Special Day: Day of Workplace
In a country where the environment has emerged as a major public concern, a breakthrough was achieved when an industry leader and its union negotiated an environmental protection clause into their collective bargaining agreement. The Congress of Independent Organizations-Associated Labor Unions (CIO-ALU) reached an agreement with the San Miguel Corporation, the Philippines' largest company, which provides a framework for labor-management co-operation in all matters relating to the environment. With no demand for any trade-offs, agreement was reached on environmental provisions which make a Labor-Management Committee responsible for programs on environmentally clean operations, protection and rehabilitation. This commitment to joint responsibility and action has laid the basis for mutual trust and harmonious relations on this matter, and countered widespread concern amongst employers that opening up collective agreement to environmental clauses would reduce flexibility and promote an adversarial relationship. It likewise, countered concerns amongst workers, that opening this area could have negative implications for such traditional bargaining concerns as wages. The breakthrough also reaffirmed the strong leadership of the government of the Philippines, which was the first in Asia to establish a national body to coordinate a National Sustainable Development effort following Rio. It also profiled the valuable role played by the International Labor Organization which worked with the government as well as the two workplace parties to promote this breakthrough towards Agenda 21 goals. San Miguel Corporation (SMC), a multinational Philippine corporation, is the largest publicly-listed food, beverage, agri-business and packaging company in the Philippines and Southeast Asia, generating about 4% of the country's GDP and contributing about 6% of all government tax revenues. With over 30,000 employees and a market capitalization of over $US 5 billion, it is the country's largest employer, and according to business journals, "the closest business approximation to a national symbol". The company's principle of "Profit with Honor", is now being translated by its latest head, Robert Soriano III, into a commitment to the environmental protection. San Miguel Beer holds more than 80% of the domestic Philippine market, and is one of the largest breweries in the world. As well, it accounts for 75 per cent of the country's soft drink, 66 per cent of the ice cream market, and supplies about 75 per cent of the country's glass and metal containers. It is now expanding its holdings with a massive program to acquire breweries and bottling plants in China, Indonesia and elsewhere in Asia. The union involved in the San Miguel agreement is the (CIO-ALU). With members across the country, it is primarily committed to a focus on economic benefits, rather than any explicitly political objectives. It is affiliated to the (TUCP), which is the country's major labor centre, and an affiliate of the ICFTU. TUCP is an umbrella organization comprised of 50 affiliated labor organizations, together accounting for more than half the organized workers in the country. It has been active on the Philippines Committee on Strengthening the Role of Major Groups, and is committed to active participation as a collective voice for workers, women, the poor and youth in the political process, including legislative lobbying and mass action. (LACC) is a coalition of labor groups composed of the Federation of Free Workers (FFW), Kilusang Mayo Uno (May Ist Movement), the Lakas Manggagawa Labor Centre (LMLC), the National Association of Trade Unions (NATU), Trade Unions of the Philippines and Allied Services (TUPAS), and Katipunan. While not very active in the Philippine Commission on Sustainable Development, the LACC has addressed concerns such as child labor, occupational health & safety and the environment, and has participated in several of the forums and activities taking place in the country. (PBE) is composed of large employers, and has a mandate to assist business with environmental concerns. It has focused on information campaigns and publications such as , and on environmental training. The PBE has launched the Philippine Business Charter for Sustainable Development which promoted Codes of Management Practice, and the Industrial Waste Exchange, a database which seeks to match the waste from one enterprise with the raw material needs of another. The (ILO) has initiated activities in the Philippines in training, and partnerships on a tripartite basis through the Interdepartmental Project on Environment and the World of Work. It became involved in the sustainable development forum when it became clear that environmental factors made it increasingly difficult for the tripartite partners to meet the ILO's critical labor and social objectives. Accordingly, the objective of the ILO's is to improve the capacity of the ILO constituents to implement Agenda 21 World of Work activities in their country and regions, and to do so by through new approaches that strengthen their capacity. The (ECOP) acted as the implementing agency for the ILO Interdepartmental Project. It is a confederation of businesses dedicated to environmental action, and has worked on several projects with the TUCP and NGOs. The Philippines has a well-established network of NGOs, with some 900 registered as involved in environmental work. They are seen has having great potential for work with trade unions and employers' groups, especially in awareness raising, education and political pressure. Two major groups, the , and the were instrumental in assembling the Philippine Environment Report which was presented to the UNCED in 1992. No account of environmental action in the Philippines could be complete without mention of the role played by the central government. The (DENR) has initiated national action on the environment based on society-wide participation that is a model for other countries. This reflects the strong role citizens' action continues to play in the Philippine politics since Marcos, as well as the undeniable environmental challenge faced by that country today. The DENR, for example, initiated the well before Rio, with many objectives related directly to the world of work, and has managed to maintain momentum through subsequent years. As well, the Philippine government was the first in Asia to establish a Council for Sustainable Development with a mandate to adopt the Philippine Agenda 21 and develop national sustainability plans. DOLE is the government department mandated to look after the welfare of Filipino workers, including Safety & Health. As with much government activity after 1983, tripartism is actively promoted and practiced in all matters relating to employment and labor market policy. By the late 1970's, severe environmental degradation in the Philippines had aroused a high level of concern amongst the general population. One summary of the state of the environment was provided in a 1993 by Philippine Business for Social Progress, which included: The Report referred, as well, to factors that contributed to this ecological nightmare: Awareness of the advanced state of environmental degradation combined with a culture of participation and consultation to produce action. As a consequence, the Philippines led the way amongst the world's nations with a (PSSD). Produced in 1987 by the Department of Environment and Natural Resources following multi-lateral consultation, it documented some of the effects of unsustainable production practices ranging from agriculture to factories, and set out strategies for change. It also contained a strong component on the world of work, as the participation of unions was well-accepted at all levels. The Philippines also prepared for the Rio UNCED Conference in 1992 by holding a country-wide process of consultations involving all sectors: business and industry, employers and workers' organizations, and other groups, such as women, indigenous peoples, and the youth. These formed the basis of a national action plan for Sustainable Development, which became known as The adoption of Agenda 21 at Rio prompted the create of a national body in the Philippines to ensure and monitor the implementation of commitments made at the UNCED. The (PCSD) was created by Executive Order on September 12, 1992 to "Formally adopt the Philippine Agenda 21 and develop national sustainability plans." At the same time, the National Economic and Development Authority (NEDA) was directed to integrate Agenda 21 into its Medium-Term Philippine Development Plan to serve as a master plan for development to 1998. In addition, Local Government Units at all levels were directed to integrate Agenda 21 into their plans and programmes. The PCSD is a multi-sectoral body chaired by the Director-General of NEDA with the Secretary of the DENR as Vice-Chair. Through "counterparting", it grants NGOs and "People's Organization" (including trade unions and employers' organizations) a role in decision-making. Its guidelines include "the creation of a critical mass of advocates for sustainable development in both government and non-governmental sectors." The PCSD itself brings together 16 government departments, as well as 7 representatives from NGO/PO's. Unions and employers' organizations sit on specific committees and sub-committees in a decision-making role. The main goal of the Philippine Agenda 21 is "to ensure a healthy environment and a prosperous economy for current and future generations", but it recognizes the need to also address such related issues as: poverty and population, resource destruction, rapidly urbanizing areas, natural disasters and environmental degradation, biodiversity and biotechnology, energy, industry, debt relief, toxic and hazardous management, climate change, participation of major groups, and a lack of essential means. Thus key objectives and principles contained in Agenda 21 and the PSSD were expanded to include: Debt Relief; Technology Assistance on Man-Made and Natural Disasters; and Pollution Control. It also added Property Rights Reform to include Access to Resources. The Philippine Agenda 21 emphasizes that participation of trade unions, along with other key groups, is crucial to planning and implementation of sustainable development. As a result, several joint projects have been undertaken by trade unions and business in the areas of public advocacy, education and training, policy reform, specific environmental and conservation programs and projects to strengthen the legislative and regulatory framework. For trade unions, environmental action meant an extension of earlier efforts to win substantive and participatory rights in the area of occupational health and safety. The (FLASH) was organized in 1989, with support from both the TUCP and LACC, to spearhead information campaigns, training programs and policy, and legislative reform campaigns in occupational health and safety at the national, industry and local levels. Attention has now turned to winning the same rights with respect to the environment. Early trade union activities included participation by the Associated Labor Union (CIO-ALU) in the Cebu Project in the Central Philippines. In this case, management provided a "Green Fund" to finance reforestation as part of a plan which involved a consortium of business, community and labor organizations. In another case, negotiations were held with the DENR to obtain 50 hectares close to Metro Manila to be used as an Ecology Site for education and training in environmental management. Another in Mindano, had unions and central bodies involved in research, consultation and policy advocacy for environmentally sustainable forest protection. Their experience was summarized and distributed as a primer, Environmental language in the collective agreement between San Miguel and its union was proposed by the company in accordance with its Corporate Policy on the Environment. As it contained no counter-demand for any trade-offs, agreement with the union was reached quickly. These environmental provisions essentially make a Labor-Management Committee responsible for the implementation of programs on environmentally-clean operations, protection and rehabilitation. This commitment to joint responsibility and action has contributed to an atmosphere of mutual trust and harmonious relations in this area. San Miguel's Corporate Policy on the Environment reflects Agenda 21 objectives. It reads in part: Consistent with this policy, the employer has already implemented company-wide environmental programs promoting clean in-plant air, waste minimization and recycling, and reforestation as well as participating in some of the Green Initiatives sponsored by government and other groups. It also has planned a country-wide educational program for the environment for all of its employees to be launched in 1996. In recognition that labor must play a key role in realizing and sustaining its environmental goals and objectives, the company chose the collective bargaining process to bind labor and management to the process. In the three bargaining units at SMC GMA, SMC Bacalod, and SMC Stock Transfer Services Corp., environmental provisions essentially provide responsibilities and powers to the Labor Management Committees to design and implement environmental programmes. One of the Agreements provides a separate article expressly stating the principle of joint commitment in this area. |
Of the three, the most far-reaching provision was one that has already been negotiated and accepted for the Bacalod Brewery. It reads in part:
As this agreement has just been signed, concrete results have yet to be seen. Actual implementation of the intent of this general language in the Agreement will be established by the Labor-Management Committee. Local members are confident, however, that the healthy industrial relations climate which has been established for their plant will be maintained. They overwhelmingly endorsed the article, because it asked for no trade-off from the union, and because they recognized the need for joint action on the environment.
As well, in past years, communities surrounding their brewery have been complaining of offensive smells emitted from their plant, as well as sugar plants in the area. Because workers at all these plants belong to one Federation under the umbrella of TUCP, it was possible to take action immediately to settle the problem. Government intervention was unnecessary because of the joint commitment by management and the union to environmental action, and particularly the willingness of the company to invest resources to carry out its stated policies.
The San Miguel experience illustrates the premise in Agenda 21 that, because most environmental problems arise at the workplace, workers and industry must take leadership to make sustainable development a reality. As explained in Chapter 29, collective bargaining provides a logical starting point for labor-management cooperation on environmental action because it is an established mechanism recognized by all actors in the workplace.
As such, it gives force to the principle in Chapter 29 that full participation of employees and their representatives is a necessary prerequisite to successful environmental action involving the workplace. It secures this principle in a collective agreement as the interest of both parties, rather as a program that could be unilaterally withdrawn as a management right. Workers cannot escape the close link between a healthy workplace and a clean environment, which is why the goal of full employment which contributes to sustainable livelihoods in safe, clean and healthy environments, at work and beyond.
This case illustrates how responsible entrepreneurship can play a decisive role in as provided in Chapter 30, (Business and Industry). SMC's corporate policy on the environment is reinforced in a company-wide program, and by participation in other green initiatives involved in a robust national initiative. This case provides a strong reminder, therefore that sustainable development strategies must include the promotion of workers' rights to association and participation.
A crucial element in this openness and dialogue with employees and the public. This case also illustrates the variety of measures that are available to employers and their workers in making the transition to sustainable forms of development and lifestyles, once it is recognized that economic activity must change course to a new forms of environmentally sound-economic development.
It displays the importance of government leadership in launching broad-based consultative mechanisms for action on the environment that involve NGOs and people's organizations. The Philippines is in the process of rebuilding, and is demonstrating that a key to long-term economic progress is a link to environmental protection. This happens best where nations establish a new and equitable partnerships involving governments, their people, and key sectors of societies.
This case proves that an international organization can play a valuable role in facilitating tripartite action around Agenda 21 goals, as stated in Chapter 38. The International Labor Organization played a key role in bringing government together with the workplace parties to achieve this breakthrough, showing how the United Nations system can guide the restructuring and revitalizing required in economic, social and related fields.
This case illustrates how human health depends upon a healthy environment, including clean water, sanitary waste disposal, and an adequate supply of healthy food as shown in Chapter 6. This is especially true where urban growth has outstripped normal mechanisms, as shown in Chapter 7, which explains that by 2000, half of the Earth's people will live in cities, given current patterns. Action being taken in the Philippines illustrates Chapter 10 (Managing Land Sustainability) and Chapter 18 (Protecting and Managing Fresh Water) both of which are critical for the healthy functioning of nature.
Whereas past economic decisions have separated economic, social and environmental factors, links must now be made in order to make development choices that are economically efficient, socially equitable and responsible, and environmentally sound. As provided in Chapter 8 the Philippine government has initiated sustainable development strategies that move decision-makers from narrow sectoral approaches. It also shows that changes in policy-making will require changes in information gathering, management techniques and planning.
The Philippine case also illustrates the point of Chapter 27, as non-governmental organizations have played a decisive role in the shaping and implementation of policy in the Philippines. They have proven their ability to play such a role because of their independence from government as well as diverse and well-developed expertise in fields needed to implement sound and socially responsible sustainable development.
The General Secretary
TUCP-PGEA Compound
Maharlike and Masaya Streets
1101 Dillman
Quezon City 3008, the Philippines
tel. 632-922-2185 fax: 632-921-9758
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IMAGES
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San Miguel Corporation before its diversification into non-allied businesses in the Philippines pursued growth through international expansions. In has invested in a number of countries such as China, Indonesia, Australia, Vietnam, Thailand and other countries although it dropped its Australian assets in 2008 in pursuit of its new change in ...
and A. Soriano Company BACKGROUND OF THE STUDY In the early 1980s the San Miguel Corporation (SMC) and A. Soriano Corporation (ANSCOR)Group of Companies, under the leadership of Andres Soriano, Jr. addressed a long felt need for an effective formal planning system for the two
The first step to solve HBR San Miguel: Succession in the Philippines' Largest Corporation case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Smc Succession is ...
San MIguel Case Study Final - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. San Miguel Corporation is one of the oldest and largest companies in the Philippines with a clear leadership position in the beer industry. In the late 2000s, under CEO Eduardo Cojuangco, San Miguel began reinventing itself by selling its ...
San Miguel Corporation Case Study. ... Ltd (vendor number 100403) Packaging Materials 3. Packaging [SUMP] Coached Starch Co. San Miguel Yammer Packaging Corporation (vendor number 100501) Printwheel Inc. (vendor number 100502) DIM Print and Labels Specialist, Inc (vendor number 100503) * up J.
A Union Case Study from the Philippines. Summary. ... San Miguel Corporation is committed to environmental protection and preservation as a requisite for sustainable development and for long-term socioeconomic benefits to present and future generations. Thus SMC actively contributes towards a clean and thriving environment for the well-being of ...
Case Study: San Miguel Corporation (SMC) A Case Study. Presented to Prof. Restie P, Torres, MBA. University of Mindanao. Matina Davao City. In Fulfillment of the Requirements. In CBM121 (Strategic Management) Summer SY 2020-Torion, Jeric. July 2021. Case Scenario. San Miguel is a publicly listed Philippine international parent company. With ...
Statement of Relevant Case Facts San Miguel Corp. retained its title as the Philippines' largest company in sales. The Philippines has become a small market for a conglomerate like SMC that has global ambitions. Over the past years SMC has acquired companies like NFL, Berri, Del Monte Pacific, King's Creameries, Guolene Packaging Companies ...
San Miguel Corporation was founded in 1890 and is one of the largest and most profitable companies in the Philippines. It employs over 30,000 people across food, beverages, and packaging facilities in the Philippines and other Asian countries. While once struggling with large debts, the company refocused its strategy on capitalizing growth markets through acquisitions and improving synergies ...
Case Study Description. San Miguel Corporation is one of the oldest and largest companies in the Philippines. In its 100 year history, it has established a clear leadership position in the Philippine beer industry, as well as having made successful forays into other related and unrelated product areas. In the late 2000s, Eduardo Cojuangco, the ...
San Miguel Corp. Case study 1 - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. San Miguel Corporation was concerned about the issues regarding their company. I have encountered three problems. First is the company's satisfaction in their ability to adopt or respond to changing environmental conditions.
A. SAN MIGUEL CORPORATION. Was founded on September 29, 1890. By DON ENRIQUE MARIA BARRETTON dE Y Caza. owner of the brewey La Fabrica de Cerveza de San Miguel. Was authorize to brew beer in the Philippines under a royal grant establishment located at No.6 Calzada de Malacanang Manila`s San Miguel District. Inaugurate on October 4, 1890.
This case San Miguel, The Philippines Brewery Giant's Growth Strategies focus on San Miguel Corporation, a Philippines' based beverages and food products manufacturer, is one of the top 20 brewers in the world. It has its operations in 40 countries with manufacturing facilities across Asia. By leveraging its strong domestic market presence, the company plans to be among the top ten beverage ...
Corporate Social Responsibility and Business Ethics of San Miguel Corporation Business Report citizen. The Board of Directors, under the direction of Chairman Mr. Eduardo M. Conjuangco, Jr., is committed to handling all of the company's business transactions fairly and transparently and to upholding the highest ethical standards. SMC is a proponent of ethical profit.
Case Study introduction san miguel corporation (smc) was originally founded in 1890 as single brewery in the philippines. the company has since then transformed. ... San Miguel Corporation also experience problems that are among the responsibilities of the SMC's Area Operational Manager, who is assigned to ensure that the company yields its ...
CASE-STUDY-SAN-MIGUEL-CORPORATION.docx - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. San Miguel Corporation is one of the largest conglomerates in the Philippines, operating in food and beverages, packaging, fuel and oil, power, and infrastructure. It has acquired many companies internationally to expand beyond its origins as a brewery.
San Miguel Corporation is a publicly traded Filipino multinational conglomerate holding corporation. It is the Philippines' largest corporation in terms of income, employing over 24,000 people across the Asia-Pacific region at over 100 significant sites. It is one of the Philippines' oldest and largest corporations.
Executive Summary San Miguel Corporation is one of the leading and most developed firms in the country, producing about 5.9% of the country's gross domestic product as of 2018. It is one of the major contributors of workforce in the country, with nearly 33,000 employees. Like any other company, San Miguel Corporation also experience problems that are among the responsibilities of the SMC's ...
CASE-STUDY-SAN-MIGUEL-CORPORATION.docx - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. This document provides an overview of the history and operations of San Miguel Corporation, the largest company in the Philippines. It began as a brewery in 1890 and has since diversified into many industries including food, beverages, and packaging.
VII. Recommendations Based on the computation, we recommend that the San Miguel Corporation should give their employees Magnolia and Purefoods product worth P2,650 at cost a month. The reason for this are the following: 1. The employees would enjoy a big savings due to the price difference of products from the factory compared to the retail store which includes a certain amount of profit for ...
The two companies, San Miguel Corporation (SMC) and A. Soriano Corporation (ANSCOR), developed a long-range strategic planning process in the early 1980s to better plan for their future. This involved determining corporate strategies, setting objectives and strategic programs, and identifying competitive strategies. The process also included iterative steps like developing plans, identifying ...
Current Situation of the Company San Miguel Corporation maintained its growth momentum in the first three months of the year posting consolidated revenues of P316.8 billion for the first quarter, up 57% from the same period last year, on the back of strong volume growth and better selling prices across its major businesses. San Miguel Food and Beverage, Inc. (SMFB) delivered a record-breaking ...
SMC Case Study - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. San Miguel Corporation and A. Soriano Corporation sought to improve their planning processes in response to rapid environmental changes. They identified weaknesses in flexibility, implementation timeliness, and lack of guidance ...