnesses, I did something, I manipulated, I maneuvered, actually, your honor, with all due respect, is not accurate,” he said.
In a statement on social media, Ms. Carpio claimed that there is an individual seeking a position in the SC who is trying to get her attention by trying “to spin” her case.
“The Office of the President should think twice in appointing this individual to be a justice, more so a chief justice,” the mayor said.
It was revealed in the JBC interview that Ms. Carpio has filed her opposition against Mr. Marquez.
A disbarment case was filed against Ms. Carpio in 2011, during which she was also Davao City mayor, after she punched a trial court sheriff for ignoring her plea to postpone a demolition operation in an illegal settlement area at the height of a flooding calamity in the city.
Mr. Marquez claimed that the sheriffs who filed the case met in April 2018 and the president of the Sheriffs Confederation of the Philippines proposed to withdraw the disbarment case against the Presidential daughter.
Mr. Marquez said he only met the sheriffs early in September 2018 to clarify what happened when he received the affidavit of Ms. Carpio.
He said the sheriffs only met him to seek his advice regarding the filing of withdrawal of the disbarment case, to which he replied that it would be up to them.
“Your honor I am not aware what information has reached the good mayor but it seems and as borne by her affidavit, it appears that I spoke to the sheriff and convinced them to file a motion to withdraw… In fact, when they filed that motion to withdraw before the office of the bar confidante, I was not informed, I was not aware, I was only told later on that it was already filed,” he said.
JBC member Milagros Fernan-Cayosa further noted that Ms. Carpio’s opposition also cited a certain Gemma Sotto, who was “purportedly” going to Davao to meet the mayor for the benefit of Mr. Marquez.
The court administrator also denied this allegation, saying: “Well, I do not know exactly what she was going to do, but yes, they were saying, including her, that I will help you here, I will help you there, I just say ‘thank you.’”
Mr. Marquez also denied the opposition filed by Ryzza Joy E. Laurea, which alleged that he misappropriated the $21.9 million loan fund provided by the World Bank for the Judicial reform Project in 2003, saying that “no single centavo” passed the Office of Court Administration.
“Ms. Laurea is misinformed that these projects were managed by the Office of the Court Administrator and these funds went through the office of the court administrator,” he said.
“I think Ms. Laurea came to that erroneous conclusion because there was a time when I wore multiple hats, I was court administrator, I was chief of staff of office of the chief justice, I was head of the Public Information Office, I was spokesman of the court. But even with those multiple positions, I was handling back then, these funds never passed my office,” he added.
Chief Justice Teresita Leonardo-De Castro affirmed Mr. Marquez’s claims.
“I’d like to confirm that based on my personal knowledge. Court Administrator Marquez had nothing to do with the disbursement of the proceeds of the World Bank loan,” she said.
Apart from Mr. Marquez, other vying for the associate justice position are: Court of Appeals (CA) Justices Apolinario D. Bruselas, Jr., Rosmari D. Carandang, Stephen C. Cruz, Edgardo L. Delos Santos, Japar B. Dimaampao, Ramon Paul L. Hernando, and Mario V. Lopez.
Other candidates whose previous interviews are still valid are: Tagum City Judge Virginia D. Tehano-Ang, CA Justices Oscar V. Badelles, Manuel M. Barrios, Ramon D.R. Garcia, and Amy C. Lazaro-Javier.
The candidate who will be chosen will take the seat vacated by now Ombudsman Samuel R. Martires.

Infrastructure damage from Ompong at almost P7B

TYPHOON OMPONG (international name: Mangkhut), the strongest to hit the country so far this year, left behind almost P7 billion in infrastructure damages, based on the partial estimate of the Department of Public Works and Highways (DPWH). In a statement yesterday, DPWH said the destruction includes P1.539 billion in roads; P52 million, bridges; P5.278 billion, flood control structures; and P78.30 million, public buildings. Over the past two weeks, DPWH regional and district offices were able to clear 77 roads that were closed due to Ompong and the southwest monsoon rains.