Journal 16: BUS560M Learning Reflection

This marks the last entry of this blog for the subject. The term is almost over and the two week holiday vacation coming. It is an amazing event in an MBA student’s life and this would probably be the longest holiday season ill have as an MBA student/working professional. I’m looking forward to surf, reunite with my family and to go around the islands of the Caramoan soon.

This class opened my eyes to real life situations that’s happening not only within an organization but to the whole Philippine economy. Every lecture and session created a mindset of how to do business as a manager considering all aspects and not sacrificing one. It made me a better decision maker with 360  degree perspective of every situation.

I thank La Salle and Ms. Pia for tirelessly inculcating values to us. I would definitely utilize all that I have learned in this subject on my day to day corporate affairs.

This subject made me a distinct LASALLIAN MBA student.

Journal 15: Service Learning Journal Part IV - Christmas Party with Children of Dela Paz

Its really hard for me leaving them that day for I know it would take time for me to go back and see them again. I felt the sincerity and love from the hugs and laughter.

The first time we went there, we notice they only have chairs. No blackboard, no tables, no materials, their facilitator only speaks in front and yet this kids listen knowing that theyll learn after each session. They werent even any food, so we took the initiative to make the kids happy. We provided snacks for them on the first few weeks, we are also planning to get them connected to local restaurants/malls that can be a possible sponsor of their food every session in the future.

Our original plan is only to create a page for them and build awareness that such community exists in Binan. However, through the service learning activities held by our team. These children slowly became a family to us so we all decided to donate and pledge small amount of money for the christmas party and bring tables for them. I personally pledge the money me and my boyfriend  were supposed to spend for our monthly dinner. There were no regrets about it... I never imagined a small amount of money I only spent for dinner would create this smiles.

Rest assured, I will continue to support and promote this community. Im no longer thinking of the grades I will received. The feeling of being able to help other goes beyond my responsibility as a student

Journal 14: Growth and Development

I believe one day Id stand infront of everyone sharing my own success story, bring all the talent to community that created me...

I recently attended a conference for Life Underwriters in the Philippines at Resorts World Manila. I received several career opportunities from the first world countries such as: Austria, Germany, New Zealand, Bulgaria and recently United States. I remember telling on of my professors about it and the remarks I received was "you are such a #€%#%& girl! how come you let go of such opportunity?!"

I knew Im going to leave, I just never felt belongingness and comfort in the Philippines, never had any intimate relationship in Filipinos as well. Main reason is the culture, a success driven and a person who continuously grow would not want to stay here or ask help from their parents. I am different from most and usually people find it difficult to understand. I came from a province near Manila - Cavite. Although most thought of it as a progressive city, most people my age their only want one thing.. To get married, live a simple life - with their parents and work as an employee. Thats it.

I never wanted those.

So i reached higher, I aimed for something more and now craving for more. It took hardwork,  a lot studying, sleepless nights of making things work for my previous bosses such as events, trainings, presentations. It was harsh in the beginning but I learned to much from all those hard work.

I remember hearing this once and it never left me:
There is no growth in your comfort zone, and there is no comfort in your grow zone.

I definitely believe in that; now I found myself working in a multinational company hailed as a European brand giant. Youngest in the team and continuously learning, my teammates and boss always say this "kakaiba siya"

Change really is inevitable, technological advances and innovations are fast approaching. If we keep on doing the same thing, are we gonna grow? Todays workforce promotion is not about the seniority anymore but performance. Social media has influenced our lives in just a matter of few years. According to a study “In 2011, the US hit a milestone – more than half of all adults visit social networking sites at least once a month.” As social media has evolved and matured, these consumer technologies have started to make the cross-over into the enterprise. This is often referred to as the “consumerization of IT,” where consumer technologies such as mobile and social are making way into the business world for better productivity.

Not only is business changing at a rapid pace, the workforce is also undergoing a major shift. As baby boomers are reaching retirement age, 75 million millennials are expected to hit the job market at the same time. These youthful workers possess a fresh perspective and approach; qualities that are highly desirable for any company seeking to remain competitive, relevant and ahead of the curve.

This emerging workforce has grown up connecting through networks such as Facebook, Twitter and LinkedIn. They welcome and expect social tools in the work place, e-mail is perceived as an outdated form of communication. Companies that lead this trend and leverage social technologies will be seen as innovators by the new workforce.

So at age of 24, I now find myself conducting trainings and having people 2-3x my age in class. I found myself uploading online resources and multimedia, aggressively cutting through and paving way to changes in the business.

While many baby boomers see Gen X and Gen Y as having little work ethic and immense entitlement, This is what I believe. continue to be different. It is you who will move away from the traditional “brick and mortar” business, who will continue to create unique 24hr business services, create methods that allow you to sleep in and work from home, it’s you who will change the lines of what a work environment and corporate culture will look like, it’s you who will keep breaking social norms that will lead to more equality and acceptance of what is different. So, continue to be different, because those differences are what propel the world forward. Challenge the norm: keep innovating and leverage on new technology

Its not time that's passing, it is us. 

I personally believe that in order to succeed nowadays, you have to make yourself difference and I only have one question to whoever would come across my blog: 

The world is changing, are you?

Journal 13: Service Learning Part III - Faith and Selflessness

Whereof I was made a minister, according to the gift of the grace of God given unto me by the effectual working of his power.Unto me, who am less than the least of all saints, is this grace given, that I should preach among the Gentiles the unsearchable riches of Christ; And to make all men see what is the fellowship of the mystery, which from the beginning of the world hath been hid in God, who created all things by Jesus Christ: To the intent that now unto the principalities and powers in heavenly places might be known by the church the manifold wisdom of God,
Ephesians 3:7-10

My life will be forever be changed because of these children, I never imagine I would be so attached to this kids. Faith is something really important for me, Ive always view eternal perspective on my mind but only for myself and my family. 

How come this kids pray about us when where gone?

How come theyre so selfless?

They taught me something I would never forget - that we are all brothers and sisters in Christ and we should love one another as much as He loves us. 

I really wanted to see this kids grow with faith, patience and persistence.

Journal 12: Service Learning Journal Part II - Reach Out!

Be the "techy" member of the team, I started pushing to create a page to support the kids of Dela Paz.

https://www.facebook.com/delapazkids

This acts as the easiest way to reach people and eventually garner support from other groups who´s into civic activities.

It gained fast support, I was able to have company executives to like the page. I was also able to invite and expat to join us.

These are just the first steps we are going to take to make the page and community active. I will invite more and hopefully garner support from different groups. I just really want these kids to grow in FAITH and be EDUCATED. I see them as future leaders, I know they will because I feel it and im not going to stop until that happens. These kids are more like a family to my group now.

Journal 11: Corporate Social Responsibility Proposal

This week is the proposal week, we were all tasked to present how our company do with regards to CSR and propose an aid to make the existing system better.  Since we were only given few minutes to present. I think posting it on the blog would attract support and better appreciation.

AXA CORPORATE RESPONSIBILITY FACTS AT–A-GLANCE

OUR CORPORATE RESPONSIBILITY LIES IN PROTECTING PEOPLE OVER THE LONG TERM

  Insurance is a people business.

The relationships we develop as risk managers are central to a business operating based on the trust of our stakeholders.

AXA is a company that touches the lives of over 100 million customers globally and whose business is to protect people over the long term. This means we have a responsibility to leverage our skills, resources, and risk expertise to build a stronger and safer society. Our influence extends from our culture, to the products and services we offer, through to the way we support our communities and care for the environment.

Corporate responsibility (CR) is about doing good business, and we see it as a key driver of business value. CR contributes to AXA’s growth by facilitating access to new markets, expanding the reach of existing offers, and influencing the way we innovate. Responsibility is also an important part of our profitability and positioning, justifying a market premium and securing our status as an employer of choice.

As new risks emerge in an increasingly uncertain world, the economic and social needs addressed by our business are changing. In both developed and emerging markets, the impacts of megatrends, from aging and longevity to climate change, have become more difficult to navigate.

Corporate responsibility ensures we can move forward with confidence in this changing world, thinking long term to meet the needs of all of our stakeholders. With this enduring purpose we strive to uphold our commitment to create a safer, better prepared world.

“We are a company whose business is to protect people over the long term.”

As an insurer, AXA has always had a “noble purpose”: our business is to protect people over the long term. This means we have a responsibility to build a stronger and safer society, in addition to protecting our customers. We believe the best way to do this is to use the unique skills and resources of the Group to help people better understand and prevent risks. This is why for example we have created the AXA Research Fund, a major scientific research initiative endowed with €100 million at its inception in 2007 and a renewed contribution of €100 million through 2018. We also have a goal to link 50% of local community-related donations across the Group to risk research and education by 2015. This approach is a significant driver of pride and engagement for our employees, as evidenced in our internal surveys. It also enhances our credibility to act in the public interest and gives all of our stakeholders more confidence in our commitment to responsibility.

“As an insurer, AXA has always had a noble purpose that extends beyond our financial interests.”

How Has AXA’s Approach to Corporate Responsibility Evolved?

Corporate responsibility initiatives have existed at AXA since the Group was formed more than 25 years ago. Over the past decade in particular we have made great progress in bringing structure and clarity to our approach, first by creating a dedicated Corporate Responsibility Department and second by defining a Group-wide strategy in 2009. In the process, we have focused on truly embedding corporate responsibility in the way we do business. Each of our entities is now accountable for a robust and measurable CR approach integrated into local strategic plans. This means we are able to monitor progress being made across the Group on a number of core issues, whilst allowing flexibility in responding to local priorities.

How Do You See Corporate Responsibility Shaping The Group’s Future In The Longer Term?

Because we act as risk managers, corporate responsibility provides the Group with a way of understanding and responding to a changing world. Our knowledge of societal megatrends and risks in our economy, society and environment allows us to strengthen our own business model and better protect people.

CR STRATEGY PLANNING PROCESS

AXA has a unique approach to CR strategy planning. Every year each local AXA entity submits a strategic plan for the following year to the Group Strategy teams. This plan includes all strategic issues, ranging from finance to marketing to risk management. CR is also part of this strategic plan, which is reviewed and challenged each year by the Group’s senior executive team.

Each local entity’s CR strategic plan includes a target in terms of CR Maturity for the following year. This target is derived from a CR Maturity Self-Assessment tool that measures the Group’s performance across a wide range of CR-related issues. Inspired by the assessment systems of specialized rating agencies, we created our own model, with the help of each corporate function at Group level and all local Chief Corporate Responsibility Officers, adapted to the needs of our local operations.

The tool analyzes more than 70 factors related to a broad set of CR criteria. Each factor is weighted and rated according to the performance of the entity, resulting in an aggregate global score out of 100. This rating positions each entity at one of five levels of “CR maturity” based on a defined scale. The maturity scale tracks progress from the lowest “defensive” stage through to the highest “civic” stage.

Each year since 2010, AXA entities have used the tool to fine-tune their analysis of corporate responsibility strengths and weaknesses and to set a target for improvement the following year. These targets are included in the objectives of senior management, linked to variable compensation. Our goal for 2015 is to help entities achieve the “strategic stage” rating on the CR maturity scale*, which corresponds to systematically integrating societal challenges within the company’s strategy.

METHODOLOGY

AXA's approach to integrating long term Corporate Responsibility (CR) factors into our business is based on detailed performance indicators that are reviewed every year by every local entity. These indicators are tracked with the help of an internal “CR self-assessment tool”, the results of which are fully disclosed in our CR Barometer.

AXA’s CR self-assessment tool enables us to accurately monitor our CR performance, or “maturity”, on both local and group levels. Inspired by assessment systems developed by specialized rating agencies, we developed our own model that could adapt to specific local features. This tool analyses over 70 factors over a wide range of CR-related criteria: governance, risk management, compliance, customer relationship management, environmental impact management, “green” products, micro-insurance, human capital management, community engagement, corporate philanthropy, supplier management, etc. Each factor is weighted and rated according to the performance of the entity, which then receives an aggregate global rating out of 100, corresponding to its level of “CR maturity.” This rating places the entity on one of five levels of the CR maturity scale.* This scale tracks progress from a “defensive” phase through to a strategic integration phase. Every year, entities can fine-tune the analysis of their strengths and weaknesses in corporate responsibility and assess their potential for improvement. Our 2015 target is to help entities achieve the “strategic” rating, which corresponds to integrating societal challenges in the company’s global strategy.

In addition to being an evaluation process, this tool also serves as a guide to the development of local CR strategies, which the entities use to identify the measures required to formulate and adapt their own strategy. This “CR KPI” is included in local key performance indicators and dashboards. This process enables us to transform disparate data into quantified progress indicators. * Scale developed by Simon Zadek, strategy consultant.

CSR PROPOSAL

As an insurance company AXA’s primary business is concentrated on protection. Protecting and securing lives, wealth management and investments. Therefore the business itself serves a noble purpose. Majority of our stakeholders – manpower is in the Sales Force and as a sales person they are taught and trained not just to sell and earn commission but they are to sell:

Themselves – hailing the investment expert and AXA’s reputation on their name. They are expected to conduct quality sales. They are to build their credentials as they grow in the AXA corporate ladder with the existing accreditation process.

Credentials are crucial to our customers trust and the distributor must look good and dress well. Establish a reputable character and expertise in investments so to ensure their capability to promote and sell products that suite the needs of the clientele.

Solutions – provide the right solutions fit to the customer’s needs.

Services – utilize the golden rule in selling “do unto others what you want other do unto you” and to provide after sales service.

For AXA CSR is strategic "Corporate Responsibility" is the contribution of businesses to sustainable economic development and to the interests of society by taking responsibility for the direct and indirect impact of their activities on various stakeholders, including: customers, suppliers, employees, shareholders, communities and the environment. The "responsible corporation" lies at the crossroads between social development, respect for the environment and economic performance.

In a nutshell, each distributor acts as a key contributor not just in the economy to promote cash flows but they help all the four basic units of the country as shown in the figure below.

Id so like to note that AXA has a very good CSR framework and it is placed at the heart of the business. I believe that to make it more sustainable, AXA Philippines is not just to meet goals but

exceed the region’s mandate and go beyond what I guided.

The current SRI standing of CSR from our end is as follows:

AXA Philippines overall score is only at 64% which means they are only doing CSR because it is part of the management and the company’s responsibility to do so. Our distributors are located and assigned to different areas and region in the country. Which led to the launch of an e-learning platform, to cater to the training and learning needs of our distributors.  It made all trainings, legal and mandatory courses and refresher courses accessible anytime, anywhere, at their own pace. As long as they have an access to the internet, most of the training materials are published in formats fit for today’s devices such as desktop, laptop, ipad, tablets and smart phones.

I was assigned as the Learning Management system training officer to cater to electronic training needs of AXA Philippine’s distributor and this subject inspired me to do more than just learning but teach all distributors and inculcate in their hearts the nobility of our profession. I am to go around the country starting next year to launch the tool and orient the distributors how to navigate the system. I will also develop e-learning courses.

Moving forward with this highly sophisticated tool, I and the entity can use this to drive the whole sales force with our CSR initiatives. To promote:

• Responsibility in our workplace
• Responsibility in customer relations and in our products
• Responsibility in our Governance model
• Responsibility in supplier selection and relations
• Responsibility for our environmental footprint
• Responsibility towards civil society

REFLECTION

Everyone had very good proposals however, Im wishing we were spared with more time to discuss it. I honestly loved this subject, as weeks and lectures pass Im gaining more appreciation of the subject and makes me want to apply all those until I realized I can. I worked hard for days creating proposals for the Training Director and the management team on our planning because Im certain of integrating CSR in the succeeding modules I will create for the company and cascade to all our distributors. Its alot of nights of hard work doing the presentations, storylines, e-learning modules and gathering data. Thus I really want to apply all that Ive learn in real life, however since the presentation was done. I felt low spirited and disappointed because no one listens to all the hard work I tried to put into. I honestly felt disrespected when a classmate tried to take me off presenting and my professor just laughing, it felt that I wasnt supported.

Nevertheless, I will still push my plans and present this to my company. If I didnt gained appreciation in class, im sure I would with my team. They just believed in me although im young and hoping this would move the barometer to a higher leverage.  My apologies for the rants, I just had to let it out.

Journal 10: Cost of Development

I came across a game this weekend and its called SimCity

I reflected on it and realized it connected to one of my Management Science lecture - Networking. SimCity is an open-ended city-building computer and console video game series originally designed by developer Will Wright. It is published by Maxis. In this game, the player is given the task of founding and developing a city, while maintaining the happiness of the citizens and keeping a stable budget. The player must define zones, each having limits on the kind of development that can occur there. Development of the zones is not performed directly by the player, but happens when certain conditions are met, such as power supply, adequate transport links or acceptable tax level. The residential zones, in green, provide housing for Sims; the commercial zones, in blue, provide shops and offices; and the industrial zones, in yellow, provide factories, laboratories and farms. There are three different densities in the game: low density for small buildings, medium density for low to mid-sized buildings, and high density for anything up to large tower blocks.

            

This game utilizes quantitative methodologies in its system, using complex problems to keep the Sims stay and the city. Many of those involve variables such as utilities, jobs and employment, criminality, pollution and etc. Those variables are used to calculate and control the player’s decisions. Then it creates the results of the decisions made and provides other variable and possible needs to keep the Sims happy.  The goal of the player is not limited to expanding and improvements but keeping it healthy for those who live in it. It is very similar to how businessmen and government keeps its provinces and business districts.

Analysis

Metro Manila is no different from a SimCity, playing this game made me realize that there were no proper strategies and planning done before projects and constructions were implemented. It’s easy to pin point decisions making issues done by the government creating severe traffic, pollution, flooding, inconvenient modes of transportations, overpriced necessities and so on making the city not healthy to live in. No wonder a lot of professional and educated Filipinos decide to leave the country.

The estate of course is trying to do every possible way to keep the investors and to remove the citizens out of poverty but at what cost? What is the cost that the development creates to the environment? Given today’s technology, as MBA students what can we do to make things more efficient? Heres a picture of Manila covered with SMOG.

In building a city, one has to look on the environmental issues and consider the cost of development. To avoid decision failures which would entail environmental costs, the decision makers can make use of statistics and algorithms with all the given variables/information before deciding. I propose they make use of the competitive environmental strategies using environmental accounting, do the math of strategy versus returns.

I think being green can be used as a competitive advantage in the market and for the economy.

Conclusion

Environmental accounting is an alternative tool improve and provide systematic ways of city’s environmental affairs. It will address short term and long term decision impacts of the products,  services and development on the environment.

Quantitative Methodologies can be utilized for the following:

• Product design
• Structure design
• Facility siting
• Purchasing
• Process costing
• Risk/liability management
• Strategic planning
• Supplier/structure selection
• Capital investment
• Cost control
• Waste management
• Transportations and fuel optimization
• Expansions

Journal 9: Service Learning Journal Part I - Meeting the Children of Dela Paz Laguna

Its not surprising for me to have this kind of activity, this is usually integrated in the La Sallian Education and will define you as a La Salle graduate versus the others. Thats what i thought of during the planning and preparation prior to the actual visit. As a product of La Salle I had been engaged in civic engagements in the past, helping communities, promoting social justice and education.

But then my perception of the usual civic activity changed the moment I saw the kids.

I had social activities before in some Areas of Tondo and Cavite but this kids really are special. Ive never seen children from slum areas as cooperative and shows values. Realising its a result of our very own group mate - Maureen`s dedication for years. 

Here´s a brief summary of how this community of children started:

The Dela Paz Kids’ Bible Study was a fruit of the one-month training of Christian Leaders on Evangelism which I attended in Hawaii last September 2012. There I learned the importance of making disciples from Matthew 28:19-20 and passing on the faith to the next generation (Psalm 78:1-8). As soon as I got back to the Philippines, I immediately applied what I’ve learned in Hawaii.

It was October 7, 2012, Sunday 3PM, when I first gathered my nephews, nieces and other kids in our neighborhood. Eight (8) of them came and joined the first session held in the terrace of our house. The following week ten (10) kids attended. As the weeks go by, the number of kids attending increased. Currently, there are around 30 to 34kids attending on a regular basis, ages 5-13.

God, as the anchor and initiator of this weekly kids’ bible study, has been very generous as well by sending other youth workers. First, He sent Hazel Lleno, who was my co-member in Tinig at Himig Ng Kabataan Choir. She then invited other choir members, parish youth workers and other sisters from a newly established charismatic community in Binan, Laguna called Light of Jesus or more famously called Kerygma Family. Now, there are 12 youth workers alternating each week in teaching the kids.

Every Sunday we teach them the love of God, different action/worship songs, how to pray, how to love one another and the gospel of the day or words from the Bible. At the end of every session, after nourishing their souls, we give them snacks to eat. It is challenging to manage them all especially when there’s only one worker handling the session. But through the months, I have noticed how they have grown in the area of prayer. They can now do a spontaneous, vocal prayer on their own and I have seen how they have known Jesus in a more personal and intimate way. With the youth workers’ prayer & discernment, the group is now named “Beloved Dela Paz Kids”.

Through this weekly kids’ bible study, I believe it is not only the kids who have been transformed. I observed that even adults listen to the talks we give and the songs we teach. They too enjoy each session and even my mother no longer agrees that we miss one Sunday teaching the kids. I am sure that this initiative is slowly building up our community in Kalye Siete, Victoria Subdivision, Binan, Laguna. Sooner or later fruits will come out of this effort and transformation will be seen in the lives of, not only the kids but the adults as well. May the Name of Jesus be praised from one generation to the next. To God be the glory!

-Maureen A. Ramos

Connecting with them is not really hard at all, they are all so well mannered. I saw how real kids are actually acting, most of my cousins and children in my family doesnt have much interaction with us anymore since the age of technology and digitalization came in. But this kids reminded me of my childhood, I am not born rich. My parents are really hard working supporting us; me and my brother we were raised in a very laid back and humble community. Things just started moving fast for me since high school, when I started being competitive and belonged to a straight A class which eventually landed me a scholarship in La Salle. I was just like them - the kids of Dela Paz wanting to be someone one day wanting to prove things and help people.

We asked the kids what they wanted to become in the future and what are they going to do to achieve those since a part of our goals for the service learning is to hone the value of being success driven and patient. They were asked to drew their dreams while we also did ours and shared it in groups.

I was moved hearing them telling stories why they had those dream. There was a little boy who specifically caught my attention, he is different in the group. Diagnosed with ADHD and when he started telling his dreams - he said he wants to be a rescuer and save people's lives. Apparently, his family just moved to Binan after Yolanda.

Most of these kids talk like adults... they have so much stories to tell, so much experience that even I was foreign to.

Journal 8: Corporate Social Responsibility

In the last session I gain a deeper appreciation of what CSR really meant. I used to think that CSR are mere marketing campaigns of companies to boost good impressions about them in the business community. I've been part of a group of companies wellness team, was part of the "Run for the Pasig River" campaign, been a member of a group of company who has its own foundation. However, I did not really know what everything is for.

What really is CSR?

Traditionally, CSR has been defined much more in terms of a philanphropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.

I have read numerous definitions but I think the European CSR model has the most in-dept explanation of what CSR means. The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because:

Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society.

When times get hard, there is the incentive to practice CSR more and better - if it is a philanphropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove.

But as with any process based on the collective activities of communities of human beings (as companies are) there is no 'one size fits all'. In different countries, there will be different priorities, and values ​​that will shape how business act. And even the above observations are changing over time. The US has growing numbers of people looking towards core business issues.

For instance, the CSR definition used by Business for Social Responsibility is:

·         Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business.  On the other hand, the European Commission hedges its bets with two definitions wrapped into one:   A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

Reference: http://www.mallenbaker.net/csr

We have also discussed CSR models, outlined the model of how companies conduct business. The first is Carroll's Pyramid of Corporate Social Responsibility.

Economic responsibility in Carroll's CSR Pyramid: It concerns the responsibility of the business of producing goods and services needed by society and making a profit selling them. Novak (1996) has contributed to this by defining seven responsibilities of companies. Companies have shareholders who demand a reasonable return on their investments, they have employees who want safe and fairly paid jobs, and they have customers who demand good quality products at a fair price. So, here comes the first responsibility of the business as it is to be a properly functioning economic unit and stay in business. And this is the bottom of the pyramid, where all the other layers rest on.

Legal responsibility in Carroll's CSR Pyramid: the legal responsibility of corporations demands that businesses abide by the law and play by the rules of the game. Should companies choose to "bend" or even ignore their legal responsibilities the price can be very high for the business. And the US software giant Microsoft has faced a long-running antitrust case in Europe for abusing its monopolistic position to disadvantage its competitors which resulted in settlements tough against the company.

Ethical Responsibility in Carroll's CSR Pyramid: The main concept of ethical responsibility as defined and expressed by Carroll (1991) is that the ethical responsibility consists of what is generally expected by society over and above economic and legal expectations. Ethical responsibilities of companies cover its wide range of responsibilities. Ethical responsibilities are not necessarily imposed by law, but they are expected from ethical companies by the public and governments and this case was seen in the example of Shell, where the decision of the government was reversed for disposing of oil platforms after a campaign and disagreement by the society and public.

Philanthropic responsibility in Carroll's CSR Pyramid , as it is in the top of the pyramid, it focuses on more luxurious things such as improving the quality of life of employees, local communities and ultimately society in general. Some points of the philanthropic responsibilities of the business can be controversial and requires separate studies aimed to it. For example, who should decide on what cause to spend the money, how much, and on what basis these decisions should be made.

Comparatively recent theories concerning our firm's social responsibility is "Theory of the Firm / strategic leadership theory" which was proposed by Waldman et al (2004). The theory states that some aspects of CEO leadership can have a direct effect on the inclination of firms to engage in CSR and companies which are run by intellectually stimulating CEOs do engage in strategic CSR more than average companies.

Reference:

Waldman, D, Siegel, D & Javidan, M, 2004, "CEO Transformational Leadership and Corporate Social Responsibility", Working Paper, Rensselaer Polytechnic Institute

And then the, CSR Pyramid 2.0

In this model, the company incorporates CSR in all of its processes. Philanthropy is now placed at the bottom of the pyramid. Since risk management and strategic CSR is a priority and placed on top. An example of this is the strategic CSR model that incorporates Nestle in one of its bestselling product in the Philippines which is Nescafe. They provide education, training and support to coffee bean farmers and their families in a way that also helps the company.

As a future business leader, now I have this idea of ​​how I will manage the business in the future. I plan to go beyond gaining profit but I will manage the business in terms that it will have an impact and contribution to the society.

 Journal 7:  ANALYSIS ON THE FORD-FIRESTONE CASE: TIRE RECALL

My group was asked to do an analysis on the ford-firestone case. Its kind of hard again for us to create an analysis like this since we are all now focused on our finance and accounting subject and grew past our management principles knowledge. But its good to refresh our minds with all the frameworks again and come up with decisions analysis and learning points. We finished almost 1 am doing this paper.

CASE BACKGROUND:

•200 deaths in the US due to cars rolling over

•60 deaths in Venezuela

•14 deaths in Saudi Arabia

•Tread separation a possible cause of the cars to rolling over

HISTORY OF THE TWO COMPANIES

•Partners dating back to 1895

•First contract established in 1906

•Martha Firestone, Harvey’s granddaughter, married William Clay Ford, Ford’s grandson

THE BLAME GAME – FIRESTONE

•In 2001, Firestone issued a report blaming the Explores design for all of the accidents

•Any tread separation would have caused the accident

•The tread separation claims occurred ten times more frequently on Ford’s Explorer than on Ford’s Ranger, a pickup

THE BLAME GAME – FORD

•In 2001, Ford gave the NHTSA a report blaming Firestone for manufacturing flaws

•The Explorer had ranked among the top in terms of safety among the 12 SUVs tested for 10 years

•For the much of the time the Explorer ranked high in safety, Goodyear tires were used

•Rangers are taken on long distance trip where the tires could get too hot

WHO IS AT FAULT?

•Ford recommended a low inflation level for the tires, which causes greater heat build up

•Ford chose to use grade C Firestone tires instead of more heat resistant tires such as grade B

•Firestone had been linked to tire failure, most manufactured from a plant in Illinois

DRIVERS AT FAULT?

•Not being aware of their tires inflation levels

•Driving too fast over long periods of time

•Not knowing how to handle tire blowouts

THE CONSEQUENCES

•Ford reported it would triple its initial recall, costing over $2.8 billion

•In 2001, Ford Explorer sales decreased dramatically

•Ford reported its first loss in operations since 1992

•Firestone’s earnings dropped 80 percent in 2000

•A net loss $510 million, largely due to $750 million in legal expenses

STATEMENT OF THE PROBLEM

How should Ford and Firestone address bad reputation and decline in profits while ensuring customers safety in every car they sell?

OBJECTIVES

•For Ford to create a supply chain management

•For Firestone and Ford to test tires and model designs on actual car models not mules

•Increase ethical considerations before releasing products

PEST ANALYSIS

PORTER'S FIVE FORCES ANALYSIS

SWOT ANALYSIS

ALTERNATIVE COURSES OF ACTIONS

1. Review and change current end to end process of supply change management

•PROS- close monitoring of quality assurance and internal auditing will minimizes production errors and increase product quality.

•CONS- more costly on the part of the company

2. Test actual car models and tires prior to release in the market

•PROS- tests insures improvements on defective products and ensures safety to consumers

•CONS- more costly and time consuming on the part of the company

3. Follow standard ethical principles and considerations as a core value of both companies 

•Utilitarianism- continues to practice an action or decision that is the only right one to perform for the benefits of the stakeholders over the total consequences and cost implications in the company (Review and change current end to end process of supply change management & Test actual car models and tires prior to release in the market).

•Rights- both companies must comply to all basic rights of every individual based on ethics system primarily the rights to live, thus respecting every individual’s rights that can be legal in nature, or pertain to human rights or moral rights (Simply the liberty to own a car without compromising safety of the consumers).

•Justice and Fairness - Continues to find immediate solution to problems for the benefits of the consumers and offer each person what he or she deserves by giving them practical options based on their desires and requirements.

RECOMMENDATION:

For Ford and Firestone:

•The recommendation of the group is to strengthen model unit tests, quality assurance and internal auditing of end to end manufacturing and retail process.

•Follow standard ethical considerations defined in the ACA.

•Be responsible and replace defective products.

For Government

•Pass standard bills with regard to quality of products because it affects public interest.

•Be proactive in investigating causes of accidents even if it is small in number.

•Closely monitor companies’ compliance to standard process and specifications set.

•Innovate process and product.

ACTION PLAN:

•Create a value chain management

•Thorough product testing

•Create an internal audit team

•Create a quality assurance team

•Thoroughly investigate suspicions and complaints on safety

•Strengthen and support crisis management team

•Be proactive in the after sales process of products to maintain good reputation to consumers

•For government regulating body to actively regulate

LEARNING POINTS:

•Complacency and reluctance to standard procedures in the business process may directly affect a company’s performance and market share.

•Businesses must ensure law abidance and guard against liability suits.

•If you don’t do it for ethical or moral reasons do it because it make good business sense