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CHED urges firms to prepare workers for AI

THE Commission on Higher Education (CHED) said it is critical for workers to take on skills that will prepare them for the greater adoption of artificial intelligence (AI).

In a briefing at an information technology (IT) summit for schools and companies, CHED Chairman J. Prospero E. de Vera III said the commission aims to integrate AI into the learning process by training teachers and students, even those who are not in technology-related degree programs.

“Faculty members must understand what AI is all about, how it impacts the degree program that they are teaching and enable to embed it in the learning process across disciplines,” Mr. De Vera said, citing that even humanities and social sciences courses can benefit from such technology.

East West International Educational Specialist President and CEO Dennis Franco M. Layug said AI is being used in various industries such as marketing, health, and architecture.

“Academics will have to embrace industry demand and start producing graduates equipped with these skills,” he added.

Aileen Judan-Jiao, president and general manager of IBM Philippines, which offers AI learning opportunities, highlighted the significance of technological skills in the current job market.

“There is no better time to join the tech industry than now. IT skills (are not only for) the BPO (business process outsourcing) industry, but every industry; everything is technology-induced,” she said.

Employment platform LinkedIn reported on Tuesday that in Southeast Asia, job posts mentioning AI or Generative AI have doubled from 2021 to 2023. Applications for these jobs have grown 1.7 times in the region over the last two years.

LinkedIn emphasized the importance of soft skills as AI automates tasks. It said Philippine professionals believe skills like problem-solving, creativity, and communication will become more critical as AI tools are more broadly adopted in the workplace.

At the briefing, Alfredo Antonio I. Ayala of the Private Sector Advisory Council said in order to upskill the workforce, there needs to be an “accelerated level of government and industry collaboration.”

CHED’s Mr. De Vera said, “There is a bigger imperative for the industry and government to work together,” and noted the commission’s collaboration with various technology companies to offer learning opportunities for students.

Silicon Valley HQ CEO Christopher Peralta said the private sector aims to bring to the Philippines “the implementation, the tools that are happening in Silicon Valley or Singapore or Australia.”

“If we can do that, we empower students and the next generations.” — Jomel R. Paguian

RHK sees north tower’s turnover by 2028

PROPERTY developer RHK Land Corp. launched the Velaris Residences North Tower on Thursday, marking the second tower of The Velaris Residences’ three-tower residential enclave.

Rouen Abel V. Raz, RHK Land general manager, said on the sidelines of the launch event that the target turnover date for The Velaris Residences North Tower is by late 2028.

“We are eyeing to have the turnover for The Velaris Residences North Tower by late 2028, around fourth quarter,” Mr. Raz said in an interview.

The North Tower, rising to 40 storeys, is situated in the 31-hectare Bridgetowne estate that spans across parts of the cities of Pasig and Quezon, giving access to major business hubs such as Makati City, Bonifacio Global City, and Ortigas Center. 

According to Mr. Raz, the newly launched North Tower has 247 units that range from one- to four-bedroom units, penthouse suites, and townhouse suites. 

He said prices of the units range from P25 million for smaller units to P200 million for bigger units such as the townhouse.

“We will probably finish the year at around 35% sold for North Tower. The fastest-selling units are the rooms with the bigger cuts,” Mr. Raz said.

“The price range for North Tower is between P315,000 to P330,000 per square meter. It is not as expensive as the super luxury [developments]. But if I look at the deliverables and what we’re offering, the market is really saying that we have a fantastic price for a fantastic development,” he added.   

Some of The North Tower’s amenities include the indoor and outdoor Japanese sento, a sculpture garden, a garden lounge with floating daybeds, a lifestyle gym with a dance studio and cycling studio, a badminton and pickleball court, a golf simulator studio, an Olympic-length infinity pool, a treetop playground, camping grounds, smart lockers, secure mailroom, business lounge, creative studio, and private elevators. 

“The private lifts for two-bedroom and bigger units and the two-units-to-one-elevator ratio of the typical floors provide North Tower residents with a high level of privacy, one of the remaining true luxuries in today’s world,” RHK Land said. 

Other amenities include the Velaris SkyClub, which features a private theater and game room for entertainment aficionados, a wine gallery, casual and gourmet dining areas for gourmands, and a cigar room for tobacco connoisseurs. The project also offers various options to host private gatherings with the SkyLounge, SkyBar, and SkyDeck areas. 

The North Tower development is also set to have improved connectivity with planned and ongoing infrastructure projects such as the Metro Rail Transit Line (MRT) 4, Metro Manila Mega Subway Project, and C-6 Expressway.

“With its central location, The Velaris Residences not only allows owners to create the home they have always envisaged but it can also help them further build equity in the long term by being an attractive investment opportunity,” Mr. Raz said. 

“The sizeable current economic activity in and around Bridgetowne and The Velaris Residences is expected to continue to soar in the foreseeable future, positioning residents to benefit immensely from this projected growth,” he added.

Aside from North Tower, The Velaris Residences also have the South Tower, which was topped off on June 6, and the planned East Tower.

RHK Land is a joint venture between international property group Hongkong Land and Gokongwei-led Robinsons Land Corp. — Revin Mikhael D. Ochave

Entertainment News (11/24/23)


Spider-Man concert coming to Makati

The Academy Award winning film Spider-Man: Into the Spider-Verse will be set to music in a special screening-cum-concert  on Dec. 30 at 3 p.m. and 7 p.m. at the Samsung Hall, SM Aura Premier. It is presented by Wilbros Live. The animated movie will be shown on a huge HD screen and will be accompanied by a unique fusion of live orchestra, turntables, and percussion playing the music from the score and soundtrack. Spider-Man: Into the Spider-Verse Live in Concert will be touring more cities around the world. A Sony Pictures Animation film, directed by Bob Persichetti, Peter Ramsey, and Rodney Rothman and written by Phil Lord and Rothman, the movie introduces Brooklyn teen Miles Morales, and the limitless possibilities of the Spider-Verse, where more than one can wear the mask. The music score for the box office hit was composed by Academy Award nominee, multiple Golden Globe-nominee and Emmy-winning composer Daniel Pemberton, known for his work on movies such as The Man From U.N.C.L.E., Oceans 8, Enola Holmes, The Bad Guys, and Steve Jobs. The hip-hop based film score contains original music complemented by song contributions from Post Malone, Lil Wayne, Jaden Smith and Nicki Minaj. Tickets to the Manila shows will go on sale on Nov. 25 via SMTickets.com and SM Tickets outlets nationwide. For more information, follow @WilbrosLive on social media.


Open Air Cinema presents Frozen 2

Cinema One embraces the spirit of Christmas with Open Air Cinema One: A Magical Movie Night, which features the Disney blockbuster film Frozen 2 on Dec. 2 at Capitol Commons Park, Pasig City. In partnership with Ortigas Land, Capitol Commons, and Estancia, the outdoor screening event aims to bring together family and friends for a fun day filled with music and movie festivities. Moviegoers can also enjoy musical performances from Allen&Elle, Armi Millare, and Dani Zam. The event will be hosted by Star Magic artist Ai dela Cruz. The outdoor movie screening event will also feature A-Paws fashion show for dogs and cats, food stalls, various booths activities, and on-stage games. Admission is free and to enter the event, download the Ortigas Mall app or be an Ortigas Community Card member.


PHL sets Guinness World Record for Longest Travel Livestream

The Philippines has just set the Guinness World Record for the Longest Travel Livestream lasting for over 26 hours and covering 75 kilometers from Bustos, Bulacan to Rizal Park in Manila. The livestream was part of the Petmaloop Challenge spearheaded by mobile brand TNT of Smart Communications, Inc.), which called on content creators to feature highlights of their hometowns using the micro-vlogging app TikTok. But they could only use one TNT-powered smartphone, which they should pass from one user to another in relay fashion. A total of 33 content creators took on the task, which started in Davao City on Nov. 4 and made its way through other major cities and provinces in Mindanao, the Visayas, and Luzon. But to set the Guinness World Record for the Longest Travel Livestream, the content creators took the Petmaloop Challenge up a notch by livestreaming their journey from Bulacan to Manila without interruption. “I can now confirm that, with 26 hours, 15 minutes, and 29 seconds, TNT has a new Guinness World Record Title! Congratulations!”  declared Fumika Fujibuchi, the Official Adjudicator at Guinness World Records, during the awarding. The Petmaloop Challenge did not only exceed the minimum required uninterrupted livestream hours but also fulfilled various criteria set by The Guinness World Records, which included: focusing on real-time travel experiences, emphasizing the significance of sites and cultural locations; ensuring the livestream is accessible to the entire public throughout the entire attempt; and allowing the livestream to take place at multiple venues, provided there are no gaps or interruptions.

PayMongo, GoTyme launch loan product for MSMEs

MERCHANT PAYMENTS solutions provider PayMongo Philippines, Inc. has partnered with GoTyme Bank to launch PayMongo Capital, a loan product for micro, small, and medium enterprises (MSMES).

PayMongo Capital is digital lender GoTyme’s first loan product.

“Going into loans is a big step for GoTyme Bank and we are optimistic that with the partnership with PayMongo, we will be able to give SMEs the best customer service and peace of mind,” GoTyme Co-and Chief Executive Officer (CEO) and Chief Commercial Officer Albert Raymund O. Tinio said in a statement on Thursday.

PayMongo Capital can be a starting point for smaller businesses that have no ready access to formal credit, he added.

“You start off with PayMongo, creating data that become the proxy for your credibility to borrow and pay back. When you pay back in a timely member, you’ll be eligible for more. It’s not a ‘one-time, big time.’ It’s about creating a long relationship that will help the merchant grow their business in a sustainable manner,” Mr. Tinio said during the product launch on Thursday.

PayMongo Capital was launched to address the credit gap among MSMEs, former GoTyme CEO and Co-Founder and current PayMongo President and CEO Elmer “Jojo” M. Malolos said.

Eligible PayMongo users will be offered a loan with a specific amount, tenor, and rate, depending on their transaction history. They can be offered loans of up to P500,000.

Customers can receive the funds within one business day in their registered bank account. The loan will be repaid through automatic deductions from their daily sales.

“The repayment process is basically based on the sales cycle of the merchant. If the merchant does well, they repay the loan faster. If the merchant has a slow season, it’ll take longer to repay the loan,” GoTyme Bank Chief Strategy and Proposition Officer Aaron Foo said.

Merchants only need to pay an additional flat fee for the loan. PayMongo Capital has no processing fees, penalty fees, or interest.

The flat fee can range from 1.25% to more than 2% on average, Mr. Foo said.

“In terms of the fee structure, it’s basically just one flat fee that is applied to the entire loan amount. It’s hard to give a specific account because it will be based on the merchant’s specific profile. We’re applying a very data-driven, risk-based process,” he said.

PayMongo Capital also features a flexible pay schedule based on a merchant’s daily sales.

GoTyme President and CEO Nathaniel D. Clarke noted that only about 10% of PayMongo’s total customer base can currently be offered a loan, but they could expand to more users in about three to six months, depending on the product’s performance.

“The biggest factor in being eligible is how deeply they’ve adopted PayMongo. How long have you been with PayMongo, and how many transactions have you accepted through PayMongo,” he said. — A.M.C. Sy

Economic forecast 2024

(Part 2)

On Nov. 22, I attended part of the BusinessWorld Economic Forum (BWEF) 2023 which had the theme “Forecast 2024” at Grand Hyatt in BGC Taguig City, and Stratbase’s “Pilipinas Conference 2023” at The Peninsula Manila in Makati City. Since they occurred on the same day, I chose certain sessions from each to attend.

In the morning, the Stratbase conference featured the government economic and infrastructure teams while the BWEF featured the regional heads of multilaterals Asian Development Bank (ADB), the International Monetary Fund (IMF), and the World Bank (WB).

Finance Secretary Benjamin Diokno reiterated that the Philippines is one of the fastest-growing countries in the fastest-growing region in the world. Budget Secretary Amenah Pangandaman said that their priorities are Procurement law amendments, government rightsizing, cash budgeting, and open government partnership (OGP). She said that these will complement fiscal consolidation and help keep the fast growth trajectory and sustain it, create more jobs and reduce poverty.

In the afternoon at the BWEF, I watched the panel on “Equipping energy for greater demand” and the speakers were Anthony Oundjian of Boston Consulting, Emmanuel Rubio of Aboitiz Power Corp., and John Eric Francia of ACEN.

I was surprised by Mr. Oundjian’s opening slide about a “current energy crisis” because I do not believe there is an energy crisis (or an oil crisis, a transport crisis, a food crisis, a health crisis, a climate crisis…). These are hiccups where cheap energy like oil and gas from Russia were shunned due to politics and the war.

Mr. Francia said that for 2024, the normalized growth is between 5-6% and there is adequate supply to address higher electricity demand, and that his company will have 1,000 MW of new renewable energy (RE).

Mr. Rubio has a more down-to-earth explanation of meeting power demand and supply. He said that the variability of renewable energy must be considered in planning an energy transition, that in other countries variable energy generation has a cap. That the Philippines still needs reliable, stable, and affordable energy and in comparing thermal vs RE, the full cost including ancillary services and batteries should be included.

Jerome Cainglet of the Energy Dev’t Corp. (EDC) was also supposed to be one of the speakers, but he did not show. EDC is focused on wind power and geothermal energy.

I still believe that the Energy department’s disallowance, since the previous administration, of new or “greenfield” coal projects is wrong. If our focus is on more growth and more electricity for our businesses and households, coal has provided that to many countries for many decades.

In the accompanying table I compiled data on four rich European “decarbonizing” economies that significantly reduced their coal use, and big population Asian countries with rising coal consumption, plus Turkey.

Decarbonizing Europeans with declining coal use have had anemic growth of only 1% to 1.6% from 2012-2022 while developing Asians with rising coal use have fast average growth of 4% to 6.5% yearly. Again, there are many factors for why a country has fast or slow growth, but the fossil fuel input is among the important factors.

The Philippines’ 6% to 7% annual GDP growth target for 2023 and beyond will require similar growth in power generation, meaning a 6-7 terawatt-hours (TWH) yearly incremental increase over some 100 TWH in 2022.

If we expand by only 4-6 TWH yearly, growth will be affected and compromised to roughly 5% or less. We do not want that. We have the momentum already, with 5.6% growth in Q1-Q3 this year, and this is projected to grow at 6.2% to 6.5% in 2024 (according to ADB and AMRO projections). We should not douse this momentum.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers.

minimalgovernment@gmail.com

Stuff to Do (11/24/23)


Free film screenings with CCP

The Cultural Center of the Philippines (CCP), through the different programs under its Film, Broadcast and New Media Division (CCP FBNMD), will screen local and international films for free in various venues nationwide. The series started yesterday with the screening of CCP World Cinema: War Sailor and The Voyage of the Balangay at the GSIS Theater. Today,  Nov. 24, as part of the 18-Day Campaign to End Violence Against Women, the CCP will have a special screening of Karnal at 1 p.m. at the GSIS Theater. An anti-VAW workshop, dubbed “Eh Ano Kung Naiiba: A workshop on inclusivity, diversity in a safe workplace with #LoveYourself” will also take place at 11 a.m. Meanwhile, the next installment for CCP’s Cinema Under the Stars (CUTS) program presents Auraeus Solito’s PISAY and Mike Sandejas and Robert Seña’s Wat Floor Ma’am? on Nov. 30, 6 p.m., at the LYF hotel roofdeck in Malate, Manila. The CCP Arthouse Cinema puts the spotlight on the fight for human rights with a special screening of Maria, Cinemalaya’s first documentary film in competition, on Dec. 7, 1 p.m., at the FEU Mini-Auditorium. This event celebrates the 75th anniversary of the universal declaration of human rights. To get the latest updates, follow the official CCP and CCP FBNMD social media accounts on Facebook, X, Instagram, TikTok, and YouTube.


QCinema holds free screenings, Q&A sessions

QCINEMA International Film Festival 2023 has announced that certain film screenings throughout the festival — which is ongoing until Nov. 26 — are free, while others allow audience members to meet the directors, ask questions, and get their insights. This includes the free screening of LGBTQ shorts on Nov. 25, 5 p.m., at Shangri-La Mall. For a full schedule of this year’s films, visit QCinema’s social media pages.


Operatic pop superstars return to Manila

THE CLASSICAL crossover group Il Divo (which translates to “divine performer”) will be performing at the Newport Performing Arts Theater at Newport World Resorts on Nov. 24 and 25, 8 p.m. They will be performing together with special guest vocalist Steven LaBrie. Composed of French pop singer Sebastien Izambard, American tenor David Miller, and Swiss tenor Urs Bühler, the trio is a pioneer of the “popera” or operatic pop genre, in which classical and pop music come together. The chart-toppers took the world by storm with hits including “Time to Say Goodbye,” “Amazing Grace,” and “Unchained Melody,” with lyrics in English, Spanish, and Italian. Tickets to Il Divo – A New Day Tour range in price from P3,500 up to P18,500, and are available at all TicketWorld and SM Tickets outlets.


Alviera holds 1st Northern Floats Fest in Pampanga

THERE will be an extra dose of color and light in Porac, Pampanga this holiday season as Ayala Land and Leonio Land launch the first-ever Alviera Northern Floats Festival. Happening from Nov. 25 to Dec. 17, the festival will highlight larger-than-life floats which will introduce Alviera’s Christmas characters: Alvie, Sandy, Christoff, Sparkles, Fin, and the Jingle Belles. There will be carnival-themed activities like game booths, zorbs, a kite display, as well as live music and food stalls. Festival goers can also enjoy special access to the SandBox adventure destination, bike trails, and the exclusive Alviera Country Club. For P125, guests can access the Alviera Northern Floats Festival and enjoy one Sandbox ride. For P375, guests can enter with a P150 food and drinks voucher, a P100 voucher for activities, and one SandBox ride. Meanwhile, for P525, guests get all that plus access to the Giant Swing, Free Fall, and Roller Coaster Zipline. The “ultimate” festival experience costs P725, inclusive of a one-day Alviera Country Club guest pass with complimentary food and drinks. Tickets are available via Tickelo. Visit the official Alviera Facebook page for more information.


Shang unveils sights and sounds for the holidays

THE YULETIDE season will be filled with carols and bells at Shangri-La Plaza on Nov. 25 and 26, as musicians and carolers perform merry tunes and nostalgic songs at the mall’s Grand and East Atriums. Mall guests will also see massive hanging bells at the Grand Atrium, with lighting inspired by aurora borealis colors and shooting stars. Kids are also going to get a chance to share their Christmas wishes with jolly old St. Nicholas at the Santa’s Corner up every Friday and on weekends at the Main Wing. For updates, follow Shangri-La Plaza on Facebook or Instagram.

Office politics and creative conflict

I suspect that our chief executive officer (CEO), who will retire in two years, is creating a conflict between and among three sales executives. The executives also suspect they’re being assessed as candidates to replace the CEO, who has remarked that a little office politics helps create healthy and friendly competition. The competition is heating up, and is adversely affecting sales performance. Is there a cure? — Lone Wolf.

You may have evidence to suspect that the CEO is creating conditions to foster creative conflict. Just the same, it should remain a suspicion since creating conflict is not the ideal approach for choosing candidates. Being suspicious could be a personal asset. But to be suspicious all the time, and without facts, is a liability.

Besides, sales performance should not be the only basis for choosing a replacement CEO; there are many other factors to consider. For one, general-manager skills like human resources, finance, operations, and public relations, among others. It is possible to imagine a manager who excels at sales but struggles with people management.

We must also talk about consistent work performance over the past five years if we are to consider promoting an executive to CEO.

And that’s not all. Creating conditions for so-called “creative conflict” could backfire, complicating the relationship among the candidates and poor performance all around. At the extreme, the candidates could sabotage one another to the detriment of the organization.

The most important thing to understand is whether the current CEO has a mandate from the owners or the board to undertake such a process in finding a replacement. In general, the only thing we know for certain is that the CEO is the conduit between the board of directors and the executives and their workers.

We’re not even sure if the CEO has the mandate to choose a replacement from among the leading internal candidates. What if the board decides to hire someone from outside the organization?

OFFICE POLITICS
Workplace conflict is everywhere. Many of them are deliberate rather than accidental creations. Sometimes, workplace conflict happens due to office politics or opposing management styles. If this happens, the result can be disastrous for the organization.

Any person, regardless of rank, can play office politics if he uses his discretionary powers to promote a personal agenda. His motive may include revenge, amassing power and authority, building an empire and beating rivals to key promotions, among others.

However, there’s also a positive side to office politics, which may cause workers to enhance their image or personal brand, making them appear more professional.

Experts have noted that to have successful careers, managers need to be good politicians, but not to the extent of violating the company’s ethical, moral, and legal standards. Just the same, the question remains: should the CEO create conflict to identify a successor, assuming that he’s authorized to do that?

Such an approach is dangerous. Office politics does more harm than good. It’s more of a problem than a solution for any organization. It consumes a lot of energy, disrupts the candidates’ work, and damages their relationships with colleagues in the long term. Because of political infighting, corporate goals and sales targets may fall by the wayside as candidates are diverted from what needs to be done.

Further, office politics reduces trust and diminishes respect. In a tense political environment, it also affects the well-being of non-management workers and undermines active collaboration between and among functional units.

In real terms, how would you assess whether office politics is good or bad?  Let’s answer this question by raising more questions:

One, does it result in the greatest good for the greatest number of people inside an organization?  If not, then it’s clearly bad politics.

Two, does it violate any person’s rights, as in when rivals tap each others’ telephones to obtain embarrassing evidence?  If yes, then it’s bad politics.

Three, does it treat all persons fairly? Do rules and penalties apply to all regardless of their personal circumstances?  If not, then it’s bad politics.

Playing office politics is inevitable for everyone.  You cannot ignore it and hope it dies a natural death. There’s only one option for you — manage it well.

 

Bring Rey Elbo’s leadership program called “Superior Subordinate Supervision” to your management. Chat with him on Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

Berong mine’s recovery seen completed within schedule

BERONG Nickel Corp. (BNC) may finish the rehabilitation of its Palawan mine within the next four years, the top official of its parent company DMCI Mining Corp. said on Thursday.

“We have four years left to complete it,” DMCI Mining President Tulsi Das C. Reyes told reporters. “Whether we eat up the last four years, we eat up the last four years and if we can turn it over, we’ll turn it over.”

Mr. Reyes, who is also Berong Nickel’s president, said the rehabilitation of the Palawan mine site is ahead of schedule at a 77% completion rate.

“We are ahead of time. We’re ahead of schedule. What we’re doing now is we are still planting and then we have to [continue] benching for the soil stabilization,” he added.

He said the company had spent about P80 million out of the P130 million budget allocated for the depleted mine’s rehabilitation.

He added that another P50 million may be added to the budget to accommodate the increase in fuel prices.

Mr. Reyes said earlier that the site had completed 88% of its annual land preparation target in just six months. It had rehabilitated about 30 hectares of the mine, out of the 34-hectare full-year target.

The Palawan mine was set for a six-year rehabilitation after its depletion in 2021.

BNC started rehabilitation works in June 2022 covering 109 hectares of surface mine, 209 hectares of silt control structures, and 25 hectares of stockpile area.

Mr. Reyes added that the Mines and Geosciences Bureau (MGB) said the site would be presented as a “commendable final mine rehab plan.”

“I want to make sure that when they showcase it, it’s as close to perfect as possible. There’s no incentive for us to finish early, so let’s do it right,” he said.

During its operation between 2006 to 2021, the Berong mine yielded about 10.3-million wet metric tons of nickel ore and 2.6-billion worth of mining duties, royalties, and taxes.

The mining operation also created 1,634 direct and indirect jobs during its active period.

Also on Thursday, another DMCI Mining subsidiary, Zambales Diversified Metals Corp. (ZDMC), reported that its nickel ore production surged by 83% to 1.31 wet metric tons (WMT) from January to September due to increased mining capacity.

“This, after ZDMC received the necessary Environmental Compliance Certificate (ECC) to boost its nickel ore production from 1 million metric tons to 2 million metric tons starting January 2023,” it said in a disclosure by DMCI Holdings, Inc.

For the third quarter, ore production went up by 28% to 190,000 WMT from 149,000 WMT. — Adrian H. Halili

Chief executive officer and board shake-ups

It’s just another tumultuous week in the tech sector.

Only a few days after being unceremoniously removed from his job as CEO of OpenAI, Sam Altman is triumphantly returning to the role in an unexpected turn of events. OpenAI officially announced Altman’s return, and former Salesforce, Inc. co-CEO Bret Taylor will now serve as the first board’s chair. Former US Treasury Secretary Larry Summers and current Quora, Inc. co-founder and CEO Adam D’Angelo are among the other directors. According to a post on X, the corporation is now working on completing the specifics of this sudden reorganization in the board.

In the same universe, Changpeng Zhao, the creator of Binance, the biggest cryptocurrency exchange in the world, had entered a guilty plea to charges of money laundering. This is a shocking setback for the most powerful and prominent person in the global cryptocurrency business.

The corporate world is no stranger to seismic shifts in leadership, with CEO and board shake-ups serving as pivotal moments that redefine the trajectory of organizations.

CEO shake-ups can stem from various factors, ranging from internal challenges to external pressures. The departure of Steve Jobs from Apple in 2011 was a poignant example, driven by health issues that emphasized the significance of personal well-being in executive leadership. Tim Cook’s succession showcased the resilience of a well-established company when guided by a capable successor. Apple not only sustained its momentum but continued to innovate and thrive under Cook’s leadership.

In 2017, General Electric underwent a significant leadership change with the departure of Jeffrey Immelt, concurrent with a restructuring of the board. The reasons behind this shake-up were rooted in the need for strategic realignment. Despite John Flannery’s efforts to refocus on core businesses, the challenges faced by General Electric underscored the complexities of executing substantial strategic shifts. The impacts of this transition were felt by the company, its employees, and shareholders who witnessed a decline in performance and value.

Uber faced a tumultuous period in 2017 that led to a CEO shake-up. Travis Kalanick’s departure and the appointment of Dara Khosrowshahi reflected a response to internal cultural issues and external controversies. Khosrowshahi’s emphasis on transparency and accountability marked a cultural shift aimed at addressing internal challenges and rebuilding trust. This transformation had far-reaching effects, impacting not only employees but also external stakeholders, including customers and investors closely monitoring Uber’s evolution.

Elon Musk’s tenure at Tesla in 2018 demonstrated how CEO behavior could trigger significant disruptions. Musk’s controversial tweets and SEC scrutiny led to a shake-up as he agreed to step down as chairman, revealing the legal and reputational risks associated with leadership conduct.

In 2014 in the Philippines, Philippine Airlines (PAL) underwent a significant shake-up. Ramon Ang, president of San Miguel Corp., acquired a substantial stake in PAL and assumed the position of president and COO, leading to changes in the airline’s leadership structure.

ABS-CBN, one of the largest media and entertainment companies in the Philippines, faced a major shake-up in 2020. The non-renewal of the network’s franchise led to leadership changes, and Carlo Katigbak stayed as president and CEO, navigating the company through challenging times.

Board shake-ups often coincide with or precede CEO transitions, indicating a broader need for strategic reassessment and governance restructuring. The confluence of changes at General Electric in 2017 exemplifies this integrated approach. The departure of Jeffrey Immelt and the restructuring of the board aimed to bring diverse skills and perspectives, contributing to effective oversight and strategic decision-making.

The effects of CEO and board shake-ups are intertwined, influencing organizations from both leadership and governance perspectives. Changes in the board composition can alter governance dynamics, influencing decision-making processes and strategic oversight. The impacts extend beyond the CEO position, affecting the company’s strategic direction and overall governance framework.

The experience of General Electric under John Flannery and the restructured board highlighted the challenges of revitalizing a large and diversified corporation. The repercussions were felt not only by the company but also by employees and shareholders, emphasizing the interconnectedness of leadership and governance. Similarly, the cultural shift at Uber under Dara Khosrowshahi impacted external stakeholders, illustrating the broader societal implications of leadership changes.

CEO and board shake-ups underscore the need for integrated leadership and governance planning. Organizations should consider both executive and governance changes in tandem, ensuring alignment between strategic direction and oversight mechanisms.

Board shake-ups highlight the importance of diversity and expertise in governance. A diverse board with a mix of skills and experiences can provide effective oversight and contribute to strategic decision-making, as seen in the restructured boards of companies like General Electric.

In addition, CEO transitions necessitate robust succession planning, ensuring a smooth handover of leadership. Companies should also consider the implications for the board, maintaining continuity in governance to foster stability and consistency.

Both CEO and board shake-ups demand effective communication with stakeholders. Transparent communication about the reasons for changes, the strategic vision, and the organization’s commitment to stability can build trust among employees, shareholders, and the broader community.

CEO and board shake-ups represent pivotal moments in an organization’s evolution, demanding a holistic approach to leadership and governance. By understanding the reasons behind these transitions, acknowledging their impact on companies and stakeholders, and learning from the lessons they offer, organizations can navigate change with resilience, adaptability, and a commitment to sustained success.

 

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse Consulting, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He teaches strategic management and digital transformation in the MBA Program of De La Salle University. E-mail at rey.lugtu@hungryworkhorse.com

A Philippine ‘red line’ in the West Philippine Sea

REUTERS

What exactly do we want to happen in the West Philippine Sea? Doubtless, the countless protests and notes verbales given, the military capacity building measures undertaken, and the security treaty alliances secured are all well and good. And they are indeed good and necessary measures. The question is: for what purpose and to what end?

Because through the years China has built 800 artificial structures of varying sizes on the Spratlys, Mischief Reef, Subi Reef, and Fiery Cross, as well as depriving our fishermen from not insignificant swathes of our seas. Which begs the question: where exactly are we going with our diplomatic, military, economic, and other security efforts?

Do we demand, ultimately, a reversion to the situation prevailing on Jan. 22, 2013, when the Philippines filed a case against China? Or is it July 12, 2016, when we won that case and thus had our territorial claim forever solidified, at least from the legal jurisprudence point of view? Or do we look to the circumstances prevailing on April 8, 2012, the day that the Philippines began a standoff with China in over Scarborough Shoal. Or should it start from 1995, when it was first discovered that the Chinese built structures on Mischief Reef?

Or is our resigned objective to merely restrain China, recognize the areas they have taken, and be happy with what we can then keep? Or — even more depressingly — do we keep allowing China to forever find ways to slice away at our sovereignty, like an ever-diminishing pie?

Which leads to another — and related question — and that is: is there any act by China that we can categorize as truly unacceptable? A “red line” that if crossed necessitates — be it on grounds of national security or national honor — that we actually resort to military measures as part of our inherent right to self-defense?

The Philippines or at least its vessels, servicemen, and fishermen, have been subjected to being rammed, water cannoned, and even had lasers pointed at them. And yet it is understandable, even commendable, that President Ferdinand Marcos, Jr. has kept a cool head amidst all that.

And yet, the question does linger: What do we consider unacceptable “aggression” that would require the Philippines to respond with retaliatory countermeasures or self-defense?

Our constitutional system, for better or worse, puts on the shoulders of one individual — the President — the decision on whether the Philippines goes to war. Our Congress can only declare that we are in a “state of war” and whether we reach that state depends singularly on the President as the “Commander-in-Chief.”

There is, of course, United Nations General Assembly Resolution 3314, that defines “aggression” as the “use of armed force by a State against the sovereignty, territorial integrity or political independence of another State, or in any other manner inconsistent with the Charter of the United Nations, as set out in this Definition.” Article 3 of that Resolution goes on to give examples of what may consist of aggression:

a.) The invasion or attack by the armed forces of a State of the territory of another State, or any military occupation, however temporary, resulting from such invasion or attack, or any annexation by the use of force of the territory of another State or part thereof;

b.) Bombardment by the armed forces of a State against the territory of another State or the use of any weapons by a State against the territory of another State;

c.) The blockade of the ports or coasts of a State by the armed forces of another State;

d.) An attack by the armed forces of a State on the land, sea or air forces, or marine and air fleets of another State;

e.) The use of armed forces of one State which are within the territory of another State with the agreement of the receiving State, in contravention of the conditions provided for in the agreement or any extension of their presence in such territory beyond the termination of the agreement;

f.) The action of a State in allowing its territory, which it has placed at the disposal of another State, to be used by that other State for perpetrating an act of aggression against a third State;

g.) The sending by or on behalf of a State of armed bands, groups, irregulars or mercenaries, which carry out acts of armed force against another State of such gravity as to amount to the acts listed above, or its substantial involvement therein.

A cursory read should make one ponder if whether paragraphs “c” and “d,” particularly in relation to UN Charter Article 2.4, have been violated in relation to the West Philippine Sea. It all depends on how one interprets “blockade” and “attack,” which normally under international law are left to the discretion of the country claiming self-defense.

The problem, clearly, of declaring a “red line” is that we have to stand by it and then do what we say we’ll do. Doing an “Obama” (as was the case in Syria) would be catastrophic.

Nevertheless, while clearly no one wants to go to war, yet with so much traffic going on in the disputed areas, drawing such a red line (and this has to be said: not necessarily to be declared publicly) and contemplating measures to address the permutations that could conceivably happen afterwards is something that needs to be decided on sooner rather later.

 

Jemy Gatdula read international law at the University of Cambridge and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

How PSEi member stocks performed — November 23, 2023

Here’s a quick glance at how PSEi stocks fared on Thursday, November 23, 2023.


Philippines ranks 98th most charitable in the world

The Philippines placed 98th out of 142 countries with an overall score of 34% in the 2023 edition of the World Giving Index (WGI) by UK-based charity Charities Aid Foundation (CAF). The Index ranks and scores the country by examining three aspects of giving behavior: helping a stranger, donating money, and volunteering time. The Philippines’ score was lower than the global score of 39. In helping a stranger, the country had a score of 57%, while in donating money (12%), and volunteering time (34%).

 

Philippines ranks 98<sup>th</sup> most charitable in the world