A previous report from the Asian Development Bank (ADB) has already reiterated that the country could be facing a water crisis with tragic consequences. It even stated that as of 2002, some 699 million people in the Asia-Pacific region had no access to safe drinking water.

The report, "Asia Water Watch 2015," published jointly by the Asian Development Bank, UNDP, UNESCAP and the World Health Organization in 2006, also mentioned that the Philippines’ water use and water supply situation have actually regressed — that is, as more and more Filipinos need water in rural and urban areas, water supply is actually decreasing.

How do we deal with this emerging crisis in the next few years?

The recent Creating Shared Value (CSV) Forum held at the New World Hotel discussed how corporations could work with government, NGOs and other stakeholders in ensuring water for both urban and rural communities.

The resource expert who led the discussion was Arjun Thapan, special senior adviser to the ADB president on infrastructure and water.

The CSV Forum sought to encourage corporations to invest in business strategies, practices and programs that are not only profitable but are also catalysts for social progress.

As the CSV Forum's main speaker, Harvard professor and social responsibility expert Mark Kramer defines it: "Creating Shared Value means policies and practices that enhance the competitiveness of a company while simultaneously advancing economic and social conditions in the communities in which it operates."

Thapan revealed that the ADB is encouraging the private sector and government to invest in water, specifically targeting the poorest areas, where people need water and sanitation most urgently.

ADB has also done a cost-benefit analysis, proving that investing in water will result in tremendous returns. Essentially, for every dollar spent on water and sanitation for the poor, US$ 6 is generated.

"Here's the big picture. Even if we only invest to meet the minimum requirement set by the United Nations for providing water and sanitation to the world’s poor — known as Millennium Development Goal (MDG) Target 10 — the economic benefits will amount to $54 billion. If we exceed MDG Target 10 and invest in water, sanitation, together with piped-in water to houses, sewage and partial water treatment for all, around $241 billion in economic benefits are generated," Thapan said.

"More simply, if we invest US$ 8 billion annually in water and sanitation to meet Target 10, we get an annual return of US$ 54 billion in economic benefits. If you think about it, very few other business investments result in such a high rate of return," Thapan added.

CSV for water investments

How are the economic benefits of investing in water determined? The ADB report explained that these are usually measured in terms of “time savings” which are divided into two types: gains from lower morbidity and fewer deaths; and gains from spending less time and energy to fetch water.

Other ways to measure cost benefits from water investments is in the cost saved from health care, since the lack of clean water for drinking and hygiene contributes to many illnesses.

Thapan also pointed out that investing in water improves a community’s state of nutrition, hygiene and health — leading to many other beneficial results that impact society and business.

"When people in poor areas gain access to safe water, they become more nourished and healthier. This increases their productivity. It also increases the likelihood that children will be attending school, since they are healthy enough to show up in their classes," Thapan said.

"These improvements in productivity and educational attainment will lead to greater livelihood among the poor. As livelihood among the poor increases, incomes go up along with purchasing power. This opens up new markets for businesses that are willing to invest in water as well as products that are affordable to these emerging markets," Thapan added.

Water: Agriculture, corporate, domestic use

Thapan also clarified a few things about the efficient use of water. He said that in reality, the inefficient use of water that results in wasted resources and shortages is not primarily the fault of corporations and households.

The major contributor to dwindling water supply in the Philippines and other countries is agriculture — more precisely, the inefficient use of water in the agricultural sector.

"The Philippines has a low rating when it comes to the efficient use of water in its agriculture sector. Both the government and the private sector can work together to improve that efficiency. The efficient use of water in agriculture ensures not only water supply but food supply as well," said Thapan.

Nestlé Philippines, in partnership with the ADB, the Philippine Business for Social Progress and the Asian Institute of Management RVR Center for Social Responsibility, organized the Philippine CSV Forum to encourage corporations, government and other society stakeholders to embrace Creating Shared Value as a catalyst for social progress.

Read More ...

Have you heard about appreciation tokens before?

It's nothing new and has been adopted years ago as a way to show how you appreciate a gesture or an act. However, instead of the usual gift cards or thank you cards, you can use a token as a means of showing your gratitude to somebody for maybe following your blog site, visiting and commenting on your posts or just by simply being a friend.

In fact, there are even a hypothetical token economy set up in some parts of the world under a strict and controlled environment. These places exist to study the behavior of a person in a society where people are supposed to earn tokens when they show good behavior. The tokens themselves are not a reinforcement, but people can save their tokens up and trade them for things they want, which is a form of reinforcement. For example, people might collect tickets for exhibiting behaviors deemed desirable, and at the end of the day, they could trade their tickets for candy, outside privileges, and other things they might want.

Now, there is a virtual site known as aTokens where tokens are adopted as a form currency. It is still in beta form, but has already showed a lot of promise. Members who avail of this free service online expect to use their earned and accumulated tokens trade on items such as games and web applications as well as redeem products and gift cards.

Bloggers can maximize the services offered by aTokens to increase their traffic and generate meaningful and substantial comments from their readers and visitors. For instance, contests and online activities can be organized for those who are willing to earn appreciation tokens.

However, since aTokens is still new, problems and small issues are encountered in the initial phase of its operation. These small, but irritating chinks in its armor include the following:

• unstable links with twitter


• limited number of opportunities to earn tokens


• delayed delivery of tokens to buyers


• spam control is not yet available

Despite the initial problems encountered, the site's services showed a lot of potential for striving bloggers. The tweetbox, for instance, functions very much like the twitter box, but it contains a special link which will reward the member who sent the invitation with 1 token every time one of your followers uses it to join. Hence, joining it this early will most probably be more beneficial in the long-run.

To join this free service, click on the banner below and start sending those tokens of appreciation.

Read More ...

The Supreme Court (SC) has finally issued a ruling that clearly defines the relationship between a life insurance company and a contracted agent for an insurance company.

According to GR 167622, there is a difference between the Labor Code concept of "control" and the "control" that must necessarily exist in a principal-agent relationship.

The high court stated that "the principal cannot but also have his or her say in directing the course of the principal-agent relationship, especially in cases where the company-representative relationship in the insurance industry is an agency."

The ruling further stated: "We can take judicial notice that as a matter of Insurance Code-based business practice, an agency relationship prevails in the insurance industry for the purpose of selling insurance."

Insurers said that the SC ruling ensures that life insurance companies are able to protect the interest of Filipino consumers, since they are able to strictly enforce their respective codes of business conduct guidelines required of their independent contractors without fear of possible labor law implications.

It further provides consumers with the assurance that insurance companies are able to implement and reinforce all of their necessary business control and quality standards at every point of customer contact.

They added that the decision has averted what could have been "a massive re-engineering of the business models adopted by life insurance companies, which could have severely impacted various stakeholder groups."

The Supreme Court made it very clear that any rules regarding the desired results (e.g., the required volume to continue to qualify as a company agent, rules to check on the parameters on the authority given to the agent, and rules to ensure that industry, legal and ethical rules are followed) are built-in elements of control specific to an insurance agency and should not and cannot be read as elements of control that attend an employment relationship governed by the Labor Code.

The high court decision in GR 167622 had to do with a motion of reconsideration filed by the Manufacturers Life Insurance Co. (Philippines) Inc. under then chief executive Renato A. Vergel de Dios.

The SC made an earlier decision dated 3 December 2008 ordering Manulife to pay Gregorio V. Tongko backwages and separation pay for illegal dismissal. Tongko was then a regional sales manager of Manulife.

"We reverse our decision of 7 November 2008, grant Manulife's motion for reconsideration and accordingly dismiss Tongko's petition. No costs," the order, signed by SC Chief Justice Renato C. Corona, stated.

Read More ...

According to The Philippine Star, the fairer yet very formidable sex in this part of the world has long been smashing glass ceilings in the Philippine political, social and cultural arenas. Across the male-dominated business industry, legendary matriarchs, from the late Doña Engracia "Aling Asyang" Reyes of Aristocrat Restaurant and Gliceria Tantoco of Rustan's Commercial Corporation, to the present-day Socorro Ramos of National Book Store, have proudly carried the torch of female empowerment.

Some of the leading ladies of domestic franchising seem to be following in the footsteps of these pioneering Filipinas who have adeptly juggled a business career and family life.

Franchisers Siu Ping Par of PR Gaz Haus, Rebecca Bucad of K2 Drug Inc., and Mary Simisim of Blue Water Day Spa share their perspectives, philosophies and principles on business and homemaking. It comes as no surprise that the three entrepreneurs profess admiration for all women who have found success in business.

Women of Success

Par, the chief operating officer of the subsidiary company of PR Gaz Franchising Corporation, says that "successful women entrepreneurs can be found in every country and under all circumstances." A member of the Philippine Franchise Association (PFA) Board, she says that "women of today have the equal opportunity to make a difference in the business community and in society, unlike decades ago when they had to fight for the right to self-determination."

To which Simisim, president of Blue Water Day Spa, concurs. This economics graduate of the University of Santo Tomas applauds courageous women who take risks in their chosen ventures and are rewarded accordingly. "Their success is admirable since we live in a society where men dominate most industries, of course, with the exception of the beauty and wellness field."

For her part, Bucad says women are great business owners because “apart from being excellent organizers, we treat our staff like family. We also have a special way of listening to and addressing business-related concerns.” The president and CEO of K2 Drug adds that while women are still a minority in the franchise business
worldwide, their number as well as influence are growing, most notably Indra Nooyi of Pepsi and Cathy Hughes of Radio One.

PR Gaz Haus

Describing herself as foremost a wife and a mother, Par keeps a very simple and straightforward business philosophy: "My father has taught me that hard work, perseverance and discipline are the keys to achieving success. Careful, efficient and long-term planning and strategizing are important, too."

According to Par, who also sits on the board of the PR Gaz Haus Group of Companies, a good management style should not be grounded on skills alone. "One must have the heart and passion for running a business," she states. "The challenges and demands of being an entrepreneur can be multi-dimensional and women, because of the various roles we play in society — daughter, wife, mother, sister, teacher, or friend — are uniquely equipped for this."

For her part, Bucad says women are great business owners because "apart from being excellent organizers, we treat our staff like family. We also have a special way of listening to and addressing business-related concerns." The president and CEO of K2 Drug adds that while women are still a minority in the franchise business
worldwide, their number as well as influence are growing, most notably Indra Nooyi of Pepsi and Cathy Hughes of Radio One.

PR Gaz Haus

Describing herself as foremost a wife and a mother, Par keeps a very simple and straightforward business philosophy: "My father has taught me that hard work, perseverance and discipline are the keys to achieving success. Careful, efficient and long-term planning and strategizing are important, too."

According to Par, who also sits on the board of the PR Gaz Haus Group of Companies, a good management style should not be grounded on skills alone. "One must have the heart and passion for running a business," she states. "The challenges and demands of being an entrepreneur can be multi-dimensional and women, because of the various roles we play in society — daughter, wife, mother, sister, teacher, or friend — are uniquely equipped for this."

Thus, when faced with challenges Par reveals that she not only draws support from her team, "I also get an overflowing dose of inspiration and encouragement from family and close friends." Married to Nelson Par and a mother of four, Par prioritizes family life. "Pages of my office note planner bear important school dates of my children, family events or functions, to ensure that I don't miss out on anything. Likewise, technology has made the job for busy moms like me a lot easier. I am always a phone call away."

On weekends, Par and her family go on short, out-of-town trips because she says the change of scenery is sure to charge one’s spent "batteries." "Watching movies with my husband and kids is a great stress-buster, too," she confides. "And to keep fit, I attend a boot-camp class once a week and play badminton as often as I can."

Par recounts that she was a full hands-on manager during the initial stages of their family business. That was in 2000, when the company she helped grow with her husband set up refilling plants in Metro Manila, Cavite and Zambales. A year later, the company began putting up its own retail outlets, called PR Gaz Haus — the first LPG convenience store in the country. "But now we have a different organizational setup and I am able to focus on the bigger, more important requirements of my division."

A Certified Franchise Executive (CFE) graduate of the Institute of Certified Franchise Executives (run by the US-based International Franchise Association), Par relates how she and her husband got into franchising in 2004. "We needed a proven way to extend our reach and franchising provided us the means to do this. So we tried to learn as much as we could about the concept and we found that many popular brands employed franchising to grow their business. We also attended franchise shows like the Philippine International Franchise Conference and Expo (PIFCE) to get more information. In 2005, our first franchised store opened in Cavite. Less than two years later, we had a total of 34 franchises in our chain."

Par attributes the growth of their franchising business to having the right program, people and processes. "You must constantly employ innovations in business and update yourself on developments in the industry. It is also a good move to link with peers in the franchising sector and tap the benefits of being in a franchising association such as the PFA."

She adds that it is vital for franchisers to always be connected with franchisees. "We hold conferences with our various franchisees to update them on company developments and discuss concerns. We also have good relations with our franchisees even on an individual level. We consider our franchisees active partners in growing the business."

To date, PR Gaz Haus has over a hundred outlets operating in Luzon. This figure is expected to grow by at least 60 more stores before yearend. "This is part of our company’s "500-in-5" vision, in which we aim to set up 500 stores by 2015," Par says.

Blue Water Day Spa

A proud wife and mother of three, Simisim says she leads by example. "Basically, how I behave and act when I am at work is how I want my employees to behave and act as well. For instance, I usually come half hour to an hour earlier for meetings because I want my employees to see how much I value time. Likewise, I want them to also be on time during meetings as it highly reflects their professionalism."

Simisim's firm belief in and adherence to time management even extends to her personal life in order for her to be effective in her different roles as a mom, wife, and entrepreneur. Family is very important to Simisim as it is her primary source of inspiration. "I want to provide my family with a promising future, so I work really hard," she emphasizes.

"On a typical weekend, I go away from the city with my family to visit magnificent places like Tagaytay, Cebu and so on," Simisim discloses. "My one great love is traveling for business and pleasure as it allows me to explore different places and countries including their people, food, arts, and cultures. It also helps me keep up with new trends and technologies in the business world."

Simisim, who says one of the greatest advantages of owning a spa business is that unwinding becomes very convenient for her, recounts how she became an entrepreneur. "Upon getting married, I moved to my husband's family business that is focused on export and trading. I have since then been managing the business with my husband up to the present. Seven years ago, I opened a facial center with a partner, under a Malaysian franchised brand. That experience was really a learning process for me," she recalls.

"Moving from trading to the beauty business took a lot of risks and hard work, due to the unrelated nature of both businesses. In 2005, I finally began my own spa and facial business, which is today known as Blue Water Day Spa," she continues. The spa offers quality services comparable to high-end spas and hotels but at a reasonable cost. Its wide range of services includes massage techniques specially created for the spa. Each year, the spa introduces two new services into the market that are unique and have health benefits.

In 2006, she started franchising the business. From the outset, Simisim made it a point that the spa business she set up was running well and smoothly before she decided to jump on the franchising wagon. "After all, when a potential franchisee invests in your brand name, they deserve to have all the support and assistance from the franchiser," she remarks.

That is why Simisim enjoys a good relationship with her franchisees. She makes sure that their concerns related to marketing, advertising, training support and the like are taken care of even if they have been a franchisee for years. "I believe that franchisers must establish a good rapport with their franchisees in order for their business to grow and so that they will also look after Blue Water Day Spa as if it were their own."

Currently, the spa has two company-owned branches in Ortigas and Makati as well as three franchisees in Capitol Hills, Eastwood City and Tomas Morato. "For this year, Blue Water Day Spa plans on expanding the business in terms of having more franchisees nationwide, introducing more innovative treatments and maintaining the quality service that we are proud of," Simisim declares.

K2 Drug, Inc.

Emphatic that her business life and lifestyle are one, Bucad follows personal maxims that guide the way she conducts her career and family affairs. The newly designated Certified Franchise Executive (CFE) subscribes to the belief that business can reap benefits from a solid family lifestyle and a solid family lifestyle is the reward of a solid business. "So, never make your children the reasons why you do not, but every reason you do."

A master opportunity-seizer, especially if the opportunity matches her values and vision, Bucad maintains, "We should learn to live within the laws of life and business. Both essentially need attention, time, nurturing, planning, goals, and supervision."

Ergo, Bucad highly recommends integrating one's lifestyle, relationships and business into one since they are all symbiotic. "My beloved family, including my youngest child, is involved in K2 Drug," she shares. "My eldest two are directly involved in management and operations. So every business discussion among us has never been a stressor. In fact, we consider it the common thread that strongly binds us. As we bond, the business becomes stronger."

Leisure for this Asian Institute of Management alumnus is unsurprisingly another family affair. Says Bucad, "We infuse a sense of democracy into our family activities, where everyone has a say in what they want to do. The focus is always placed on what works for everyone, whether it means staying at home, cooking a simple favorite dish or having a karaoke session. The important thing is the activity must be safe, there is constant communication, and that it strengthens the family fabric."

Believing that Pinays will always do well as entrepreneurs because family is their single greatest motivator, Bucad grew her current business to what is it is now based on making the right choices. Her first store was originally owned and run by a former client. The client, believing that she was already advanced in years and seeing that none of her children were interested in inheriting the business, gave Bucad the store, trusting the latter would turn the fledgling company around. That was 1998 when Bucad was moonlighting as a distributor of generic medicines.

Later the company was developed by Francorp Philippines for franchising. K2 Drug was incorporated in February 2007. The lady entrepreneur says franchising is a way to share a winning business plan, which makes sound business sense.

"As to how I deal with potential and even current franchisees, I always try to stress the infinite value of capitalization and aptitude. Not all people can have a franchise. Their expectations must be tempered by realizations that in all businesses there is a risk factor," she states. "The secret is making that risk factor a calculated risk. And the beauty of a franchise with K2 Drug and many successful franchises is that it is no longer a trial-and-error process. It is more like a find-and-refine process."

K2 Drug has 16 company-owned drugstores in Metro Manila, Angeles City, Olongapo City and San Pablo City. It has two franchises, one of which belongs to a group of Japanese investors. According to Bucad, the goal is to expand the business by two to five stores a year.

Franchise 2010

For Siu Ping Par, Rebecca Bucad, and Mary Simisim, joining the prestigious PIFCE is very rewarding. Otherwise known as Franchise 2010, the annual event is one of Asia’s most-attended and longest-running franchise shows.

Par says, "Joining the event affords a franchise brand a captive audience and a good lead-generation strategy. With new government leaders in place by the time of the holding of Franchise 2010, people will hopefully be in a positive mood and actively on the lookout for investment opportunities. We hope to surpass last year’s results in terms of number of leads generated and actual franchisees signed up."

Bucad, meanwhile, says, "I encourage the public to join and participate in the upcoming PIFCE. The opportunity to tap prime business options, acquire new knowledge, and learn best international practices in franchising is priceless. When I first joined my primary expectations were to learn how to survive and succeed in this competitive world. I feel that I have achieved both."

For her part, Simisim remarks, "PIFCE provides the perfect avenue for all kinds of entrepreneurs to learn from world-class experts and practitioners how brands and concepts can expand faster while providing people with the opportunity to profit from it."

Read More ...

Despite being an agricultural country and one whose population, especially in the rural areas, have a wealth of knowledge on herbal medicines, the Philippines has lagged behind other Asian countries in developing the potential of herbal industry.

In the early 90s, the government was openly supportive and welcoming of the herbal industry when the Department of Health (DOH) was promoting the 'Sampung Halamang Gamot' program.

These medicinal plants that department endorsed were thoroughly tested and clinically proven to have medicinal value in the relief and treatment of various ailments.

In 1997, the Traditional and Alternative Medicine or the TAMA Law was also passed with the objective of growing the industry to cater to a wide range of alternative health care benefits to Filipinos.

The nurturing and harmonious regulatory environment continued throughout the 90s and early 2000 till the herbal industry became a full-blown formal industry offering a plethora of health benefits gravitating towards the DOH’s Sampung Halamang gamot, especially ampalaya or bitter gourd.

DOH Support Weakens

But over the past administrations, the DOH has oscillated in its efforts to support the traditional, alternative and complementary health care sector and weaken support to medicinal plants.

In 2003, Health Secretary Manuel Dayrit issued a department circular taking out ampalaya from DOH list, and downgrading it as a "folklorically validated" herbal medicinal plant.

This resulted in the almost-death of the ampalaya sector of the herbal industry, thus wasting millions invested in factory equipment and promotional activities and depriving small and medium enterprises with livelihood and ampalaya farmers with sources of income.

Fortunately, when Secretary Francisco Duque assumed the health post, he reinstated, in March 2007, ampalaya as a scientifically validated herbal medicinal plant that can lower elevated blood sugar levels. This enabled the sector to slowly recover.

But the DOH turned around in fostering the growth of the herbal industry with its issuance of Administrative Order (AO) 2010-008 last 18 March 2010.

The order directs the herbal industry to prominently place or audibly voice in all print and broadcast advertising materials of their food supplements a “derogatory” advisory in Filipino. Instead of the standard phrase "No approved therapeutic claim," the mandatory disclaimer now reads: "Mahalagang paalala: ang (name of product) ay hindi gamot at hindi dapat gamiting panggamot sa anumang uri ng sakit."

Industry Opposition

The Chamber of Herbal Industries of the Philippines Inc. (CHIPI) was the first to oppose the AO issued without consultation with the public, especially the industry stakeholders.

An association composed of over 65 local companies manufacturing or distributing the most in-demand herbal dietary supplements today, CHIPI said the mandatory disclaimer would send the wrong message to its growing number of patrons and reverse the efforts of the industry and previous administrations in promoting traditional, alternative and complementary healthcare products.

CHIPI explained that they are not against the Filipino translation per se of the present disclaimer "No Approved Therapeutic Claim."

"It is just that what the AO espouses is a language translation which in itself is erroneous and damages the integrity of the product with regard to its having therapeutic value," the CHIPI said in a statement.

The AO also limits the communication of vital product information in advertising and brochures, and the stopping altogether of promotional efforts in conventions and exhibitions sponsored by the medical and health associations. Violations are also given stiff sanctions including imprisonment.

"Instead of penalizing the entire food/dietary supplement industry – innocent and guilty alike, DOH should instead make every effort to ferret out companies which are in violation of FDA regulations and properly and punish the abusive companies that make fantastic claims that are misleading and can harm the public," CHIPI members said.

They said the DOH should not condemn the entire industry, especially the legitimate and responsible ones who have been providing affordable and alternative healthcare to millions of Filipinos.

Aside from substantial investments in advertising and promotion, CHIPI employs hundreds of employees as factory workers, sales and marketing agents, as well as provide enormous benefits to the agriculture sector which farm and produce raw materials for the herbal industry, they said.

Read More ...