Bam 193
Bam 193
Bam 193
PHINMA Education
ACTIVITY SHEET: BAM 193 Good Governance and Social Responsibility Day 27-29
Project: Class Presentation Day 27-29 ( Case Studies on Ethics, Fraud, Environmental
Activity Title: Issues, Corruption and Bribery )
To create a group presentation based on the following Case Studies Ethics, Fraud,
Environmental Issues, Corruption and Bribery ( A rubric scoring guide is provided to facilitate the
Learning Target/s: students and guide the teacher in evaluating students’ performance.)
Instructions : In a group of five students teacher assigns the group with a case study for presentation
next week Four groups will be doing a presentation every meeting. A rubric scoring guide is
provided for use of the teacher and the students for evaluation purposes.
Case # 01
Unsealed Envelope
By: Nikolai Aquino
AFTER THE celebration of your birthday and recent entry into government service with friends,
you found a brown envelope under your table at a restaurant in East Avenue. The envelope was
unmarked and unsealed. With thoughts of returning this to the owner, you gave the waiter your
full name and contact number. Out of curiosity, you decided to take a look at the documents
with the intention of searching for any information about the owner of the papers and how you
may reach them. The envelope contained several documents, showing that papers has something
to do with tax payments both for the Bureau of Customs and the Bureau of Internal Revenue.
A deposit slip in the amount of Php 15 million was attached to a piece of paper with the
words “facilitation fee/other expenses.” In another sheet of paper were listed codes, initials and
names, including positions of high ranking government officials, some of who you’ve actually
seen on TV being interviewed by the media regarding their work against corruption. Your
drinking buddy mentioned that he knows a person from the bureau who can enlighten you on
the matter and another chimed in that he has a relative in law enforcement who cannot be
corrupted and therefore is the right person to give the documents to.
Early the next day, you received a phone call from a certain Mr. Ong saying that the
documents are his and will be sending over his messenger that same day with Php10,000.00 as
a reward for your efforts and kindness. Not knowing what to say with the sudden windfall, you
thanked him for his generosity and ended the conversation.
That same morning, you met with the friend of your buddy. When he saw the documents, he
explained that the documents contain information worth Php150million in uncollected revenues
for the government. He also mentioned that there is a reward system for the government for
Question: 1. Which course of action will you take Explain your choice in two to three sentences.
Case # 02
Art Collecting is More Fun in the Philippines
By: Jaime C. Laya
JENNIFER AMABLE turned off her cellphone, deeply worried. She had just finished talking
with a friend, Nelson Sabiendas, who called to warn her that some of the paintings on exhibit
at her art gallery may be fakes. The show had opened a week before consisting of some two
dozen 19th century portraits “ Maria Clara”, and paintings of saints and genre scenes, practically
a survey of Spanish period works, including a small Juan Luna.
She had been approached by Miguel Diestro, an artist –acquaintance who was also an art
agent on the side. He was offering two previously unknown collections. According to Miguel,
the first was owned by a Batangas family whose ancestral home was filled with portraits of
ancestors and relations with the religious works. The second was owned by an art collector who
accumulated Filipino Old Masters. The last surviving senior member of a coffee rich Batangas
family, the lady had died and her favorite niece, was suffering from cancer. The art collector
was getting on and wanted to convert his collection to cash so he could take an extended world
Question : 1. What consumer right is violated in the case. Answer briefly in 2-3 sentences only.
Case # 03
Engr. Jose Mendiola is the president of an engineering firm. The firm is negotiating a contract
in another country. The engineering firm has not previously worked in this country. A high
ranking official in his country tells Engr. Mendiola that it is an established and legal custom to
give personal gifts to officials who are authorized to award contracts. This official also informs
Engr. Mendiola that no further work will be awarded to his firm without such gifts. However
this condition will not be included in the contract. (off the record.)
If Engr. Mendiola does not comply the government will also be less cooperative in the
completion of the first contract. Engr. Mendiola learns that other firms have given gifts to
officials. Some believe that there should be no internal code of ethics on gift giving and that
decisions about gift giving is provided for their use in international businesses, and that all
businesses should be required to follow rules of ethical gift giving .
Question: If you were Engr. Jose Mendiola what would you do?
Case # 04
The Korean Tenant
By: Alfredo B. Parungao
YOUR PARENTS own a residential townhouse unit in an exclusive subdivision which is offered
for lease. The unit has been recently leased for Mr. Park, a Korean national, for residential
purposes. The lease is for a period of one year. The rental agreement includes a provision that
the tenant must comply with the Townhouse Rules and Regulations, a copy of which was given
to Mr. Park. Among other things, the Townhouse Rules state the unit shall not be used as a
boarding or lodging house, nor for business that is open to the public.
In addition, the Contract of Lease stipulates that a maximum of five (5) person can stay in
the townhouse.
Within the last month, your parents’ attention was called by the Townhouse Administrator
that a number of computers were delivered to your townhouse unit. When the townhouse
administrator went to inspect the unit, he found that the residents were all male Koreans with
ages ranging from 25-35 years old. When he asked what the computers were being used for,
the residents could not answer him very well because of language issues, although they did say
that they were using the computers to send-e mails.
At the request of the Townhouse Administrator, your father asked Mr. Park, who lives in
another house within the same subdivision, to explain in writing what activities were going
inside the townhouse. Mr. Park replied in writing that he understood that the lease was purely
for residential purposes only. He further stated that the tenants were his former employees
who were staying in the unit to study and learn English, and they were all to go back again in
his company in Korea. He said that there were six (6) computers inside the unit, one for each
of the five (5) persons studying English and a sixth computer which was for the Korean TV use,
hooked up to a special Internet Service Provider specializing in Korean Channels. He further
Case # 05
A Question of Entitlement : Perks and the SSS Director
DumlaoJr. Satiago F. (2012)
Background The Philippine Social Security System, (SSS) has significant investments in several local
companies which entitles it to nominate representatives to the Board of Directors of these companies.
The SSS Chairman and or President would be the designated representatives, but as it sometimes
happens, SSS is entitled to more Board seats and other SSS officers are then additionally designated.
As members of the investee Board of Directors these SSS nominees are granted various kinds of
remuneration . There is the per diem paid for attendance at the Board or committee meetings. There are
year end bonuses. Likewise, there are profit seeking schemes or bonuses where the Directors share in
the net income generated during the year by the companies they serve. Sometimes there are stock option
plans where the Directors are granted opportunity to subscribe to the common stock of the company at
option prices within an exercise period. If the market value of the stock rises higher than the option price,
it naturally becomes profitable to exercise the option and then turn around and sell at a profit or gain.
Enter P. Noy
These compensation schemes have been questioned under the Aquino administration as excessive
entitlements that constitute abuse of authority. In addition these have been labeled as corrupt by the
media at large.
The Pros and Cons
One extreme view is that he SSS nominee in the Board should not gain anything from his/her
Directorship because the payments are received in his/her capacity as SSS representative, so these
payments should be turned over to his her principal i.e. to the SSS. In this view, the Director has already
been compensated in full by the SSS.
The opposite extreme view is that the SSS nominee holds his/her office in the nature of a special privilege
and that these added entitlements are deserved compensation for the additional burden and personal
liability they take on as Directors of these investee companies.
In between these views are other opinions:
Per diems, it is said, are granted to every Director for participating and contributing in the deliberations
of the Board or its committees. The Director , therefore, is being paid for his/her work as Board
Member, not as SSS nominee. Likewise, he/she is open to potential liability for the decisions of the
Board and assumes certain collective responsibility and accountability.
Year –end bonuses, says one view, are out –of-the- ordinary payments and therefore, these should be
returned to the SSS,
Profit Sharing schemes are granted out of the income generated by the company. The profits accrue
from the SSS investment. Therefore, the profit sharing should be returned over to the SSS and not in
the pocket of the SSS nominee.
Case # 06
A Wind Farm Come to Town
By: Gregorio S. Navarro
IN A POVERTY-STRIKEN seaside town in Sorsogon, visited by no less than 15 typhoons per
year, the Chief of Police Cesar Cruz , finds himself in a ramshackle police station barely able
to withstand the ravages of the seasons. His jail is rotting, rusting and rife with pest and rodents.
He has about ten inmates at any one time, with offences as simple as vagrancy to as serious as
homicide. He can barely feed them with his Php 10.00 per day budget for food . His electric
bills are one year overdue and there is a pending disconnection threat from the local
cooperatives. Water comes only from the shallow well that’s salty during the high tide and
brackish during the low tide. His men are all good intentioned and have not received any
reprimands or have been complained against in a number of years. They are mostly locals or
have over time relocated their families in the town and have been smoothly integrated and
respectfully ingratiated themselves into the community. The community has great respect for
Chief Inspector Cesar Cruz and his men. The town is far enough from major cities so as not
to be corrupted with vices and flesh spots. By any measure, it has remained to be a peaceful and
law abiding community in spite of a recent case of homicide which everyone suspects as fueled
by jealousy.
There has been a lot of excitement amongst the town people in the last year, as a large
company, Windy Corporation is about to put up a Wind farm along the shore similar to the one
in Banggi in the I locos region. Windy corporation has mobilized its contractors and the town
is a buzz with a lot of activities that promises a boom in business for the people. Housing, food,
laborers will be in demand and the Mayor and the Sangunian have started counting the windfall
that they are about to receive.
Last week, C/Ins. Cruz was visited by two obviously important people, they are well dressed,
equally well mannered, and definitely well-educated. They represent Windy Corporation as its
main contractor, JP Constra Inc. These men put forth a proposal to the Chief: They promise to
Question: 1. What moral issue is involved in the case of A Wind Farm Come to Town. Briefly
discuss in two or three sentences.
Case # 07
The Wire Rope
By: Gregorio S. Navarro
YOU worked for Red Wire Corporation (RWC) as a financial analyst for five years. RWC has
produced wire rope under the “Red Wire” brand for more than forty years and has more than
60% share of the wire rope market in the Philippines. Its quality and reputation is reliable,
durable and safe wire rope for construction cranes, conveyors, elevators and other uses are well
deserved. However, a new entrant into the wire rope market has emerged: Green Rope Inc.
(GRI). It has been able to undercut the “Red Wire “ brand in terms of prices. However, the
quality of their wire rope is not very good although they have been using the same raw materials
as RWC.
As financial analyst of RWC , you had an opportunity to join a stock taking team and as you
were walked through the plant, the Factory Supervisor showed you the critical process and a
specially designed machine that was internally developed by the company. This special machine
and the process makes the Red Wire Rope more safe to use and accounts for the difference in
quality and price of RWC product. You found this interesting but soon forgot about all about
it.
A few months from the stock take, you resigned and worked abroad for two years. Upon
returning you applied and was hired by GRI as its finance manager. You liked the job as it pays
very well. Later you learned that GRI still has the same quality problems and is facing a
number of law suits due to the failure of their rope which has caused a number of casualties in
various construction sites.
You have an opportunity to help GRI solve their quality problem. What would you suggest
?
Question: 1. What moral issue is involved in the case of Wire Rope. Briefly discuss in two or
three sentences.
Case # 08
A Question of Utilitarian approach to a Problem Most Ethical?
Question:
1. Explain briefly in 2-3 sentences why utilitarianism is problematic in terms of the
measured results. .
Case # 09
Phinma Corporation’s corporate social responsibility initiatives focus on areas related to the Company’s mission of providing quality education,
aff0ordable housing, and reliable and renewable power. In addition, the Company employees, in their personal capacity, volunteer and reach
out to lo0cal communities through socially relevant programs.
0n Education
Phinma’s commitment in Education is further demonstrated by its continued support of the Phinma National Scholarship (PNS) program under
the Phinma Foundation. From its initial batch of 10 scholars in 2006, the PNS now has a total of 100 scholars enrolled in education, accounting
and engineering. The program has produced 45 graduates, all of whom passed their respective board examinations with 2 ranking among the
top 10 examinees.
The PNS is envisioned to produce not just graduates but leaders. To achieve this, year-round activities to hone the students’ skills and potential,
such as on-the-job training, leadership conferences, workshops, and exchange programs, are conducted In 2013, the annual leadership
conference theme was DIY: Do-it-Yourself. How to practice PHINMA Core Values (Integrity, Patriotism, Professionalism and Service
Excellence) as a College Student. The program also provided opportunities for the scholars to be exposed to history, arts and culture, through
educational trips to the National Museum and Ballet Philippine performances Giselle and Rock Supremo.
in 2013, the PNS was supported by several individuals and institutions, with 10 scholars sponsored by Phinma directors, officers and employees;
12 by Australian Aid; 3 by Multinational Investment Bancorporation; 2 by the Doña Marta T. Hernandez Foundation; and one each by the
Provincial Governor’s Office of Sarangani, the Conrado & Ladislawa Alcantara Foundation, and an individual sponsor. PNS is targeting to
support 100 scholars every school year.
Phinma Foundation also provided financial assistance to 81 students enrolled in Philippine Science high schools nationwide and 30 engineering
students nationwide, through the generosity of one of the Company’s directors, and also supported 8 seminarians for the school year 2013-2014.
Environment
Trans-Asia Oil and Energy Development Corporation’s (TA Oil) flagship CSR program, Harnessing Energy Literacy for Planet Earth (HELP
Earth), launched in 2009, aims to educate the youth in energy conservation and environment protection. To date, TA Oil has established HELP
Earth interactive multimedia science exhibits and corners in 22 schools, helping over 268 Teachers and more than 7,000 students across 7
provinces.
Union Galvasteel Corporation (UGC) also participated in river clean-up campaigns at Guindaruhan river, in Minglanilla, South Cebu, and also
planted 1,000 seedlings at the Municipality of Victoria and in Calamba City as part of a greening project of the DENR.
Phinma Properties mobilized over 60 volunteers in 2013 for its own tree planting project at Barangay Macabud, Montalban, Rizal. In cooperation
with Luntiang Pangarap (Green Dream), the company planted molave, narra and makaasim trees and provided fertilizer to ensure the
sustainability of the project.
Microtel by Wyndham® Mall of Asia took part in ABS-CBN Foundation’s Protect-A-Hectare Program, held at La Mesa Eco Park, where
Microtel employees will adopt and protect a one-hectare forest area for a year, participating in environmental awareness lectures,
vermicomposting, and tree planting.
Shelter
UGC partnered with the Canossian Sisters in 2010 to develop homes for typhoon displaced migrant workers on a 3-hectare rice field in Sitio
Ronggot, Calamba City. In 2013, 10 more UGC-designed shelters were constructed, which completes the target 45 shelters at Canossa
Galvaville. UGC is also constructing a multi-purpose hall also designed as an evacuation center, for turnover in 2014.
UGC’s North Davao group rehabilitates and builds new waiting sheds in partnership with local barangays. UGC also continued its support for
Bahay ni Maria, a home for abandoned elderly women in Laguna. In 2013, UGC completed the reroofing of the facility, and now looks forward
to repairing the chapel in 2014.
In 2012, Phinma Properties together with ABS-CBN and PEN embarked on a project involving the provision of a home office and an education
to Kesz Valdez, the 13-year old Caviteño awarded the International Children’s Peace Prize. Kesz has helped over 10,000 street children in the
area of health and hygiene. In 2013, PHINMA Properties handed over to Kesz the key to his new two-storey house, a home and an office for
him to host his values formation seminars. PEN on its part will provide for Kesz’s education.
Livelihood
In 2013, TA Oil inaugurated its first livelihood program in Quirino, Bacnotan, La Union. A Food Processing initiative was identified in a joint
participative planning activity as the preferred program, with housewives of Quirino as the chosen beneficiaries. This year, TA Oil will partner
with the Province of Guimaras to draw up a sustainable livelihood and tourism plan as the company’s subsidiary Trans-Asia Renewable Energy
Development Corporation develops its first wind farm in San Lorenzo, Guimaras.
Disaster Response
In late 2013, UGC responded to the aftermath of Super Typhoon Yolanda, forming Task Force Yolanda, initially conducting relief operations
in Bantayan, Northern Cebu, and providing carpentry tools for rebuilding at Barangay San Joaquin, in Palo, Leyte. The next month, UGC in
coordination with the Phinma Foundation, visited Tacloban and identified Marasbaras Community School as a beneficiary, committing to
UI, on the other hand, welcomed to its campus more than 800 individuals from nearby Ortiz and Maria Clara who sought refuge from the
typhoon. UI subsequently adopted Barangay Batad, a coastal community in Northern Iloilo heavily damaged by the typhoon. With the support
of local government, the PHINMA Foundation, and various parties, UI distributed relief packs to the 24 affected barangays and provided roofing
to rebuild the 14 damaged schools. To help families recover from the ordeal, UI also contributed materials and skills training assistance for the
building of 200 fishing boats. UI in partnership with the local government and private organizations will work with Barangay Batad throughout
2014.
Manila-based Phinma Group employees served as marshals and clothing distributors in Oplan Salubong, the reception operation at Villamor
Airbase for typhoon Yolanda survivors, while employees based in Leyte and Iloilo distributed relief goods to surrounding communities.
In Palo, Leyte, the Palo Metropolitan Cathedral sustained massive destruction at the height of the typhoon. Phinma Foundation Inc,, in
coordination with the Archdiocese of Palo, Leyte initiated the reconstruction and rebuilding of the roofing structure of the Cathedral with UGC
as the lead coordinator for the Group. The project was chosen as an important symbol of restoring the spirit and morale of the victims of the
typhoon. The reconstruction is focused on the design and restoration of the Cathedral’s dome structure and the retrofitting and reinforcement of
the main roof and altar to maintain structural integrity. The project will also include repairs and rereoofing of the other facilities in the cathedral
complex and is scheduled for completion in April 2014..
PHINMA is committed to provide opportunities for its employees to join its effort in nation building. Among these avenues is the PHINMA
HERO Network, the employee volunteer program of the PHINMA Group. The HERO Network seeks to inspire, equip, and mobilize PHINMA
employees to make life better through volunteering and giving.
In the past year, over 400 volunteers in Manila contributed their time, talent, and resources in over 60 outreach programs, including activities
for elementary and high school students, Brigada Eskwela classroom repair and cleanups, tree planting activities, and mentoring sessions with
PHINMA scholars. In Boston, colleagues at Fuld continued their own annual outreach programs, donating to the Pine Street Inn program for
the homeless as well as to the Cradles to Crayons charity, and hosting their annual pie decorating contest to raise funds for a special school in
the Boston area.
In 2014 the HERO program strengthened its commitment to develop volunteer leaders. In partnership with the PHINMA Foundation, the
program launched Spark Projects, a grant program that will enable employee volunteers to design and implement their own outreach projects
in their personal advocacies.
The HERO program will continue to partner with schools, nonprofit institutions, and the PHINMA group’s adopted beneficiaries to provide
more meaningful avenues for employee volunteers. Through these efforts, HERO continues to work towards achieving 100% volunteer
participation within the PHINMA group by 2016.
Question:: Enumerate in bullet form at least five best practices of Phinma in terms of education, environment , livelihood, disaster
prevention, and shelter. ( Use the space provided for your answers.
Case # 10
Group Members
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Date:_____________________
Evaluated by:___________________________
Signature over printed name