FLYING HIGH: The AIM Scholars

by Rose Cheryl R. Orbigo, BMP 2005 and Krizia Eleni Patrocinio

Triple A Club Scholars

With Jesli Lapus, MBM 1973  as President, the Triple A Club, whose members represent the most outstanding alumni of the Institute, granted its first scholarship to Ariel de la Cruz in 2006. Jonah Avegail Gaerlan and  Katrina Gracia Macaraig are the fortunate recipients of their scholarship for this year.

Jonah Avegail Gaerlan, MBA 2012

 “I hold the conviction that with AIM, perhaps I, too, could become someone remarkable and influential one day.”

When Avy was young, her parents separated, but she still considers her childhood happy. “I believe it made me value the essential things in life at an early age. Thus, I do not believe in misconceptions about ‘broken homes,’ and I would very much like to erase the stigma attached to it.”

Another consequence of the separation is Avy’s admiration of her mother. “[She] single-handedly raised a whole family and made it feel like the toughest of times can come and go like a breeze. She made me into who I am today and taught me the most important things I needed to know about life.”

A graduate of Hospitality and Tourism Management from St. Louis University, Baguio City, Avy worked for the Provincial Government of La Union’s Information and Tourism Office before studying at AIM. “We were in charge of La Union’s tourism operations and marketing, organizing major events, creating press releases and correspondence for the governor, and performing other administrative functions,” she explained.

“I had wanted to pursue higher studies to broaden my knowledge and improve my future prospects,” she said. “After I read testimonies of alumni in the AIM ad in Baguio Midland Courier, my first impression of the school was that it is an enabler of success. It trains people to become competent in facing the world’s challenges and to go beyond what most people are capable of achieving… I chose AIM because of its tradition of excellence that enabled it to produce distinguished top executives through the years. I hold the conviction that with AIM, perhaps I, too, could become someone remarkable and influential one day.”

Avy entered AIM in September 2011 with the help of a scholarship from the Triple A Club. “I would think I got the scholarship because I showed that I was determined to brave AIM’s rigors despite the odds—despite being young and short of experience and funds. Not many people can look at a daunting prospect at hand and have the guts to go the whole mile, take responsibility, and see things through to the end… My family is delighted about my scholarship.”

A few months into the program, Avy found “a lot of the subjects challenging, especially since I have little business and finance background. I have been managing fine though, with perseverance and a good support system. Among the subjects we’ve taken up so far, Macroeconomics is hands-down my favorite… Our professors are the best. They have an uncanny way of thinking and piecing together class discussions such that every session with them is an enriching learning experience.

“Never before have I been in a room full of more brilliant and hardworking people than in an AIM case room,” she continued. “I learn from my classmates not only the substance of the discussion at hand but also the stories behind the perspectives from which they’re coming. I believe the good mix of diversity is one of the best things you can get at AIM.

““I shall thank my sponsor, the Triple A Club, by making good on my scholarship and hopefully living up to their legacy. I would heartily support future scholars,” she promised.

Once she gets her MBA diploma, Avy intends to return to the familiar field of marketing, communications, and PR, but in institutions promoting development, sustainability, and multicultural understanding. Moreover, she can then allot more time to her hobbies. “I engage in physical activities such as basketball, jogging, boxing, and aikido to ease away stress. I constantly find myself going on random walks. On weekends when I have little to do, I pick some place on the map I haven’t been to yet, then I explore and try to find my way around. Contemplating in a little spot of nature is my favorite way to relax, and discovering new things is what keeps my spirit alive.”

Moments of contemplation have led Avy to believe that life may not be fair, but one must “take the worst and use it to make you stronger, and take the best to carry with you every day.” “Things that happen in your life do so for a reason—to make you learn, realize something, and lead you to where you should be,” she stated. “It isn’t because of a pre-arranged and irreconcilable fate; it is so that you yourself can determine your destiny.”

Katrina Gracia Macaraig, MBA 2012

 “ I have always believed that life’s journey is not just about how much I have enriched myself, but it is also how much value addition I have provided to everybody else.”

Kathy holds a Business Management degree from the Ateneo de Manila University. After three years as a trade marketing manager at Unilever Philippines, she considered herself “prepared to take on more challenging roles and responsibilities.” “Specifically, I envisioned myself as a successful general manager and social entrepreneur… I believed that it was necessary for me to further reinforce my strengths and improve on my weaknesses by acquiring a master’s degree at AIM.

“I chose AIM because it has been known for training future Asian managers and leaders using the case method, which involves analytical, logical, and communication skills development,” she said. “Furthermore, the successful career paths and valuable contribution to society of most of AIM’s graduates encouraged me to choose AIM versus other business schools. For me, AIM is simply one of the best Asian business schools.”

Nevertheless, everyone in Kathy’s family was surprised when she divulged her plan to resign from her job. “They knew it was a big risk to let go of a stable career, but all of them knew that the lifetime benefits of getting into AIM are richer. When I broke the news that I passed, they were happy for me, but when I got the scholarship, they were just excited.

“I believe I was able to get the scholarship not only because I showed exemplary performance in my undergraduate school and in Unilever, but also because I have a relentless drive to succeed in all the endeavors I embark on, with cognizance of my responsibilities to society. I have always believed that life’s journey is not just about how much I have enriched myself, but it is also how much value addition I have provided to everybody else―classmates, co-workers, professors, etc.”

Three months into the MBA program, Kathy has adjusted to the everyday rigor. “I have learned to set my priorities and improve my time management skill.” Kathy likes studying Marketing Management, Cost Accounting, Managing Costs and Profits, and Managing People in Organizations.

“I always learn something new from AIM professors,” she noted. “Despite their solid work experience on the subjects, they have remained open and warm in receiving questions, challenges, and criticisms, which makes case discussions much more exciting.”

The diversity in her classmates’ culture, work experience, and insights has enabled Kathy to go beyond her traditional way of thinking and doing. “This learning process happens even in the dormitory lobby and hallway. It’s learning something new every day, everywhere.”

When the pressure and school demands are great, Kathy escapes by engaging in light conversations with friends, listening to music, catching the latest movie, or simply munching French fries.

After graduating, Kathy would like to become a general manager in a multinational corporation and to start her own business. Her role models would be her father, Jovencio, and her mentor, Jesli Lapus (MBM ’73) of the Triple A Club. “Their journeys in life have made me realize that real success is never earned overnight, but it is earned through hard work and patience,” she shared. “They have continuously shown me, in different circumstances, that the real meaning of life is reaching out to others even in the most miniscule manner.” Because of this, Kathy also intends to continue the vision the Triple A Club has for its scholars―that of contributing to AIM and to society. “I plan to partner with them in sending more scholars to AIM.” 

Malvan Hwang Scholar

In July 2010, Malvan Hwang, MBM 1974 came back to visit AIM after 36 years. He was also on a personal mission- to give back to AIM what AIM had given him- a scholarship grant. His donation of US $30,000 specified that his scholarship should be granted to a deserving Filipina. Angela Sanchez is the grateful recipient of his scholarship.      

Angela Sanchez, MBA 2012 

“I do hope though that I will get to meet him [Malvan Hwang] soon and personally thank him. I will again tell this to him: He makes dreams come true.”

Getting an MBA has been a long-time dream for Gel, who comes from a humble family and who studied Commerce at the Ateneo de Davao University. She was a software consultant with Push Technologies International and a junior accountant with Aboitiz Power before getting into AIM.

“I like learning,” said Gel, who considers taking an MBA a personal challenge. “I learned about AIM way back in college from my finance professor. She shared to me what AIM is like… Curiosity led me to wanting to get into the institution. My desire to get an MBA made me search for the best schools. Choosing AIM was no sweat. This is one of the best schools in Asia. I get to stay in my own country and at the same time see diversity in culture.”

Knowing she could not afford the program fees, Gel applied for scholarship and got in. “I am lucky to have a supportive family. My parents have tried their best to inculcate core values in us… The decision to come to AIM was not easy, and their support helped me go on.

“Now I realized I’m getting more than what I wanted,” she confessed. “It became a challenge of what I can make after acquiring this learning, what change I can make in society when I get back… I consider myself an average student. However, I have undying enthusiasm to learn… Reminiscing the classes in Casemanship still excites me. I appreciate Macroeconomics a lot, too; it has been really helpful in understanding current events.”

To Gel, AIM professors are “amazing.” “I find myself in awe in almost every class. They all compel us to think, to search for answers, to be eager to learn more. These professors are masters of their craft.”

Diversity in the students’ culture, work experience, and personalities has made the classes livelier. “Understanding personality and cultural differences has made us more sensitive to each other,” Gel observed. “This will be very helpful, especially when we join the workforce again. We can never choose what kind of persons we have to deal with. Also, learning from the experiences of my classmates has given me more ideas on practices in their fields. Aside from that, I learned to count from one to 20 in Hindi.”

Gel has not yet met her sponsor, Malvan Hwang. “I was able to send him a card,” she noted. “I do hope though that I will get to meet him soon and personally thank him. I will again tell this to him: He makes dreams come true. Should I be given the same chance to change someone’s life for the better, I’d do the same by giving education to less fortunate families.”

With her simple background, Gel finds happiness in simple things. “Sleeping comes first on the list,” she said nonchalantly. “Next will be calling my family, then talking to friends and eating.”

After graduation, Gel wants to hold a position in strategy, risk management, or project management. “AIM has given me many choices,” she said. “I hope AIM continues to develop more leaders who make conscientious decisions for the development of their country.” 

W. SyCip GSB Best and Brightest Scholar

AIM’s W. SyCip GSB Best and Brightest scholarship grant  offers the top undergraduate students with high GMAT/AIMAT scores, and solid work background MBA or MM full tuition scholarship, economy air fare from and to the students’ home country, lodging at the AIM dormitory, and a monthly stipend. Mr. Washington SyCip, one of the founders of the Institute is the generous funder of this program.  

Isagani Lati Jr., MBA 2012 

Gani is the youngest child in a simple family. His mother runs a small store selling fresh meat, fish, and vegetables. His father was a long-time elected barangay (village) official before passing away in 2008 due to diabetes. “Although they wanted to go to college, they were unable to do so because of poverty,” Gani narrated. “Even so, they were able to raise me and my siblings in the best possible way through hard work and perseverance, and without stepping on other people’s shoes.”

As a result, Gani’s brother became a policeman, and his sister now has her own small business. Gani himself completed the BS Accountancy program of San Beda College and landed in the third spot on the CPA board exam. He worked in various capacities for nine years in the Philippines and abroad. His two most recent posts were assistant manager at Manila Doctors Hospital and associate director at the auditing firm SGV & Co. Believing that learning is a continuous process and that his professional life could be improved, Gani decided to study at AIM because of its international recognition and because“its graduates are undeniably considered the movers and shakers of the business world.”

Because of Gani’s credentials, achievements, and personal background, he was conferred the W. SyCip GSB Best and Brightest scholarship. “The professors in AIM saw in me the potential to contribute to the AIM community,” he explained. “My family, especially my mother, was very proud of the recognition. It was an achievement not only for me but also for my family.“

The first three months of the program was really tough, like everything was on fast forward,” he recalled. “You have to absorb every lesson at the shortest possible time. I struggled a little with subjects like Quantitative Analysis and Economics. But it was worthwhile because I learned a lot of new concepts and points of view from my professors and classmates… It’s understandable that I like finance subjects because I have a finance background. But the subject that interests me most is Managing People in Organizations because it deals with leadership skills that every manager should have.

“My classmates are highly competitive,” he described. “They are so competitive that I have to raise my standards to keep up. As the Best and Brightest Scholar, I am expected to perform… The level of competitiveness during class discussions and learning team meetings helps me learn a lot of insights about the cases. It is the interactive experience with people of different cultural and professional backgrounds that has provided me with a lot of insights.”

When his case pack is closed, Gani prefers to watch TV, walk, or hang out with friends. “Any activity that drives me away from doing things that cause stress is a relaxing activity for me.

“I promise to live up to the standards of AIM after graduation because I value the education AIM provides,” continued Gani, who dreams of becoming an entrepreneur and business executive. “I plan to express my gratitude to my sponsor [Washington SyCip] by continuing the tradition of providing scholarships to deserving aspirants who want to pursue their master’s degree in AIM. In return, these aspirants shall contribute to the well-being of society by being responsible leaders in their own organizations and keeping the tradition of providing scholarships in AIM… I want my alma mater to be a platform for future leaders here and abroad by maintaining its commitment to excellence.”

 Gabby and Marianne Paredes Scholar

During  the signing ceremony of Chibuom Corporation for a full scholarship grant, Gabby Paredes, MBM 1972 shared that “This is my giving back to AIM. We believe in the value of education and what it can do for a deserving student: how it can change your life and how you contibute to society eventually.” Kristeen Joi Lantican is the lucky recipient of the Gabby and Marianne Paredes Scholarship.      

Kristeen Joi Lantican, MBA 2012 

“Someday I hope that I can pay it forward.”

Kristeen was the breadwinner in her family prior to taking up her MBA. An Economics graduate of the University of the Philippines Los Baños, she used to be a project development officer for Avida Land Corp. Encouraged by her aunt, who is a college dean and her role model, and inspired by her philosophy “make a choice and don’t look back,” Kristeen applied to AIM to realize her plan of pursuing graduate studies by age 25. “My sponsor told me he was glad that I didn’t let go of my dream even if I knew I couldn’t afford it. He told me to keep on dreaming.”

AIM is tough, but Kristeen is “doing fine.” She appreciates most the subjects Macroeconomics and Managing Costs and Profits. During down time, she dines with friends and classmates.

“It’s like everybody here is really smart,” she observed. “I feel that I have to strive harder to keep up. But I enjoy hearing all the opinions in class, especially during case discussions.” Studying hard is the only way she can thank her sponsor at the moment. “However, someday I hope that I can pay it forward.”

After graduation, Kristeen plans to return to the real estate industry. “But I plan to be an entrepreneur as well,” she added.

The Chen-Yung Memorial Foundation Scholarship

Dr. Ching Chih Chen, an esteemed member of the AIM Board of Governors from 2007 to 2009, and Chairman of the Chen-Yung Memorial Foundation, donated US$180,000.00 over three years to AIM in support of potential students who will participate in furthering the human resource development of Vietnam in the field of management. Dr. Chen was educated at Massachusetts Institute of Technology, USA and also heads Wan Hai Shipping Lines, headquartered in Taiwan and with 125 offices all over the world.

The annual donation of US$60,000.00 provided students with full scholarships, support their living expenses, and fund the airfare to and from Vietnam. Through the Chen-Yung Memorial Foundation, which was named in memory of Dr. Chen’s father, the Chen-Yung Memorial Foundation Scholarship provided deserving students from Vietnam the opportunity to receive a Master in Business Administration (MBA), Master in Management (MM), and/or Master in Development Management (MDM) degree in AIM.

Since 2009, there have been ten (10) recipients of the Chen-Yung Memorial Foundation Scholarship: Nguyen Thi Phuong Uyen (MBA 2010), Dao Le Tram Anh (MBA 2010), Tran Cong Bang (MDM 2010), Tran Bich Thuy (MDM 2010), Nguyen Tieu My (MBA 2011), Le Nguyen Nhat Chinh (MBA 2011), Nguyen Thi Thu Trang (MDM 2011), Tran Thi Minh Hue (MBA 2012), Ngo Thi Thanh Van (MDM 2012) and Phan Thanh Ngoc (MDM 2012).

Trang Thi Thu Nguyen, MDM 2011

As a young girl growing up in one of the rural coastal areas of Vietnam, Trang Thi Thu Nguyen saw the importance of having a certain level of authority. She realized there was a need for power and influence to be able to address the problems of the disadvantaged sectors of society and to make changes in their lives. This inspired her to strive to be someone with power and influence, so she can make changes from the grassroots level upwards. She admired and respected people who have big dreams, who are unafraid to challenge the tough world, and passionately pursued their dreams until they reached them.

Trang recognized that for her to enable change, wield influence and obtain power, she needed to study and work hard. “My ultimate goal was to work for the betterment of humanity in my own small ways,” she revealed. She went on to finish her Bachelor of Science degree with a major in Information Technology at the University of Natural Science in Vietnam. After graduation she worked as an Application Developer and IT technical trainer for Scancom Ltd Co. After two years, she moved to InvestConsultGroup as Deputy Manager of Center of Information & Market Research.

She was enjoying her job responsibilities but her interest in social service never wavered. She then decided to join Vietnam Chamber of Commerce and Industry (VCCI), a public non-profit organization, and worked as a Development Planning Manager. She was responsible for organizing business-matching and cooperation programs to promote trade co-operation between Vietnamese enterprises and overseas enterprises. “I am conscientious in studying and looking for solutions in the issues that Vietnamese enterprises have been facing unsatisfactorily, particularly in human resource development and business management. I am interested in projects relating to enterprises because their positive changes can considerably impact social and economic issues, especially poverty. I am motivated to help poor people in coastal areas, the place I lived for a long time,” she shared.

When the opportunity to study in AIM presented itself, Trang unhesitatingly grabbed it. “My unique blend of experiences in professional development, strong commitment, and clear ultimate goal for my future career path and potential contribution gave me confidence to pursue my application to the Masters in Development Management (MDM) program. I wanted to enhance my academic qualification, build networks, and strengthen my career path. Knowing that AIM is one of the best in Asia, I wanted to study here as it is the lifetime opportunity for me. I learned of AIM’s reputation through my friends who are AIM alumni,” she admitted.

After a series of interviews, she was accepted into the MDM program and received full scholarship from the Chen Yung Memorial Foundation, courtesy of Dr. Ching-Chih Chen, Chairman of Wan Hai Lines and former Member of the AIM Board of Trustees.  “When I arrived at AIM, I thought the experience was going to be like in any other university, where you have a lot of free time to study or do other things on your own, but it was completely different. AIM is fully an academic-oriented school where students are required to do all the academic work, either in CAN groups and individually. I realized that the key to success here is to work smartly and diligently. If you cannot manage workflow and stress in a small laboratory environment like AIM, you cannot succeed in the tough world,” she disclosed.

“Studying in AIM is very challenging. It tests your aptitude and ability and pushes you to make full use of your potential. Most of my subjects are very useful. I like Base of Pyramid, Business Economics, Macro-Micro Economics, PPDM, Regional Integration Asia, System Thinking, and Strategic Management best. These courses provided me with effective tools, as well as shaped my mindset in the way I analyze a problem. I learned how to use techniques such as looking at problems as a whole or as inter-dependent links, or thinking out of box, or seeing the opportunities in threats, etc.,” she proudly stated.

“My class consists of students from different countries coming from varying professional backgrounds. They are friendly and unique in their own ways. I learned a lot from being with them, listening to their experiences, working with them and drawing insights from their learning. Likewise, I learned so much from all of my professors. They are all qualified and well experienced and they know their subjects well. Most importantly they understand the students.”

Trang further divulged that studying in AIM made her a better individual. “The rigor and pressure I went through while studying made me a better and stronger person, and I feel I am ready to face any challenges [that I would face] in my life. I believe I am in a better position to take up any kind of career.”

“The biggest benefits I gained from AIM are the following: gaining better insight on development environment issues, acquiring a deeper knowledge of what I can do to bring benefits of my service to enterprises and to society, and last but not least, learning the essential skills in development and business management, especially in areas where I am concerned about. Core subjects are extremely attached to my future career in planning training courses or international cooperation projects. AIM gave me the tools to create firm connections between organizations and enterprises, as well as lessons on how to open a network to create public value at the same time maximize the sustainable public good.”

She revealed that during her free time, she joins community and volunteer activities. “I do this to keep my heart warm and contribute to social good. Every year, I travel as a backpacker to remote areas to talk with people, to see beautiful landscapes, to learn diverse cultures, to see how small the world is and to gain personal maturity and appreciation for our world. In AIM, I do some exercises like jogging, playing badminton and swimming. I also listen to music to relax my mind, keep myself refreshed, and energized. I also like to read books to give food to my mind.”

When asked about her future plans, Trang shared that she would like to continue working in VCCI or in any like-minded NGOs. “My concern in strengthening the role of enterprises in solving social and economic problems will remain as my main motivation. I will develop programs for training and international cooperation. These programs will help in developing my country’s human resource, increase empowerment, and nurture social responsibility of enterprises. The expected result is for enterprises to create small changes in their system. These changes will work as pressure points to eventually trigger and cascade larger social transformation. In a long-term perspective, this will contribute to sustainable growth and development of Vietnam. The public value will be created and public good will be maximized through strong networks of our organization and enterprises.”

A far cry from the young girl who only dreamed of change, Trang emerged from AIM with a deep-seated purpose and clear outline of how to reach her goals. “By the time that I gain enough experience as well as sufficient capital, I would like to start my own business as a social entrepreneur. I see myself working passionately, being an inspiration and giving determination to effect positive changes in the social issues that my country faces. I expect to play an intermediary role to help Vietnam to overcome the obstacles it confronts and then attempt to implement solutions and projects successfully. My potential contribution to my country is promising,” she stated.

“The only way I can thank Dr. Ching Chih Chen is to be the best in whatever work I take up in the future,” she disclosed. She goes on to share this piece of leadership insight: “In the age of globalization, a leader will be a designer who will come up with new things, who possesses critical thinking, creativity, team work and self-learning.”

Trang has this to say for others who aspire to bring change and achieve their goals: “Be who you are and pursue your aspirations. Be a good person and do not trample upon the rights of others to reach your way to the top.”

Hue Thi Minh Tran, MBA 2012

“Stay hungry. Stay foolish.” This line, made famous by the late Steve Jobs, co-founder of Apple Inc., perfectly describes this scholar’s attitude towards the rigors of studying Masters in Business Administration in AIM. Hue Thi Minh Tran walks the halls with an air of springy enthusiasm and effervescent geniality. Despite the number of cases she had to read every day, not to mention lack of sleep, she relishes each discovery she makes and new information she grasps in and out of the caseroom. Her passion towards learning stems from her personal commitment to improve the society and engage in activities that ensures sustainable development in the community.

She brightens when she talks about her experience while in AIM. “The harder I tried to understand the concepts, the more excited I became. I often start with the question: Why do I have to study this subject? What are the key messages/key points I have to remember in this exercise?” she shared. She told us that her previous professional experiences in Vietnam also helped her appreciate the course work. “I often reflect on the things I was doing in Vietnam whenever I study to make sense of the concepts I was trying to understand. Then I would try to think of best ways to apply whatever lessons I learnt to reality: in my daily life, as well as my work. Mastering new knowledge, especially those on management and organization development, is crucial to elevating my working performance to a new level.”

Prior to studying in AIM, she was with the Center for Community Empowerment (CECEM), a leading capacity building organization in Vietnam. The company offers services on project management, community development, training and communication methodologies, organizational development, etc. She also contributed to develop HanoiGrapevine.com, a bilingual website updating the public about arts and cultural events in Vietnam. She finished Bachelor of Arts with a degree in International Business & Economics at the Foreign Trade University in Vietnam.

“I decided to apply for a scholarship in AIM because the school is famous for teaching management frameworks, with very active and participatory methodologies (case-based method as in Havard business school) and excellent professors with experience in consulting for government and businesses”, she revealed. “My colleague, who studied MDM before, shared about student life in AIM, which inspired me even more to apply. After being interviewed by Prof. Junbo Borromeo, I became more inspired and firmly believed that AIM is a good learning environment for me.”

She was consequently accepted into the Masters in Business Administration program and received a full scholarship from the Chen Yung Memorial Foundation, courtesy of Dr. Ching-Chih Chen, Chairman of Wan Hai Lines and former Member of the AIM Board of Trustees. When she set foot in the Philippines for the first time, she admitted that Makati captivated her. “Makati is like New York in my eyes and AIM is like Havard (though I haven’t been there) but very Asia. Filipinos were nice people with warm smiles, and AIM had good facilities and very professional environment. I was a bit amazed to see many Indian students here. I love this place! I affirmed again that my decision to come here to study is right!” she exclaimed.

She remembers how she was intimidated during the first weeks of classes. ”At first I was scared of taking Quantitative Analysis (QA) and Language of Business (LOB). They are all about numbers which I am not good at”, she reasoned. “When I realized that QA is applied a lot in marketing, and the task of understanding financial statements in LOB is integral for managing a company, I liked them better. I became more confident in sharing what I learned during class discussions, and more versed with interpreting the concept in the book in a way that is more understandable. I also learned to check with the professors and classmates.”

Hue credits her professors, as well as her classmates, for her enthusiasm towards her studies. “I appreciate that my professors are great, experienced and professional. They are excellent facilitators who helped me improve my thinking process. I am now able to dig deeper and get better at getting insights when I am doing my case analysis. All of them had different teaching methods that enabled me to have a better understanding of my subjects.” As a trainer and facilitator herself, she also learned techniques from the processes and methodologies that her professors use.  “I believe it is more effective when professors share insights from their consultancy experience, rather than relying on books or theories when they expound certain topics.” She says her classmates also help her cope with the pressures better. “We call our Cohort the Outliner. My classmates are very cool! They are warm and funny. Most of them are smart and experienced, but modest and open to share in class. Many are helpful and organize tutor classes.”

She is thankful for her the opportunity to have a Masters degree. She says it will enable her to realize her dream of becoming a famous expert and sought-after consultant in the development field. She is hopeful for a chance to meet Dr. Ching Chih Chen and share with him the things she learned and her plans for the future. She shares that when she goes back to her country, she will do what she can to contribute to the development of Vietnam. “I actually want to document and write several cases from Vietnam that can be used in AIM for discussions. I’m still grappling with ideas, but I hope I have a chance and support to do it.”

Meanwhile, she looks forward to finishing her degree and getting married after graduation. Her support system from her family, as well as constant encouragement from her boyfriend, keeps her from being homesick. “I do not worry about my family because my parents are very optimistic and they care about each other. My boyfriend inspires me to do well in my studies. Overall I am thankful for this opportunity and happy to be in AIM. I am very hopeful and very excited about the future ahead of me,” she finished.

Nguyen Tieu My, MBA 2011

“I am the first in my family to get the chance to have a degree in Masters in Business Administration,” shared Nguyen Tieu My. May, as she likes to be called, was granted a full scholarship by the Chen Yung Memorial Foundation, courtesy of Dr. Ching Chih Chen, Chairman of Wan Hai Lines and former Member of AIM Board of Trustees. Prior to studying at AIM, she worked as a Senior Marketing Executive at Berjaya Group of Companies. She finished her Bachelor of Arts degree with a major in English Linguistics and Literatures at the University of Social Sciences and Humanities.

As a child, she wanted to become a philanthropist in the United States of America. Growing up, she idolized current US Secretary of State Hillary Rodham Clinton, who was a strong proponent of promoting women empowerment in the United States and elsewhere. Having the opportunity to become exposed to global affairs motivated May to apply to AIM. “I want to improve my management skills and expose myself to business practices of the international community. My former boss is an MM alumnus, who told my career opportunities will be significantly expanded after studying in AIM,” she disclosed.

During her first weeks at AIM, she already felt the rigor of competition among the students. This motivated her to push further and study harder.  She counts Marketing Management, Business Economics and Management Communication as her favorite subjects. She shared that she learned much during her stint at AIM. “My classmates are very fast, aggressive, and competitive. I was impressed with their English communication skills, and this motivated me to speak more actively during class. I also learned to use logic and structured thinking, and the value of time management.” She further revealed that she coped with the rigors of the course through her willingness to learn and capability to work under pressure.

“My professors were all knowledgeable, disciplined and thoughtful. I am very grateful for the exposure that I get and the knowledge that I learn to be able to achieve my goals of working in education consultancy or a media agency. Thanks to my professors, I learned many management concepts I can apply to my future career, improve my communication skills, and adapt to pressure well,” she proudly stated.

This early, May strongly recommends for Vietnamese students to study at AIM. “I believe that the lessons taught at AIM will develop and sustain Asia. I recommend for more potential candidates to study in AIM as it is good for Vietnam’s development. I am willing to be active in the alumni network and help promote AIM to Vietnam,” she guaranteed.

May believes that showing potential candidates how AIM improves lives of its students, and encouraging them t study in AIM, can show her sponsor how truly grateful she is for the opportunity to study at AIM. “If not for Dr. Ching-Chih Chen’s generosity, I would not be able to have a better and brighter future,” she revealed.

Le Nguyen Nhat Chinh, MBA 2011

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The Chairman Among Us

by Rose Cheryl Orbigo, BMP 2005

WHEN NAPOLEON L. NAZARENO was a small boy, he had a high-flying ambition:  he wanted to be a pilot. Little did he guess that he would later hold positions that would enable him―and entire companies ―to soar high.

Polly, as he is called, was born into a modest, middle-class family. “My father was a colonel in the military and was thoroughly disciplined,” he described. “My mother was a negotiator. She had a knack for making the right adjustments in order to keep life moving smoothly.

“The thought of being a pilot excited me when I was young,” he recalled.“I think it was the same for all kids because flying airplanes was cool.”

Polly has six siblings. One is Fr. Gus, a priest with the Ateneo de Davao University. His only sister has retired from the Government Service Insurance System. Two brothers live abroad, and two others are in the Philippines.

Right after graduating with a Mechanical Engineering degree from the University of San Carlos in Cebu, Polly wound up as a salesman driving around Northern Mindanao. Once, when he was in Cagayan de Oro City, his brother Gus asked him, “Why don’t you take up master’s education?” He recommended that Polly take the AIM Admission Test  to be given at the Ateneo de Cagayan University, where Gus was teaching.

“I thought there was no harm in taking the test, and it so happened that my schedule permitted it. My problem started when they told me I passed,” he jested. He joined the masters degree program in business management.

“I wasn’t outstanding in class,” he admitted. But being a mechanical engineer, he naturally gravitated toward math subjects like quantitative analysis(QA) and accounting. But he also found a liking for HR, marketing, and strategy subjects.

“This, I believe, helped me in my consultative approach to corporate negotiations. I was impressed by Professors Fil Alfonso, Vic Lim (Business Development), Gaston Ortigas, and Francisco Bernardo, my professor in QA. They have, in one way or another, influenced my thinking and my brand of leadership.”

The most challenging part of his AIM days was the Written Analysis of a Case (WAC). “I was slow in typing,” he explained. Nonetheless, from AIM he acquired the discipline, the attitude, and the thinking process. From his father, he also learned strict discipline, and from his mother negotiation skills. All these would guide him well in his future jobs.

After getting his master’s degree in 1973, Polly joined Philippine Match Co., which makes matches and disposable lighters. He also became a production manager of Akerlund and Rausing, a multinational packaging company later bought by Metro Pacific Corp. At Metro Pacific, Polly rose through the ranks to become its president.

In 1998, he became president of Pilipino Telephone Corp. (Piltel) and took on the task of resuscitating the ailing mobile phone subsidiary of Philippine Long Distance Telephone Co. (PLDT), the country’s largest telecommunications company. At the time, Piltel had $850 million in debt, 2,500 employees, a declining analog mobile phone business and no cash.

After a decision had been made to save the company, Polly opened negotiations with its creditors and took the drastic step of declaring a moratorium on debt repayments.

“We negotiated with the CEOs of 27 banks in the country,” he narrated.“It was a humbling process. At the same time, you really needed to find a middle ground every time and be able to craft solutions that would fit all of the banks. I had a lot of help, in the final analysis. After about a year and a half, we were able to put the major restructuring in place – without going through the courts.”

As he wrote in the book Taking Aim: Asian Management Breakthroughs, it was “the first successful major restructuring agreement in the Philippines completed on a consensual basis.”

Nevertheless, the strain of that effort took its toll on his health. After noticing that his eyesight was failing, he consulted his eye doctor. It turned out he had a hole in his retina caused by stress.

Now, with his eyesight crystal clear, Polly is concurrently president and CEO of PLDT and Smart Communications, the market leader in the Philippine cell phone industry. “You gain that learning curve when you go through the strain and the stress, but in a way you develop the knack of handling it.”

Polly took charge of Smart in 2000, when the Company was at a crucial juncture. Though the market leader,  Its dominance in the analog mobile market was being rapidly eclipsed by the soaring popularity of texting on GSM. Smart launched its own GSM service on postpaid in 1999, but by then its rival Globe Telecom had built a huge lead in the GSM market.

Backed by parent firm PLDT, Smart launched an all-out drive to seize leadership in GSM through an aggressive nationwide network roll out and a high-powered marketing campaign. By early 2001, Smart took the lead in GSM and has never looked back.

“We bet the farm in that effort.  Money was pouring out the door and for a while we piled up a huge loss. But the wager has paid off.  If we had not done it, we would never have won market leadership,” Polly said.

Smart has stayed No. 1 by introducing game-changing service and product innovations. In 2003, for example, Smart introduced electronic airtime loads in sachet packs. Called Smart Load, this world-first service made mobile phone services more affordable to a much wider base of users.  Before, many industry analysts thought the mobile phone penetration rate in the Philippines would not exceed 20-30 % due to the low income levels of Filipinos.  Because of innovations like Smart Load, over 80% of Filipinos are now using mobile phones.

Meantime, as PLDT president and CEO since 2004 , Polly has led the transformation of the landline business from an overwhelmingly voice-driven service to an increasing broadband data-powered industry.

This involved not only converting PLDT’s legacy landline system into an all-internet protocol next generation network, but also transforming the structure and culture of PLDT into a much more market-driven, customer-centric organization.

Today, PLDT’s transformation program is focused on getting the Group’s fixed line and mobile businesses to work much more closely together in order to better serve customers through converged business strategies.

PLDT’s recent controversial acquisition of Digitel, the third player in the market has given Polly his toughest career challenge yet.

“This will put us in a better position to serve our consumers nationwide,” he said.“If  Piltel then was my biggest challenge, the tests we face now are tougher.”

“The industry is not how it used to be 10 or even five years ago. The game has changed dramatically with the entry of new competitors, both traditional and non-traditional like Google and Facebook, also called over-the-top players,” he explained.“The innovations we bring to the market are aligned with these changes. From being a telecommunications company, we are becoming a technology lifestyle company , and this is evident in Jump, our new convergent store.”

Because of his important positions in PLDT and Metro Pacific, its seems inevitable that Polly gets entangled in controversies. How does he deal with controversies?

“My formula is simple: I hide from it. I keep a low profile, and I delegate upwards,”  he joked.

“The important thing is to deal with the conflict and deal with it promptly,” he added in a more serious tone.

For Polly, his role as CEO is to make it fun for people to work. “The fun happens when we get together and run after big hairy goals. Every milestone, by itself, is really a journey. When you see people morph and become better individuals, that is the greatest satisfaction you can find in any career,” he noted.

“It’s really [about] how people can shine and achieve greater things together with you. In most cases, they think it is beyond their grasp, but it happens. Being able to have a hand in molding them to become better leaders who will eventually take our place in the organization is not only a responsibility for me, but is something I delight in doing,” Polly said. “ That knowledge that they have been prepared well and they embody the same commitment as you do to continue the leadership legacy is what I consider the most fun and fulfilling aspect of my job.”

In 2010, he was called to keep the flame ablaze on another leadership legacy. Already a member of the AIM Board of Trustees(BOT), he was requested by then-chairman of the board Jose Cuisia Jr. to become co-chairman.

“They’d been trying to convince me to become co-chairman on the pretext that you share a responsibility, but you are not in the hot seat,” he said. But with Mr. Cuisia appointed as Ambassador of the Philippines to the United States in early 2011, Polly has become the lone chairman of both the AIM BOT and Board of Governors. “My intention is to get another co-chair,” he joked.

Seriously though, Polly accepted the chairmanship because “it was an opportunity for me to give back to the school. The school helped put my career on the right trajectory and brought me to where I am today. I wouldn’t have met my wife, and I would have been a salesman all my life had I not entered AIM.”

“But beyond the facts and figures we learned, it is the Asian perspective that had proved invaluable,” he continued.“Management principles are universal, but they must be applied to local conditions. AIM gives you a better sense of what it takes to be a manager in an Asian setting.”

Another life-changing element of his AIM days is the ties built along the way. “Our Class ’73 meets every month up to now, and we are in fact celebrating our 40th year.”

What changes would Polly, as the first alumnus-chairman, like to see at AIM?

“First of all, the five-year plan is in place, approved, and concurred with by the joint Boards of Trustees and Governors, the faculty and the alumni, and the rest of the stakeholders.I would like to see the filed cases settled or dropped for us to be able to start on a clean slate, and therefore provide the new board with an opportunity to take AIM to the next level and regain its original position as a premier management school in Asia.

“In the rankings, I’d like to see AIM go up to the Top 10 in the Asia Pacific,” he added.“I’d like it to be more international not only in the student body but also in the faculty, and to have hopefully greater participation of Filipinos, too.

“The strategic plan clearly stipulates the roadmap as to how to get to this goal,” he explained. “Now is the time to really step up and be a part of AIM’s next phase of evolution. The alumni should be the driving force because there has always been this issue as to who owns AIM. If the alumni step up, then they should be the driving force. It’s not only the alumni. We also need friends to be with us to give us more teeth.

“Academic institutions are supposed to be beacons of light that help illuminate questions and issues that society faces. AIM should perform that role for the Asian region. AIM alumni should be drivers for progress in their respective countries. More importantly, the Institute and its students should understand that the world has changed and will continue to change at a much faster pace. As Thomas Friedman said, ‘The world is flat,’ and we need to be able to adapt to globalization and all the changes that come with it,” Polly said

Juggling these changes and his multiple positions, Polly’s days are usually a long series of meetings that last until evening. But he makes it a point to work out at the gym before running to his meetings and  to play golf when time permits. And he starts every day by going to Mass at 7:30 with his wife, Cecille.

“I found out later in my life that you need the strength. You become humble enough to find out that you need God’s reinforcement in all that you do,” he stated.“When you are younger, you feel you can do it on your own steam. As you grow older, you feel, ‘Oh my God…’ Your responsibilities increase as you grow old. But then you begin to know how to handle all of these things you have to go through. And then you realize that things happen not because of you.”

“Whatever happened to me was so good that it can’t be me. I’m just too limited to be able to do what I have done.’ You begin to feel that you need that (time with God). Also it’s good bonding with your wife. Everything comes into place; all of this is just something you have to do. There are more important things in life,” Polly added.

“I take it one day at a time. That’s what it’s all about,” he continued. “I learned from my mentors,  foremost of them , of course, is (PLDT and Metro Pacific chairman) Manny Pangilinan.  He is a person whose enormous capacity for work is matched by the wide diversity of his interests,” he said.

Polly’s other mentors are CEOs to whom he has been close. One is his former boss, Toto Mapa. “That’s a guy I learned a lot from because he was asking the right questions. He knew how to listen,” recounted Polly. “Most of these people taught me how to listen.”

Another mentor is Juan “Johnny” Santos, former Secretary of Trade and Industry and CEO of Nestlé Philippines. “We’ve been friends for so many years. We are golfing buddies. He ran Nestlé for 30 years. Now he’s the chairman of SSS (Social Security System)… One of the things Johnny taught me was ‘You do not seek power; it seeks you.”

Commenting on the dizzying pace at which the telecoms moves, Polly explained that “there is no time to have big victory parties. The company moves from one struggle to another. At the end of day, the simplest way to celebrate is to go home and be with your family.

“Everything is balanced out with the time I spend with my family and my grandchildren,” said Polly, who has been blessed with two children, Reizhelle and Bryan. “I am at that stage where I am happily indulging my grandkids. I aim to be the greatest grandfather. I’m trying very hard to be a good grandfather because I’m trying to make up for lost time as a father.”

Polly’s five grandchildren are his “preoccupation.”“Spending time with my  grandkids is like my fountain of youth. I watch movies with them. I even bring them to Time Zone, and I wait for them there. I spend part of my week with them. I actually look forward to it.”

Is the best yet to come from Polly Nazareno?

Polly says he intends to reinvent himself in the next five to 10 years.

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Leading EXCELLence: Professor Grace S. Ugut, PhD

After obtaining a Master in Business Administration from the University of Mississippi in 1991 and a Doctor of Philosophy in International Finance from the Vienna University of Economics in 1995, Professor Grace S. Ugut, PhD joined the Asian Institute of Management in 1998. Thirteen years since joining AIM, she continues her leadership as Associate Dean of AIM’s Executive Education and Lifelong Learning Center (EXCELL). Prior to joining AIM, Prof. Ugut was also connected with Barents International Group LLC (a KPMG-Booz Allen Hamilton Company) as a Partner Consultant for a bank restructuring project in Indonesia. Her managerial expertise thrives in the areas of banking and finance, particularly treasury, risk management, corporate finance, and fixed income securities. To date, she provides consulting services in the areas of treasury, financial performance management and risk management.

With a wealth of experience holding leadership positions in Asia and Western Europe, as vice president for operations, head of the corporate finance department, and assistant vice president in several national and multinational companies, Prof. Ugut continues to make sure that EXCELL programs provide unique, leading-edge, and results-oriented executive education programs that build managerial and leadership capabilities in its participants.

“In a world that’s constantly changing, others may see obstacles, but you should see opportunities,” Prof. Ugut advises. “But you should not leave too much to chance and would rather make your own choices than have them made for you. You want nothing but the best and you like to be informed.” This advice from Prof. Ugut has enabled EXCELL’s program participants to enhance their business management knowledge by acquiring solid business education, skills and competencies that are critical for business growth and success.

Strong competition from management schools in the region has provided significant challenges for AIM. But Prof. Ugut remains optimistic. “I still believe that we do have a lot of good things to offer. We also have to basically redefine what would AIM be for Asia. As part of the management team under the new AIM Dean, Ricky Lim, we would like to move concretely to achieve a lot of goals for AIM’s future.”

One of these goals is retaining the school’s accreditation with the prestigious Association to Advance Collegiate Schools of Business (AACSB International). Since 1916, AACSB has been the longest serving global accrediting body for undergraduate, master’s, and doctoral degrees in business and accounting.

AIM is the only b-school in the Philippines with AACSB accreditation. To maintain this recognition, a business school must undergo a rigorous internal review every five years, where it must demonstrate its continued commitment to the 21 quality standards relating to faculty qualification, strategic management of resources, interactions of faculty and students, as well as a commitment to the continuous improvement and achievement of learning goals in degree programs.

“We would like to maintain our accreditation with the AACSB, and perhaps be accredited with the European Quality Improvement System (or EQUIS) as well,” she shares. “In repositioning the school, we would like forge more meaningful relationships with our corporate clients, and by doing so we would also like to redefine our role not only as a teaching institution but also an institution that will contribute to research.”

By the very nature of its existence as the executive development arm of AIM, the Executive Education for Lifelong Learning Center attends keenly to the needs of the corporate world. By serving the region through its various world-class programs, EXCELL aims to develop excellent Asian leaders as part of the AIM mission, and to be recognized as the leading Asian center for excellent education and lifelong learning.  In a rapidly developing Asia, there is an imminent need to come up with research to attend to the needs of a dynamic region.

“One of the areas of research that we think is very important is the research that would benefit many of our stakeholders and mainly our corporate clients,” Prof. Ugut states. “We will emphasize that we will bring our research to our classrooms and clients. So that’s very important for us as a main objective that we would like to achieve for the next five years.”

Serving the unique needs of corporate clients is one of the areas that EXCELL is known for. By developing strategic alliances and corporate partnerships, companies take part in the selection of managers they send to the program, and use this to determine which particular skills and competencies need to be developed and are thus integrated in the program design. Customized learning materials are also provided pertaining to their specific industry, and at times, even materials about their own company.

As research is an integral part of each program design, Prof. Ugut states the vital partnership that can be forged with the alumni.

“Our most important stakeholder is our alumni,” she says. Other than contributing to the intellectual capital of AIM through research, Prof. Ugut enthuses about how the alumni can be more involved with the Institute. “We are thinking of involving alumni from the research, teaching and fundraising, so in all these three activities, they will be part of AIM.”

In teaching, the alumni can bring in a practitioner oriented type of method into the caserooms.  “They will be our adjunct faculty,” says Prof. Ugut. “We also look at the role of the alumni through their network on how to improve the fundraising efforts of AIM.”

In addition, the alumni network can assist the revitalization of AIM programs in their particular regions. “For example in Singapore or Taiwan,” she explains. “In the 1980’s, we had many students coming from these countries, but now we have very few. We have to work with the alumni chapters more closely and start looking into more opportunities in reviving AIM over there.”

Supporting the New Dean

With a new AIM Dean in the person of Dr. Ricardo Lim, Prof. Ugut looks forward to leadership in moving the Institute forward. “I have been working with Professor Ricardo Lim for the past seven years when he was appointed as Associate Dean of the Washington SyCip Graduate School of Business,” she relates. “We have been working as a team going through so many ups and downs in AIM during so many critical times. And I think we got to know each other’s style and expectations very well. So we are really looking forward to have him lead us through the new challenges of the school.”

As competition presents tougher challenges, Prof. Ugut emphasizes that “We have to basically redefine what would be ‘AIM for Asia’ and I believe that is the challenge for AIM in the next five years. With that in mind, as part of the management team under Ricky Lim, we would like to see how we can move concretely to achieve a lot of things that we want to do.”

The real challenge in moving forward, Prof. Ugut shares is how to make AIM operations sustainable, while keeping its high quality and prestige in the midst of tight competition. “This is really the challenge moving forward,” she says. “And I believe that we can do it very well because we have this uniqueness of having the MBA, MM and MDM. AIM is actually also quite unique as we don’t receive subsidy from government- AIM is basically stand alone.”

Prof. Ugut proudly professes that AIM has many other facets. “AIM is not only MBA- there are also other things that we do very well. Not to mention the Centers of Excellence that basically have their own networks that contribute in building the image of AIM as a think tank, and also as a teaching and research institute.”

With Prof. Ugut as Associate Dean of EXCELL, the school continues to establish a strong presence in chosen strategic markets as it delights its participants with world-class quality programs. As a center for innovation in teaching and learning methodologies in executive education and lifelong learning, EXCELL has become a preferred partner of corporate universities since AIM first launched its general management programs in the 1970s.

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The Korean Factor

By Greg Atienza, MBM 1983

The AIM Asian Immersion Program of the Washington SyCip Graduate School of Business last September 2010 was a marvelous occasion to learn about a fascinating neighbor whose people are known for their intense fortitude resulting in an impressive economic growth that has been referred to as the East Asian Miracle.

Korea is remarkable not only because of the great strides it has taken to develop itself, but also because of its people’s tenacity and perseverance. An American professor who has stayed in Korea for most of his life, Prof. Joe Dewberry of KAIST University identified two key traits in the Korean psyche: the first being what they call Han. Han is a kind of bitter resentment drawn from the colonization of their country by the Japanese in the Second World War. The other value is called Gi. It is taken from the Chinese Qi and means vigor, energy and strength and stamina. Koreans take the fire from their angst, Han, and use it towards productive ends. Another Korean characteristic is the need for speed, called pal-ri (pronounced pa-li) A trait borne out of necessity in a time of war, today’s Koreans act quickly and decisively, making fast decisions. While this trait is desirable within the country, people of other nationalities may not necessarily understand this characteristic, causing agitation with Koreans away from their native land.

Perhaps one of the most apt imagery that validates this intensity as a people was when their past president, Park Chung-hee was delivering a speech in August 1974 to celebrate the nation’s freedom from Japanese colonial domination. An assassin fired a gun at Park from the front row but the bullet missed the president and hit his wife Yuk Young-soo instead. Park continued his speech as his dying wife was carried off the stage so as not to give the enemy the satisfaction of the moment.

Although many countries were devastated by World War II, Korea’s struggle to rise above its turbulent history resulted in three decades of astonishing growth, driven by its peoples’ strengths and determination. Now the 13th largest economy in the world from being one of the poorest agrarian economies in the 1940’s, Korea’s success story has culminated in a position in the Organization for Economic Cooperation and Development (OECD) in December 12, 1996.

The country’s accelerated postwar growth was fueled by exports, high rates of savings and investment, and an education boom which has resulted in technological advancement, industrialization, rapid urbanization, and a brisk rise in living standards. This phenomenon has been referred to as the Miracle on the Han River, in reference to the “Miracle on the Rhine”, which was used to describe the economic rebirth of West Germany after World War II . From a per capita GNP of less than $ 100 after the Korean War in 1953, it has now risen to US$ 10,543 at current prices.

One could say that today, Korea has the best of the market – but it also had the worst. After the Korean War, the country could barely support itself with its exports; today, its GNP is over US$ 400 billion. Literacy was also low, at a meager 30%; nowadays, 99.8% of the Korean population is literate.
Korea commands a considerable chunk of today’s markets; however, the lower prices of Korean products are usually their defining trait. While this may seem good to consumers, for Koreans, this is a source of dissatisfaction. They are caught in a ‘sandwich’ between Japan and China: the former marketing high-quality, high-tech, high-value goods, and the latter producing high-volume, low-price, medium-quality products. Just to compete, Korean businesses have had to slash prices by up to 30%, branding Korea as a ‘cheap market’. While Koreans understand that this is a component of competition in today’s economy, it is nonetheless a situation that bothers them, part and parcel of moving from the backwater to being a global economy.

Remarkably, the advance in the Korean economy was matched by a great hunger to move forward in society. To address rapid globalization and to secure a better future for their children, Koreans desire to master the English language and to send their children to study overseas. This has become the norm in the Korea of today – a practice so common place it has its own social connotations, such that it is a parent’s responsibility and ultimate goal to bring their child overseas to learn English and acquire an advanced education.

This strong emphasis on education is one of the key factors to Korea’s success. A Korean proverb “One should not step even on the shadow of one’s teacher” defines the country’s high degree of respect for its educators. This hunger for higher education is also a nationwide response to globalization, so that Korea could be on the same level as other countries.

This has resulted in a reverse trend where the father stays in the country and the mother and child are sent abroad for the studies. They joke about the father, on whether he is a goose or penguin. The goose represents the richer kind of paternity, where the father flies to meet with his family abroad. The penguin refers to one who cannot join the family overseas. It has become such a widespread phenomenon and a reverse OFW occurrence.

With advances in healthcare and the emphasis on studying abroad, unique problems have been created in Korea such as an aging population and multi-cultural marriages. As more and more members of the population go abroad to study or settle in urban areas, mismatches in marriage occur because of the conflicting educational levels of the partners. 25% of marriages in the countryside are mixed marriages with Chinese and Filipinos, which lead to social and cultural problems.

Another concern of Korea is how to integrate its citizens into the global community. Prior to the phenomenon of globalization, Korea was a Confucian society, homogenous and concerned only with its own affairs. That radically changed in the 70’s, when English began being taught and the concept of a worldwide society was introduced – a notion that was initially met with much resistance – and has become paramount today. A Korean professor and AIM alumnus, Sang-kee Min had shared that the country had almost, if not completely failed to train its people in the conduct of the international community – to teach the typical Korean student that there are others in the world who think, act, and feel differently and to accept them, as well as to live in a way acceptable to global citizens. In this regard, Prof. Min acknowledges that Koreans have a lot to learn from the Filipino people, who are better able to mingle with whatever cultures they are immersed into.

That is their objective – to be loved and appreciated. There is a campaign spearheaded by the government itself, with AIM alumnus Euh Yoon Dae leading the National Branding efforts, using media to address both the economic ‘sandwich’ and the psychological objectives, as well as greatly improve Korea’s image in the global community. A great many of their universities are now internationally accredited due to Mr. Euh’s efforts as former president of the Korea University. As a leader of change, he increased English taught classes from 20% to 60%, raised USD400 million in four years and made Korea University one of the top 200 in three years.

Our AIM alumni in Korea such as Euh and Min, as a result of their training, are more global in perspective. They are making large contributions to their society, shifting the paradigm, and making big differences in their own ways. But they realize that the rest of the country needs to shape up and improve their image so that the rest of the world will not misunderstand them.

With its meteoric rise in the global economy, Korea has many lessons to share with the world, as well as to learn to address unique issues brought about by rapid economic change. 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Chaebols: Fueling the Growth of Korea’s Economy

By Harsh Sonawala, MBA 2010

South Korea had one of the world’s fastest growing economies from the early 1960s to the late 1990s. South Koreans refer to this growth as the “Miracle on the Han River,” basing it on the growth of Seoul. South Korea is heavily dependent on export and is the 8th largest exporter in the world. Korea’s growth was spurred by rapid industrialization and an adoption of an outward-looking strategy. As South Korea has low natural resource endowment, low savings rate, and a tiny domestic market, this export driven strategy promoted economic growth through labor-intensive manufactured exports, in which South Korea could develop a competitive advantage. Government initiatives played an important role in this process. The inflow of foreign capital was greatly encouraged to supplement the shortage of domestic savings. These efforts enabled South Korea to achieve rapid growth in exports and subsequent increases in income.

In my opinion, the creation of Chaebols has been a primary factor of growth for South Korea. Though they have many disadvantages as well, these Chaebols can act as vehicles for growth. A chaebol can be defined as a business group consisting of large companies which are owned and managed by family members or relatives, in many diversified business areas. In Korea, as the global competition increased and barriers to entry for labor intensive products from the Third World heightened during the 1970s, the focus of the Korean economic policy was shifted towards heavy and chemical industries. This was the period when the Korean government intervened in the allocation of resources and channeled resources to specific industry sectors to boost the economic growth. This period also saw the birth of Korean chaebols. As financial institutions (especially banks) were under quasi-government control, the government was able to have these banks loan huge amounts of money to these chaebols. Such a favorable government policy resulted in many businessmen starting industries which later morphed into conglomerates or chaebols.

This concept can be replicated in other developing nations as it creates private companies whose purpose is to grow and make profit, but still benefit the entire nation in terms of employment and increase in GDP. In the nineties the top five chaebols (Samsung, Hyundai, LG, Daewoo and SK) accounted for more than 50 percent of Korea’s GDP and the top 30 chaebols for 75 percent of all economic activity in Korea. One might say that this system is flawed and leaves money in the hands of the few, but it also leads to overall growth of a nation as well, as seen in Korea’s case. This system did undergo a slight change in the 90’s during the Asian crisis wherein the South Korean economy saw a rapid downsizing and reconstruction – not only of economic policies, but also the underlying philosophies of Korean Chaebols. The result was Korean giants like Samsung and LG have become lean profit making machines. The Korean policy on foreign direct investments has only fuelled the growth further and allowed healthy competition. Samsung and Hyundai compete on an international stage, and have really helped the “Miracle of Han” be a reality.

Other developing nations could emulate this model of using families and organizations to fuel growth, as long as the government has control to some extent, or where it rises to healthy competition. This system allows families who are capable of running large businesses to expand and grow and carry the country on their shoulders.

Recently, Korean reforms have converted the Chaebols into professional organizations. For example, in the twenty-first century, the new model for corporate governance ensures proper surveillance from both inside and outside the firm. The decision making power is being shifted from the dominant family to a board of directors that represents the greater number of shareholders. This will allow for more open market policies. 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Korea and Japan: Facing the Same Problems that Growth Entails

By Akie Seno, MBA 2010

Korea is one of the most familiar countries for me.  I was exposed to the Korean culture and people many times with the image of Korea as the closest country to Japan in terms of distance, culture, and race.  As soon as I arrived in Seoul, I was surprised about how the commercial cities now look like our cities in Japan. I found a big change since the last time I visited Seoul about seven years ago. This time, my view of the city, including the shape of the buildings, the people, and the fashion were becoming so much like Japan. This was not my impression of the country during my last visit. This time, I felt like I had come back to my home country.

Through the Asian Immersion Program, I found out that Korea is now much like Japan because of its rapid economic growth.  If I had seen the situation in Korea 30 years ago, I probably would not say that Korea and Japan are alike. Korea’s rapid economic growth occurred during this short term.  Although historically, Korea had conflicts with Japan and China, Korea became successful and developed their country in this short period. Thus, Korea now is now experiencing problems similar to Japan in terms of economics and demographics.

From the presentation of Mr. Lee from KB, I learned that Korea is now having a problem with an aging society, low growth of actual GDP, and a language and culture barrier for foreign funds.  These problems are common in Japan.  However, it seems that Korea will be better able to manage this situation compared with Japan.  Investments in education and efforts to boost international relationships will allow Korea to gain higher potentials to overcome this situation.  Korea has a clear view of this goal to achieve development and create a global awareness of its success.

The presentation of Prof. Joe Lawrence from KAIST helped me to understand the difference between Korea and Japan. The Korean mentality is based on “Gi” and “Han” meaning, take the bitter experience and turn it to the power of growth.  This explains a lot of things. I had been wondering why Koreans have a strong personality compared to Japanese. Why Korean cities could be both modern and conservative at the same time. They are more aggressive to develop their country, and to affirm their success. They were required to be open.  However, they had to change in a short period of time. I saw a lot of advanced electronic technology all over the town; even the mall map had high technological functions.  Even Japan is not like that.  In a sense, I felt that they wanted to show off how much they have developed to everyone, including those outside of their country. They have to create awareness that they are a successful country.  This may sound a little cynical, but it seems that they are trying to change themselves so quickly that the gap between different age segments and different economic segments are getting wider.

Japan’s success happened within 60 years, and now we are still struggling with low economic growth, a high aging population, and a low birth rate. Korea is now faced with the same situation after 30 years, just half of the time that Japan took to develop. 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Koreans in Campus

By Melissa De Sagun

This year, AIM welcomes students from South Korea–Jaehoon Oh, Suk Hwan Kim and Jin Young Kim. They belong to MBA Cohort 6 and will be graduating in 2011.

Jaehoon Oh earned his degree in Agricultural Economics from Korea University. Prior joining AIM, he has worked for Kumkang Corporation, a fashion brand in Korea, as an assistant manager in the Planning and Coordination Division, a financial manager in the Indonesian Branch,  and for PT Bosung Indonesia, a manufacturer of boxes and shopping bags in Indonesia, as a purchasing manager. As a manager, he encountered a lot of challenges along the way and has learnt a lot from his experiences. But for him, he firmly believes that he needs a strong foundation to become a more effective manager, and AIM being in line with his goals, is the best Institution which can hone him to becoming one. Like most of the students, Jaehoon took time to adapt to the new environment. “However, being around professional people–fellow students, professors and members of the AIM community, made it easier for me to gain confidence. I believe that each day will be a better one,” he says.

Suk Hwan Oh earned his degree in Hospitality Management in Enderun College. After graduating, he served as a casino agent in Running Mate Inc. and Majesty’s for three years. To support his future endeavours, he decided to enter AIM, which he believes is an outstanding graduate school that will help him reach the top. Having lived in the Philippines for a long time, Suk Hwan stills enjoys meeting new people. Like any other student, he devotes his time studying hard to build his strong foundation to be competitive in the industry.

Jin Young Kim earned her degree in English Area Studies in Han Kuk University of Foreign Studies. She then served as an overseas analyst in Shin Han, an art material manufacturing company, for two years. To be well equipped with excellent management skills, she decided to enter AIM. Like Jaehoon Oh and Suk Hwan Kim, she also works hard to meet the requirements needed for her studies. In spite of the hectic schedules and heavy workload, she still finds time to have leisurely trips in nearby provinces or just enjoy a short walk across AIM and do some shopping. 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The Philippine-South Korea Free Trade: Bae Yong-Joon for Ensaimadas

By Alfonso Delgado, MDP 2001

Television dramas from South Korea are a hit everywhere!  From Japan to China, Hong Kong, Taiwan, Southeast Asia, North and Latin Americas and even in the Middle East and Africa!  Dubbed in the local languages of the importing country, Korean dramas have become so popular it now has legions of fans addicted to these series reflecting the Korean culture and society, loaded with fast-paced writing, beautiful sceneries, latest fashion and whose lead characters are always played by goodlooking actors with perfect set of teeth and skin.

Hallyu and Bae Yong-Joon

The Korean Wave, or ‘Hallyu’ as they call it here in Korea (할유 in Korean), is the term used to describe the popularity and influence of Korean entertainment and entertainers overseas: Korean pop music and singers, movies, television dramas, Korean actors and even products.

One of the most popular of the Korean dramas that ever hit the Philippines is Winter Sonata, whose lead actor, Bae Yong-Joon, has achieved a god-like status in Japan, where women of ‘a certain age’ (you know what I mean) worship him like, well, a god! They call him Yon-sama, a name that denotes the highest respect, and if you don’t know who he is, just visit a Faceshop store. His face is all over the place; he’s the guy in a white shirt and spectacles, holding a bouquet and flashing that perfect smile which welcomes women, enticing them to buy Faceshop products.

The success of these Korean dramas usually results in a windfall for its lead actors who are offered lucrative endorsement contracts for products marketed in Korea or in another country where he or she has won fans through the drama.

In Seoul, even if you’re not a fan, you would still know if the current TV drama is a hit because the lead actor’s face is all over the city.  Lee Min-Ho, who played Gu Jun-Pyo in Boys Over Flowers, was on posters plastered at donut shops.  Other successful actors would be seen on TV selling products ranging from coffee, clothes, make-up, cell phones, apartment units and of all things, insurance.

K-Pop Music

And aside from the dramas, Korean pop music also has its own following, although it’s mostly for the younger generation represented by grade schoolers, teenagers and fans in their 20’s, who I’m sure can always pronounce the tricky Korean names of the individual members of the girl and boy bands. Some solo artists though have unique names: Rain (or Bi in Korean), Se7en (yes, the number) and BoA (not the reptile); and members of boy bands such as Big Bang (not the theory) such as G-Dragon (not the string) and T.O.P., which are easier to remember. I guess since the real Korean names of these entertainers are very common in Korea, they opted for foreign-sounding ones in order to stand out.

And when it comes to naming a group, the talent management companies have to come up with unusual names like Mblaq, SS501, Shinee, Super Junior, Big Bang, FT Island, CNBlue, TVXQ for boy bands; and Girls Generation, Wonder Girls, Jewelry, Secret, 2NE1 (Sandara Park’s group), and T-ara for girl groups, to name just a few, because with so many bands (I think one debuts every other week!), the fans should be able to remember the ones with unique names; although I’m not too sure as to the logic behind the naming of the two boy groups, 2AM and 2PM. I guess they were created within 12 hours of each other.

And when they have cute names, these members should also look pretty and handsome because that’s what the screaming fans like. With these boy groups trying to outdo each other in terms of costumes, hair style and makeup, they almost look androgynous; while the girl bands compete as to who has the biggest hair, thickest makeup, shortest skirts, sexiest choreography and catchiest tune.  And some groups having eight or more members, they look like cheering squads on stage, instead of singers.

And did you ever notice that all members of these girl bands seem to look the same?  In addition to their vocal coaches, costume designers, choreographers and makeup artists, they also have their cosmetic and dental surgeons to thank for.

And speaking of K-pop music, who can forget that song Nobody, Nobody from the Wonder Girls which was played everywhere?  One time, I was on a bus here in Seoul when that song played over the bus’ radio when I noticed a girl in her high school uniform on the front of the bus moving to the tune while seated with her hands dancing to the choreography. The song was almost over when she realized she missed her stop! She frantically pushed the ‘Stop’ button and loudly asked the driver to let her off.  She did get off, but didn’t finish her performance.

Let’s go back to the dramas.

Korean drama fans

And just like most of the Korean drama fans in the Philippines, the ones in Korea never forget the time slots of their favorite dramas. They either watch it at home, in their cars, at restaurants, at the gym while on the treadmill, or at their mobile phones (through digital mobile broadcasting) while on the bus or in the subway on their way home.

And for the international fans who can afford, they travel to South Korea to visit the locations where the dramas were filmed. Nami-seom (Winter Sonata), Hongdae (Coffee Prince), Namsan Park (Lovers in Paris), and of course, Changdeokgung (Jewel in the Palace) are just a few locations where fans head to.  And most of them also visit the Namdaemun Market where they buy their Korean drama souvenirs to bring home.

The Philippine-South Korea Free Trade

But one fan in Manila, Cielo, who happened to be a good friend, could not get enough of her idol, Bae Yong-Joon, that she asked me to buy his poster and have it sent to Manila in return for a dozen Mary Grace ensaimadas, which she learned was my favorite. I told her the ensaimadas were enticing, but buying the poster would involve a certain amount of embarrassment for me since I was a guy and was worried how would the shopkeeper at Namdaemun Market think of me as I buy another guy’s poster. She immediately doubled the quantity!  And in return, I bravely bought it and had it flown to Manila!

With this, I realized that all these years the trade between the Philippines and South Korea actually does not just involve tourism, agricultural products, manpower, cars, electronics, minerals and English lessons.  With the involvement of Hallyu, new trading partnerships are created! Though not between huge corporations, it’s still a trade!  While Cielo was ecstatic with her Bae Yong-Joon poster, I enjoyed the Mary Grace ensaimadas, which she sent through a friend flying to Seoul.

There may have been other countless trading partnerships between the Philippines and South Korea involving Lee Min-Ho, Girls Generation, Super Junior, Kim Bum, Shinee or Won Bin posters, and some Philippine delicacies. 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Stars in Their Eyes: South Korea’s Love Affair with StarCraft

by Regnard Raquedan, MBA 2001

Korea’s de jure national sport is Taekwondo, but ask Koreans what occupies their collective recreational time and the answer is most likely to be StarCraft.

StarCraft is a wildly popular personal computer (PC) game in South Korea. The game has sold over 11 million copies globally and South Korea accounts for almost half that number. There are professional video gaming leagues that draw thousands and being a full-time gamer is actually a profession in the country. Only in South Korea is a national love affair with a video game possible.

Released in 1998 by Blizzard Entertainment, StarCraft is a space-themed Real-Time Strategy (RTS) game where players command battle units of different alien races to defeat opponents. The battle units belong to the Terran, Protoss, or Zerg factions and each type of unit has its unique abilities, as well as having its distinct set of strengths and weaknesses.

In the game, players can play through different missions and campaigns against the default Artificial Intelligence (AI) or compete against other players in the multi-player network mode. The unique game design of StarCraft has significantly contributed to its immense popularity in and out of the PC Bangs (what gaming cafes are called in Korea).

StarCraft’s popularity is also boosted by the fact that roughly 90 percent of South Korean households are wired to high-speed broadband Internet and there around 25,000 Internet and gaming cafes scattered throughout the country. With an “always online” culture pervading in the country, a video game becoming a fixture in the online scene is not entirely surprising.

But what is surprising is the extent how far StarCraft has managed to stretch its presence beyond the personal computer in South Korea.

Apart from being a pastime, StarCraft is big business and bringer of career opportunities in the country.  According to the Korea Creative Content Agency (KOCCA), the video gaming market is expected to be worth $5.5 billion in 2010 with a 17 percent growth rate.

There are two major StarCraft national leagues where gamers can turn professional and get paid for playing StarCraft full-time. This career move, while unheard of in other countries, is good turn for Koreans. This year, the average annual salary of a professional StarCraft player is approximately US$ 60,000. (The average annual salary in South Korea is $16,291). Lim Yo-Hwan, regarded as one of the all-time the top players in the StarCraft leagues, is said to have earned more than $1 million at the height of his popularity in the 2000’s.

These StarCraft tournaments are treated as big events. StarCraft holds the Guinness World Record for the largest audience in a gaming competition, when 120,000 fans attended a national finals in Busan in 2005. Professional gamers that dominate the national leagues ascend to public celebrity– the same way basketball players are revered in the Philippines and cricket superstars are idolized in India and Pakistan.

Other sectors in Korean society also made their own plays for StarCraft. The Korean army and navy created their own StarCraft professional teams to attract more recruits. Television feature shows that replay StarCraft games, with a couple of channels exclusively showing only video gaming content. In 2005, there was at least one Korean television channel showing a StarCraft game at any given time. Korean Air emblazoned several of its 747 planes with the StarCraft logo as a support to the booming e-sports culture in the country.

StarCraft also penetrated the academic life in South Korea. Cyber-universities have sprung up where students learn game-planning and other high-tech subjects, and that includes mastery of StarCraft. This becomes an appealing option for a lot of aspiring professional gamers as enrollment in such cyber-universities postpones mandatory military service.

This phenomenon is permeating outside of South Korea. The University of Florida approved last August 2010 a course called “21st Century Skills in StarCraft” that aims to “teach valuable 21st Century Skills through a hands-on approach.” The course posits that key StarCraft gaming skills such as critical thinking, problem solving, resource management, and adaptive decision making will translate into practical use beyond the game.

Moreover, scientific research are backing what the folks at South Korea and the University of Florida are on to. A study from the University of Rochester found that playing action video games conditions people to make the right decisions faster. In addition to the key finding, the study also found that playing video games improves a general skills such as multitasking, driving, reading small print, keeping track of friends in a crowd, and navigating around town. Korean professional gamers have been known to perform hundreds of  game actions per minute.

Despite the boost StarCraft has provided to to South Korea’s grand cyber community, growing pains of a wired society have started to show.

Online addiction is a serious problem in South Korea– according to the government, about two million South Koreans — nearly one in 10 online users — are addicted to the Internet. In 2005, a man collapsed and died of exhaustion after playing a StarCraft almost non-stop for 50 hours. In a more shocking case, a man was sentenced to two years in prison after he and his wife allowed their three-month-old daughter to starve to death while they raised a virtual child in an Internet cafe.

But Korean society is moving forward– the government has implemented measures such as controlled Internet connection for underage game players and a Korean medical research facility has been testing a drug called Bupropion that claims to reduce gaming addiction among StarCraft players. The Starcraft leagues continue to pour in money as they set a new records in giving the biggest prizes in gaming competition.

South Korea’s decade-long love affair with StarCraft can never be found elsewhere. It carries an intensity that borders on national passion and cultural obsession– from the smokey PC bangs to the grand big stadium gaming events, from sleek computer monitors to the television screen, from the Internet gaming addicts to the the glamorous professional video gamers.

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Connecting Two Worlds

by Prof. Felipe Alfonso

Over thirty years ago, in his seminal work “The Social Responsibility of Business Is to Increase Its Profits” Milton Friedman argued that business corporations had “no responsibilities other than to maximize profits for the shareholders.”  Today, many academics and business leaders and the public at large dispute the Friedman doctrine. With their considerable clout, business corporations in the Philippines and around the world now realize that they cannot exist in a vacuum. They need to be accountable to the communities in which they operate, for the vast resources that they have at their disposal. They need to own not only the economic consequences of their behavior but also its social dimensions.

What is the reality that confronts business today? Very briefly, poverty is a major issue for the Philippines as a whole. A significant percentage of the population has income below the poverty line. Accordingly, economic, social and human inequities continue to heighten, resulting in disparities in income and access to education, health and other social services.

Environment is another pressing problem. We are all witness to the depletion of our forests that has resulted in many calamities resulting in the loss of thousands of lives and many more thousands rendered homeless. The ravaging of the environment through irresponsible mining continues to hug the headlines of our dailies. Planet Report 2004 has estimated that the Philippines, together with the rest of the world, are consuming natural resources at a rate that is 22% above their renewal rate.

How should business corporations and business leaders respond to these realities? Is it appropriate for them to limit themselves to the maximization of profits for their shareholders? Or should they expand their horizon to respond to their other stakeholders? They need to realize that there are other goals beyond the commercial role of business. In the same manner that it has used its talents and resources for creating wealth for its shareholders, business can leverage the same and be a powerful force for solving the social ills that afflict our nation.

All this has led to a rising set of expectations on the part of the public with respect to the role of business in society. In the more advanced economies, surveys have shown that customers prefer to buy goods produced by socially responsible corporations, other things being equal. There has been a similar study done in the Philippines. The result showed that a significant majority across all socio-economic classes of our population considered it important that companies offering products were undertaking projects for the welfare of society. Such expectation was highest in the E segment of the population.

How has business then responded to this challenge? What has it done to bridge the inequalities and inequities in our society? The bridge that business has used is a set of activities and programs that are now more commonly known as CSR (Corporate Social Responsibility) programs.

The nature of this bridge has changed and developed as both business and society learned to work together to address specific issues and problems. At the start, it involved minimal commitment and participation from businesses – writing out checks to support projects. This evolved into much greater cooperation and involvement as trust and comfort levels between business and its partners developed. Greater commitment developed leading into progressively greater integration of social goals into business activities.

While business continues to use these different forms of CSR activities, market solutions are a preferred mode to address issues of sustainability. It is my expectation that as business applies to social problems the same innovation, creativity and commitment it has demonstrated to insure the success of its business ventures, we will be on our way to seeing a better life for all Filipinos. But it will be a continuing challenge, a work in progress.

I was struck by the words of a business leader who has faced this challenge and opportunity as reported in the first report of The Global Responsible Leadership Initiative organized by the European Foundation for Management Development:

“My job (as a business leader) is to create wealth. It is currently impossible to link the two (social agenda and business imperatives). There is an intellectual and cultural gap between what I am supposed to in the world and in the company… I want to make the gap between what I want to do as a human being and what I do in business disappear. Perhaps this is asking the fish to walk on land, but I want to make the two worlds mix.”

CSR is the bridge that links the two worlds.

Integrating CSR into your Business

It is now generally accepted that businesses need to help address social problems that ail societies in which they operate. One of the main challenges confronting corporations with regards to corporate social responsibility (CSR) activities that are intended to address such social problems is the task of insuring that these are sustainable in the long run.  For this reason, the preferred form of CSR programs are those integrated into the core of how they do business.

There are various ways by which such integration can take place. One way is to develop products and services that not only address a social issue but also generate profits for the corporation and its shareholders.  One such product is the development of hybrid cars.  These cars not only reduce emissions that damage the environment but also provide a competitive advantage to those companies producing them.

Access to means of communication is a vital need in any society for the rich as well as for the poor. In the Philippines, access to such means of communication (telephones) was limited for a long time to the more affluent segment of our society.  Both Smart and Globe have developed a business model that provided access to such a service to the poorest of the poor which C.K. Prahalad calls the bottom of the pyramid.  As a result these two companies are today among the most profitable companies in the country today.

Dumpsites have long been a nuisance to communities but they are now a source of methane that is used to generate electricity.  One such project is located in San Mateo, Rizal.

The thrust towards insuring sustainability of CSR programs has driven some food manufacturing and distribution companies like Jollibee and Figaro Coffee to include farmers into their supply chain. These companies want to insure that they get a steady supply of quality raw materials.  Farmers on the other hand lack the resources to learn new technologies to improve their yields and the quality of their farm outputs. Moreover, they often lack a steady market for their produce. By helping farmers to learn new technologies and to provide financing for their crops, food companies are helping insure the availability and quality of their raw material.  The companies also realized that by integrating the farmers into their supply chain, they no longer needed a separate budget for CSR.

Poor people often do not have access to health products.  In response, companies like Unilever and P&G have developed new packaging for their products in sachets to put them well within the reach of even the poor. At the same time this new packaging served to expand the market for such products.  Climate change and concern for the environment have also motivated manufacturers to develop new processes.  Certain companies like Intel and Coca Cola continue to seek ways of minimizing the amount of water they use in their manufacturing as well as recycling the excess.

What can we learn from the foregoing examples about integrating CSR into the core and strategy of business?  The key to sustainability of CSR programs is the link between these programs and the nature of the business of the corporations concerned.  The corporation must realize some benefit from the programs otherwise when hard times come the budgets for CSR disappear.  After all corporations are formed in order to generate profits for shareholders.  But as shown in our examples, it is possible and in fact recommended that they go beyond their accountability to shareholders and likewise address social issues and problems in the way they do their business.

The process begins with identifying the social problems in the environment where the corporation operates.  Such problems may revolve around poverty, climate change, environment or access to resources as shown in our examples.  Then the corporation can ask itself what resources or capabilities it has that can be brought to bear on the identified social problem.  If there is a match between the two, then you have the beginning of a truly sustainable CSR program.

The concept is really simple, but it may require creativity and innovation to implement.  To start with it may require other skills and resources that certain corporations do not possess.  Hence partnerships with other corporations, NGOs and the government may be needed.  It has not always been easy for these three segments of our society to work together.  They have been accustomed to work in silos with little or no interaction with one another.

As mentioned earlier, it is my expectation that when business applies to social problems the same innovation, creativity and commitment it has demonstrated to insure the success of its business ventures, we will be on our way to seeing a better life for all Filipinos. But it will be a continuing challenge, a work in progress.

Implementing CSR Initiatives

There are a number of ways companies implement CSR programs.  Some companies choose to implement CSR initiatives on their own, through their human-resource or public-relations office or the CSR department.  Others choose to do so with other organizations (private, government, nonprofit).  Still others choose to create a foundation through which to implement their CSR initiatives.  Each of these modalities has its own advantages and disadvantages.

By implementing its own CSR initiatives, the company can encourage employee participation.  Since employees are among the major stakeholders in the company, involving them is an important motivation for them. Employees want to know that the company they work for helps communities.

For example, Smart Communication’s corporate values of service, integrity and commitment are further enhanced in the consciousness of their employees through a community service program known as “Smart Employees Responding as Volunteers in the Community and Environment” (SERVICE).  Under this program, employees are credited with a one-day community service leave if they join the company’s CSR programs.

However, if the company is to implement the project on its own it is important to ensure that the organization has the skills needed to implement the project.  It is also important to consider what and how much resources to commit.  Where a wide range of social issues present themselves, focus is critical.  When not enough resources are allocated, the expected results do not materialize.

Companies also implement their CSR activities through Corporate Foundations that they have established. A growing number of companies are beginning to use this mode of implementation because of the tax advantages for doing so.  One advantage of creating a corporate foundation to implement CSR initiatives is that it does not disrupt the organization.  Furthermore, the people hired for the foundation are experts in their fields and are often better qualified than the existing staff of the company to implement such initiatives.  They bring into the organization other types of skills relevant to implementing CSR programs.

However, according to some practitioners and writers, the problem with creating a separate entity to implement CSR for a company is that projects may not be in line with its business objectives.  There is also a tendency for people in the parent company to be less involved with the CSR projects because the foundation staff is not considered part of the entity and difficulty may arise in the working relationship between the two organizations.

Another mode of implementation is through collaboration.  In recent years, the trend towards cross-sector collaboration has been growing especially in cases of large undertakings. Companies have come to see the benefits of working with other organizations.  Recent examples of such collaborations are the reforestation of La Mesa Dam and the Philippine Business for Education program to elevate the quality of teachers in the public schools.  In both cases even competitors have collaborated to undertake these projects.  Another project that will need such collaboration between business, government and civil society is the clean-up of the Pasig River.

More and more corporations are discovering the importance of forging alliances for their CSR activities, especially when dealing with the community.  Such alliances with community-based groups are an important source of legitimacy for the corporation.  Since a community tends to be suspicious of the motives of a company implementing CSR initiatives, it makes sense for the company to partner with an organization based in the host community. This is particularly true of mining companies.

Trust is an important element of such collaborations and it must be explicitly developed because researchers have noted that there are differences in the objectives of business, government and civil society.  Businesses have various stakeholders; their shareholders make up but one category but they are the one that cannot forego the profit agenda.  Civil society on the other hand is focused on social development, while government is focused on providing public goods.  Still, there is an opportunity for partnership because the community is the common denominator.

There are of course other issues and lessons in the implementation of CSR initiatives.

Partnerships for CSR

Among the modalities for implementing such initiatives was the use of partnerships and collaborations between the company, government and nonprofit organizations (NPO).  Because of the growing prevalence of cross sector collaboration to implement CSR projects it deserves further discussion.

As a background, it is appropriate to recall that these three major institutions of our society – the government, business and NPO sector traditionally operated not only as independent silos but were often times at odds with one another.  Recent experience, however, is showing that many social problems and ills can be addressed in a sustainable manner only with the cooperation and collaboration of the three.  However, there are many factors such as goals, objectives, and institutional capacity that need to be considered in such collaboration.

As far as goals are concerned, nonprofit organizations develop programs to fight for specific social causes or to fulfill the needs of specific communities, while busi­nesses produce specific products and services targeted to fulfill the needs and demands of consumers. While the motivations for targeting these people are different, all these take the needs of the people into account. Businesses cannot ignore people because they are also the consumers.

When forging a partnership it is important to consider the “who,” why and how of it.  The “who” refers to the choice of partner, the “why” to the objectives of the partnership, and the “how” to the mode of operation.

In choosing a partner, it is important to evaluate the nature of the organi­zation. The organization chosen should be involved with whatever CSR initia­tive the company wants to deal with.  Obviously, the NPO should have a good standing in the community. This cliché is all the more true when partnering with a government organization.

Since trust is critical to such a partnership, the company should take steps to build a relationship with the partner organizations. It may be worthwhile col­laborating with a new organization “provided that trust is established through other means.” The Asian Development Bank suggests asking the following ques­tions at the outset:

  • What is the mandate of the organization?
  • What is its reputation?
  • How will its reputation affect the corporation?
  • If the organization has been critical of the company’s operations in the past, will the partnership help alleviate such criticism or will it intensify them?

In addition, when assessing the level of trust, it is important to determine if there are feelings of distrust on the partner’s part that may stem from skepticism or lack of understanding of the company’s operations or whether the partner has specific concerns regarding the company’s operations to know whether the distrust could be overcome or not.

Partnerships are formed because there is common ground or a shared inter­est. There must be a shared vision of what is to be accomplished and recognition that motives can be complementary even when they are different.

Organizations that enter into partnerships do so for different reasons. For the company the reasons may be a need for a social license to operate while for the partner – the nonprofit organization (NPO) it may be the need for financial assistance.  There may be some overlaps, for instance, the need to help the com­munity.  Otherwise, there would be no basis for partnership.  It is important to have at least similar goals for the initiative, even if overall organizational objec­tives may vary.

In selecting a partner, a company must know what it wants to achieve so that it can evaluate if its prospective partner is suitable. At the same time, the company must ensure that the partnership is mutually gainful. NPOs would not go into such partnerships if there were no benefit for them.

Once the partner has been identified and the cause chosen, the next chal­lenge is to work together successfully. Aside from having shared objectives, it is important that expectations are clearly defined for accountability and transparency. Thus, the company has to decide if they would be playing an active role in the delivery of the program or not. It should also be clear as to who will make what decisions in the initiative and who would measure its impact.

According to James Austin in his book The Collaboration Challenge there are three stages of partnership: philanthropic, transactional, and “integrative.” At the philanthropic stage, there is little involvement between the company and the NPO aside from the company giving a donation to the NPO. It may be a one-time arrangement or it may continue for several occasions, but there is no real involvement between the two parties.

At the transactional stage, there is more involvement and also more ben­efits for both parties. The company’s business objectives are approached more closely.

At the integrative stage, there are even more dealings between the employees of the organizations: their individual mission and vision are more in line; the relationship also becomes institutionalized.

ALFONSO, Felipe B. (MBA, New York, 1967) is the Vice-Chairman of the Asian Institute of Management (AIM) Board of Trustees and the AFCSR Executive Director of the AIM-Ramon V. del Rosario Sr. Center for Corporate Social Responsibility.  He is also Vice Chairman of the Lopez Group Foundation, Inc.

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