Home Blog Page 8022

Ease of tax filing and payment during community quarantine

The COVID-19 crisis has been sweeping the globe, affecting Filipinos everywhere. To finance public initiatives and to control the pandemic, the government is increasing its efforts to raise revenue despite the difficulties brought about by quarantine restrictions.

For taxpayers using the calendar year, April 15 of every year marks the deadline for filing the Annual Income Tax Return (AITR) and paying the corresponding tax. However, in March, due to the state of public health emergency, the government declared certain areas under various types of community quarantine. The declaration required many citizens to stay at home, and travel was restricted to within affected areas. Taxpayers were unable to prepare the documents needed to file their AITR and pay their taxes, prompting the Bureau of Internal Revenue (BIR) to delay filing and payment deadlines.

The BIR has issued numerous regulations and circulars extending the deadlines for filing and paying affected taxes. The latest regulation is Revenue Regulations (RR) No. 12-2020, which sets the deadline for filing and paying the AITR for 2019 to June 14. Since the deadline falls on a Sunday, taxpayers are given until June 15 to finally settle their tax payments.

ACCESSIBLE FILING AND PAYMENT OF TAXES
The limited means of travel and access to transportation during the community quarantines has made it difficult for taxpayers to comply with filing and payment deadlines. The revenue laws and rules proved to be stringent in requiring the physical submission of certain documents to the BIR. Responding to the clamor of taxpayers, the BIR issued Revenue Memorandum Circular (RMC) No. 49-2020, which provides additional options for accepting and processing the filed 2019 Income Tax Returns (ITR) and the required attachments. RMC No. 49-2020 allows taxpayers to submit their 2019 ITRs and required attachments to the nearest Revenue Collection Officers (RCOs), notwithstanding Revenue District Office (RDO) jurisdiction, or online through eAFs.

The RCOs shall stamp the submitted returns as “Received.” For electronically filed ITRs, the RCO shall accept and stamp as “Received” only the copies of the Filing Reference Number generated from the eFPS/E-mail Confirmation from the eBIR Forms Systems, as well as the Financial statements.

Taxpayers may also choose to submit a PDF of their filed ITR and the required attachments online through the BIR’s eAFs system. The taxpayer may access the online facility by visiting bir.gov.ph, and then clicking on the eAFS icon. The eAFS will acknowledge successful submission by issuing a system-generated Transaction Reference Number and by e-mailing the system user. The transaction reference number shall serve as the taxpayer’s proof of submission in lieu of the manual “Received” stamp.

The BIR recognizes the importance of the accessibility of payment facilities to taxpayers. To address the need for better access to various payment facilities, the BIR also issued RMC No. 48-2020, which was further clarified by RMC 56-2020, effective until June 14, 2020.

The RMC provides that taxpayers may file their tax return and pay taxes (a) at the nearest Authorized Agent Bank (AAB), notwithstanding RDO jurisdiction; or (b) to the concerned RCOs of the nearest RDO, even in areas where there are AABs; or (c) file through the eBIRForms Facility and use the various payment options.

For payment through RCOs in the RDO, cash payments should not exceed P20,000. Check payments do not have a limitation in amount. Check payments, however, must be made payable to the Bureau of Internal Revenue. It is no longer required to include the “IFO Name and TIN of Taxpayer”; the name and branch of the AAB is, likewise, no longer required.

Taxpayers filing through the eBIRForms facility may use any of the following payment options: (a) over-the-counter payment through the AABs; (b) RCOs of the nearest RDOs even in areas where there are AABs; (c) Electronic or online payments through Land Bank, Development Bank of the Philippines, Union Bank, and mobile payment (i.e., GCash or PayMaya).

A SOUND TAX SYSTEM DURING THE PANDEMIC
One of the attributes of a sound tax system is administrative feasibility. It means that the tax system should be “capable of being effectively administered and enforced with the least inconvenience to the taxpayer (Diaz v. Secretary of Finance, 669 Phil. 371, 393 [2011]).” In line with this, the BIR issued the RRs and RMCs previously discussed to make the payment of taxes during the pandemic accessible and flexible. Taxpayers will not be considered delinquent for filing in a wrong venue, even if they file outside their RDO. These issuances extend leniency in filing and paying taxes, but taxpayers have until June 14 to maximize the convenience offered by the BIR. After this, taxpayers should follow pre-pandemic tax laws and regulations.

Under pre-pandemic tax rules, filing and paying taxes at an RDO different from where the taxpayer is registered is the same as nonfiling or late filing, if later filed in the correct venue. In other words, the taxpayer becomes delinquent. Nonfiling or late filing is subject to penalties, surcharges, and interests under the laws and regulations. During the community quarantine, however, the government recognized that it should balance fiscal adequacy and the need to ensure taxpayer safety. Thus, the government gives taxpayers an option to file through the nearest RCO or online through the eFPs system and to pay through the nearest AABs, RCOs, or even e-payment facilities. These payment options will not make the taxpayer delinquent if they follow the guidelines in the RMCs and RRs mentioned.

THE NEED TO COLLECT TAXES DURING QUARANTINE
To conclude, this is how the government addresses taxpayer issues on access to filing and paying taxes. These measures adhere to the principles of a sound tax system, as well as help the government collect taxes despite the community quarantines. As taxpayers, we should take this as an opportunity to comply with our obligation to file and pay our taxes. However, the government should also consider assessing its system and make tax filing and payment accessible even after the pandemic. Taxpayers have been clamoring to pay through the nearest AABs and not be bounded by RDO jurisdiction. It would surely help taxpayers if interim measures to make tax filing and payment accessible can be adopted permanently.

Taxation is the power of the sovereign to raise revenue to defray the necessary expenses of government. The power of taxation is essential, as the government can neither exist nor endure without taxation. Taxes are the lifeblood of the government, and their prompt and certain availability is an imperative. During these times, taxpayers who have the obligation and capability to pay their taxes should do so through accessible and safe options provided by the government.

As the government’s ability to serve and protect the people largely depends on taxes, it is especially during crises that taxes are needed to serve, protect, and support the Filipino people.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Mark Ebenezer A. Bernardo is an associate of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

PBA sets dialogue with players on possible return of activities

By Michael Angelo S. Murillo, Senior Reporter

DETERMINED to get back in the grind, the Philippine Basketball Association is expanding its efforts towards a return to action by setting a dialogue with players later this month.

Following its board meeting last week where it crafted protocols for the possible return of activities, which were later on sent to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) for consideration, the league said it will meet with player representatives of member-teams to discuss the guidelines and get their opinions on the direction that the PBA would take.

“We will be calling for a dialogue. We’ll reach out to the players. We will try to get a consensus, get their opinion on the league’s plans to resume activities,” PBA Commissioner Willie Marcial was quoted as saying in the league’s official website.

“We will use the opportunity as well to discuss with them the protocols if the IATF allows us to have team practices already,” he added.

The PBA suspended the current season on March 11 as the coronavirus disease 2019 (COVID-19) pandemic started to take further root in the country and the government came out with mitigating measures, including prohibiting mass gatherings like sporting events, to help stop the spread of the virus.

This month, however, the government put the National Capital Region to a more relaxed General Community Quarantine setup, opening up the possibility for leagues like the PBA to resume conducting some activities.

In the scheduled dialogue with the players, set for June 23, Mr. Marcial will sit down with two player-representatives from the 12 member teams to explain to them the measures the league will be adopting once training and practices by groups is finally allowed to resume.

Other concerns to be discussed as well pertain to the players’ safety and health.

In the protocols sent to the IATF, the PBA said it is looking to start having practices in July under strict monitoring to ensure the safety of all participants.

During practices, only six people, including four players, are allowed per practice session. Temperatures of players will have to be taken before the practice, while sanitizers and alcohols will be put in strategic places for use by the teams. Practice facilities will also have to be disinfected before and after use.

Mr. Marcial underscored that no scrimmages would take place, only conditioning for players.

Players and staff members are also prohibited from taking showers after the workout.

The PBA commissioner also said the league is going to be strict in enforcing the “no test, no practice” policy, meaning players have to be tested for COVID-19 first for them to be allowed to participate in the practices.

“All the necessary safety and health measures we will have them to ensure a successful return for the league,” Mr. Marcial said.

RARING TO PLAY AGAIN
Meanwhile, veteran players Gabe Norwood of Rain or Shine and Jeff Chan and LA Tenorio of Barangay Ginebra shared that they are raring to return to the court and play after three months of not being able to do so.

In the latest episode of the online show PBA Kamustahan at the weekend, the three players said that while the “break” they are having has given them more time to spend with their families and loved ones, training and playing on the court is something they truly miss.

“These last couple of months have been different. None of us really anticipated this. We’re just making the adjustments,” said Mr. Norwood, who also shared that he and his family are doing fine amid the pandemic.

“Being with my teammates and playing for the crowd is something I miss,” he added.

The same goes for Messrs. Tenorio and Chan, more so since they play for crowd favorite Ginebra.

“I miss going to practices and playing for the crowd. And if you play for Ginebra we’re talking of a lot of them. I miss that energy,” said Mr. Tenorio.

“Hopefully soon we could get back to basketball,” Mr. Chan, for his part, said.

The PBA has yet to decide with finality the fate of the ongoing season, reserving to make a definite decision in August.

NBA tweaks standings, will clarify team roster rules

THE NATIONAL Basketball Association continues to fine-tune the structure and rules it will follow when the season resumes July 31 at the Disney World campus in Orlando, Florida, including tweaks to the standings and potential roster changes.

ESPN reported at the weekend that the league will use win percentage — rather than a measure of games relative to .500 — to set the order of the standings, a clarification that is necessary because teams have played a different number of games thus far.

Before the season paused in March, NBA teams had played anywhere from 63 to 67 games. The 22 teams returning in Orlando will each play eight “regular season” games for seeding, maintaining the disparity in total games and thus making win percentage the first tiebreaker.

The Western Conference currently has the Portland Trail Blazers (29-37), New Orleans Pelicans (28-36) and Sacramento Kings (28-36) at 3 1/2 games behind the Memphis Grizzlies (32-33) for the eighth and final playoff spot, but the Blazers’ win percentage (.439) gives them a narrow advantage over the Pelicans and Kings (.438). Similar situations could emerge for seeding in either conference.

The league’s restart plan features 13 teams from the West and nine from the East, with the possibility of play-in series for the final playoff spot in each conference. Memphis (currently eighth in the West) and the Orlando Magic (eighth in the East) must finish at least four games ahead of the ninth-place team in their conference to avoid a play-in series.

If ties within winning percentage exist, they will be broken by the league’s standard tiebreakers, ESPN reported, starting with head-to-head record from the regular-season.

Meanwhile, ESPN also reported Saturday that the NBA is preparing rules for how teams can add players to their roster in the event of injury or a player testing positive for COVID-19. Per the report, teams will likely be allowed to sign as many players as they desire, but only from a particular pool, primarily players who played in the NBA or G League or were on training camp contracts this season.

That would rule out any veterans who have gone unsigned all year, such as guard Jamal Crawford, and any international players. The status of players on two-way contracts remains unclear.

According to ESPN, the league and players union must agree collectively on such regulations, with negotiations expected soon.

For any player who tests positive for COVID-19, a quarantine period of at least a week and up to two weeks is expected. All players and staff are expected to be tested every night at the enclosed campus.

A number of other details, including the schedule for the eight “seeding games,” have yet to be determined. — Reuters

LaLiga to use ‘virtual’ stands and audio for broadcasts

MADRID — LaLiga will use virtual images of stands in television broadcasts with added “fan audio,” produced by the makers of the FIFA video game, when it returns to action on Thursday.

Domestic broadcasters in Spain will offer their viewers the choice of a “natural” broadcast of games played behind closed doors with no fans but the international audience will receive only the enhanced broadcasts with added audio and graphics.

LaLiga said in a statement on Sunday that the use of technology “will allow matches to be seen in an attractive way that closely resembles how they looked and sounded before the competition was postponed.”

The stands will be “virtualized” and will offer to-scale images of seated fans wearing the home club’s colors. LaLiga collaborated with Norwegian company VIZRT on the technology.

“In moments when the game is stopped, this image of fans can be transformed into a canvas that matches the color of the home team and will carry institutional messages among other offerings,” added the league.

The virtual sound has been developed with video game company EA SPORTS FIFA, in a project called Sounds of the Stands.

“Through this, the audio library of LaLiga official sponsor EA, which was recorded in real stadiums, has been used and has been digitally adapted so that it can be implemented in real time during the match,” said the statement.

“It will be adapted to the flow of the game as certain situations occur, such as a goal or a foul, creating what is known as Atmospheric Audio.”

Barcelona leads the table by two points over Real Madrid with 11 rounds of matches left, after the season was paused in March due to the coronavirus disease 2019 pandemic, and the two rivals are braced for one of the tightest title races in recent memory.

The fight for Champions League football is even closer, with at least five teams vying for third and fourth place.

The restart begins with Thursday’s derby between Sevilla and Real Betis, while champion Barcelona visits Real Mallorca on Saturday and Real Madrid hosts Eibar on Sunday.

“We have made these broadcasting changes so fans can enjoy LaLiga,” said the league’s President Javier Tebas.

“We work with global partners to offer a great viewer experience. We are in an exceptional situation, but for us it has been important to be able to adapt and offer a compelling, cutting-edge broadcast to our fans,” he added. — Reuters

Mobile Legends: Bang Bang reveals project ‘NEXT’

POPULAR mobile multiplayer online battle arena (MOBA) game Mobile Legends: Bang Bang continues innovating and improving to provide shored-up experience to players.

Recently, MLBB launched its latest initiative, dubbed NEXT, which the people behind it boast as their most important initiative of the year.

“NEXT” is a long-term project focusing on hero adjustments, art and sound upgrades, as well as IP development, in order to constantly deliver high-quality game experiences to its loyal players.

Through the initiative, the MLBB team hopes to unveil upgrades and improvements into important aspects of MLBB gameplay, the hero, and game control functions.

“The revamp will be centered around the classic heroes’ core features, giving each one of them a unique symbol. This involves an updated story as well as skill reworks. In addition to these changes, improvements are also being carried out on model appearance, animation, and sound effects,” said William Mei, Marketing Manager of Moonton, in a statement.

“Project ‘NEXT’ aims to progressively work on reworking and improving classic heroes to make them relevant and unique to the current gameplay. The other big asset of the project is the optimization and improvement of the game’s control,” he added, touching on how as the game digs deeper and expands wider in the design of hero mechanics and playstyles, some of the classic heroes have naturally become less impactful in the game compared to newer heroes.

The Moonton official went on to acknowledge the input they have been getting from their loyal players, through steady feedback and suggestions, which is inspiring them to continuously work on the game and keep it a success.

MLBB has been the MOBA game of choice for many for the last few years.

It was featured as one of the games in esports’ debut in last year’s Southeast Asian Games held here in the country.

MLBB tournaments abound, including the Mobile Legends: Bang Bang Professional League — Philippines, which recently concluded its fifth season. — Michael Angelo S. Murillo

Conor McGregor announces his third retirement

STOCKHOLM — Former two-weight Ultimate Fighting Championship champion Conor McGregor has announced on Twitter that he is retiring from the sport for the third time, citing a lack of exciting options as the reason behind his decision to quit.

“Hey guys I’ve decided to retire from fighting. Thank you all for the amazing memories! What a ride it’s been!” the 31-year-old Irishman said, adding a picture of him and his mother and promising to buy her a dream home.

“The game just does not excite me, and that’s that,” McGregor told ESPN on Sunday.

“All this waiting around. There’s nothing happening. I’m going through opponent options, and there’s nothing really there at the minute. There’s nothing that’s exciting me.”

McGregor, who knocked out Donald Cerrone in 40 seconds on his return to the Octagon back in January, had hoped to fight twice more in 2020, but the COVID-19 pandemic and a lack of interesting opponents seems to have put paid to that.

McGregor had been linked by the media to a number of fights, including a matchup against Brazilian great Anderson Silva, but the Irishman hinted that the UFC was not prepared to meet his price for such a bout.

“When the Anderson one came along, I was like, yeah, that’s a mad fight. And then everyone said he’s old and over the hill,” McGregor explained.

“I was like, what? Fighting a former light heavyweight and the middleweight GOAT (greatest of all time), and the actual GOAT in my eyes — that’s not a rewardable fight?”

UFC president Dana White, who has faced demands from other fighters including light-heavyweight icon Jon Jones and welterweight crowd-pleaser Jorge Masvidal to be paid more money for their fights, appeared to take McGregor’s retirement seriously.

“Nobody is pressuring anybody to fight. And if Conor McGregor feels he wants to retire, you know my feelings about retirement — you should absolutely do it,” he told a media conference following Saturday’s UFC 250 event in Las Vegas.

The former UFC featherweight and lightweight champion first quit the sport in April 2016. In March 2019, he again announced he was hanging up his gloves, but on both occasions the retirements were short-lived.

Once again, McGregor is leaving the door open for a return in the future.

“We’ll see what the future holds. But for right now, for the immediate future, 2020, all the best to it.” — Reuters

Only in the Philippines

On May 25, 2020, George Floyd, a 46-year-old black man was arrested on a charge of passing a counterfeit $20 bill at a grocery store in Minneapolis, Minnesota. A white police officer knelt on his neck while he was lying face down handcuffed on the street and repeatedly telling the officer “I can’t breathe.” He died of cardiac arrest caused by the nearly nine-minute neck compression which restricted blood flow to the brain.

Security camera footage and videos made by witnesses circulated widely, triggering fiery protests in the Minneapolis-St. Paul metropolitan area. The protest drew sympathy demonstrations in many cities across the United States like what the assassination of Martin Luther King, Jr.in 1968 sparked all over America.

Floyd had been a truck driver and a restaurant security guard, a job he lost due to the COVID-19 pandemic. He had been imprisoned twice for armed robbery and three times for possession of cocaine. King was a Christian minister and civil rights activist, becoming in 1955 the most prominent spokesperson and the leader in the Civil Rights Movement in the US. He won the Nobel Peace Prize in 1964 for combating racial inequality through non-violent resistance.

The explanation of why the death of Floyd at the hands of a policeman has caused so much civil unrest as the murder of King by a white supremacist may be found in the messages in the placards carried by the Minneapolis protesters. “We’ve had enough!,” “It’s about time,” the placards say.

What makes the Floyd death overwhelming are the many other violent events that happened just months before — the killings of Ahmaud Arbery in Georgia, of Breonna Taylor in Kentucky, of Steven Taylor in California, of Sean Reed in Indiana, and of Adrian Medearis in Texas by white supremacists and white policemen.

On Feb. 23, three white Americans on a truck followed 25-year-old black American Ahmaud Arbery while he was jogging on the road in Brunswick, Georgia. One of them fired his shotgun at the young man to get “rid of the nigger.”

On March 7, police shot Steven Taylor after he wielded a baseball bat inside a local Walmart in San Leandro, California. Steven was going through a mental health crisis that day.

On March 13, Louisville policemen in plain clothes entered the apartment of Breonna Taylor, a 26-year-old black emergency medical technician, to serve a “no-knock warrant.” Thinking the officers were intruders, Taylor’s boyfriend fired at the policemen, who returned fire. After the exchange of gunfire, Breonna was found dead with eight bullet wounds.

On April 24, Adrian Medearis, 48, “a talented gospel recording artist on the rise” in Houston, was shot and killed when he resisted being placed in handcuffs by an officer who was trying to arrest him on an overspeeding charge.

On May 6, Dreasjon “Sean” Reed, 21, was ordered to pull over after Indianapolis officers noticed him driving “recklessly.” When Reed began to flee on foot after alighting from his car, officers shot and killed him.

As the placards say, African-Americans have had enough. It’s about time they asserted their civil and human rights. And so they vented their ire by holding protest rallies on the very street where George Floyd breathed his last as well as on other streets of Minneapolis and of its twin city St. Paul.

The protest caused similar demonstrations in many cities across the United States, necessitating the deployment of National Guard troops in more than 20 states to handle the marches that turned violent and destructive of properties.

The protest against racism and police brutality has also gathered support across the globe. Protests have taken place in Canada. Thousands marched in the streets of Toronto, St. John’s, Whitehorse, and Calgary to denounce police brutality against black and indigenous people. In Latin American countries, where blacks constitute a significant percentage of the population, large protest rallies have been held in Mexico City, Rio de Janeiro, and Buenos Aires.

In Europe, large crowds have gathered in London, Berlin, and Amsterdam to denounce racism. In Africa, the land of the black race, the killing of Floyd has been condemned in Nigeria and Kenya. In the Middle East, hundreds gathered in Tel Aviv, Haifa, and East Jerusalem demanding “Justice for Floyd” and “Justice for Eyad,” the latter referring to an unarmed, autistic Palestinian man killed by Israeli police.

Big crowds gathered in Sydney, Melbourne, Brisbane, and Adelaide to express solidarity with “all the people who have been oppressed, and exploited, and brutalised by the system.” In Auckland, New Zealand thousands of people chanted “black lives matter.”

Ironically, there has been no similar demonstration of outrage over human rights violations in the Philippines, where killings and arbitrary detentions, as well as the vilification of dissent are committed with impunity, according to the report of the Commission on Human Rights of the United Nations released last June 4.

The report noted that many of the human rights concerns it has documented are long-standing, but have become more acute in recent years. This has been manifested particularly starkly in the widespread and systematic killing of thousands of alleged drug suspects. Numerous human rights defenders have also been killed over the past five years.

“While there have been important human rights gains in recent years, particularly in economic and social rights, the underpinning focus on national security threats — real and inflated — has led to serious human rights violations, reinforced by harmful rhetoric from high-level officials,” the report stated. The UN Human Rights Office has also documented that between 2015 and 2019, at least 248 human rights defenders, legal professionals, journalists, and trade unionists have been killed in relation to their work.

There has been near impunity for these killings, with only one conviction for the killing of a drug suspect in a police operation since mid-2016, the report stated. Witnesses, family members, journalists, and lawyers interviewed by the UN Human Rights Office expressed fears over their safety and a sense of powerlessness in the search for justice, resulting in a situation where “the practical obstacles to accessing justice within the country are almost insurmountable.”

One black American with a record of five imprisonments is killed by a white police officer and the American people are enraged. Tens of thousands of poor Filipinos linked to drugs, many falsely, are killed by Filipino policemen and their secret operatives and the Filipino people cower in silence and resignation.

The proposed anti-terror law would make sure no protest rallies will be mounted against President Duterte’s policies, programs, and decisions, no matter if they are in violation of the Constitution or discriminatory against the Filipino people and favorable to Chinese nationals. Proponents and sponsors of the Anti-Terror Bill assure the people that it is meant to prevent the infiltration of foreign terrorists into the country and will not be used against critics and detractors of the Administration.

The apprehension of students peacefully expressing opposition to the Anti-Terror bill inside the university campus and a low-ranking government functionary doubling as a propagandist of the Administration branding the protesting students terrorists belie all the assurances of the bill’s authors and sponsors. The signing of the bill into law will totally suppress public dissent.

I go back to the placards of the Minneapolis protesters. “We’ve had enough!,” “It’s about time,” the placards say. There was a time when the Filipino people voiced the same message, though in their own native language. “Tama na, sobra na,” they shouted in indignation at the abuses of an authoritarian government. The call reverberated all over the archipelago, leading to the fall of the dictatorship. Obviously that generation of Filipinos is gone.

The present generation seems to be more focused on individual needs rather than on societal needs. It does not believe in the value of political engagement. It is convinced that the president can effectively address the country’s major issues: poverty, unemployment, income inequality, health care inadequacy, environmental degradation, civil unrest, and foreign aggression. This generation submits to the doctrine “The law is the law, it is the president’s.”

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He has been a politicized citizen since his college days in the late 1950s.

Managing in the post-COVID-19 era: Lessons from the coronavirus crisis

The COVID-19 pandemic has forever altered the way business does business. It has ushered in changes in the world of business that have far-reaching and long-lasting consequences not only for business itself, but for the whole of society.

In many ways, the pandemic has accelerated currently emerging trends in the global economy and in the world of business. Among them, briefly, are the following:

It has put the last nail in the coffin of globalization. Travel bans and restrictions on the flow of people and goods across national boundaries have further isolated countries and regions from one another and have effectively sealed off borders and restricted commerce. The preventive measures adopted by each country to control the spread — and possible recurrence — of the deadly virus and to minimize the economic and social costs associated with it have, by all indications, become permanent features under the new normal. The unrestricted movement of people and goods across the globe that has been the hallmark of the global economy since the end of World War II has become, for all intents and purposes, a thing of the past. This development has serious implications on the scope and volume of global trade, and has sounded the death knell of many flourishing industries, such as the travel and hospitality businesses.

Big Business will thrive. The financial difficulties arising from the pandemic have been especially hard on small businesses, including promising start-ups, many of which have folded up or have been absorbed by their big counterparts. Healthier airlines, such as Qantas and British Airways, are poised to snap up airport slots from their struggling rivals, and may acquire others that are just barely staying aloft. Aiming for global dominance, China and the US are actively encouraging corporations under their aegis to go global by buying out struggling companies the world over. As the tech world splits up into rival Chinese and Western camps, each side will groom its champions for both economic and political reasons.

As big corporations buy up smaller ones, many of those under threat of takeover will look to merge with peers. And as the global economy rebounds from the ongoing Economic Recession, big firms will have better access to capital markets, giving them a decided advantage over their smaller competitors.

Supply chains will be reconfigured, shortened and localized. The global economic recession that is taking place in the aftermath of the pandemic has shrunk markets and disrupted supply chains the world over. A survey conducted recently by The Economist has shown that a good majority of corporate CEOs — 82% to be exact — expect that global supply chains will become less common in the post-COVID-19 era.

In the face of increasing financial difficulties, many small firms that form part of the global supply chains of larger multinational companies have gone out of business, forcing many big manufacturers and distributors to seek alternative sources by offering more attractive terms to those that are still in business, and by courting potential suppliers and distributors that are situated closer to home. The currently raging trade war and other risks of doing business on a global scale have forced many companies that have located in China to bring their production facilities back home, or to relocate elsewhere in Asia, thus significantly shrinking their geographic reach.

New ways of doing business will emerge and new business opportunities will arise.

These include, among others, the following:

• Video conferencing will replace business travel and large face-to-face meetings and conferences.

• Financial technology, more commonly known as Fintech, will go mainstream and will account for a significantly larger share of banking and financial services, taking away business from traditional financial institutions that rely less on software.

• E-commerce will increasingly dominate all types of business transactions, notably in the retail merchandising and food distribution sectors.

• Once considered unthinkable, the world’s biggest tech firms are poised to embrace open data. Making a sharp break from the past, Microsoft, Google, and Facebook have joined forces with other tech companies in a collective initiative to share information to fight the coronavirus pandemic.

In an equally surprising move, Big Pharma appears to have seized the moment when many of its big players decided to join forces in three essential areas to fight back the deadly virus: devising diagnostic tests to identify those who are infected with the virus and those who are not, coming up with therapies that will shorten the course of the disease and lessen its severity, and developing vaccines to stem its further spread.

A STRATEGIC REFOCUSING
By far the most transformative change that is taking place in the corporate world as a result of the pandemic is the shift in the strategic focus of corporate CEOs and business leaders away from the traditional goal of shareholder wealth maximization to the more inclusive and mutually beneficial concern for the economic well-being of ALL other corporate stakeholders — their customers, their workers, their business partners, and the community.

If anything, the COVID-19 pandemic has sent the powerful message to corporate managers the world over that their economic fortunes and those of their other stakeholders are intimately and inextricably intertwined, and that what benefits or adversely affects one will also be felt by all others. The realization that “we’re all in this together” has tended to foster closer ties between business firms and their stakeholders.

Historically, corporations take a step back every time they face a major crisis by cutting down on costs or trying to squeeze every centavo from their customers. These defensive moves often take the form of reduced consumer and employee benefits and more stringent conditions imposed on their business partners, in essence, withholding rather than sharing economic value with their stakeholders.

In the face of the current pandemic, a significant number of business establishments have gone the extra mile in continuing to serve their customers, retaining and catering to the special needs of their workforce, and firming up their relationships with their suppliers and distributors, with all of whom they share a common misfortune, and on whom they depend for their survival.

Today, as the role of business continues to evolve towards stakeholder capitalism, businesses are responding to challenging times with greater compassion for their stakeholders and taking positive steps in addressing their economic interests — not as acts of altruism, but as a means of achieving sustainability and meeting their long-run strategic objectives.

The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or MAP.

For previous articles, visit map.org.ph

 

Dr. Niceto “Nick” S. Poblador is a retired UP Professor, and until recently was Professorial Lecturer at the UP School of Economics.

map@map.org.ph

nspoblador@gmail.com

The office isn’t dead. It’s just convalescing

By Nisha Gopalan

I RETURNED to the office this week, joining thousands of bankers from Citigroup, Inc. to Morgan Stanley that are trickling back to their desks in Hong Kong. After almost five months working from home, it’s going to take some getting used to.

The easing of coronavirus lockdowns heralds the beginning of the end for the world’s greatest work-from-home experiment. Perhaps. Twitter, Inc. will let employees work from home permanently even after the outbreak recedes, while others such as Google have said staff should expect to stay away for the rest of the year. The upheaval caused by the pandemic has caused many to question whether we will ever return to business as usual, giving rise to headlines such as “the death of the office.” I have my doubts.

My initial reaction at being told to stay home in January was panic. With two teenage daughters about to start online schooling and a husband who would also need to work from home, I struggled to see how our crowded 47th floor apartment would cope. I’d had a taste already, when the office became all but inaccessible for several days during the height of Hong Kong’s protests last year, so I knew what we were facing. Over the following, fractious few months, I have jostled for space on the dining table, mediated disputes between the girls, and tussled over the yoga mat — a crucial stretching prop for laptop-induced shoulder strains, as well as an essential accessory for online PE classes.

Somewhere along the line, I grew to like it. I’ll miss the home-work experience, when it finally ends (like many other companies in Hong Kong, our return is on a split-team basis, so we aren’t back at the office full-time yet). The family has bonded more tightly as a result. I’ve grown accustomed to the home-office rhythm, acquiring some admittedly unhealthy habits along the way — such as snacking on Cheetos, bingeing on TV news channels, and reading the obituaries.

I’m in the minority, though. We’re fortunate in having more living space than most. In a city such as Hong Kong, which is densely packed with tiny apartments, it’s simply not viable for many people to work from home indefinitely. The average apartment size is 40 square meters (430 square feet) compared with 137 square meters in New York City, according to Jones Lang LaSalle, Inc. Many employees just don’t have the room to set up a home office. And living in such cramped quarters, they need to get out regularly.

The cost-benefit equation for Hong Kong is skewed. With urban areas being closely packed and the subway system efficient, getting to the office is quick and easy for most people. It may be a different story in the US, where cities sprawl into the suburbs, commute times may be long, and public transport is often less reliable. Or in Asian metropolises such as Mumbai, which is densely packed but plagued with horrendous traffic congestion and a more than 150-year-old train network that makes suburban working attractive.

That’s not to suggest that Hong Kong will escape any long-term impact from COVID-19. Macquarie Group Ltd. is among companies that have already decided to cut space in the city’s skyscrapers. Other financial services firms can be expected to follow.

Still, there are many office jobs that can’t be done remotely. At most, 30% of bank employees in the city can work from home, Bloomberg Intelligence analyst Francis Chan estimates. “In industries that thrive on information flow and speed, like sales and trading, you may see back offices and compliance work from home but traders will likely have to go back even if they already have three screens at home,” said Parijat Banerjee, a financial services consultant at Singapore-based Greenwich Associates.

In any case, most people don’t want to get rid of the workplace, HSBC Holdings Plc analysts James Pomeroy and Davey Jose wrote in a report titled “Leaving the City.” They just don’t want to be there all the time. That broad conclusion applies across all developed markets where the technology is adequate to enable remote working, Mr. Pomeroy said.

Ultimately, offices are more than just a place to do business — like the cities that surround them, they are meeting points for social and cultural exchanges. Humans are social animals, and we need more contacts than those our immediate family provide.

That’s a thought that resonated with me this week as I surveyed the near-deserted pantry at Bloomberg’s central Hong Kong offices, a space that was typically heaving with people and animated conversations before the pandemic. A return to normality can’t come soon enough.

BLOOMBERG OPINION

Women’s leadership in the time of pandemic

During this period of the pandemic, we have heard of both female and male leaders doing a great job at managing the crisis in their respective countries. However, more and more, the spotlight seems to be on the former.

For Cami Anderson who wrote in a Forbes article entitled, “Why do women make such good leaders during COVID-19,” women possess vision, inspiration, direction-setting, and creative thinking — qualities of transformational leaders. In the same vein, Michelle P. King added that “research has consistently found women tend to adopt a more transformational leadership style, which included demonstrating compassion, care, concern, respect and quality. In the context of this pandemic, women leaders were also seen as ‘other-directed’ and have ‘a sense of commitment to the common good.’”

How have women leaders in the Philippines responded to the COVID-19 crisis?

ON THE LOCAL FRONT
According to Leta Hong Fincher, one of the key attributes of women leaders appropriately responding to the pandemic is that of early and decisive action. To a large extent, this was exemplified by Isabela City, Basilan Mayor Sitti Djalia Turabin-Hataman, one of the 11 women elected as mayors in Mindanao. When asked about strategies she used in responding to the COVID-19 crisis, she explained a five-fold approach consisting of prevention, response and management, assistance, communication and information, and data.

At the onset, prevention was the priority strategy. As early as February 2020, the Isabela City COVID-19 Task Force was established. Policies on social distancing, limitations on non-essential establishments, no angkas (riding pillion on motorcycles), curfew, and skeletal workforce systems were already implemented even before the general community quarantine (GCQ) declaration on March 25. They also set up a BalikBayani program for returning Isabelenos from Luzon and other areas with COVID-19 cases for contact tracing.

The second strategy was response and management targeting positive COVID-19 cases, should they begin to have them. According to Mayor Turabin-Hataman, they only have a Level 1 hospital catering to the entire province of Basilan. Thus, they undertook urgent actions as regards capacitation of their health workers to handle COVID-19 patients and the procurement of equipment, supplies, and medicines. They also set up a Ligtas COVID facility for the isolation of suspected COVID-19 cases and are currently preparing an identified quarantine area for the use of other Isabelenos coming back home.

Isabela City has a 52% poverty rate and many of its residents are in the informal sector. In this light, Mayor Turabin-Hataman’s third strategy was the provision for assistance. Under the GCQ, they were able to distribute assistance to 36,502 families. They also provided free delivery services for those needing essential supplies available only in Zamboanga City.

The fourth strategy revolves around communication and information that consists of having regular video messages that give updates and inform the public about preparations as well as reminders on existing policies.

And lastly, the fifth strategy focused on data. They constantly updated their data on suspect-probable-confirmed COVID-19 cases, the number of affected households and families, displaced workers, logistics (a Procurement and Inventory Committee was created), movement of people, etc. To date (as of May 9), Isabela City, Basilan has zero confirmed COVID-19 cases, zero probable, and 16 suspected cases.

As a woman leader, she believes that leadership must provide a platform for people to work together and maximize their potential. She also believes in the currency of innovative approaches and foresight. And finally, the indispensability of human connection:

“Getting people to trust you. Reach out in every possible way you can and let them know what the city is going through. Tell the truth about the realities, while providing hope based on actual gains and positive projections.”

PEACEBUILDING AND PANDEMIC
In the time of COVID-19, peace education is most relevant for communities already under conflict and strife, for individuals battling against hatred, discrimination, and division, and for children who are the most affected by this multi-layered situation.

Bai Rohaniza Sumndad-Usman leads the Teach Peace Build Peace Movement (TPBPM). In order to continue their mission of building a Culture of Peace and Resilience through Peace Education, they adopted a four-component strategy — assess, adapt and translate, technology exploration, and resources tapping and building. One of the results of their work was the launch of the #KumustaKa #PeaceInTheTimeOfCovid19 online campaign on March 30. As explained by Bai Rohaniza, this campaign consisted of “each day having themes that create opportunities for children, youth and adults to learn about finding peace with self and others in the midst of the pandemic.” Additionally, they launched the Peace in the Time of Covid-19 Campaign where they uploaded graphics, conducted live sessions, and received messages regarding how the sessions helped them find peace amidst the crisis.

Several factors influenced her and her team to think more innovatively about peace education. According to Bai Rohaniza, these were “1.) the immediate need for a strategic internet access and online or digital transition of peace education to address conflicts within self (e. g. depression and mental health), toxicity of social media and possible psychological and physical violence, which might emanate from inequity and poverty, brought about by the pandemic; 2.) possible worsening of existing conflict and context sensitivity issues in the communities we cater (directly and indirectly caused by the pandemic); 3.) positive opinions and response of the community with regard to physical, emotional and psychological impact and benefit of these strategies (from collected data survey); and 4.) available resources from the organization and partner organizations, which would help in the realization of strategies.”

Being a woman peacebuilder in the time of pandemic, Bai Rohaniza draws inspiration from her past experiences and learnings and the kind of ethos she has put together to meaningfully serve others. She said peacebuilding work has made her resilient and gain inner peace and taught her to adapt to difficult situations. But more importantly, this current crisis highlighted the humanity in her leadership.

“I am also the type of leader who values sensitivity, inclusivity, compassion and empathy with a strong practice of servant leadership combined with mindful and charismatic leadership styles on the aspect of continuing to serve, be inspired and driven by my conviction and commitment to our mission while making sure that other people’s needs are being served and a focus on the growth and wellbeing of those we serve. I am able to communicate empathetically and nurturing and guiding others towards our vision even under unfavorable circumstances and thinking of creative and innovative programs or solutions to address our challenges have been a part of my practice in serving our schools and communities. And in all of these, I consider everything as a gift from the Almighty as He is the reason behind the purpose and journey that I am in.”

Indeed, being a woman leader does not automatically and magically make one successful in dealing with a pandemic. However, as shown by the experiences of Mayor Turabin-Hataman and Bai Rohaniza, it is not really a matter of being better but rather doing things better that matter.

 

Ma. Lourdes Veneracion-Rallonza, Ph.D. is an Associate Professor at the Department of Political Science, Ateneo de Manila University.

mrallonza@ateneo.edu

Seeking for a job during the pandemic

By Hannah Mallorca
Features Writer, The Philippine STAR

As we face an uncertain future, here are ways to stay at the top of your career game in a seemingly overwhelming job search

The coronavirus disease 2019 (COVID-19) pandemic has affected various sectors worldwide. With this, many companies addressed its effects by resorting to salary cuts, furloughs, reducing work hours and bonuses, employee layoffs and freeze hiring.

As a result, unemployment rates have worsened and left millions of people jobless. According to Labor and Employment Secretary Silvestre Bello III, 2.6 million workers in the Philippines have already lost their jobs due to the temporary closure of businesses affected by the pandemic.

To address how jobseekers can thrive despite COVID-19 woes, The Philippine STAR’s CareerGuide shared tips on how to be hire-ready. The online discussion featured certified HR professional Oliver Requilman, Philippine HR Group founder and president Darwin Rivers and TaskUs VP for Recruitment for SEA Carmela Sais.

Hiring in the new normal 

As the world transitions into the new normal, many companies need to adapt to changes in operations — job hiring is no exception. For Ms. Sais, recruiters are still adjusting to the drastic shift from the traditional hiring process.

“Recruiters will tell you that kami mismo, we need to adjust because a lot of recruitment operations in all companies were on-site,” she admitted. “There are very few who support virtual hiring as all the technology that’s needed to support virtual hiring needs to be planned out.”

With this, Ms. Sais advised recruiters to innovate the hiring process through virtual hiring or conducting interviews through phone calls.

“A really good virtual infrastructure doesn’t even require you to come in the site at all,” she stated. “Companies need to develop virtual hiring processes from start to finish, from application processes to interviews, and even submission of documents.”

Despite the pandemic, Mr. Rivers stressed that there are still industries that are hiring. These include business process outsourcing (BPO), accounting, online teaching, front- and back-end support, government offices and frontline industries such as hospitals and clinics.

“There are dozens of companies that are still hiring because they need the right people to function properly. They need the right talent and the right amount of manpower to support their business,” Mr. Rivers said.

Ideal characteristics of a hire-ready jobseeker

For Mr. Requilman, having the right mindset and adopting a growth mentality are ideal characteristics of a jobseeker.

“It’s easy to say that an applicant has the right attitude, but having the right mindset will become your driver towards success,” he said. “We always look for someone with a ‘self-help’ mindset. If he needs help, he or she can always improve by reading or researching.”

Mr. Requilman shared that recruiters ask about an applicant’s pastime since it reflects his or her mindset in a professional landscape. “Ang importante kasi is that the person has the innate desire to learn and do something to improve,” he added.

During the hiring process, Ms. Sais said that recruiters examine if a jobseeker’s abilities match the requirements of the position. With this, applicants must have the proper soft skills.

“There is always a job for you. You should use this time to upskill and to get better at what you’re doing. The job market is competitive, so you need to have the skill, right mindset and emotional intelligence,” Ms. Sais added.

Applying through virtual hiring 

According to Ms. Sais, the interview process in virtual hiring is audio-driven. Job seekers should prepare by researching necessary information and making sure that they’re camera- and audio-ready.

“Make sure that laging naka-charge at naka-open ang phone mo, make sure that the audio conversation is clear and we have to alert our family members at home,” Ms. Sais added. “Invest in a good Internet or data connection because it’s the only way for us to get a hold of you.”

It’s difficult to predict when the pandemic will end, but we can always choose to develop ourselves. There’s always an advantage in constantly improving yourself — especially in the current job market.

For more information about employment, job openings and advertising options, visit CareerGuide PH on Facebook and LinkedIn.

A conversation on women in the workplace

By Hannah Mallorca
Features Writer, The Philippine STAR

At present, women are rising to top positions in their respective industries. However, a 2019 survey conducted by McKinsey discovered that despite their achievements in the workforce, women are still underrepresented at every level

In the past, much of the labor force has been confined to specific gender roles, which has affected various industries. Even if the world has progressed much since then, women still face occupational sexism and inequality at work.

It’s important for organizations to empower female employees during this time. According to the online learning platform Bizlibrary, companies and leaders can support women by improving gender diversity, celebrating their accomplishments, prioritizing professional development, closing pay gaps and accepting individuality.

To discuss women’s identity in the workplace, The Philippine STAR’s CareerGuide shared insights on how various industries can empower women. The online discussion featured Remote Staff co-founder Rica Jankulovski and TaskUs VP for Business Development Victoria Alcachupas.

Balancing between career and life

One of women’s strengths lies in her ability to multitask. Despite this, Ms. Jankulovski stressed the importance of balancing a woman’s career and personal life.

“As a woman, I think career should be part of life, not separate. A balanced life makes me really happy. Having that balance between having time with my family and doing something that makes an actual difference to the community I belong to or care about makes me happy,” she added.

For Ms. Alcachupas, understanding her purpose as a career professional helps a woman manage her priorities at work and life.

“It’s not just understanding why we are doing this, mas importante sa amin ‘young impact na ginagawa namin kasi nakakatulong kami to change the lives of the people working for us and ‘yung family nila,” she said. “And it’s not just fulfilling for me, but also for the entire team.”

Leading a team

According to Ms. Jankulovski, she prioritizes her personal values whenever she leads her team and fulfills her tasks. Even if workplaces have its own problems, she stressed that bosses and employees must work towards finding a solution.

“All you have to do is to declare the objectives of your team, what you’re aiming for and what you are trying to achieve. It’s also important to align the values that you have,” Ms. Jankulovski said. “We have a goal and focus, and we have to be honest with each other. We have to know that not all of us are perfect, that’s why we all have a team because we’re here to help each other.”

Employment opportunities for women

The coronavirus disease 2019 (COVID-19) pandemic has affected various industries worldwide. As a result, many organizations have transitioned into the work-from-home (WFH) set-up to cope. For Ms. Alcachupas, WFH is an opportunity for women to showcase their skills.

“We see many companies take advantage of the WFH setup. For women, it’s a perfect time to shine, it’s a matter of choice on where to put your energy,” she said. “There are lots of opportunities, especially in the business process outsourcing (BPO) industry, that are open during this pandemic.”

Ms. Alcachupas added that she prioritizes talent and capability in scouting for potential employees, contrary to the stigma against women.

“Based on my experience, more than 50 percent of our workforce are women and marami diyan are working mothers,” she shared. “We promote diversity and inclusion so more than just mothers, we’re open to the LGBTQ+ community and persons with disabilities.”

Why going digital is an advantage for women

For Ms. Jankulovski, the digital landscape is helpful for mothers since they prioritize their careers and family life. Online workspaces provide more options for women to do their daily tasks within their own pace.

“The post-pandemic era and even the digital landscape give women more options to stay at home and have an option to do more task-based roles. Any knowledge-based work can work remotely,” she added.