The Asian Manager, March 2004 Issue by Sherbet Manalili

TABLE O F C O N T E N T S

I{EWS

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DEVEI"OPMEiN

I DUSTSY

E]{TREPSEI{EUSSHIP FEAIUNES

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Bridging Leaders, 8rdging Goah

Making Boads of Nonprofih N,{ore Effective andElfcient

A Dscuss onon veness in Competrt Development I

nve$rn0 ntheFuiuae

Surfn'Siargao

ALUI\,4NI NEWS

ADB andAIM: A PartneBhip for Asian Progress Strenglhen ngTies Betlveen Easl Asia andLatnAmerica

Poltics: CoForale CanYouHandle ll?

TheA M'MEExplorers Managing Crisis

Combating iheRaging Corporate GovernanceIndustry Leader Fiâ&#x201A;ŹofDisease A Means to Enhance and Povelt} withSpoonlu s Transparency and Accolntabil ty inFamiiy &rsinesses ofUnder] CASE developed Countries HltonHanoopera Theindan 2 CASE CiviSetuices Humanlz ngthe Economy TheEody Shop andtheGobal Trade Fair

Val!efor Creating theAumnl\,4embers, theInstitute and theCommunity IVBA'74

i\,.{8A'79: Slver Jubiarians AIMAlumni Bock theWorld I FROM ALU]\4N LENERS CLASS NOIES

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44 covER sronY: BESPONS CORPORATE SOCIAL BILTY A BUS NESS STBATEGY

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I V E S S A G EF R O I V Tl H E D E A N

Asan nstituleoi N,4anagement Pubicalion

TheAsianManager [,larch2004 ALTEAM EDITOF Marial{ievesCo esor Edilorln Chef JosaMa.DeGuznan veEdtor Execut Prakhar Shanm Associate Edtor Y\rctre Bautist-Eva||gelisla [,4anag ngEditor (aligbsk-Msmlili Sherbet SedonEdtor Bofir|eloltioo ManishAmei. Terc*aShaneMale oecena Mr. Jill. Phosbe Sameef Rrina Sai$l ShinibdiMir8 AduragBhagat Contributing Wrters Jersniahftlan.lali AirDrector Edâ&#x201A;ŹnCardenss Crcual onl\,4anager EDTOF At BOABD Boborto d. oc3mpo President Mrria NiovesContesor Dean oftheInstitute trhdo. Coli Drector Execulive Managrng lnstitutional andnvestor Feal ons DulceCasaclang Director Executive Federalion oiAlMAlurnni Assoc alion,nc CrcgArieEa Drector A [/ AlunrniFelalions

A ualueslstem is theprotorol ofbehat'ior that mhancestbe eneryyand enthasiasmofeuery memberofthe community. Integrity, courage,conuiction, hoxesty,faimets, coarteryand sacrtfcearc thepilkn ofany ua/uerystemthat a pmfesional shoutzlpractice. A strong ualuesystemis about decentand dttirablc bchauior:it rmths in putting the communit| inrcmtt ahead ofone'soun. - Narayau N R Murlrl Dear Alumni,

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From family to socieryar large,from governmentto privateworkplace,ethicalviolarionsfeatureofthe contemporary breaches ofpublic and privatetrust - havebecomea conspicuous landscape. To be sure,business schoolscalnot beexpected to assume total responsibility business for someofthese debacles ofintegriry Educationis hardly the soledeterminantofhuman behavior.Or for that mattet corporatebehavior.Nonetheless, both the corporateworld and businessschoolshavea commitment to the centralityofethical responsibiliryin preparing businessand public leadersfor the twenty-frrstcentury. Placingcorporatesocialresponsibilityin the mainstreamofbusinesspracticeis no longera matrerofchoice but the way thingsshouldbe. CSR is not just an addition to the business vocabularyor a codeofpolitically correctbehaviorbut an imperativeto development"as ofexpanding development, which is regardedby NobelPrizewinnerAmartyaSen a process the realfreedomsthat peopleenjoy and removingthe sourcesof unfreedom." It is essentialfor businessin general- and managementeducationstuden$ in particularto understandthe symbioticrelationshipbetweenbusinessand socieryespeciallyin termsof the moral dimensionsofthe powerplacedin the handsofownercand managers.The power ofbusinessmust be exercised for others,in fosteringimprovedconditionsfor wealthcreation or arevulnerable for all. ft shouldbe usedto punish thosewho aredependenton its largesse to its demands. Iasr year,the fuian CSRAwardsgivenout by the AIM RamonV del Rosario,Sr. Centerfor and bestpractices ofhow corporations CorporateResponsibility provideduswirh clearexamples component.Bringing CSR,panicularlycorporate haveeffectivelymadeCSR a corebusiness governance into the classroomaswell asworkplaceand the boardroomshelp prepareus all "well" "good" "new within and for the world" and arm uswirh powerfulinsightsfor operating businessenvironmentsofthe 2lst century. 'We must work to build a communiry ofscholarsand learnersaswell asofexamplesthat corporatesocialresponsibilityis not a platitude,but a realiry This issueof the AsianManager joins this communiry.

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L E T T E R ST O T H E E D I T O R

I receivedthe latestissueof the ASIAN MANAGER and reallvenioved readingit. The article on Bhutan and Royal Institute of Management

wasenlighteningand did giveme a feelingthat AIM hasmadea difference evenin the remotestcornersofAsia. I particularlyenjoyedreadingthe ClassNotes.I regainedcontactwith manyof thosewhom I hadlost touch with, someof them in my own ciry!I alsofound it usefi.rl to readabout the Alumni in Singaporearticleand how AIM is working to facilitateits alumnito find jobsthere.BestRegards. GAURAV AGARWAI- i'BA '99

"1'he I found your lxt isue of ,AaianManager' magazineso informative and li l ofbusiness-related insightsand peopleexperiences. I would like to further exploreyour websitewhere interestedreaders or your Alumni normallylog onto. I am a businessstudent in Singaporeand havecome acrossyour last issue.Plea-se ler me krow ifyou haveany freesubscriptionoFers,ma16e in the form ofE-Newsletterfor public readers like myself CHEITCHEN GOH, Singepore

I am a retiredSupervisingManpowerDwelopmentSpecialist ofthe TechnicajEducationand Skilk DevelopmentAuthority (TESDA). Sincemy retirementfrom the serviceon November15, 1998,I have not receivetlmy copy ofthe Asian Manager I am a graduateof PPDM on Augusr 5, 1994. Pleasesend my copy to my presentaddrcss: 381013BagongLipunan Condominiumtguig Metro Manila. Thanh you somuch for your imrnediatehrorable action on this maner My warmesrgreetingsto AIM. LEOPOLDO i,I. BORGUEIA, PPDM '94

Apropos the last edition ofTAMlThe magazinehad ccrtainly a bener look and feel comparedto the old issues.The differenceprobably was in the designingand layout ofpages.It continuesto surpriseme though that we, the newerand ftesherdumni, do not geta copv ofthe magazine still. 'JTouldlike to enlisrmyselfin the subscriber list. VENKATASUBRAHMANYAM AI.IADI. TIIiI'O2

WE WANTTO HEARFROMYOU...

"Deal Ma)be an anide on Making" might be interestingto our fellow alumni.It is not taughtin the MBA but reallife situationis all about deals.Somethingto look into with the Deans. TEDI'Y VIIIANUEVA.

IIBA '73

You-rlastissuewlr refreshingto re;d. However.ir is imponant ro get contributions from our accomplishedalumni acros the globc to tltow in somelight on businessissuesor burning topics that concern the business*orld acros d,ifFerentindustriesand countries.That will mrly "The make the name Asian Manager" live up to its reputation and be at par with other publications that businessschoolsbring out. ASHISH SAPAT, MBA 'O3 "The The-'Bigger - Bolder - fucher' ponal of Asian Manager" is what I waswaiting for all these)'ears.The web servesasa powerfrrlmedium to shareideasand alm a powerfi.rlway for Alumini to relateto their alma mater However,the current way of naming the story categories (issues-development-industry-networking) needsmme more won&mitling to make it more cffective. KARTHIK SARAVAiIAN. MBA 'O:I I attendedthe 50th MDP for eight wecksftom May to July I 997 and so far I haveneverreceivedthe Asian Managermagazineaspromised. Pleaselook into this matter and my nameand marling addressis LIDA HOLDINGS BERHAD, BI,'KIT BINIANG PLAZA, PO. BOX 10080, t0704 KUATA LUMPU& MAI,\YSIA. SHAHRIL ABDUL JAT'IL 5OTH MDP

Foryourcommentsor suggestions, writeto THEASIANMANAGER at tam@mail.aim.edu.ph or fax(632)893-3341

IHE ASIAN MANAGEF

MARCH 2OO4

A S A N I N S T I T U T EO F M A N A G E M E N T

MirantPhilippines shares of our (AIM's)^vision societaltransformation and nationbuilding. Ve arein synergyin our visionof hdvineconcrete and lastinscontribution to theproirotion of peace and and d6velopment greaterhuriransecuriry in the Philippines and in theAsianregion. - Robertode C)campo

Bfldgng Leaders,Bridgng Goals lor Progress AIM ADB:A Partnershrp ng TresBetweenEastAsraand LalrnAnteIca Strengthen

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ADBandAIM: A Partnership forAsianProgress Asian DeveloDmentBank selects AIM asa Center of Excellenceand seals partnershipwith inauguralconference THE ASIANINSTITUTE ofManagement(AIM) hasbeen newly designared asa C-enterofExcellence bv theAsianDevelopment Bank (ADB). As a CenterofErcellence, the AJM will be a pilot networkinginstitution of the ADB. This is the lirst time that the ADB hasselected a schoolasa srrategic partnerin knowledgecreation and management. 'lb inrroducetheir parrnership,theADB andAIM joinrlypresentedthe ADB-AIM Inaugural NenvorLingC,onference at the AIM Conference Centeron January2122, 2004.Thc seminardiscussed lssucsin Banking,MicroSelected linance,and RegionalEconomic C,ooperation :urdmarkedthe ollciai launchof the ADB-AIM Networking Projecr. Socio-economic Planning Secrctarv Romulo Neri andThomasCrouch,ADB countrydirector for the Philippines,headedthe paneldiscussion on L)evelopment Prospects fbr the Philippinesand PolicyImplications.AIM professors,ADB seniorexecutives, and PlantersBankpresident TamJesus bunting,who wasnamed2003 Managemenc Man of the Year,impartedtheir knowledgeand researchfindingsin four sessions: Issuesin the BankingSectorPosrAsianFinancialCrisisand PostEnron;Selected Issuesin Microfinance a searchfor successful modelsof service delivery;Regional EconomicCooperation- the roles ofASEAN and other regional groupings,and the economicand

TPEJ9 4N \I'N]GEF

N J d F ' t s2 N O J

political impact of cooperation; and Monetary Integration The objective of rhe ADBAIM networking arrangemenris to lacilitate exchangeof information about Al)B's knowledge and capaciry-building requirementsand possiblesupply by the networked institutions. The ADB-AIM Net, working Project will make use of the mutual cxpertiseofAIM and ADB in the capacity-building and operational acriviriesof developing member countries (DMC$. l'he

A M presidentRobertode Ocampolcenter)andADB D rectorGeneral Jan PM van Heeswlk(left)welcomedthe partc pantsal the l]laL.tgura sesson. Dr Geertvander L nden(r|ght), ADBVicePresdentfor Know edgeManaqement andSustanabe Deveopment,de iveredthe keynote addressenlited "KnowledgeDr ven DevelopmentA Vrson for Asia

project will cover the fbllowing areas: r Joint activities such as semin:rs, workhops, and publicarions r Training and capacirybuilding for AL)B DMCs as well as Bank staff r Operational support for Bank activities, as assigned r Reforms in the banking sector and financial management r Public & private sector reforms r Sharing ofinformarion about events/acrivitiesancl the ex changeofdata, selecredresearch documents. and publications r Commissioningof ad-hoc

Sec Ner and Networkng Proiectd rectorProf.Vcky Liclananwth ADB offrca s, from efl: N ma Fernando,B.ahmPrakash,ShradrtyaChatterjee, Nazruls am, Erc Manes,andAshokSharnra

researchwork, survevs,and sector studies As frontrunners in the pro, motion of Asiat growth. the ADB and AIM sharefields ofresearch and focus: governance,lcadership, competitiveness,poverty reduction, globalization, and rhe environment. Through this new and continuing collaboration, both che AIM and ADB shdl help in reducing poverv through public anclprivate sector parrnershrps.

MANA.jt(lt|]r

ADBPh ppne coLrntry d rectorThonias Crolch lcenter)andSocoeconomc P anningSecretary RomuloNer (rght)facI tateda tvey drscuss on on developmentprospectsof the Ph pprnes Sesson chairmanwas DeanFederco Macaranas

TiesBetween Strengthening EastAsiaandLatinAmerica PolicyCenter conductsforum highlighting cooperationbetweenthe rwo regions THE A]M I}OLICYCENter,in coordinationwith the PhilippineDepartmentof Foreign Afairs, St. BenedictCollege,and rhe FidelV RamosResearch Chair in PoliryStudies, organized forum wirh the theme Strengha ening Inter-RegionalCooperation in rhe Forum for EastAsia and Latin AmericaCooperation (FEALAC) rhroughSrakeholder Participation. The eventwasheld at the SGV Hall of rheAIM ConferenceCenteron January28,2O04. It wasoneofthe eventsof the weeklongFEAIAC ForeignMinistersand SeniorOfiicials meetingson January28-31,2004. The forum highlightedthe

key areasofcooperationberween the two regionsin different spheres. More than400 members communiry,rhe of rhebusiness diplomaticcommunirytheacademe,and civil sociegv attended the event. l)r. FedericoMacaranas, executivedirectorof the Policv Center,gavea presentation on FEAIAC and cited how Latin Americais aheadofEast loia in ratilying freetradeagreements. Dr. BelenTangco,coordinaror Academic ofthe Philippine Consortiumfor latin Amerion Srudies;Dr. SoniaRoca,deanof Universidaddel Pacifico,Ecuador; Dr. RobertoMariano, deanof the SchoolofEconomicsandSo-

cial Scienceof the Singapore ManagementUniversiry;and Dr JoseRicardoMolina of Fundacion Santiago, Philippines,spoke in rhesegmenton Promotingthe in EnAcademe's Parricipation hancingEconomicand Cultural Ties in Eastand Latin America. Clarifringthe Roleof International FinanceInstirutions EastAsiaand in Strengthening Latin AmericaDialogueand CooperarionwereMr FaustoMedi' na-Iopez,Depur,vResidentRepresenrative of Inter-American DevelopmentBank-Japan;Mr. JacobKolster,SpecialAdvisorto rhe Vice President,\iflorldBankt Mr. Kyo Naka,DepuryResident of the UN DevelRepresentative

and opmentProgramme; Mr. Clay Wescott,PrincipalRegional CooperationSpecialistof the ADB. In the sessionon PromotAgendain FEAing a Business lAC, discussants includedH.E. AmMilenaSantana-Ramirez, ofVenezuela; H.E. Enbassador riqueHubbard,Ambassador of Mexico:Mr. NtichaelTempleton, Vice Presidentofthe AustralianNe*' ZealandChamberofCommerce;and Mr. Michael Palma, Research Associate ofthe PhilippineInstitureof Development Studies. The forum wasbeamedlive to Singapore,Korea,Ecuador, Tokvo, and Washington.

(Bt;dging Leadet... fron page 6)

CapacityBuilding

pool oftrainerswill serveasthe link ber.reenthe hub and the spokes.

Training Meotoring Bridging SocieralDivides rraining will urilizelearningmarerials A mentoringprogramwill be courses inregratedinto the training progtam on leadershipand crosscutting with rhe end goalofdevelopdesign like governance. poverry rc themes who r"iil actas ing individuals ducrion. and empoweringrhe mar"Bridgingl-eaders.' Applied Research ginalizrdsector,amongothers.Illusand ProgramDesign trativecasesin termsofscope(local, national,regionaland global),enviThe Resource Center Program design and formulation ronmentalfactors(social,political, for Bridging Social Divides lnnovariveBridgeLeadership ecological.cultural and economic), programswill be designed and devel- issuesand sector(women,agrarian Knowledgebank creation oped basedon the theoreticalasreform,indigenouspeople,etc.)will A knowledgebank on the recent on Bridging sumptions/hyporheses be utilized in the rraining courses. rends, isues and challengesin BridgSocietalDivides. ing SocietalDivideslvill be esrabTraining oftrainers lished.A network of Inrernetsites Learning materials development To promotethe pncticeand concept on BridgingSocieralDivideswill Learningmarerialsin the form of ofBridging SocietalDivides.a hub be created.The knowledgebank framework papers,readings,teaching and spokesapproachwill be adopted. will ser"easthe depositorvofall notesand casesro documentrhe AJM will chooseinstitutions.which inrellecrualcapitalproducedfor BridgingSocietalDividesexperiences will serveashubs for the program. the program. and illustratethe broad rangeof Virhin the hub, porentialtrainers experienccin rhe Philippinesand will be tappedto conducrthe Bridgin variousAsiancountrieswill ing SocietalDividescounesto spokes Bridging I-eaders and Bridging be developed. or the interesredparricipants.This Organizations Nerwork

-FE AS AN \,iANAGFP

Network ofbridging leadersand or- A poolof bridgingleadganizations ersand bridging organizationsand wilJ be estabbridgingorganizarions lished.l'he strategrwill berc develop a broadbaseofBridging Leadersand BridgingOrganizations charwill serve "social capital"ofthe program. asrhe They will be rhe sourceofnew programsand ideasand opportunities ro developrhe Bridging Societal Dividesconceptand practice. Advocacy, Outreach and Action Research Issue-based dialogues Issue-based dialoguesserveasfollow through activitiesfor rhe training programsand asopporruniriesro promote the Bridging Societal Dividesconcept.The dialogueswill servea5tne venueto convenesmKeholdersand provideopportunities for exchangeof Bridging Societal straregies Dividesideas,experiences, ano aPProacnes.

I,IAF'! 2O04

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\ S T T L ] - EO F M A N A G E M E N T

...'\/'ehadto feedandkeep them alivefiist before*or{nng abouttreating illnesses.

lvlakingBoardsof NonprofitsN4oreEffectiveand Efficientby Ning de Guzmrn

Combatingthe Ragng Fire of D sease and Povertywith Spoonfulsof Water byToraaa Shano Malo

CASE1: Hanoi Hilton Opera by M.. Jilh Phoebe Decon.

CASE2: Humanizing the Economy:TheBodyShopand the GlobaTradeFair by Shidboli ilhr. S.igal

WillWe Failan Innocent?by Pr.kh.r Shem.

MakingBoardsof Nonprofits MoreEffectiveand Efficient

By l,ling C S de Gurman, FCMC Pnncipa Consuitant, DeGuzman Associates. MBA'73

"COOD CO\"LRNANCEISA TRANSPARENT DECI. process in whichrheleadership sion-making ofa nonprofitorganiway,directsresources zation,in an effectiveand accountable and poweron the basisofsharedvalues."(EuropeanVorking exercises Group on Nonprofit Governance) Good governance is built on rwo pillarsofsupport:Responsibiliry andAuthoriry Responsibiliry accordsBoardmemberswith the cloakof stewardship. Boardmembersareaccountable especially to members,donors,volunreers andstafffor the long-termsustainabiliry of the nonprofic. Authority accordsBoard members with the cloakofpower They havethe righr to make decisionsthrough which theydirectthe restofthe organization (financial,human and allocateresources and phlsical)so that the organization's missioncanbe achieved. To abdicateat thoriry is to avoidresponsibiliry rX4ryis accountabiliry amongnonprofitsa hot issuenowi Therehasbeena numberofhigh profilecases of private, publicand nonprofitsectororganizations wherekey leadershavecommirtedlraud andabuseofpower.Therearedemands by the generalpublic for greatertransparency. Thereareincreasingexpectations from donorsfor measurement of organizational perfbrmance.'fhere are demandsamongmembersofnonprofits for their viewsto be heardand attended ro by rheBoard.Therearein. reased expectationsamongfulltime stafffor a fulfilling careerin a nonprofit.Finallv,rhereis unrelentingpressure amongother nonprofitsfor pursuingstaldardsofexcellence so as to continueto be supporced by their largerdonorsand grantsponsots. Governance is now a hot topic because traditionally,the Boardsofnonprofits,consistingmainly ofunpaid but wellmeaningvolunteers, havebeenlessdemandingofstandardsofperformancefrom their fellowBoardmembers,volunteersand staff \{4thout criticalinvestments in humanresources and business sys' tems,many nonprofitsareunableto copewith the demandsstated in the previousparagraph. In manycountriesnow,businesses arebecomingchoosieras

ro which nonprofitto support.The personalmotivationofa Presidentofa companyto donateto a causemay beemotionallyweighted by someheart-tugging storyofa nonprofitt beneficiaryHowever, the President'scompany is more likely to evaluatea nonprofit's trackrecord,qualityofmanagement,reputationofits Boardmembers,frnancialhealrh,etc. beforecommitting to make a long-term "investment" "business" in the how of the nonprofit. [n business, many investorswill put moneyinto a companythat is living handto-mouth and where the staff seemquite enthusiasticbut make manyelementarymistakes? But whena nonprofitis financially healthy and organizationallydynamic, donorsseethis asa goodsignofleadershipof the nonprofit and are more confident that their continuedfinancialsupporris money *ell spentfor the causeofthe nonprofit. There are four key principles ofNonprofit Governance r Purpose r Supervision r Resource Oprimization r Communication Purpose A Boardis responsible for definingrne organizationtmission,creatinga sharedvisionof the filure, and living its corevalues. Supervision A Boardmust establishthe appropriate levelsofchecks and balancesto safeguard the organizationagainstinternd fraud,abuseofpowet conflictofinterest. A Boardmust formularea codeofethics and demandand enforce A Boardevaluates compliance. the performanceofthe fulltime chiefexecutive aswell asofiis Boardmembers.A Boardseesto it that its organizationalperformanceand programsare alsoassessed periodicallyby third parties. ResourceOptimization A Board must ensurerhat rhe nonprofit hasadequateresourto contribcesin quantiryandqualiry Boardmembersareexpected ute to the linancial sustainabiliryof the organization,whether personally and direcd (th,roughcashcontributions)or drough fundraisineefforts.

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Annualgoal-sett ng and performance apprarsal Pefod c surveysoi stakehoder satslactron Not-for-prof it mindset

A Board that has a diversity ofmember backgroundsand talents, especiallyin markedng, finance, legal, human resources,and information technology is better able to help the fulltime managementachievethe organization'sgoalsand objectives. Communication The Board must communicate regularly with the organization's stakeholders.Every Board member is an ambassadorofthe organization. He or shemust be able to articulateclearlyand with conviction the organizationt vision and mission and be knowledgeable about its organization structure, key staff, programs and accomplishments. He or she must be able ro attract porentialdonors, volunteer".and potential Board members. From Nonprofit to Not-for-Profit Organizations are created,they grow, revitalizeand wentually die. Initially, the founders and a group ofrheir friends do all the workfrom delivering the servicero looking for donors. recruiting members and volunteers,maintaining an ofiice, writing and speakingto make more people awareoftheir organisation'smission, etc. Meetings are done at a member'shome or oftice. Everyoneenioys the camaraderie, in spiteof nor beingpaid for rheirwork. As word oftheir good deedsspreads,the organization is able to attract more donations and more volunteers.To expand their services rhe nonprofit starts hiring full-dme staffand sening up and mainraining an of{ice. From having only direct servicestaff they then hire a bookkeeper, a donor marketer or administrative support. As the organization gets larget and larger,a fulltime HR oficer or Manager is hired and evenrually a fi.rll-dme Chief Execurive, a Programme Director, a Finaace Manager, a PR officer, contract consultants,etc All ofa sudden, rhere is news ofa powet struggle. The CEO quits. Staffmorale is low and the once united group ofvolunreers who founded the organization breaksapart into faciom. ln a few cases,dre organization losesits vitdity and one faction may leaveto establisha new organization. In some other instances, the CEO and,/or a few other officers are found out to have committed fraud or abused their powers becauseofabsence of an internd control mechanismand absenceoftransparenry \X4ile explicir casesof organ izational disinregrarionare rarely publicized (often becausemost nonprofits are low profile and not "newsworthy"), there is a lot ofanecdotal evidenceabout the inabiliry ofmany nonprofits to managein a professionalmannet There is, unfortunately, a tendency for cenain nonprofic to resist, "best practices"fiom the for-profit and public the introduction of sectors.This stemsfrom the beliefthat the nonprofit is best servedby "service" people who are dedicated to the causeand who demonstrate the valuesofthe orgarization.Thus, spendingon training, public relations, bener offices and equipment for stafi investing in fundraising expertise "extravagance". and donor managementsystems,etc are seenas Nonprofits are expectedto be very frugal in spending on overhead. Tiaditional thinking Board membersalso resistany form of measurement,be this ofsraff, customer satisfaction,or of the Boardt effectiveness and efficiency. They reason that volunteers and seffioin the nonprofit partially to escapefrom the results-focusedenvironmcnt in the for-profit sector They tolerate staffincompetence,giving the excusethat their nonprofit will never be able to attract the most competent staff. And becausethe staffhired are not so comPetent,the volunteer Board members end up spending more time doing staffwork than Board work. As more competent staffseethe Board getting more involved in their day-to-day work, the former get demoralizedand surrender

independent thinking ard become order-takers. Eventually Board members complain why they are doing so much staffwork, without realizing that the root cause lies in the Board's choice offnigality over staff competenceand satisfacdon. In this traditional school ofthought, the sakeholders ofa nonprofit consist of primary and secondarycustomers,with rhe direct beneficiaries being traditionally defined as primary customersand with the other sukeholders (donors, volunteers,staff, referrorsofcases,the general public) as the secondarycustomers.The consequenceofthis classical school of thought is that rnost nonprofits exist generally to serve the disadvantaged.Nonprofits have to appealto the generosityofdonors. They must be very frugal in expenditures othet than rhose direcdy related to servethe beneficiariesoftheir mission. In this school of thought, shared conviction about the mission is paramouat, enthusiasm and willingness ofvolunteers and staffto follow olders is more imporant than competence, and Board members are decply involved as program volunteers,on top oftheir Board responsibilities. Howeve! there is another school of thought. In this schoolt point ofview, the primary customets ofnonprofits are the firnd-givers (donors, grant sponsors,etc). Beneficiariesdo not meet dris schoolt definition ofcustomers since they are usually too poor to pay for the service and, in the caseofchildren or the mentally ill or psychologicallyimpaired beneficiaries,they do oot have the freedom ofchoice ofone nonprofit charity versus another, the choice having been made by their guardians (parentsor the state).In this school of thought, beneficiariesate 'products" that are transformed by the nonprofit from their original state to an improved state. Fund-givers are defined as the primary or real customersbecausethey are in effect the ones buying the services of a nonprofit for undertaking the socia.lresponsibility that rhe donors neithet have the time nor sufficient expertiseto give on their own for a causethat the donors strongly beliwe in. A nonprofit in this school of thought plays the role of service provider The Board believes that the organization must hire people who not only shale their values but are also highly competent and that they must develop, train and retain thesepeople. The Board h prepared to spend money on overheadwhere nieded, so that their staffcan give the best possibleserviceto the bene0ciaries.The Board doesnot hesitateto borow the best management practices ftom the private and public sector, induding the measurement mantra. Without measurement,how cul a nonprofit sayit has improved the lives of its benefrciaries? Nonprofit is a tax category Not-for-profit is a declaration ofan organization that has a car.xeother than to make money for its members but also usesthe best management practices offor_profit organizations to attract, developand retain its stakeholders. There are, ofcourse, some overlaps between these rwo organiza_ tional models. lt does not also mean that the for-profit model is the right model for dl causes.However, the for-profit model is the only one that will truly satisfr a team ofhighly comPetent full-dme staff who in turn gets commined to firlfilling the mission ofthe organization. This transformation to a n6t-for-pro&t will, in turn, make the Board more confident and comPetent in cotPorarcgovernancematters. Ni's d. Guzna" i' Pri'ti?al Couuhart ofDc Gunan hsociata Bad i" Singz?ot.for thepart 30 yao hc har tonluctcd naaagcncat coanbiry a!'ignncntr i' t." cotn,ri.t He ha' b..n inuol'cd i" a "tnba ofnoaproftt a not'ftFPnft olganization' ifl uryi'1q .apftitic' (fon fou"d.r'ncnbcr, t+aidmt to nlutttcl tuf@ilidtot and .o"'al,a",) H' "Co1otut Go'.tutnecfol prcgran ot zenl anpLtcd a 2-u,ec*ittarutioulflhuthiz No,plofY" a"ductcd b Boaldsouftc (fondq thc Nanout Canfor Noryroft Boatdr) i, Wa$ikgtan,D.C. H. is a Fcthu Catifcd Manag.nat Amlant and a Auntil Mcnba ofth. Iutituk ofMaugmdt Coxuha,s, Si"ga?or, Houtatl Sccmaryofthc Philippitc Bzya"iban Socnry6i"sa?otc) znd foma Exconcnbo ofthz Singa?onChildrni Sricy

THEASANMANAGEF ]MARCH2OO4

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Since theo she has discovered that there were indeed manv more HIV- infected, and these people have not even heard about the disease,much lessknow ofhow to prevent it. The AIDS incidence in Henan was not brought about by unprotected sex or needle sharing but by business.In the'80s and '90s rhere was a growing demand for blood plasma. Poor villagers would sell their blood in exchangefor cash. Contaminated implements and the method used to extract blood led ro rhe transfer of HIV not only to the recipienrcofthe blood but to uninfected donors as well. HIV then passedfrom donor to relatives to enrire villages. "Compared with SARS, which is highly curable,AIDS is much more horrible. But sufficient artention was not eiven to it at the initial

-,X

Dr Nakamura diagnoses a leperatoneof PeshawaFKai's satelitec Inrcs

stage.Without enoughattention,the outcomecanbe unthinkable." In chefall of 1996,Gao Yaojiewrote,printed and distributedAIDS preventionmaterialsat her own expense.Shewent to bus stations, railways,public squares,crowdedstreetsand evennight clubsro distributematerials. With the influx of refugeesin the small-scale leprosyclinic, "W'here TetsuNakamurahad to changethe way they operated. leprosyis common,we can seeother infectiousdiseases suchas fever, malaria, dysentery and tuberculosis. Patienrs wirh ryphoid rhesediseases arevery poor and haveno accessto medicalinstitutions. Ve couldni just opena clinic and saythat we will only treatleprosy. Leprosyitselfhad a much lower incidencethan the other infectious diseases. Thus we decidedto establisha model caseofmedical care in the rural areaswhereno medicalfaciliriesareavailable.Operating in rural areasbecameone ofour most important projects."

This happensquite often (beingkickedout). Ifit isnt an enrerrainment spot,it's a governmentoffice,a factoryor a business. Most ofthem 'l think: doni visir proscitutesand I don'r sellsexso I cant possible get HIV'They equareAIDS wirh promiscuoussexualbehavior. They sayrhat AIDS is an immoral diseasethat good peopledont 'AIDS get.They evengo so hr asto saythat prevention'educational materia.lsareshamefirl.Thus in our work we encountermaly scornful looksand cold responses." Tiice shewasto receivean awardfor her efforts but wasbared from travelingto attendthe ceremonies. Beforea scheduledlecture shewasaskedby an official ifshe wasgoing to talk aboutAIDS, shesaidyes,two hoursbeforethe lecturewasabout to start it was cancelled.Shewasalsoinvestigated-- peoplecoming to her clinic werequestionedwhetherthey werethe oneswho told the Doctor aboutAIDS incidents,and her patientsnevercameback. Her house hasbeenwire tapped,her photosofAIDS patientsconfiscatedand shewasorderednot to speakwith any journalistaboutAIDS in Henan. From a 16-bedleprosydepartment,TetsuNakamurabuilt a MedicalServices Hospitaland four satelliteclinics 70-bedPeshawar in both Pakismn(l) and Afghanistan(3). His beginningswerefar from easy.He had to negotiatedre mountainousregronsofthe Hindu Khush. So remoteweresomeofthe placesthat it would takeTetsu Nakamuraand his medicalteama weekon horsebackto visit some oftheir pacients.When they finally gor there,they had to contend with the differencein culturebroughtaboutby religiousbeliefsand "Our practices.Most AfghansareMuslims. past20 yearshavebeen spenrto understanda differenrculture and people.Accordingto their custom,young women aresupposedto hide their facesfrom malestrangers. It mademy work especially difficult because the early signsofleprosy appearon the skin. In the caseof malepatients,it is easybecause we can simply askthem to takeofftheir clothesto examinetheir skin. If we start treatmentat this stage,we can cure the diseasecompletely.On the contrary,chancesfor curesarevery low in femalecases,becausethey neverexposetheir skin to strangers, evento a doctor. Foreignerstend to imposetheir own valuesystem on theselocal customsand culture,categorizingthem asright and wrong or superiorand inferior.Naturally,suchattitudeis not appreciatedby the locals,unnecessarily creatingconflicts.It is important for a clinicaldoctor to know what the limicsareand what would be the happiestcondition for eachpatient,while doing what can be done for them practically.Sowe havebeensendingfemaleworkers from Japanin order to improveour servicesfor femalepatients." Discovering the Bigger Fires

Gao Yaojiediscoveredthat producingand disrriburingAIDS prevenrionliteraturewerenor enoughto fight AIDS' conquestof Henan.Asidefrom the spreadofthe disease, AIDS creaced another As if fundingAIDS preventionliteraturcfiom her own pockets outbreak,rhe increasedincidenceofAlDS orphansand its effects wasnot enoughofa challenge,Gao Yaojieexperienced rejection not only on aggravating their poverrybut in fomenringfury in such "l from the peopleshewantedto help and harassment from the instiyoung hearts. oncemet a boy in a villagewho told me he was "The tutions who weresupposedto be doing what shetook on. going to kill people,kill the peoplewho transmittedAIDS to his women in rhe night club hid themselves ifa as terriblemonsterhad parents."Another bo1 who Iost frvefamily membersto AIDS and \W4-ren quit schoolto work in a brick facrory,hason his arm threetattoos come.Someofthe btaverwomentook a look at the macerials. they sawit wasaboutAIDS, they threw it into the trashcansaying, which say:endurance,hatredand kill. Shesendsmoney to some 'Old lady,get out ofhere! Ifthe customersseethis no onewill dare orphansand helpsothersfind new families. comehere.They'dassumethar we all had HIV'The managerof the TetsuNakamurawitnessedthe massiveand comprehensive "ln night club then srormedin and kicked us out oFthe night club. effectsofdrought on the life ofthe Afghans. someareasof Who Turned Up the Hear?

MAFCH2O04

AS AN NSI IUIE OF MANAGEMENT

Afghanistanwc havc sccnpeoplc r"alk seteralkikrmetersfbr warel

rics rowards peace.Our real enemv is in our minds not out-

somerimesfor a rvholc dal'. Duc to thc shortageofwater, children drink contaminatedrvater and derclop dvsenrcrvasa result. Most

side." Gao Yaojie and Tetsu Nakamura both feel their efforts are

ofthe drought vicrims wcre childrcn. We havc seenmanv children expiringin rheir mothers arnx in outp:rtienrs'waitingrooms at our clinics.k wasvcry djfticult fbr us to nitnesssucha c{isheartening

diminutive in the face of che poverry and diseasethey are trving to vanquish and vet it does not stop thcm from kceping at it.

sceneso nranl times.At one point I couldrit carelessalmur treating diseases,becausethe situation had become so dcspcratcfor rhern thtt simplv staying alive becameverv clillicult. In other wor&, we had to fied and keep rhem alive firsr before lvorrving about ueating illnesses.' Agriculture is so central to che lives oithe Afghans. thus manl Afshanshavedied ofsrarvationdrrc to thc drouqhts,the manv rvarsthey'vehad to endure ancl the cleathoftheir livesrock. "We are norv rrvinq ro help the localsincreasetheir agricultural 'Tetsu production. hasprLtcffortsinto thc improvcmentofsoil conditions and reactir.aring38 karezes(specialirrigarion srstcms). "lt involvingpcoplewith opposingpoliricalbeliels. rnav be surprisingfbr fbreignersro seelll the parn'members,former pro'laliban soldiers.anti-rliliban,northetn allianceand sometimes locel ernploveesofrlre US armv working rogethcr." I he Warmth ol the Fire In spireofthe bleaksinrationsin both Herur and Afthanistan thesct*o f)ocrors have not let up antl have attributed their source ofsrrengrh and iospiration to thc very people they are saving.Cao "Manv Yaojieshares peoplesavl'm jusr wasringmv time. I live in an old apartmcnt *ith not one piccc ofdecent hrrniture. Mv husband,rnd I are over 70 r'earsofage. We don't have any heating in rhe rvinrer \W'elive in theseconditioosbut spcntover 100,000 RVIB on u-orking with people living wirh All)S. I cerrainly krow that I am just flipping spoonlirlsof*ater onto a roaring fire. \flhar I realll hope I am doing is moving people with conscicnceto svmpathiz-ervith people living u,ith AIDS, and to treat them well. I-hq orphans, especiallv need help." On the othcr sidc ofthc border Tctsu cchocs the same "\W4rat passion, we do here, in contrast, iooks like the rvork of troops ofants cr:r*ling through thc uallcvsbeoveen thesetowering mounrains,rrving to exrendrheir rerritorvlinle bl littlc. We tend to think that u-e could do better ifrve had more. I Iearnedfiom the Afghans rhar having norhing could liberatc us and make us optimistic. The more you posscssthe morc desponclentlrcu become. Back in Japan. I hear people sav that we are f)cing a seriousrecession.I asked how man,vpeople had starved to death becauseofthe recessic,n. Their answerwas rhat nobody died ofstaruation,but ouer30.000 committed suicide. Bv lollorving the track ofour activiry rhere in the past 20 vears. 'humanitarian I do not dcny'mv original motives' to savethe people. Nou'. horvever,I reelizerhe more irnportanr flcr chat we ourselveshave been helped bv rhis activin. Ar leasrI am free from thc rvorld-rvidc bclicf rhat violcnce and moncv, cvcn if it is claimedunder rhe nameofmodernizationor the righteousness ofdemocracl, can solve all the problems ofhuman beings.Ve need to lcarn tuhat wc should gite up in our lives and what we shoulcl nor. When rve srand on common grouncl in this regard, ir is the beginningoftranscendingethnici

religionand poli-

Dr GaoYaolrew.th a ch d nfectedw th AIDS

I certainlyknow that I am just flipping spoonfulsof water onto a roanng tlre. \\rrl

wnat l reailynope l am oorng

is movingpeoplewith conscienceto svmDathizewith peoplelivingwith AIDS, and to treat them well. - Yaojie ByTeresa Shanâ&#x201A;Ź Male

Case1

HILTONHANOI OPERA Abridged

ONE MONDAY MORNING, MR MLBO MLMINK the GeneralManagerof Hilton Hanoi Opera(HHO) excitedly askedhis secretaryto block-offhis scheduleon Friday.He said he would attend a luncheon sponsoredby the Asian Associationfor Tourismand HospitaliryHe wasto attendasoneofthe guestsof honor and receivean armrd on behalf of HHO for winning the in Metnam. coveted2000 BestHotel for Businessman \J7i*ra smileon his face,Vilmink rereadthe invitation.He still could not believeit. He thoughtthat it wassuchan inspiration to receivean awardgiven thar the hotel had beenin operation for jusr more than a year."I hope this awardwould help our effons in promoting corporatesocialresponsibiliry,"he reflected. Tho HHO The HHO, formed from a joint venture berweenthe Dong Limitee l,oi Touristcompanyand the Societea Responsibilite Hotellierede LOpera (SRLHO),wasa five-starhotel built against the backdropofthe OperaTheater,nearthe Hoan Kiem lake in districtand commercialcenterin Hanoi, the midst ofthe business harmoniouslyblendedthe old designof Vetnam. The architecture the old operahouse,matching the unique, curved facade,pastel pink colorandwroughtiron balconies. The hotel, which had a total of269 rooms over sevenfloors, wasan idealvenuefor meetingsand banquetswith its nine eleganr firnction rooms and a grand ballroom that could accommodate around600 guestsfor cocktailsand 350 guestsfor sit down technical dinner.Ir alsohadother hcilitieslike a full state-of-the-art center,healthclub (i.e.,a fitnesscenter,sauna, supportbusiness whirlpool and massage center,a swimming pool with its own snacksIn serviceand bar),carrental,florists,gift shopand newsstand. addition,HHO provided{ivedinning shopswithin the hotel as entertainmentoudets. In May 1999,HHO beganits operationand becamepart of Hiltont well-knownhotel chains.During rhat time, the business environmentwason a downturn. C.ompetitionwasextremelytough, particularly in the hospitality and tourism industry The demand for luxurious hotel in the previousyearscauseda massiveinvestment in the realestate.Sincethen,the hotel industryhadan average occupancyrateof40 to 50 percenr.The situationworsenedwith a low occupancyrate the Asiancrisis.Somehotelsevenexperienced

of 15 percent.Therewasno signalthat the decliningtrend in the number of foreign investorsand tourist would reverse. received In spiteof theseconditions,the HHO's employees rates. HHO Managethan the industry salariesand bonuseshigher customer could not provide ment believedthat dissatisfiedemployees was a continuing goal satishction.Ensuringcustomersatisfaction "Employees for success ofa a-re the key factor for the company. company.We are in the serviceindustry where a high levelof is the key to obraincustomerloydry and customersatisfacdon "$i'e must work to ensureemployee retention."l?ilmink added, satisfaction.What the generalmanagersdo for their employeesate uldmately for their own success,sincethe employees'talent and loyalty will bring successto the organization,which then translates of the generalmanagers. ro rhesuccess HHO's Charity Prcgrams ' According to a LINICEF report, a significant number of childrenwereorphaneddue to military hostilities.The Vetnamese Ministry of Labor, Inralids and SocialAffairs operaredsome I 00 "social camps"where someform ofeducation wasprovided. Communesrun majority of thesecamps,while otherswere supported In addition,LNICEF noted organizations. by non-government that tiere wasno hard data on the number of neglectedand abandoned children, but it wasbelievedthat the number wasincreasing. The VHO s global norm estimatedthat there were two million wereattributedmainly disabledchildrenin Vietnam.The disabilities Ieft hidden mines afterthe war. on miliraryhostilitiesand the its charity programby In June 1999,HHO commenced donaringa checkworth threemillion \ND to the Tir Liem Center for orphanages.Months later, a Christmasparty in HHO was organizedfor the orphans,the blind and the deal The hotel continued to help and wen raisedfunds for the orphans.Someofrhe hotelt guestsconuibutedto the fundraising and becamebenehctors.The HHO dso participatedin the program of cheNational Fund for VietnameseChildren (NFVC) of adopting It initially adoptedfive orphans,in timesofdifficult circumstarces. orphanedgirls, who would receivean endowment Peryear until the ageof 18. The funds camefrom the hotel'sinternal resources. Furthermore,the hotel collaboratedwith the Wheelsfor Humaniry, a non-profir organizationbasedin the United States,

THE ASIAN MANAGER

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AS AN INSTIIJTE OF MANAGEMENT

to conduct further charitableworks. For example,HHO gave wheelchairs to l0 childrenwho had legdisabilitiesand camefrom familieswith incomesoflessthan US$ 600. Later,the HHO then becamea linkageberweenthe \X4reels for Humanity and the beneficiariesin VietnamIn a businesssense,the chariryprogramcould help asa marketingtool and strengthenthe hotel'srelationwith chepublic, thusearna goodimpressionand increasetheir goodwill.Howwer, theprogramwasnot publicized.Accordingto Mr Anthony Cullen, HHO's directorfor salesand marketing,"We just want to express our attitude to whoeverklows what we aredoing. \J?edo not expectallthing materiallyin returnfor our sponsorship. However, in the long run, we do expectrhat local governmenrbodieswill appreciatethat we comeherenot only for profit [...] we can contributero sociery'sdevelopment.That may help change the mindsetof Vetnamese people,who havebeentaught

througha projectthat providedcleanwaterto a communirywhere most ofthe hotel stafflived.Partofhis personaladvocatewasthar "business shouldgo beyondits bottom line ofpursuingprofit. The businesscommunity shouldsharethe burdenof rhe government on povertyalleviation[...] companiescanbecomesignificantforce for change." The charity programin Hilton wasa manifesrationofthe "rVe horel'sCSR culture. do not wanr employees who work just to earna living. We cannotexpectloyalryfrom suchpeople.Employeesmusr fi.rllyunderstandthe companyt vision,including its socialresponsibiliryHopefully,theywill appreciare that rheywork not only ro earna living, but alsoto makea bettersocieryfor rhe next generation." In building a CSR culture, rrainingstartedfiom day one during the orientationand followedby periodicteambuilding and outdooracrivities. The employees were also encouragedto partici-

" Employees arethe key ::T::.1;:;T:'ffi,T:f :T*Hi;r;ffi,* and profir.

rhehoret\manage. faCtOf ment was senous rn lts

fOf

mrs-

SUCCeSS

Of a

likeculrurein our organizarion.

i"'.,r,",l".a,,rheemployees should reqard the hotel as their

ili;fi"J',:;JY:1*: company.We are in the il:Ti'f.:::'1,15'J1 serviceindustrywherea :*LlfTfi;iljlf:IlT," ;T:l'"'.yff-'l::il:X attempt.A communiry rela-

"internal love" to rheirwork and

Mr. Luong Pham.rhe

wagesandbonuses. Oncewe have

Resourceilranager,coordihigh leVel 't nared the activities of

CUStOmef

#""ir.,.t,iu,,.hemployee morare at work. we can exDect a

L?#ff,'."Y;:::ii;,,"" satisfaction is the keyto :1*::',:';i"H,il:HT obtaincustomerloyalty i::15'nnfU,l[:ll i,:'#'*';i1ff.fl::a voluntarybasisand took 30

hasmeantlesstime for my

?.ilr.l:lstillhappierro and do rhe.,ob trecauseot the

in the way our employeesper-

fetentiOn."

putposefulness ofthe pro-

gram.I am contributingmy effort to makea bettersocieryand in turn, my childrenwill benefirfrom rhar," Phamexpressed. The selectionof targetedcommunitiesto work stemmed solelyfrom benevolence. Startingwith orphansand the handicapped wasdue ro Vilminkt belief- "I understandthe feelingof how lost orphansfeelin nor knowing their naturalparentsand how greara disadvaotage a child hasto sufferwhen born with disabilities. I want to do somethingto offsetwhat theyhavemissed in their lives." Building the Corporate Social Re3ponsibility (CSRI Cultule

\i?ilmink, a believerof community servicesand development, had beenengagedin suchactivitiesprior to his assignmentasthe generalmanagerof HHO. Beforeworking in Vetnam, he was rhe GeneralManagerof a Hilton Hotel in Khanoum, Sudamfor a.lmost four yearswherehe conrributedto a community development

T I ] E A S L A NM A N A G E S

M A R C H2 O 0 4

A S A N ] N S T T L ] T EO F M A N A C E M E N T

Cullen explained.

rhechariryprogramswer

"sharing aimed to srrenghen rhe and giving culture." Howevet

. not everyemployeeparticipatedin rhe chariryprograms.The feelingofsatisfactionof doing chariryhad not gonedown the line to everystaffmember.CSR wasan outcorneofrhe general managertinitiativesratherthan the employeetefforts.The hotel managersstill had to work hard to ger the culture part oftheir employees'mindser. Winning the awardwasa positivedwelopment for the hotel's operationasa whole.The hotel wasexpectedto outperformmany other well-established horelsin Hanoi for tJrecoming year.However, !0ilmink wasalsoconcernedofthe benefitsit will reflecton its CSR efforrc,Wilmink felt that the programwasmoving -- "Once established...it (the corporareculture)will becomeheritable,..it will becomepart of their lives.Therefore,I expectthat our colleagues will sharethe vision and strengthenthe culturewe havebuilt... I believethat our programwill continueto be built, becoming strongerwith the input ofeach successive managementteam," he reflected. By Ma. Jill. Pho.bc D.c.n.

\-d5tt

H U M A N I Z I N GT H E E C O N O M Y : THE BODY SHOP AND GLOBAL FAIRTRADE Abridged

Arita Roddick,the founderand CEO ofthe globalcompany BodyShopwasenrouteto Seattlein Vashington,in November1999, weresimple:I want to to attendan anti-VTO protest.Her reasons stuff my brain with information,taperhewordsofeveryspeaker, pick up everyleafletand marchwith everyprotester.I want to be herero expandmy alreadygrowingdisquietat what our economic institutionshaveboughtinto, I want to find the bestway to make in Seattle! a difference.I intend to be sleepless The next few dayssawher soakin the environment and atmo' spherqshelistenedto rarious speakerswho spokeabour globalization, the economy,the environment,and poverryAnita herselfhadcome 'fair trade' al alternative armedto do a task,shewasgoing to speakon to globalizationwhich, in her view worked well. Shewould also speakabout Body Shop asan international compary dedicatedto 'constantly the principlesofsocid justiceand how the company exploreseffectivepartnershipsto meet theseends'.

projectstakenup by the companyinclude: r Publicationof the first fully integraredValuesReport,which on the companyk verifiedstarements consistedof independently, and animal protectionissues environmental performance on social, and beingchefrrst cosmetics Standard r Signingthe Humane a campaign do so. I-aunching companies to internationalcosmetic ingredients. products and testing on cosmeric in 1998to ban animd whereby incentives loyalry program, r f,aunchinga cusromer to selected a portion ofsales were provided by donaring to customers Helpline. Missing Persons ofEanh and includingFriends organizations which righa award, r lntroducingan internationalhuman ofeconomic,socialand culturalrights. focussed on differentaspects in 48 By the year2000,the companywasa major presence it countriesand receivedseveralawards.lnrerbrandnamed the 28th top brandin the world and Roddickreceivedthe Order ofthe British Empire awardedby the Queen of England. New Section

The Body ShoP History The Body Shophad humblebeginningsasa smallcosmetic in shop gheresorttown ofBrighton in Englandin 1976.Achiwing success within a shortperiodof time, a secondshopwas remarkable launchedwithin six months. By 1978,The Body Shophad its first internationalfranchise Belgium,and this wasfollowedby other openingsacross in Brussels, rhe EuropeanUnion. Ten yearsafteria opening,The Body Shopstartedgetting 'Save the'i(4rales' The first projectwasa involvedin socialcauses. Body ln 1990, The campaignin collaborationwith Greenpeace. the Romanian and organized ShopFoundationcameinto existence Relief Drive, now calledChildren on the Edge,to renovateorphanages in post-CommunistRomania. The Foundation begangetring involved in projectsacrossthe Project,it funded world. In 1992,alongwith the BrazilianHealdrcare and organizeda completehealthcareprogram for more than 4,000 Indiansin 18 Amazonvillages.A communirystorewasopenedin Harlem the sameyearand in 1993,the first community tradesupplier The followingyear,the supplieropened in India wasestablished. a children'sschool.The Body Shopformalized its policy to extend paterniryleaveto all its maleemployersand in 1994launchedan violencecampaigoin Canada. anti-domestic Over the last few yearsBody Shophastaken on tremendous versionofbusiness.Someofthe initiativesto pushits values-driven

toiletry the marketleaderin rhecosmetics, Europeis considered cosmetic share in the global The Body Shop perfumery sphere. and ratherextensive. In 1999,The Body Shopwas marketis considered 1,790 stores.lt had more than and operared presentin 49 countries wasestimated 19981999 the company between 1,800outletsand mix merchandise seconds. The company's to sella productevery0.4 with an esci400 accessories includedmorerlan 600 productsand mared84 million-customertransaclionDase. Froe Trade vâ&#x201A;Źrsus Fair Trade that economicgrowth is The conceptof freetradeassumes for the poorerones!ifgoods and possiblefor all countries,especially servicesare allowed to flow freely,without the usual restrictions known asirade barriers.'Followingthis usumption is the economic 'comparative advantage.' principleknown as Simplystatedall countriescanprosper,if theytakeadvantage on what they canproducebestand and concentrate of their assets with othercounttiesand then tradetheseproductsand services serviceswithout aly restrictivetariffs and quotas.Altogether these policiesadd up to form the conceptoftrade globalization. The logicofglobalizationand freetradeethosaimsto put an end to yearsof protectionism,to openup marketsso that capital, goodsand sewicescan move freely.

TIE ASIAN MANACER

i,IAFCi 2O04

A S A N N S T I T U T EO F M A N A G E M â&#x201A;Ź N T

ln orderthat anycountrydoesnot violatethis freedomof movementin goodsand services, the Vorld TiadeOrganization (VTO) wascreatedin 1995,in orderto enforcetraderules. The criticsofglobalizationhowever,areunanimousin their rejectionofthe rradeliberalizationmodel.Oftentimesreferredto asthe'neoliberalmodel'criticssaythat this systemofunrestricted tradesidelinesen'rironmental rules,healthsafeguards and labor standards in orderto providetransnational corporarions(TNC's) with unlimited supplyofcheapgloballaborand access to natural resources. The systemofglobalization, critics sayguarantees TNCI access to foreignmarketsoften bypassingwen the domesticpriorities ofthe governments. One ofthe mostvehementobjectionsto trade liberalizationis to the enforcementagencythe u0TO. Anti-globalisrs feelthat corporateinterestsdominatethe WTO. The antidoteaccordingto arti globalistliesin'FairTiade'. Fair Tiade is a conceptthat has deeprootsin the United Kingdom.Oxfam UK oneof the largestand oldestNGOI 'trade which prodefrnesit as motessustainabledevelopment by improving marketaccessfor disadvantagedproducers.' Ratherthan perpetualpursuit ofgoodsand services through a barrier-freeregime,fair trade seeksto alleviatepoverry and providedecentlivelihoodsfor producersthrougha parmership betweenall thoseinvolvedin producers, the tradingprocess: workers,tradersandconsumers. Unlike the neoliberd paradigm,which is foundedon the principleof economic growth via unrestrictedtrade, the fair trade proposalputs poverty reductionand sustainable development at the coreofits business practices.

producrsaregivena choicein their purchasingdecisions. The Body Shop, an Advocator of FairTrade

The Body Shophasbeena greatbeliwer in the conceptof Fair Tiade. The companyhasprovedthat the Fair Trademodel is not only valuesdrivenbut alsocommerciallyviable,panicularly when business practicesoccurwirhin a frameworkfor equaliry amongnetworksofproducersand consumers. Roddick hasbeena great believerin advocatingchangeby influencingeconomicsat a locallevel.One way ofdoing this is by from sociallyand economically sourcingingredientsand accessories "beliwer in marginalised communities.This shesaysmakesher a smallscaleeconomicinitiatives." Suchcommunitytradeefforrshaveamountedto more than 35 suppliersin morethan 20 differentcountries.The Body Shop and fair link up with cooperatives tradeorganizationsand workswith approximately5,000fumilies. One ofThe Body Shop's comearliesc and mostsuccessful muniry tradepartnerships is with Gddy Exportsin Tamil Nadu, India.The relationshipstartedin 1987when Body Shopbegan itemsfrom buyingmassage woodshapingshopsin the region. The FootsieRoller ard Twin bdl massage rolleraremainstayitems in all Body Shopoutlets. TeddyExpora emplop more than 500 people,predominantly womenand previouslyunskilled workerswith litde securiryAt Teddy Expons they are provided with a monthly salary,havea stable job andarenot discriminated againstbecause ofgender,religionor caste. In 1998,the TeddyExportsestablished the TeddyPrimary . Schoolwith 219 pupilsand 13 teachingstaff. The FairTrade Bu3iness Model The Body Shophas22 activesupplierslike TeddyExpora The FairTiadebusinessmodel includesthe following features: and the number is growing eachday. r Helpspeopleearna living from their skills Postscript r Paysthem a hir price r Links producersand consumers The historicSeattleconference, which Roddickwasattendr Helps peopletowardsa better future through ing wasrhe third sincethe formation of the !7TO, it wasgoing to supportand training tacklethe important agendaitems that had to do with pushing the Fair trade ensuresproducersa sustainablelivelihood. They liberalizationofinterntional uadefunher by reviewingsomecurrenr earna living in the short term becausethe sponsoringorganization traderules. works togetherwith local producen to developtheir buiness skills. A yearafter the conferenceRoddick is convincedmore than The sponsoringorganizationis involvedin constantmonitoring "Something profoundhappened everthat a lor needsto be done. and impact assessment bodr internally and externally,to ensurethar to me at Seaftle.It becamedear that The Body Shophasbeenliving the partnershipwith producersis suchthat they areprovidingche a protestagainsrthe\(TO simplyby its absolutebeliefin community kind ofqualiry and supporttruly neededand not fosteringa relatrade." tionshipofdependency. By Shinibali Mitra Saig.l On the consumerend, thosewho wish to patronizeFairTrade

Thelogicof globalization andfreetradeethosaims to putan endto yearsof protecttontsm, to openup marketsso that capital, goodsandservices can movefreely.

A \ \

| o '

\fil'We Fail an Innocent? "\cHEN

T\TO PEOPLEFIND THEMSELVESAT may oddsoveran issuelike capitalpunishment,the disagreement concernthe intrinsic righmessor wrongnessof the poliry asopposed to its empiricaleffects,"- AIfu Kohn They havejust startedtheir MBA program.They areendlessly fascinated by the glitz and glitter oftheir roadaheadand rhey showcaseinterminableexcitementfor rhe changethe following two yearswould bring to their lives.Filledwith delight by their new{oLrnd 'sell' gets and their ideas,their aggression ability to asserrrhemselves tunedeveryminute,their instinctsfilrtherhoned.Sittingin ornare caserooms,learningthe gimmicla ofwindow dressingand snazzy their eyeswide andjawsslack,listeningand thinking showcasing, at a brisk paceasthe discussionproceeds,the gameis on. \i'elcome aboardguys!The counldown startsnow. schoolstudents.fugorousthinkers, They areour business accomplishedreadersand witers, and prolific problem solvers,who canmakequick andmeaniogfJ arnnectionsanddistinctionsbetween ideas,trained ro solveproblemsand createopportunitiesat the drop ofa hat, they areexpecredto handle,manageand conquerthe rigor and demandsofthe courseand of rhe consequentcorporateor nonlife that awaitstheir pursuit ofexcellence.They hail from corp<Jrate all walt<soflife, quite understandably,MBA the rcrm lendsa significantmeasure ofcredibiliryto a person,a srampofhavinga considerabledegreeofdisciplineand brillianceand not surprisinglyvery manyofus want this degreeasa qualilyingadjunctto our other qualifications. role factthat educationhasa tremendous It is an indisputable to play in nurturing,molding,steering,and manipulatingthe mindsetsofstudents. in the classroom is Think aboutthis: Iack ofassertiveness result which is seen as a of as lack ofconviction, often perceived for ideas,which is further lackofconfidencein one! readiness inabiliryto analyzefactsand ofonet interpretedasa consequence The result: for one's viewpoints. displaycourageto standup this run ofsweeping observarional Failure. According to A Genuine of waluations, and is really a marter daily generalizations, success almost and always elicit a stellar shorrterm,extrinsicmotivatorscan perlormance. placean alr{ully high premiumon the The exisringsystems 'failure in the classroom' carriesrhe brunt gradesand a so-called ponals. Not to mentionarethe evenafterhe hasleft the school

TIE ASlAN MANACEF

MARCN 2O04

A S A N N S I T L ] T EO F M A N A G E M E N T

dire implicationsofgradeson his lirther academicand professional pursuits.The market, the academiccampuses,and the echelons of the sociery,under the wilt of the acceptedwisdom cannot help but aggravatehis plight by either downgradinghim or by rejecting him altogether.It is rather strangethat the student is the only one 'letdown' gradedasa when the teachen,the parents,and the q.stem 'failure' areasmuch a asthe studenthimself For eachstudenr failure, isnt it alsoa hilure to having taught well, failure to having testedwell, and a failure to having any influence at all on the individuallivesofsudents?It doesnttakemuch imaginationto seewhere this processstartsald where it leadsus. Starting from the point wherewe forma.lizeour education,in schools,and when we seekprofessionalqualifications,drough tlre stagewhen we start working, until the time we stop being productiveenoughto work, we areconstandybeing monitored, judged, and we allow our behavior to be manipulated by exrrinsrcmotrvators. To Grade or Not to Grade Ifhumansareprogrammedro evaluare, rhengradewe must and offwe go to the trarucripts with headsheld high! The stageis setfor yet another sending debate.Do we gradestudents? Fact!The grading sptems in businessschoolsall over the world are subjectivelyimperious and often vain, to saythe least. Fact!The true measureofa student'sabilities cannot be gaugedin the confinesofthe classroomdiscussionsand projeca and assignments. 'high Fact!The performance'that we laud and recognize so passionatelydoesnot really and necesarily uanslateinto a 'success story' beyond the businessschool. 'i(/hat then arewe really up to? '

Grading Philosophy - A C-erebralDisconnect

Gradesmakestudentsperform bener- for dre fear offailing or in the hope ofgetting good grades.They act asa measureof a student'sdiligenceand sometimeshis innate brilliance (or the perceivedlack ofit). Gradessort studentson the basisof their performancei this sorting often comesin handy for collegeadmissionsand job placements.Recruitersoften get predisposedby the dictatesof the grading q.stem. High gradesoften surpassall other personal attributes of an individual. Gradesprovide feedbackto students- about how well they are doing and where they needimprovement. Soundsfamiliar? Assessmentrs. $Vishfirl Thinking There is a roar in the classroom.Thrills! Cheen! Silence! "Mr. Grades,you back again at the rostrum?" Excitementspringsfrom the lofty grins and the smirks and the sneersand the restoffthe newly crownedmoven and shakers. The context herefocuseson t}te busines schoolstudents,!i'e are

TBEAS AN MANAGEA

M A R C I l2 O O 4

A S A N I N S TI U T E O F M A N A 6 E M E N T

dealingwith adultshere,adultswho areconvincedthat this iswhat they are. kaders do not often and necessarily get straightjacketedinto the rigid dictatesofa handfulofglazedacronymsand definitions. They possess a blinding urgefor self-developmentand they believe in performance.Successin rhe realworld is won by performance, but performanceis not a rendition ofeloquenceor a static display hence ofexuberance,and is far beyondsheerassertiveness. Success dependson threeactivities: First, one hasto be able to do his job. Simply meeting the standardsis not enough;one must exceland giveawaysomecom^ - . : . 1 - , - ^ , 1 . . ^- . ^ ^ -

Second,one must excelin the right areas,i.e. focusonet enerry and attention on the issuesthat make a lasting difference. Finally,success invariablydependson one'sabiliry to measure his performanceand useit persuasivelyto work effectively. Ifleadership is what we want the businessschoolsrudents ro displayin firrure.areour eraluarionsysrems supporting our ob.jective? ft is interestingto speculatetAat if the measureof a studentt porendalis merelywhat he doesin the classroomithen the measure ofa professional shouldbe how he carrieshimselfin front ofhis and bosses. colleagues Sadly,this is far offfiom anyplausiblereality. The true measureofa personc:mnotbe a shon-termevaluation; it hasto be somethingthat assesses both the breadthand the depth Ifbusines schoolstendera crrstal clearsimulation ofhis substance. ofthe corporateworld and that (if we beliwe for the purposeof discussion)becomesthe reasonwhy studentsenroll in MBA pro-

The true measureof a studenttabilitiescannot be gaugedin the confines of the classroom discussions and projects t . ano asslgnments. grams,is this whole purposebeing met with the grading system? V4ut arewe out to measureor achieveout ofit? ri(4nt do we want them to achieveout ofit? Vhy arewe setto gradein the fint placel Guessingwhy - an everydayscienrificphenomenon,is ca.lled hypothesizing.Ifno one everguesses why somethingis the way it is, experimentationwould havenothing to guide it and not much would comefrom tesa and trials. All scienceis theorv,not fact. It

is just the bestguessar how and why thingswork. For what it is worth, I believegradingis theoreticallydoing prettywell. Delveddeeperinto, it might remotelyarxwerthe what'. However, the why' is just asimportant a questionto answerifwe everwant ouf sysremsro Progress. The RoadAhead The situationdoesnot callfor a solutionto inventutopian inrervencions by gradingeveryoneequallyor makingeveryone happyregardless ofhis or her efforts.The ideais ro find out and work on the elementsthat motivatestudentsto learn.The purposeshouldbe to makelearninginteresting,not dauntingi and presentit assomethingchallenging,not compellingly overwhelming.If a low graderuns the risk ofdemotivatinga

... we areconfiningour j udgmentsof individuals and ourselvesto an intenselymyopic rigidiry and makingthem thoroughlybelievein it. personor degeneratinghis interestin the subject,isnt the whole \X4rynot then a.llowonJytwo grades:Excellent purposecapsized? and Incomplete:the catchbeingthat studenc would not be gradedon their effort -further connotingthar irrespective of the outcomes,the journey to learningdoesnot end.And, the sletem would alsoinvolve working with them to determine the meansto assess their learningand havingthem to do asmuch actualassessment asis practical. One ofthe seriouschallenges to this ideacanbe to identifr the way to align sucha system with the student'sfuture in termsof making the recruiters(or other colleges)recognizethe qualiry ofan individual student without the smndardtranscriptsdoing the talking?The sptem should be such that insteadofrhe usualrranscriots.the business schoolsend.reveralrhoughrfulqualirarive".....rn.n,, fro. the student'steachers,togetherwith a letter from the school statinghow the schoolprefersto stresslearningratherthan soning tries to cultivareintrinsic morivation, and is consequendy confidentthat its graduatesareexquisitelypreparedfor the rigorsoftheir professional and academicpursuits.The business world would surelyhavea higherregardfor peoplewho are

intrinsicallymotivatedand who know how to assess themselves. An argumentagarnstrhe ideacan be raisedthat rhe system would becomeentirelysubjectivesincethe assessment is purely on qualitativegrounds.A counterargumenrcanbe madethar asfar asthe systemis fair, promoteslearning,and encourages intrinsic motivation, it doesnot reallymatter whetherthe slstem is subjectivelyfirm or objectivelyflexible. It is not about how good you are. They control the game. A look at the existing systemsreveala startling disconnect berween*rhat we want from our evaluationsandwhat we actually achieve.It is thus a little wonderwhy performanceevaluation systemseverywhere commandthe kind ofrespecrrheydo. Gradesor er"aluationscanat bestmeasurea person'sperformance at a givenpoint of time. They reflectthe form, not the person,the accomplishment, not the abiliry,the size,not the substance. Visdom and knowledgearethe founding pillarsofeducation.They standto reasonrhat one takesup educationto seektruth. That truth enableshim to havea clearerideaof the world, and widenshis horizon. World over,the business schoolgradingsystems arebasedon the notion that perception is the realiry,and thar rrurh is what is mirrored on rhe rranscripts,Truth is often presentedasa ceremonialjustification 'manipulated' rather than an untainted realiry,somethingthat is for somegreatercause.Classified! Tiuth howeverhonorsa differentopinion. It wantsto be known. Ifwe continueto judge studentson our devisedmatrices, it will not take us long to seethe kind of minds we arechurning out. ln short,we areconfiningour judgmentsofindividuals and ourselvesto an intenselymyopic rigidiry and making them thoroughly beliwe in it. Skirting the edgesofthe reality and an we aredevisingshort-termincentivesinartificiald,reamscape, ducing short-term performance.It rhus makesa good senseto "\What stepback and askourselvesnow, is the point ofall thist To destroya man who seelsthe truth or to destroythe truth so that no man canseekit?" A Final Worrd The terrain of businessis not charteredby sheersmooth u.lking. l?inners areoften thosewho arewell grounded in their principles, and havea levelheadedapproach.They dont haveto showcasefrigid eloquenceand unfetteredadventurism; all they needis clariry of rhoirghr,an ability to anallzesituatioru, responsiveness to act quickly and decisively,and the perswerance to pursuein the most unlikely circumstances.Any matrices for rhat? (Apartfnn thetworcftmca mmtioned, the euserprcsed in thearticb arcsoblyoftheauthorandthrydonot,in anymannerrefba theidzasof ary otherindiuidul or irutintion.) By Pr.kh.r Sh.rnr, MBA 2qxt

ReierencesPunshed 0r Fewads, TNE AS AN MANAGER

...familyfirmsarereluctant to be tiansparent,they do not want to unveil their businesssecretsand also

A Discussion in Development ll on Competitiveness by Franciaco Roman. Jr., PhD Transparency Corporate Governance: A Meansto Enhance and Accountability in Family Businesses of Underdeveloped Countries by Dr. Jooilno Flhod-Srcih ThelndianCivilServicesby Shinibali Mit?. Siag.l

A Discussion "

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on uomDetltlveness I

By Frsncilco Romsn, Jr., PhO Chef oi'Partyof theThaiand compet ti\,â&#x201A;Źness In tiati\,â&#x201A;Źand RegionaCompetitveness Adv sor ior the South EastAsra CompetilvenessInrtiatve

in Development II

'we Thisarnclefolhu /iom theftx articlr in the OctoberTAM issue opportunities. A memberofTCI suggested that reallyshouldbe and is a resuhof a continaingdilcrssionwith Dx Andreu lYarner;the calledvalueenhancers"'. Lqstoneuas beldonAugust30, 2003. Thefocusin tbis articb i on the Regardless ofthe citle,it is importantro distinguishthe process ,onccptand appliation ofclttsteing to competitiucness. from the result. The process involvesan analysis ofthe industryand a determiCompetitivenessin Development nation ofthe componentsofthe cluster- wha! arethe firms or other entitiesthat shouldbe broughttogetherand who arethe leadersin is a rnanagement Competitiveness or business concepttransrheclusrerAl indusrryassociation i. sometimes a convenienr staning plantedinto the field ofeconomicdevelopment.[n the businesssector, point. Note howeverthat a clustermaybe smallerthan an industry competitivenesslargelyconsistsof maximizing corporateprofits and definedasthe coreproduct and posibly someby-productsor auxiliary shareholdervalue. In the development products,and the marketor buyerstlnt the field, as defined in the firsr article, product services.The clustermay therefore competitiveness is a process that results consistofparticipatingfirms that areonly in sustainedincreasesin producriviry a parcofthe cotalindusrryA relatively that, when applied to many industries, smallerclustermay proveadvantageousat in turn generateover the long run imthe start.It will be easierto gatherthe provementsin the standardofliving of panicipanorogether andto gaincooperarion tne country and cohesion,and to achieveearlysuccesses. To refer to the first article, once Assuminga transparent and expansionary again but for the last time, the comleadership, the clustercanleadby example petitivenessapproach in development and grow assuccesses atttact other firms rn focuseson the use ofclusters. And acthe industrythat werenot pan ofthe original cording to the competirivenessguru, cluster. "clusers Michael Porter, are geographic Moreover,the clusteris alsobroader concentrations of in!erconnected than the coreindustrybecause it includes "related companies, specializedsupplien, service what Porterorigrnally referredto as providers,ald associatedinstiturions in industries . suchar equipandsupporring a particular field that are present in a ment suppliers,universities and R&D and nation or a region'. designcenters,financial intermerliaries,and so on. The other fundamentalassumptionin clusterwork is that it Fundamenta-lAssumption and R-ationale is preciselythis breadthand diversityofentities in a clusterthat allows "core the participants to generateopportunities that firms in the The fundamentalassumptionin applyingcompetiliveness ro industry" fail to recognizeby themselves. the field ofeconomicdevelopmentis thar rherearetheseexcellent In terms of the diagnostictools, the processthereforeusually "out "cluster value-adding opportunities there"but theyareunrecognized map".The process or startswith generatinga continueswith unexploitedbecause they requirethe cooperation(andinvestmenr) meetingswith the clusterpanicipantsborh in occasionallarge'plenary ofa groupofentitiescalleda cluster. sessions" involvingthe entiregroupbur morelikely,because of The roleofthe clustercoordinacotconsultant,facilitatoror limitationsofavailability,in frequentmeetingswith smallergroups clusterdevelopmentadministrator(usingthe UNDP title) is to bring ofparticipants.The meetingsshouldfocuson the applicationofa togethertheseentiriesrhat makeup a clusterin orderto seizethese seriesof diasnostictools.

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The important point is rhat the cluster coordinator/ facilitator/consultant/development administrator/vdueenhancerlwhatevershouldend eachmeetingand the applicationofeach diagnostic tool with the processquestion: "ri(/hat are the opportunities that the cluster can seize(that companiescould not exploit individually?" The parentheticalphraseis critical for efficient time-manageme nt. If individual firms canimplemenra particular strategyor activity on their own, why wastewith cluster meetings? To reirerate,the whole point, the result, ofusing the cluster is to generateand implement value-addingstrategies.There is an old sayingthat goessomethinglike this: "\X/henyou are building a road through a swamp firll ofcrocodiles, it is sometimesdifficult m focus on the objectiveofbuilding the road while you are fight" ing the crocodiles. Enhancing the clusrcr and sustainingit canbe a ma.jordistractionfrom the basicobjectivq it can consumetime and energy, and it can be a source of satisfaction,and thus becomean end in itself Vh*

a Cluster Is Not

MANCF 2OO4

Vh*

a Cluster Is (Unfonun.aely)

Almost by definition, a dusteris a ga*reringofthe incumbena. MichaelPonert earliestframework"rhe 5-Forcesin IndustryAnalpis, ukes the perspeoiveofdre existingfirms when ir reflectson forces such as,for example,the threat of entry and new substitutes.If somefirms within an industry can band rogetherinto a cluster, "cluster-wide" and seize opportunities, ald grow relativelyfaster than the rest of the industry The sizeofthe firms "core representingthe industry'' will increase rapidly. The rapid gromh of market sharecould in turn squeezeout smaller firms, and the firms in the cluster could becomean oligopoly. An oligopoly is an economic term to describean industrydomi nated by a few largefirms. The generalpublic usually "monopoly" recognizesa

Evenwith the bestof intentions, the naturalinclinationfor the clusterleadershipis to givefirst preferenceto its members,or to sacrifice diversiryof opinionsin favorof a consensus fiatwas built one large dominant firm, but the oligopoly structure overa longperiodof time among is more prevalent,especia.lly in global industries. the currentmernbership. Michael Porter is

A clusteris not the "centerpiece" ofcompetitiveness. The precedingsectionprovides the principal reason. The cluster is one way to formulateand implementvalue-addingstrategies, and there are orher ways, For example,the vertically-integrated frameworksin the bananaand automobileindusrryrhat arecentrally controlledby the multinarionalcorporationsrepresenran alternativeapproach.Government-sponsored specialeconomic zonesale anorhâ&#x201A;Źroption ro generateindustry-wideopportunities. It is however unfortunate that governmentsin developing counrries sometimeespouse compeririveness but crearecluster units, so that the clusreris often regardedasthe goalofcompetitiveness. A secondreasonis more relwant for thosecomDeritivenâ&#x201A;Źss projecrsthar arefirndedby muldlareralagencies. Onceagain,it is unfonunate that someprojeca emphasizethe "sustainabilig/' of the cluster,V4rile this emphasisis acceptable,it can lead to an accusationthat the cluster is merely a cartel by another name, especiallysincethe leadershipcan usethe cluster asan exclusion device.Evenwith the best ofintentions, the natural inclination for the duster leadershipis ro give firsr preferenceto its members, or to sacrificediversityofopinions in favorofa consensus that wasbuilt over a long period of time among the current membership. For example,a common goal ofany clusteris to set qua.liry

THE AS]AN MANAGER

standards,including certificadon. li7hile rhis goal clearly benefia the buyeror consumer,it canbe abusedto prevenrnewcome$ from joining the cluster,especiallyif the specificationsare not transparentor tend to favor the existing cluster members.

ASIAN INSTTUTE OF MANAGEMENT

carefirl to define competitive strateg;zin neutra-lterms- asthe positioning ofa firm in its industry environment. The businessmenand corporateCEOs who hire him are astuteenoughro interpret his model asan opponunity to grab market shareand to dominare rhe industry Implicrions for Derclopment Applying competitiveness and clusteringro the development field hasseveralimplications for the cluster coordinator. First ofall, the clustercoordinatormust bendoverbackwards to ensuretransparencyand to reducethe tendencyto exclusivity. Secondly,he or shemust avoid getting involved in enrerprise creation,which is usuallya goa.lofdevelopment, becausethe cluster methodolory hasno unique approachesor insights to offer in that regard. Thirdly, the cluster coordinator musr selectfirms in a clus"upper-mediurn' ter that are sizeand growing. The big firms may be self-suficient enoughto do without a clusteror a cluster coordinator. Small-scaleenterprisesdo require a clusrcr coordinarot and helping SMEs is another common goal ofgovernments in

developingcountries. Small-scaleenterprisesrepresenrmajor organizationalproblemsfor the clustercoordinator For instance,assumethat better will crearea majorvduelogisticsand supply-chainmanagement opponuniry for the smallfirms to increasetheir salesby reducing aswell asby lowering delaysand improving deliveryschedules, coststhrough bulk shipments.Unfortunately,the clustercoordinator might haveto dealwirh a hundredsmallfirms insteadol "upper-medium" for instance,just 20 sizeenterprises. The task ofdevelopingan efficientsupplychain for the smallfirms will requireprodigiouseffons in rime and energyon the part ofthe clustercoordinator.Add to the numbersthe basicproblemof smallfirms - they are usuallyone-personoperations,with the owner-managerperforming multiple funcions, and showinglinle aptitudeto delegate. This rypeofmanageris unlikely to endure the consensus-building proces neededfor a cluster to formulateand implement joint strategies. The practicalresult is to maintaincontractual ratherthan institutional relationshipsusingthese smallfirms assuppliers. For example,the large buying agenrsutilize a "hub-and-spoke" nework, with their organizationat "hub", the centeror and coordinationmovesfrom "spokes" the centerto the - small firms that are classifiedaccordingto the goodsand servicesthat theysupplp thesefirms are alsoregularlyrated, usuallyaccordingto their reliabiliry in qualiry and deliverydme. The relationshipcan rangefrom a perennial contract,in the caseofbananasand sugar,or handbut seasonal "suppliericrafts for the Christmasseason,up to more permanent partnerships"gpified by the Japanese automobileindustry

further limits the rangeofopportunities.Three,governments value-opport u nit ies. themselves ofien providerhesebroad-based "common good". Infraofa genuine concern for the usuallyout structureis the obviousexample.Privatizedindusuiessuchas airlines or telecommunicationssometimesreceiveincentivesfrom "missionary routes"-t hose the governmentin order to service very smallareasthat losemoneyand which a profit-maximizing privateenterprisewould normallyavoid. The current approachis to sustainthe clusterfor the long rrying to obtain term, for example,by establishinga secretariat, funding specificallyfor a permanentclustercoordinator,and sometimes evencreatinga separate entitywirh irsown directors and leadership.This approachhasmerit, especiallyifthe cluster focuseson the long-termfuture ofthe industryand its members, on the assumptionthat the individual firms candealwith their own short term and medium rerm problemsand opportunities.Under this approach,a pâ&#x201A;Źrmanent body may be beaer ableto reflecton the need to changethe structureofthe industry to make it more competitivein the future. Thus, a robust cluster and successful might provefertile ground for innovations, for example,in technology, cybermarketing,derivative "virtual" financing,or organizations,that mighr ultimatelyspreadacrossthe entireindustry The alternativeapproachis to imbed the clusterasa semipermanenttask force within an existing industry association.The clusteritselfremainsdormant, until the opportuniry for joint strategyoccurs,but the membersarestill a part ofan existing This approachalreadyexistsin different industry association. qpes ofassociations,from chambersof commerceto Rotary Clubs. It alsohasthe advantageofdeflectingto someextentthe criticism rhat the clusteris just arorher word for a cartel.The main disadvantage of this approachis that the clusterasa temporary mechalism doesnot havethe in-built structureto activelyexplore, generate,analyze,ard exploit opportunities,The more likely mode is for individualsin their own firms to bring up these "champion'the and to opportunitiesto the industryassociation, "cluster taskforce"to formulateand implement creationof the the srrategy.This approachmight add an additional bureaucratic layerofdecision-makingand thereforefurther delaythe action on the perceivedopportuniry Sinceno clearansweris theoreticallvavailable,the outcome will deoendon actualoractice.

The taskof developingan efficientsupplychainfor the smallfirmswill require prodigiouseffortsin time and energyon the paft of the clustercoordinator.

Conclusion: Cluster Susainabiliw '

"law" that suggesm that a There seemsto be no inherent clustershouldpersistoverrhe long run. Perhapsthe oppositeis "project-based" phenorndre more likely event- the clusteris a enon.Its utility liesin theseopportunitiesfor collectiveactionto achievejoint gains.And theseopportunitiesarefew ratherthan many,for a number ofreasonsr One, firms areorganizedto be completeentities,for er<ample, with their own marketing,finance,production,and personnel departments.And firms exist to compete,not to cooperate.Tivo, in practice,firms in a clusteroften will not readilyshareinformation regardedasproprietaryor confidential.The qpe of information will vary acrossclusters,bur the needto accommodatethis concern

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Corporate Govemance:A Meansto Enhance Tiansparency andAccountability in Family Businessesof Underdeveloped Countries

By Dr. Josiane Fahed S.eih AssrslarrProfessorof [,4anagen]entLAU, D recior .st lre of Fam y afd E.1r-6pre.eura Busrness IAU M d d e E a sC t o o r d . a t o r r ol hr e F a nr l y

THE TOPIC OF CORIORATE GOVERNANCE }IAS gainedinterestand familiarity latelyin family firms ofunderdweloped countriesand in my opinion, this is the resultofboth, externaland internal factors. The internalfactorsstemfrom the factthat organizations want a managerial systemthat favorscontrol and this is donein big organizations by followingthe principlesand practicesofcorporategovernance. Moreover,organizations want more emphasis on rulesand procedures especially family organizations, and more Family orientation. organizations suffer from the overlap rystem's of the family systemoverthe business slstem;theykeepsecrecy behindfinancialoperationsto avoidtaxes,somecimes by having wo accountingsystems, the right one kept secretand the other disclosedto avoid paying high amountsoftaxes. This overlapmight alsolead to financial leakageswhere family membersusecompany fundsin lieu ofthe personalfirnds. The externalfactorsstem from the fact that organizationsin underdevelopedcountriesalwaystry ro Followthe Westernmodels which in many cases of management is appliedwithout problems but in somecasesit doesnot takeinto consideration the cultural perspective ofthe countryand the way operationsaremanaged. Other externalfactorsstem fiom the hct that someorganizationswould want to attractinternationalinvestors,and external capital.Investorsworldwidehaveimposedcorporategovernance practicesthat companiesshould adhereto, so that they make invesr' mentsin developingcountries.

N S TT ! T E O F M A N A C E M E N T

The globalization phenomenon has changed the way business is conducted, especially for family owned organizations. lnternational investorsimpose certain rules for conducting businessin under developedcountries. Companies that can adapt to this new competitive environment have a good chance ofsuccess. So organizations started looking at corporate governanceas a tool to achievesuccess and help them adapt to international stardards. Although corporate governance principles were initially designed for publicly listed organizations,they are equally,ifnot more ' important for family owned organizations. In lebanon, the private sector counts 95oloofthe economy family and businessescount 857o ofprivate sector economies,and out ofthe listed companieson the Beirut stock exchange,rhere is alwayscontrol coming from a single family. Even ifownenhip is nor a majoriry, (in certain cases40olo ownership for a single family, or even 120lofor a single family) and even if the voting power is not in the hands ofa single sharehblder,(more than 50oloofrhe voting power), the influence, the power and the strategicdirection is influenced by a single family. Moreover, rnany ofthose big groups are controlled by holding companies,which meansthat there is heary involvement ofthe family. For those family owned businesseswhen they passto the next generation or the third generation with muliple ownership, many tensionsarise as to the managementtransition, managementcontrol and power transition: who will manage the businessiHow the business will continue over the long term and how they can motivate

and attract non family employeesm the 6mily firm, who will hold the control torch? Those busineseswill soon realizethat ifthey.ue to continue and competewith intemationa.land institutionalized firms, they harc to esablishrleir policia, their nrla andprocedures andcorporatc gwernanceis oacdy dre ool that will help them succeed.They will soon realizethat they haveto changethe way they conduct business if tiey haveto survivein this new institutionalized environment. Many firms will realizedrat if they do not adopt the corporate governanceprinciples, they will soon suffer and fail. Family firms should be ableto esablish a govemanceqrctemthat dearly oudines rhe duties, resporuibilitiesand righrs offamily membersand shareteam,and dre boardofdirecton holden on oneside,dre managernent on rhe other. arevehiclesenGovernancestrumres in Family Businesses abling: r Effectivecommunication r On-going planning r Shareddecision-making r Expressionofshared ralues Although someaspectsofthe family owned firm structure contrasrsharplywith rhe basicprinciples ofcorporate govcrnance, other ftmily owncd firms' characteristicsmight be advantageous within a sound governanceenvironment. In family businesses, managementand ownershipare not separared.In many insrances this overlapofthe family qrctemoverthe businesssywemhashelped family firms overcomethe agencyproblem. (Conflict drat might arisebetweenrhe orvnerson one sideand thc managersor cmployces on the otJrer,) In underdevelopedcountries,family ties arevery imponant in keepingthe family together and in having positive relationships with the family. In cerraincasesthe understandingofthe family includesfiiends and fellow citizens.This senseofbelonging and the strong family ties help the farnily firm motivate managersand employeeqto work harderand harder for the well being of the family company,actudly for the well being ofthe largergroup to which they belong,Theseties havehded the businesspreserveits secrets especiallyat the initial phasesof businessdevelopmentrl+Ierethe businesssecretshould be kept confidential. Foblom3 Encountorad fol Urang CorDorato Gor6nrlnoa The problemsthat might be encounteredin underdweloped countriesfor using corporategovernanceis that family firms are reluctantto be ransparent,they do not want to unveil their business secretsand alsothey do not want to havefinancid disclosure.Wbile many family ffrms havegone public they tried afterwardsto buy back their shares.Family owned firms prefer o keep "hermerielly'' ris sea.led organizationalstrucnrrc,which is a serious obstadein instituting corporategovernancein underdeveloped countries, In addition most foundersoffamily firms are reluctant to "one maa shod' delegatetheir responsibilitiesand to stop acringasa managen in lrbanon to solveimporunt businessissues.Ownen and Middle East as well, have resisted delegating authority and and the

'tmpowering"

othcrs in the fear that the businesssecresand the strateg;rwill be unveiled to competition putti[g the businessat a disadvantagewith respectto competition. The fear ftom hiring ftom outside in key positions is mainly seenin hmily firms becausetley do nor want strategicknorr.ledge, financial information in financial statemens,profits and losses, rcnders,and specializcdknowledgenot yet public, to leat outside. This worry ro keep secrecyand to avoid financial uansparencyhas put thesebusinesserat a disadvantage,wh.ichover the long term to be in a situation ofundcr-pcrformance, haveled thosebusinesses In somecases,this lack ofprofessionalismand the ahsenceofpolicies put in placehavc led to tensioru that intensify with time and blow

up at a point to lead d.remto bankruptcy. Another ohstacJeto good goverunce in 6mily firms is the lack of atablished hinan resourccspoliciesfor thc employment and compensationof hmily mcmbersand family managers. Theseobsaclesto incorporating good corporategovernancâ&#x201A;Ź systemsin hmily firms can be overcomeby developingand instituting a sound codeofconduct. They can be overcomeby creating farnily governanceand companygovernanceand differentiating berveen the two. This will allow the family firm to chooseinrcllect ard productivity over blood. It will alsodlow the firm to prioritiz.e performanceover family reladorx. Moreover,by cstablishinga good family governance,madeup of family councils,family meetings and family constitution, this will help the firm install performancebasedmanagement,resolvesuccessionissues,and make compensationand human resourcespolicies more transparentand basedon merir. Once family membersknow the rule ofthe game aheadofdme, many ofthc problemsarrdchallengesin family businessescan t'e overcome. A governanceqntem rlrat is in line with the local culture will have: r clear rules and procoduresfor family memben' duties and responsibilities r a qualified board capableofobjective decisionmaking good strategicplanning qrstem r a sound human resourcespolicy, that recruits, promote-s and compensatesbasedon merit which is an essenddtool for the surviral and profitabiliry of family firms. The conceptsof trarxparency,fairness,accountability and responsibiliry arevery importantto enhancecompetitiveness. The Lrbanescnrles and reguladonsstipulatesrhat the chair-

THE ASIAN MANAGER I MARCH 2OO4

ASIAN INSI IUTE OF MANAGEMENT

man ofthe board and the CEO should be dre sarnepersonwhereas in the latestfindings in this field, rhe CEO should be a separate individual than the chairman ofthe board to ensurea more orofessiona.lboard. Befolming Board Prac-ticee Reforming board practicesis a logical placeto start with, in instituting governance.Knowing how dre board operaresis crucial ro how a firm is governed.In most family firms, the board ofdirectors is madeup ofonly membersofthe family, who are shareholders,Ifthe companyis srill in the first generationtransition, dis informal board might work out. As the number ofshareholders multiplies, a formal board ofdirectors should be pur in place. V4.renthe number ofshareholdersbecomeslarger,there is usually one representativeof wery branch ofthe hmily, this works for many families in the Middle Easchowever,this might lead to reasoning in terms of family branchesand might lead to lessuniry in the family, families should b carefi.rlon how they will operatetheir boardsin this case, There is a preferencein the Middle East to exclusivelyhave family memberson boards,with no room for outsidersor for independentdirectors.The firsr srepto look at in initiating governance in family firms and in promoting transparencyand accountabiliry is to start by reforming board practices.Board members'duties and responsibilitiesshould be clearly defined, including how the board and managementshould operate,interact with eachorher, and with shareholdersand stakeholden.The board comoosition and functionsshouldbe clearand well defined.It is imporanr ro emphasize thar family firms arenot encouraged ro focuson rhe form asopposedto the substanceof the corporategovernance pracrices. The basicprinciplesoutlinedin the family policiesdevelopedare er<pected to serveastlre starting point for the implementation ofthe best corporaregovernancepracticesin underdeveloped - countries. C,orporategovernancecan be effectivelyimplemented in familv firms of undwelooed countries:

Noothermanager or keyexecutive shouldsitonboard; otherboard members shouldbenon-executive directors. 10. lt is imperative thatthechairman oftheboard andtheCEobeseparate whichis in contradiction ottheLawsofsomecountries. Thisis a practice maior lora goodgovernance obstacle inorganizations. 11. Eachboard member should havea single vote,including thechairman performance oftheboard, to ensure, impanial, based decisjonmaking, andto avoid specialvoting rights orvetopower 12. Theboard should institute a culture oftulland transparent disclosure byadhering to international accounting standards andestablishing investor's relations andmediarelations depanments. 13. Boardmembers package shouldhavea competitive compensation withfixedandperformance basedcomponents. 1il. Theboardshouldreviewtheperformance of everyboardmsmber annually. Re-election of board members should beconditional on performance, based onpredetermined andclearprocedures, and shouldneverbeautomatic. 15. Boardcommittees shouldbeestablished to ensurea highlevelof professionalism andto makssurethattheboardis workingin accorgovernance principles. dancewithinternationally accepted corporate Theboardshouldhaveanauditcommittee, a compsnsation committee,a nominative commiftee. Therearealsoothercommittees suchas governance the corporate committee andsenior managementtrainingcommiftse,the career committee...the number ofcommittees and the soundfunctioning ofthsboardmayditferfrom companyto company,anddepending onthesizeoftheorganization. governance 16. Soundcorporate necessitates thatthemajority of commiteemembers should beindependent andselected ina transparent manner. Value adding boardsplay a critical role sincethe duties go far beyond the mere'monitoring oflegal compliance. Boardsthat closelybecomeinvolved wirh srategy developmenr,rop management selectionand subsequent evaluadonwill be ableto contribute significantly to transparencyand accounmbiliry and will be alert to the needfor them. Therefore only ifthe board is committed m working on all three aspects-- compliance,strateg;zand the right talent - will it add true value to a company. Conclurion

In conclusion, I would like to add that there is no one best 1 . Byseparating ownership frommanagement. providing 2. Byseparatinq ownership andcontrol, theboardofdirectors governancepracticednt would work for all organizations,but wery withguidelines bassd onaccountability andtransparency. corporate governancesystemis the result offour forcesin varying 3. Bychoosing bosrdmembers witha highl€v€lof ethicsandloyatty. degrees:the personalities,the capital marker, the businessmodel 4. Thequalifications andindeoendence otboard members havsa direct and strategyand the rules and laws (Steger2003). impactonthecompanys success; therelore, theboardshouldbe C,orporateGovemancefor a bold strategzin rapidly changing comprisedof individuals whoareableto contribute therequired exvolatile markets requiresa different practice from more cautious perience, skillsandspscialized knowledge. del,elopment in a more mature market,due o differenrlevelsofrisk Themajorityof board msmbsrs should beindependentso astocreate taking variances in speedand resporuiveness protessionalboard.ln requird. Capita.lmarkea a more all corporations theratioofindependent directors shouldbeat least25%initiallv, expectations andshouldbsincreased can shift rapidly and rhe rules and laws ofthe country at possibletime. lsastto50%attheearliest havean influence on corporategovernance,in addition to the perThenumbsrof boardmembers shouldbeat leastfiveandnomore sonalitiesof the various membersand the penonaliry of the CEO. than1l {orinextreme l5 cases a dynamic decision ) thiswillensure Family membersought to be very careful in applying the mal(ngprocess. colporate governanceprinciples. They should apply those tools 1. A system ofchecks andbalances should beputinplace tofosterackeeping in mind that the businessshould alwayspreserveits dgrapercountability andanhonest appraisal ofcompany andmanagerial mism, its and entrepreneurialspirit. Striking a good balancebeveen for mance. andto prevent a possible conflictof interest betweenthe dynamism and governancepracticeswould result in benefiting the board andmanagement. 8. TheCEoshouldbsheldaccountable totheboard. comDanv.

THE ASIAN MANAGER

MARCN 2OO4 I ASIAN INSTTUTE OF MANA6TMENI

Bbrolraphy,IMD Fe.specrv*, No r0r S€prenb€r 2003 U.rdr steqer n searchor cood D{ecrore C6nrd ror rnr.maroid P, var. Enr.Ons6.2003 whai makes s.ear b@ds srear Jeriiey Soiier€ d NaMrd Bu3,^€s3Rev6w - 2002 lCorporate cMma^ceTrends,Ihe cenrgr ro,Inronar ona tuvar6Enr€0/s6.sfins2003 NationarAssocarcn | Irre GMrnance comm re ol Corpo,ate D roctors . Dr Jam* &razsd . Prol Foben Sbbauqh 2m3 I nsfturins Coaorar€ GMnanc. ,i tuvoLop ns Em6rc nc and IG^s lonar E.o^om'es . Dl Calherne Kurchra I Neb,n! and D, John Su €n. Cent€.lor Inrdmalona Pnvalo E^1d@nse

The Indian Civil Services INDIA,THE HOME OF MORETIj,A.NA BILLIONPF-OPI,F, ofvastlydiverseculturcsis a challengrro manage.The lndian (iivil Serviccs is thc adninistrativcframeworkrcponsiblet'i'relJiciendv implementing policies concerningthe economic,hLrmanand nanual resources of The presenrday civil seniceis a legacvof the British.Thc Indian Civil Service(lCS) oftlcersduring thc British Raj wercbcsto*'cdwirh immense adminisrrativc powcrsand rhcir main raslawerepreservation of lawand order. dispcnsarion ofjusriceand collectionofoxes. However,toclei civil scrvants rveifirestarc,wirh fbcuson operatewirhin rhe fiameworkof a denrocraric Therefbre,unlikernanl otheroccuparions develqrmenr.rnd progress. thecivil areconsiderednroreof I vocationthan a job. services Holding a tremendous amountofprcstigc,thc (iivil Services h lnd;a areconsidered a premicrcarecroption.A formidableinsritution,the services not only provideexcellenr work condirionsbut irs memberscontrolvirtuallv all levelsof adrninisrrativepower,enjo1,high remuneration(rhc besrin the governmentsector)and enjoyimmcrrscprcstigeand srarus. Coostitutingall the non militarv dcpartrncnts ofthc governmentrrachinery,which run StateAdministration,rhc Ccntraland rhe State,Clvil Serv:rnrs ensurethat thec.onstitutional ard cnrirlemena.uebrought guarantc'ts within the reachof evcrycitizcn. No wondcrthen that rhc scrviccsmalagc ro arrracrsorneofthe best ralcntil chccountry Recruiredaftera fair, rigorousand competitiveexamination, rhe oflicersundergo:rn intcnsivetrainingin revenLrc menagemenr, legal procedurc.and commrLnit,v adminisrrarionaftermaling rhe grade. -fhe Civil Services !-xamination is conducred by the Union PublicServicc Commnsion(UI'S(l). Through this examinationcandidates aresclccrcdfbr variouscentralsenices,includingthe mostcoveredcadresoflndian AdminisrrativeService(lAS), IndianPoliceService(lPS)and Indian ForeignService

0Fs). ThsCroupA seruices 8re: . . . . . . . . . . . . . .

Services {IRTS) lndianRailwayTratfic IndianFailwayAccounts SeNices{IRAS) IndianRailwayPersonnel SeNice(IRPS) lndianRai|way Protection Force(IRPF) lndianPostalService IndianAudit&Accounts SeNice{lA &ASI IndianDefense AccountsServics{l0AS} IndianCivilAccoums Service(lCASl IndianRevenue Service{lRS} TheIndianlnlormation Service{llS) lndianordinance Factories Service{l0FS) IndianDefense EstateS€wics{IDES) ThelndianP &TAccounts & Finance Service Assistant Commandants in CentralIndustrial Securitv Force

The Gro||p B Services lor which r€cluitnent is mado lhro||gh civil sorvicos 8ro tio lollorving: CentralSecretariat Service{Section otficerGradel RailwayBoardSecretariat Service(Section officerGrade) ArmedForcesHeadquarters CivilSewice GroupB (Assistant Civilian StafiofficerGrads) Customs Appraisers' ServiceGroupI TheDelhi,Andaman andNicobarlslands, Lakshadweep, Daman& oiu andDadra& NagarHaveliCivilServiceGrcupB TheDelhi,Andaman andNicobarlslands. Lakshadweep, Daman& DiuandDadra& NagarHaveliPoliceServiceGroupB Pondicherrv CivilService GrouoB

IAS, IFS and IPS areall India Scrviccs which wcrccrearcdunderarticlc312 ofthe Consritution.Thc crcationofthcsc scrviccsprovidcssat'iguards fbr nationalunity andcnsurcsunitbrmiryof rhc administrarivc svsrcmrhroughout thc country to naintain thc minirnLrmcornmonadminisrrativc srandards. Candidarcs sclcctcdfbr thcscthrcescrvices areappoinredto diflirenr srare cadres,and asand whenrequiredrheyalsomovero Centnl Governmentjobs on deputation.The remainingservices arecarcgorized in nvo CentralServices - GroupA and ciroup B. Runningrhe administrarionofa vastand diversecountry Iike India requireseflicientmanagement ofirs narural,econonricand buman resources. 'l]lrar. is the responsibiliv The countryis managed precisely. ofthe civilseni<:es. througha nurnberofCentral (iovernrnenragencies in rccordancewith the policydirectionsgivenbI the ministr;es. IAS and AIM C)nAugust 1988,the AsianInstirtrreofManagementlaunchedrhe Masterin DevelopnrentManagement(MDM) program.Promotedasan intensive,innovativeand practirioncr-oriented program,the MDM course wiu designedto prcparedevelopment executivcs and practitionersto manage and leadpublic and ciuil socieryorganizations, coopcrativcs and privatcnonprolit firms. Seekingro rransformcardidatesinro developrnenrmanagerswho design srrucrures. devises1'stems. crearea culture,and forrnulatesuperiorstraregies, the N{DM programis a perfectplatformfor membersofthe Indian Civil Scrviccro parricipatcand honc rhcir skillsasmanagers ofa devclopingnarion. N1.Gopal Reddy,a seniorL{S ol}icer fiom rhe stareofMadhya Pradesh, lndia, is a studenrof dre graduatingbarchof IUDM 200.1.According ro Reddy the N'IDM coursehasprovidedhim nor only with greaterclarirybut irlsoa "The newapproachto shapingpoliciesin thefuture. couneis all aboutsharing expcriences and while wc rclateepisodes rhat havchappcncdwith us in a particularsiruarion,we alsogera differentworldviewfrom oLrrclxsmares 'l who-hail from differenrAqiar counrries. his exchangemakesrhe enrirelearning a lor morechallengnrg and enr;chingone,"he says.JiveshNandan, experience alsoa studenrofthe MI)M 2004 batchand rhe seniorIAS oli:icersaysrhar dre L{S is a generalistserviceand exposureto the maragementaspecrofrhings "\X4rich is quirebasic. is why a coursesuchasthis is ofgreat assistance asir helpslink rheorvto practiceand givea clearerperspective on rangeofissues," he adds. But is rhe MI)M coursean academicone or can ir reallvbe pur ro practicein rhe realworld and morespecifically a vasrand diverseculrureand Io Lommenron rounrrv\uch J. Indi;?Reddyliel. ir reallyi' roopremrrure it, asone will only pur theoriesro pracricein a givensiruarionand ir cannor be statedhyporhericrlly.Bur cerraintoolsand analyicalskillsrharrhecourse hasingrainedin uswill be usedat almosteverystep."ttena Nandan,IAS of[ccr and a studentof MDM 2004 batchfeelsthar shehaspickedup some invaluablelessons in socialmarketingdc'velopment and projectformulation. "Borh thesesubjectswill nor only help me in communicaringbetterwith the communirybur alsoin tiaming policies,"shesays. 'fhough rhelndiansarequireunanimousin theiropinionthat the course hasprovidedrhemwith new insights,inrerestinglearningtoolsand a larger worldview,they alsofiel thar certainchangesarewelcome.Reddysuggests in rhe indusrryto comearrd that it would be inreresring ro havepractirioners He alsoliels thar moreca-ses fiorn India and takethem throughthe cases. China ard a facultymorcAsianin naturemight addto the course.lena feels thereshouldbe morevalueadditionslikc an cxchangcprogramin Singapore to learnaboutgoodgovernancc or dcvelopmcntal projc.cts in nationslike Viernamor Thailandwould bc insightfuland rclevanr. By Shinibali Mitra S€igal

The softestpillow is a clearconscience... A smallsliceof a lareepie is betterthan a largEslice of a smallpie.

lnvesting nthe Furtureby Rommol Orbigo Infosys: ndustryLeaderby Anur.g Bhagat

INVESTING IN THE FUTURE WHENEVER A SEA SHFI T IS WASHED ASHORE ON -- composed A pristinebeach,it is clearproofofa rich ecosystem of colorful corals,fishesand orher deepseacreatures-- sutained by a cleal environment. It is no wonderthen that Shell,oneofthe worldt leading oil majors, takesits cue from this environmentalsymbol. Over the past few years,Shell hasdistinguisheditselfas the oil company that hastaken environmentalprotection inro rhe very heart of how it doesbusiness, 'With air pollution and the greenhouseeffectbeing increasing concernsworldwide, Shell haslaunchednew versionsof its diesel andgasolinebrandsthat promisebemercombustionand cleaner emissions.Uldmately, motorists and passengers all benefir from cleanerair. evenin highlycongesred cirio. The companyhasalsolauncheda new waveof really clean fuels for the 21st century \J7irhthe opening ofShell hydrogen refilling stationsin first world ciriessuchasTolgo and Amsterdam, ownersof firel-cell poweredcarscan now evenbe morc proud, "waste" for the only that theseroad beassproduceis dean water Ethanol and biogasare other naturally cleanfuels rhat Shell has startedto retail. In Stockholm, for example,biogasis extracted from purified methanefrom the cityt sewageto power vehicles. To lessendependenceon oil while looking for cleanerburning alternativesto supply the worldt growing enerry demand, Shell hasvigorouslypromoted natural gasasthe "bridge to the future.i' Natural gasis relativelyabundant, and studiesshow rhat it is the deanestburning fossilfuel. To grow is naturalgasbusiness, Shellhasbeenaggresivein discoveringnew gasfields and developing new markets.Its most recentsignificant finds indude the Malampayafield in the Philippines and the West-Eastgasprojeo in China,both requiringbillionsofdollarsin investments.

Another clear energyfront that Shell hasrecentlyventured into is the renewablesbusiness.In the hinterlands oflndia and Sri lanka, poor farming families havestartedto reapthe promise ofsolar power. With the switch ofan electric light, their children can now extend tlreir study hours well into the nighr. And their dream ofhaving their own televisionsets,radiosor rclephones hasnow becomea rsaliry All becauseofsolar power,their future indeed hasbecomea lot brighter. To get important feedbackftom its vadoussmkeholderson how rhey perceiveits environmentaltrack recordand other issues, Shell hasencouragedindividuds o join the global debatein rhe "Tell Shell" forum in its website.From higbly supportivetestimonialsto overlycritical anacks,Shellpublishedsomeofthe statements in its 2002 annua.lrepon. "Your A surferfrom the UK asseru, only goal (like errritody is else's) shon-term maximizing ofprofits. Maybe your brochure is a start, but we needsomeunbiased,impartial and credibleproof that you are actuallydoing somethingsubstantialto combat global warming and environmentaldecline." Meanwhile, arranonymousmessageis higbly encouraging. "I It sap, shall be purchasingShell fuel sinceI readyour advert in the Hanard Busines Review.My priorities havechangedsince undersunding the conceptofglobal sustainabiliryand I now choosemy vehiclesaccordingto emissionsand economyinstead " of aiceleration performance. An American visitor to the forum clearly suppons Shell's "Having environmentalinitiatives: beena former Shell dealer, I am glad to seethe companymoving into rhe renewableenerry slntems.I would encouragethe companyto aggressively research and dwelop a practical fuel cell that would utilize hydrogen to producethe elecriciry that we, asa nation and world, need." (continrcl on pasc 34)

Leader Infosys: Industry spendingdeliverbusinessralue. Sothereis more spendingon a class ofactivities calledIT services- which indudes consulting systems integration,packageimplementation,applicariondevelopmentand maintenance ald soon. Over the years,Infosyshasmoved up the mlue-chain from lowlwel, low cost softwaredevelopmentto more significant and sophisticatedofferings. In fact, the rangeofserviceson offer has grown wider and eventhe styleof'engagement'with clientsis much broadertoday.Infogn shifts towardsa higher level,higher paid and higher margin business,Another dimension ofsophistication is the much greaterlwel ofbusinessknowledgethat the companybrings to the able, Importantly, the relationshipsare richer in client companies. 'C(Os' Chief Executives,Chief Infoqrsnormallywork with Financial Officen, Chief Information Officers and other board members- and really talk the languageoftheir business.Infosys' relationshipsarenow much broaderand richerin is dient companies. It's really a partnership,itt a reladonit's stratery and it's businessship, rhecompanv gineerswirh,$250. , Infosvs was the first and t crirical. glew moqesuy ounng lts nrsl oeqlqe It pracices rhe higheststanr L ofcorporate governance.It is a dards )J.dv mulon. lne lloerarfzalronor not just for model oftransparency, the Indian economyusheredin a in India but alsofor comcompanies new era for Infosp. It took the opInfoqn is the fint and panieselsewhere. pomrnity to globalizeits operations. year in world to publish its financial statements 1998-99. the only company the Its revolrues soaredto about$121 million by fiscal (Australia, (as ofâ&#x201A;Źight countries The companynow hasrevenuesofover $ 750 million of March accordingto the accountingstandards the U.S., Canada,France,Germany,India, Japan,the U.K. and 3l, 2003). Presently,it hasover 21,000 employeesworldwide with business). which are the major economieswhere Infosys does a presencein over 30 countries. Infosyr alsodisclosessuch sensitiveinformation asthe exact Lisring on Nasdaqin 1999 wasa very imponant milestone for the company.It becamethe first and rhe only Indian company , compensationpackagesfor more than 450 of its top safi the aging considerproprietaqr ofreceilablesandotherdatathat mostcompa-nies to do so. It wasan important step in the companys globalization There is evena line item on how much the salesand marketing efforts, and it helped to gain acceptancein the global investment division spendson stationery. community. It not only provedraluable in dealingwith capital The philosophy usedin designingInfoqn' corporate marketsbur alsoin termsofannouncing is brandand makingpeople governancesystemis basedon somesimple pleceptsdating to confident in is firture, Infosp hasgrown to be a leading player in the inception ofthe company.Here are five ofthe most important softwareand IT consulting semces. ones: They parmer Global 2000 companiesand their client list reads The sofiestpillow is a clearconscience. big namessuch asBanl ofAmerica, Microsoft, Porsche,Airbus, When in doubt. disclose. Nonel, CiscoSptemsand manyothers.The companytachievemena Dont usecorporateresourcesfor personalbenefit. are poweredby intellect and deeplyheld ralues.The companyhas Put long-term interesa aheadofshort-ones. successfiJlydemorxtrated that it can creategenuineva.luefor its A small dice ofa largepie is bemerthan a largesliceofa small customen. Their niche is that they know how to effecdvelyenhance Pie. Good corporategovernancrhelpsInfoqn' staffin other ways. businessperformanceand ransformation with technology.Apart "Vhen you are One is in Infosys' ability to sign up new clients. from buying hardwareand software,increasinglya lot ofspending outsourcing part ofyour businessto a company in Bangalorethat now is on how to makeall this work togetherbener,how to develop is 2,000 miles away,you needa high level oftrust," salc Nandan softwarethat is not alailable in the market, and how to make IT FOR THE SECOND YEAR IN SUCCESSION,INFOSYS 'Far hasbeenrankedasIndiat top-rankedcompanyfor 2003 by the EasternEconomic Revie . '!i?ired' magazinehaslised Infosp amongits top 40 companies that havereshapedrhe global economy.Coming in at 34th spot, it is the first and the only lndian company to make it to the Iisl For the year2003, Infoq,s alsowon the prestigiousGlobal Most Admired KnowledgeEnterprises(MAKE). 'Business !(eek ranked Infosysas74th fastesrgrowing IT companiesin the world lasryear. 'Best Emploprs For 2001and2002,Infosysrrs raokedNo.l in of India' survep conductedby Hewitt Associates. Awards,accolades and recognitiorsaresomethingthat Infoqn hassmoothly learnt to live with. Seenasa flag bearerofthe Indian IT (lnformation Technolory) rwolution at a global stage,Infoqn TechnologiesLtd. is a companyto emulate,not only in India but acrossthe globe.Foundedin 1981 by the Chairman N R Narayana Munhy and six other softwareen-

ll:l'"q,l.oe':'h,l*'l.uoor . the onlv Indian comDanyto be

listedon Nasdaqin 1999.

T F l EA S I A N M A N A G â&#x201A;Ź R

MARCN 2O04 I ASIAN NST TUTE OF MANAGEMENT

Nilekani, the CEO. "Our corporategovernance systemhelpsbuild that trust," In Augustlastyear,a surveyofengineeringcollegestudentsin India rared Infosys asthe number one company ro work for. This is oneway in which ir is very competitivewith respectto other Indian IT servicecompanies.It is also l0-15 percentmore productive than most of im competitorsin India. Lastquarter,it received over20,000employmentapplicationsfrom studentsand it recruited about2,600,which is about l0olo.Most ofthesestudenr have excelledacademically at engineeringschool.They areput througha 'learnabiliry rigorstestfor beforehiring them. New hiresgo through a l4-week training program where they are taught generic analJtical thinking and problem solving skills. Thereafter,they are alsotaughtgeneralprincipalsofoperatingsystems, databasemanagement sysrems, nerworkingand so on. In subsequent training sessions, they aregivenan exposureaboutcustomer-facing and neeotiationskills.

\With tremendousfocuson sysrems and processes, the company laysgreatemphasison measurement. In fact,the capabilirymaturity model- requiresthe measurement ofqualiry and productivity at wery phaseofthe software-developmenr cycle.Similarly,peoplet performances are measured closely.Between25 ro 50 percent ofan employee's salaryis variable,basedupon the performanceof the company,rhe team,and the individual.lnfosys'sstrategicintent is to enhancethe per capitarevenueproductiviryofits employees To managerisk, the companyensuresthat it doesnor depend too much on any one customer,any singletechnologyareaor any one application.Internally,the companyhasa strongemphasis on KnowledgeManagement(KM) sinceit is in the business of deIiveringknowledge-intensive IT services. t's KM vision is to be an organization where every action is fully enabledby the power ofknowledge, which truly believesin lweraging knowledgefor innovation, where everyemployeeis empoweredby the knowledgeof everyother employee,which is a globally respectedknowledgelead"Learn er. The organization aims to move forward a once, use anywhere"paradigm. Infosys'internalKM strategrinvolvesa varieryof mechanisms suchasthe definition and continuousrefinementofcustomerser- a Body ofKnowlddge, which vicesand internal quality processes enshdnesexperientiallearninggainedby pastprojects;a peopleknowledgemap, which forms an internal knowledgedirecory; online technicaldiscussionforums;virtual classrooms; and other online learningtoolsand mechanisms to supportvirtual teamwork. All KM systemsare availableon corporate intranet and are accessible to any of Infosls' 5,000 plus employeeswho haveaccessto the company'sIAN - irrespectiveofgeographical location. A knowledgeshop home pageprovidesa cenral portal to all rhe KM systems.Internalevangelization aimsto promorea strong,visiblecor' relationberweenattaininga high profile in the organizationand contribution to KM. Infosls is a storyofnarional pride for India - ofhow far India hascome.It hasbecomea symbolofa growingpoweroflnformation Technologyin India and elsewhere. The phenomenalsuccess of Infosls demonsrrares that entrepreneurship cansucceedin a country like India and more importantlythis success canbe amainedin an honesrand ethical manner By Anurq Bh!g!t, MBA 2OGt

(Inv6,ins... fon png.32) -Asa companythat ralues rransparencyhighly, Shell published ment do not matchtheir promises. accountsofcriticisms it hasreceivedin its 2002 annud reoort. ln a statement,Shellsaidthat it takesthe group'scriticisms -highlighrs Vhile similarreportsfrom othercompaniesonly publish seriouslSbut lamentsthe receiprofthe award.The companysaid that build up a company'simage,this effon of Shellsignifiesthar irs that it still forgesaheadon prospectingand developingoil resources actionsfor the environmenrarenot a merecosmeticpublic relations sinceit will take a good number ofyears for the world co fllly harexercise. An anonymousTell Shellforum visirorremindsShellofits nessthe potenrial ofcleaner energ, sourcessuch asgas,solar,and bleak track record in Africa, "Nigerian people must be acknowlwind. edgedand respected,aswell asbenefitedby oil enracion, after all it Perhaps, a GllShellvisitor from the UK bestsummarizes what "Fossil is dreir homeland resourcesbeing utilised. Until Shell showsmore Shellt furure actions must be: fuels havedone Shell and respecrfor thesepeopleand showsmore carefor the Eanh we will myselfasa car driver and shareholdervery well. Now is the time to not buy youf oil." considerShell'spositionasan investorin other sources ofenergy The pressuregroup C-orporate\0'atch, meanwhile,bequeathed which we asa societyhaveat our disposal.Vind, wave Shell one of the Greenwashawardsduring rhe secondW'orld Sumall ir needsis investment."And ir is rhis wisestofall invescmentsthat mit on Sustainable Developmentin Johannesburg in September will help humans reapthe ultimate benefic a clean,unspoiled envi2002. According to them, Shellt actionson sustainabledevelopronment for flture generations. Ay Ronln l (higo

T H E A s I A NM A N A G E B

M A R C N2 O O 4

AS AN INSl TUTE OF MANAGEMENT

Surferscometo Siargaonot only

to srirfCloud 9, but to experience

surfbreaftsthat no

Surfin'Siargao by Philip Pid|ry

TheAIM-MEExplorers by S.rlnr Patdafit

fuwwffiw{ %x"awffiffi{;k hen we think ofthe word Eco-Tourism,it conjures thoughtsoftrudging througha forestwith a group "back ofuee-huggingconservationists in searchofa to nature"experience. This comeswith all the fun, and excitement,but an thoughtsofpoor food, questionable "eco". experience we canlatercall DestinationEco-Tourismhasevolvedsomewhatfrom this stereorypical imaginesin recentyears,and ir is makinga strong in fuia CountriessuchasThailand,Malaysia,and even emergence China haverealizedthe potentialin sucha lucrativemarket,and now recently,the Philippinesis followingsuir. The ideaofEco-Tourismreallygot its startin CostaRicain the early 1970's.Costafuca had beensincethe 1960'sa havenfor travelingsurfersand big gamefishermenasa get-away-from-it-all paradise.It lackedinfrastructureand developmentbut wasrich in tropicalrain forest,exoticfloraand fauna,and beaurifulcoralreefs. The progressive CostaRicangovernment,lackingexports, exceptfor coffee,and seeinga needfor development,tappedthe rhen new United Nationsdevelopmentorganizationfor assistance in developing r needed revenue.tream. The only thing CostaRicahad to offer wasits naturalwonwantedto preservefor fuders,which the Governmentleadership ture generations. The solutionwasa governmentmandatedcharter to protectand presewethe environment.EnForcemenr ofthis manwould be through the establishment of a chain ofnational date which would be protectedand preserved. park sysrems, A nationwide educationalcampaignwasinitiated,to educatethe localpeople ofthe fact that this not only wasfor tourism,but it wasthe life blood ofall CostaRicancitizens. Oncethis went into play,the evolvement of"Eco Camps"for tourism beganto develop.At first this Eco Camps servedonly the

hardiestoftravelers,which wasparticularlya nichemarketin those "get days.Well heeledtravelers, wishingto somerhingmore" from trips,through their travelexperience srartedbookingtheseexclusive AdventureTiavelagencies suchasSobekToursin SanFrancisco, and Abercrombieand Kent of GreatBritain.The EcoTourismindustrywasborn, andflourishesunderrheprotectiveandsupportive Costa fucan governmentto this da1,. Soon,CostaRicaasa destinarionbecamesaturated,and BelBritish backed ize beganto feelrhe overflow.Again,a progressive and Governmeni,with a strongmandatefor environmentalism protectionism,provedto be the winning combination,and Belize flourishedaswell. As developingnationswatchedthe modelsofCosta Ricaand in othet ateas Belize,moreentrepreneurial rypedevelopments aroundthe world startedto takeshape.Africa for exampletook the "eco" GameSafarito a new level,by inrroducingthe TentedGame Safari.Not only would you go on safari,you actuallylive in the bush,with the elementsofit all. This type ofEco Tiavelbecame known asDestinarionEcotavel. Tiavelaimedat one locarionfor a primaryactiviry The ideacaughton quickly,and soon,small wereorgrnizingrrips, group'ofnicheadventure rrarrel companies suchastrekkingin Bhutan,or white waterrafting in Borneo.SpecializedAdventuretravelagencies developed,and selected areas aroundthe world, becamethe havensof well heeledclientele, "must whom couldbragaboutthe trip their friend try" adventures. tWhilenot mainstreamyet, it remainsthe most rapidlygrowing rype of travel today. The primary marketofEco tavelers, rhe babyboomersof the 1950'sand 1960s, travelto exoticlocationsfor an ecoadventure, ofpristine quality remainsan elusivegoal.The Philippines now hasbeenput on the map,for exactlythis reason.

SiargaoIsland long ndected, the Philippines hashad areasundiscovered due to the difficulw ofaccess.and other obvious setbacl$.\yy'hile yet unexplored,the pristine beautyofthese locationshasremained intacl Only recendyhaveardentTravelersmadeit to locales,such asThwi Tawi, Samar,and SiargaoIsland. What thesetravelersare going for is the idea ofexperiencing a remote and undisturbed location, and interacting with it in an ecologicdlymindfirl manner,yet, getting somethingmore ftom the exlrâ&#x201A;Źrience. In SiargaoIsland,for example,surferswill travelhalfuay around the world just to surfon the "Cloud famed 9" surf break. It in iselfis an experience for any traveling surfer.Surfers come to Siargaonot only to surfCloud 9, but to experience surfbreaks that no other human being hassurfedyet, as the local islandersare still discoveringnew surf sighr annua.lly. Again the idea ofexploring a pristinearea,which hasnot beentraveledupon, a virgin tenitory iflou will, adds ro tle excitementofthe travel. Upon reachingyour destination,the local cultures,and customsare anotlrer addedvalue to the F-coTiavelers. SiargaoIsland, until 15 yearsago,had beenisolatedfrom any rypeofrourism. Local peoplerarelywent to the locationswhich are "too now famousfor Surfint, asthey fearedthe watersbeing dangerous".Siargaoremaineduntouched and isolatedfor many yea-rs,until a pioneering and legendarysurfer nameMike Boyum madeit his personalparadise. Bopm wasa travelingsurferftom Califomia"and had traveled around the world searchingfor the ideal spot to call home. In his

ravels, he discoveredworld famoru surfbreaks in Indonesia,and other localesdong the rmy. Coming to SiargaoIsland, Boyrrm discoveredwaveswhich were untouched by any other surfer on the planet, ald wavesso perfect; he wanted to keep it his own secret. Siargaoremainedhis penonal playground for years,until a trickle ofsurfers, beganto hear storiesofthis magicalplace. Siargao'sremotenesshasbeenthe appealof many travelers,is isolation haskept the local culture true to itself, and makesfor a uue cultural experiencefor one who travelsthere. The recentdiscolcryofkey d e locationsin theareasof Dnagat Island, SiargaoIsland and SurigaoDel Sur, haveagain put this on "must the do" activitiesofEco tavelers looking for that special trip. The Siargaoexperiencecanbe experiencedfrom the percpective ofthe local islanders,with the stan ofthe SiargaoIslandSurfC-ompany a community basedecosport development Company. The SiargaoIsland SurfCompany wassarted on the premiseofbeing "eco a true sport" dwelopment organization. It only hires loca.lSiargaoIslanders,and cros trains them, as surfinstructors. PADI Dive Masters.and Eco Guidesto the Island. A travelercan learn to surfor dive, kayak,mountain bike or just explorethe islandwhile at the sametime, helping promote and preservethe local islandersand giving them livelihood.

Siargaotremoteness hasbeen the appealof many travelers, its isolationhaskept the local culture true to itselfl and makes for a true culturalexperience for one who travelsthere.

_iF

ASAN Mr\!Gro

V^C. , .004

^<r4N rNq- - '-F OF VA\A6FVEN-

Gâ&#x201A;Źmith Gemparo

In 1995, Gemidr Gemparo, ME Batch 6, decidedto take a breakfrom her hecdc modeling schedulein Paris/NewYork and returnhomefor a briefvisit. Gemith had beenawayfor sometime, since1991,asshe

had rvon the Miss Philippines V/orld Crown, and hacl begun professionalmodeling u,ith Ford ModeJing agencyin Paris,and Neq, York. She missedthe simple lifi of her modest familv, rvho were J1 lrom SiargaoIsland, in SurigaoDel Norte. IIer renembrances ofthe Island were still very special.ancl she longed for rhat stressfree existenceduring her break. Gemith traveled to SiargaoIsland co rediscoverher roots, and catch up on old family relations. Upon arrival in Siargao, (lemith realizedrhar Siargaohad changed little, except for rhe dcvelopmentofSurfTourism, which had hir cheisland.\{,6ile tfre surfindustry seemedro be good for tourism (there were nerv resortsspringing up, owned b1 f<-,reigninvestors).she saw litrle impact on the local peoprleand their srandardofliving. In fact she saw a definite margin beoveen the fbreign invesrorsand the localpeople. It was for this reesonthacGemith founded thc SiargaoIsland SurfCompanv. It was modeled after communin-based tourism developnent models in more progressivecountries srrchas Costa Rica.

were excreorel,v shr to interact rvith fbreign gucsts. This proved the greatesrchallenge,which was overcomebv English tutorials, and regular academicclasses. "Eco (iuides" To irsure rhac rhese were up ro rhe required expectationsofguests, Gemith invested,in a rigid crosstraining, for Red CrossFirst Aid/CPR, PADI rescueDiver and Dive Master Training, aswellas Professionallv ManagedSurfSchool Curriculum development bv SurfHappens, a leading surfschool located in Santa Barbara Califbrnia. As trainingscontinued,so did thc dcvclopmcntofthc Siargao Island SurfConpany, from a small shack in the torvn ofGeneral Luna, ro a developedlargeeco-sportscenter!rvith kavak, big game fishing gcars,surfboards, and n.rountain bikes. So great was the demand that rhe SiargaoDive Center was developed,which specializesin PADI Dive Cenification courses, and PADI cerrified dive rentals and trips. 'l'he Companv today, while srill consideredin its infang', rcmains the dominant eco-sportscenter for the island, as ..ell as the reglon. Recenr foravs into Surigao Del Sur have fielded a treasure ofnew dive and surfing spots,and o;renedup a neu'r,'enuefor the

SiargaoIslard Surf Company

advenrure traveler The SiargaoIsland SurfCompanv has packed trips and

emith startedr"ith rvhatproductseernedro pur Siargao on thc travclmap-- Surfing.Gemith recruitedrhe younglocalSiargaonoan surters,and setup a small entrepreneurial shopcateringto the needs "ding" ofsurfbrs,suchasboard repair,and boattrips to outer surflocations. The investmentwasnot signJficant, but the conmitment to seeher fellowislanders rvas.Shedrafreda business plan,which incorporatedall aspects ofdestinationeco-tourism,and begana phaseddevelopment plan ro bring drelocalSiargaosrafftoa level whichrherr.rveling worldrvoulJerpe.' It rvasa big order The localbovsandgirls.all srrrGrs, spoke lirrlero no English, andin lacrspokemainlvtheirlocaldialect. Furthermore,theyIackedbasicreadingand writing skills,aod

products for all cost and needsofthe traveler Ali thesecan be researchedand booked from its website at rorwv.siargaosurfcom. (iemith (iemparo has now taken the posirion ofChairwomen, ibr professionalmanagementto steerthe Company into consistent positive numbers. 'bffthe Tbe challengeis great,asthe areastill remains beaten rrack" of rransporcationand logistics sysrems.Human Resource training and expertiseare still the greatesthurdle. Enhancenent of managementsvstems,such as satcllitc Iolernet development, single point web brsed management-intralet wstems, computerized financial and inventow s1'stemsand diversified revenueschemes srrchasstrategic marketing tie-ups rvith ke,vloreign travel companies rvill be the seedsto profitable successin the near term future. By Philip Picfiay, MBA 2003

[!I

J ! 'I

trIANAiJEM:\T

T IS NOT EASYTO DESCRIBETIIEAIM-ME EXPI,ORERS' it. However. rheprogrami 'pirir.rhewayour cla.shrd experiencrd | Eduardo Morato.Jr.mighrhelpexplainir all: ChiefArchi(ecr I "Vealth creationis a noblepursuitin life but only if it liberates ! you fro- th. ,r"edsand wanrsof this world. If it makesyou I meaner,breala)our hean,andmanglesyour spirit, *ren *ealth becomes prisonofrhem all. lt tiesyou down to a lonely the mostabominable cellfrom which you cannotescape." It hasbeendLreeyeanagosincea direne groupof"big ard small" enuepreneursmet up in a caseroom at the third floor of the AIM de Roxasto begintheir firstdayofwhat would be Buildingin Paseo 'Iiue a renaissance. enough,eachhadhis/herown reason to be nothingmuch in commonto for beingthere,andthereseemed stanwith. Save*rat, the groupwasto be thelargestbarchofME student I

a( lhe tlme. errtrePreneurs There were true BY blue enrrepreneurs; children ofentrepreneun; individuals with doctorates; individuals who ran international franchises and largescalecorporauons; rhose with a great deal working experience backed up by a hefty working capital; and yes, even thosewithout or rhoseindividuals who only had nothing elsebut dreams in their pockets. Once introductions were over, rhe body was then divided into three seitions

ffimr--mrrup:_!.F.ff

businessto include Badminton Courts. Tingzi

known to be Mavericks, Sphinx,and Erplorers-' whereeach a guru,and a drillmaster a cla.ssroom, sectionwasassigned ofmatchingstudentwith the program,student It is this process ' wirh clxsmates,studentwith guru, and studentwith drillmaster,that makesthe AIM ME learningexperienceunique and special.No other programcomes universitycourseor Enrrepreneurial closeto replicatingthis. It is when the sudent, underan exceptiondguru and drillmaster, is put to the situationthat bestfits hisor her own learningmanner, without personalprejudiceor judgment,that the lhreerequirements masterycanbe besr situationmasteryandenterprise ofself-mastery technolory, award-winning attained.Add in the latestin classroom casesudies, then faculgv, and a repository ofproprietary lecturersand you havethe ME graduare. One suchgraduateis NoelAbanofServnet.Noelwork in the "cenfied industryand,like hisdasmates,is a mobilerelecommunication BarchIII Explorer"- with a T:shin to prove.Noel graduatedwith known distinction,andhis latestforay,rhanksto what is collectively a Cellphone Repair Shop x rhe250KAIM Insight,is Commstation acrossthecountry that is beingfranchised

r-E AS AN !IA!ACIF

I.lAFCF 2O01

Belowis an excerptofan emailofhis. Thankyou uerymuchfb themoul rupPoft- T0m! Dear CLasmates: patmcrs,Vixce(TbuchconPhilippines)and Wrian (CathayBuilderi Gnta Inc.)for thesupporrand aduice;Bennen(CI{L Industies,Inc.): the T:shinsaregreat.Will ull youfor ther-order. Thanhsn youandyour famifi; Kara (Funra Ertra BoA D*ign): galingmotakga Qoutcgeat)! on time.. . burj 2 dEt prcparationandyetall thematetiabune deliuered hita (goodthing;you'remyclxsmax) Ako,fot smding na hng cLasmate bootb;Lito 2 ofyourpeoplewhoheQedw in settingrp our Commstation (dillnastet) awt Hmhq (formerME programmauger):for theaduice; DA (gunr):for dropping\, and somethoughts: Jomag(CincoHollings - GllphoneRepair to Comtwttltian C,otporation): for pwhing ne fanchile (3 Buiness Fair). May Shop daysbeforethePhilippine fanchise u tayo to all. Thanhsparmex Regar& Noel\ storyis a BatchIII Lxplorer story Thereis, too, popularwedding gown makerCarlaSibal,who is alsoBaghen storeowner and f*hion designerGraceDimacali who is now on her fourrhretail rollsand store.Gracesoldcheese from homeasa hobby ensa)rynadas duringherpre-Fxplorerdara.Chet "Baby Espino,publisherof $e value Magazine'hasexpanded chainto indudeprint production. IllacDiaz commercialmodeland - Illacessocialentrepreneur tablishedthe only dormitoryin the,ounqv thatcatersto Filipino marineworken. Edmin Tarriela who hasdiversifiedhis constructionanddevelopment

AS AN NSTTL]IE 'J' MAIIACEMENT

Torres,currently managingrhe transitionphaseofArlee\ Breadhouse five-yea-r plan includa marrying lnc.; JonOdulio rvhosecomprehensive his childhood sweetheartJoyce.Jojo Gallegoruns a schoolin Nueva Eciia.the onlv oneof its kind to follow theVMOKRAII SPMRES principles; Jojois alsotop bossof LibertyCenter,a mall in Ortigas, whereanotherExplorer,JomagMagsaysavhasopeneda profirable outletofhis PoraroCornerstore. in the publicpages The list andthe storycontinue,sometimes whileothertimessecretlyamongclassmates, ofnationalnewspapers, it is rhefactthat for eighteen but onerhingbindsthisclasstogether, -- equals.Thar*s to our monrhsthey werenaruralfriends,colleagues brilliant guru nnd to our incorirparabledrillmaster SARINA IUSRICHA, t"bti$et of Red Pen Publuhing, Jiuhed the po*gn,luare our:e tubkkng on the web.parr of the StanJivt Publxhag aoure' fot Ptolisnnals at Snnfonl Ud*ttit1, it Norenber 2002. SheboL* n Mnltet i" Entrc?reneurhiP fon th Asiar In*n*e of Mdnge,l?t1t, batth 20at. Shealso holzlsa Barhelor of Sc;entein Connerc, najor ir Intcrnational Bu:ues, cun kude, Jton Asunption Colbge,2000. Sanna hatjwt ncntlypabl*hed Kam Suta: the Filipiao Tianskxon Shehat 'dught Fi,1d'l.e at the,4:nnptior Collegzan./ Ent/?Prene'idl O/gd"izntio, fit the Ma*e, oJ Sc;em h EntftPrc'1eut'hiP Plogntn at the Gradute School of Bu!i,.$ Mdnagene,t, De ln Sr e Unit$iry, M'rlitd.

I N F O C U S

Indonesia SPICED\rITH FOUR HLNDRED VOLCANOES Javais the centerofgovernment,commerceand industry with morerhana hundredand rwenrysrill acri"e,rheworidi with the Republic'scapiral ciry - Jakarta.Jakarta,the main largestarchipelago and the worldt largestIslamiccountryis the gatewayto Indonesia,is not only a mixtureofmodern western "Spice onceknown lslard" - Indonesi: architectureand uaditional Indonesianculture but alsoa reflection Indonesia,which enjoysftequent soil rejuvenationdue to of the influx of foreign influences.Through r}teTamanFatahillah '70s, the countryt immensevolcanicactiviry, is madeup ofmore than RestorationProject,which begunin the early Jakanas 17,500islandsandisles. Bridging,Asia andAustra.lia, thecountry valuablecolonial suucmreshad beenrestored.The old Ponuguese is about rhreetimes the sizeofTey,asand is alsodre fourth latgest Churchand warehouse areliving museums;the old Supreme countryin the world. Surroundingthe Indonesianarchipelago Court building is now a museumoffine arts; the old Town Hall are the rrvo greatoceans- the Indian and the Pacific,making hasbecometheJakartaMuseum,preserving Indonesia's old the watersof Indonesiaa havenofrich marinelife, and the best historical documentsand Dutch period furniture. Jakartais site for reefexploration, surfing snorkeling and diving. burstingwith luxury hotels,fine restauranrs, excitingnightlife, The flora and fauna ofthe archimodernshoppingcentersald marine pehgois disrincrive.Species found no. resons.One ofthe most interestingatfound nowhereelse Species where elseon earth haveflourished in tractions in Jakartais the Taman Mini on earthhaveflourished cenlin areas,including the famous Indonesia lndahlBerurifulIndonesia in Komododragonon rheislandof r}e same MiniaturePark),which porrraysthe in certainareas,includingthe name.In abundance areabout2,500 rarietyof culturesin Indonesia. rarieriesofexotic orchidsand indigenous Kalimaltan or IndonesianBorneo, famousKomodo dragonon spicessuchascloves.nutmegcinnamon, is Indonesia'slargestislandand the second the islandof the samename. and mace. Indonesia,with its name largestisland in the world. This region originating from rwo Greekwords: is most famousfor its warerways,par"Indos" "Nesos" meaningIndian and which meansislands,has dcu.larlythe MahakamRiver,s*rich meandersthrough an expanse eight major islandsor islandgroups.Sumatra,Java,Kalimantan, ofrainforestsand hasfreshwaterdolphinsaccompanying boac. . Sulawesiand Irian Jaya(the westernhdf of PapuaNew Guinea) The town of Banjarmasin,the capital ciry of South Kalimantan, are the largestlandmasses. The smallerislandsconsistof two is the indefatigablefloating market. Togetherwith hawkersand main groups:the Mollucras to the northeast,and the lesserSunda shoppersarewater-policestrying to direct and keepthe water chain eastofBali. Bali, being a very unique island, is a classof trafiic going. lts own. Sulawesi,the third largestisland and formerly known as "Aftica - the babirusa,a Sumatra,the secondlargestislandand known asthe Celebes, is the sancuaryofunusualcreatures ofAsil' and Indonesiakadventureisland. hasAmazonlike rivers pigJike creaturewith upward-curving tusks;the anoa,a rare moving through lush rainforesr and mangroveestuaries.Located pygmy buffalo resembling an antelope;the saucer-eyedtarsier: in the North Vestern corner oflndonesia, it hasthe richest the maleo bird, similar to a bush turkey; and the marsupial wildlife in the country A greatvolcano chain, the Bukit Barisan, cuscus.This orchid-shapedisland is alsohome ro the erhnic 'Bogeyman ruru the entire length ofSumatra. It dso housesone ofthe largest group Bugis,which the children-feared is beliwed wildlife rehabilitation centersin the world houses-- rhe Oransto haveoriginated asa Bugis pirate. Nonh Sulawesihasa strong utan rehabilitationcenter. tradition oftrade and contac with the outsideworld. The Saneir-

A) A\ MA\AG' q

OI VA\dG

tn00nesra

FastFacts locstion:Southeastefn Asa. afchipelago betweef the ndan ocean andtlrePacf c 0cean Area:tola:1,919,440 sqkrn water:93,000 sqkrn and:1,B26,440 sqkm Landboundales: tota 2.830krn border countr es EastTimor 22B km,lvlalaysia 1,782 km Papua New Guinea 820km Climate: tropca; hot,humrd. rnore rnoderate rnh ghands pet.oleurn, NaturalRosourcesr gas,n cke,timber, t n,natura iertle sorls, bauxrte. copper, coal, goid,s ver Nationality: noun:ndones anls), adject ve: rdones an Ethnicgroups: Javanese 459;, Sundanese l4o/b, lvlad!rese 7.5%, coastal N/lalays 7 so/d, other260/o Reli0ions: Muslim 889i0 Protestant 596, Fornan Calho ic3%, Hindu 2ol0, Buddhist 1%.other 1olo {r998} langragesjBahasa ndones a cial,modifedformofA,4a ayl, 1o{J Engl sh,Dutch, ocaldiaecls ihemostwidelyspoken ofwhich s Javanese Goveinme Type:Fepublc Capital:iakaira Independence: l7 Alglst 1945 (procla rnedndependence; on27 December 1949, Indones a became egalyndependenl Jro'n th€ Netherlands) NationalHoliday: Independef ce Day, 17August 11945) Constitution: August I 945, abrogated byFederal Const tution of1949 andProvisional Constirlrion of 1950, restored 5Juy 1959 LegalSystemr Based onFoman DrtchaWsubstant alymodified byrndgenous concepts andbynew crrrnnalprocedLrfes codet hasnol accepted compulsory ICJ ct on lurisd Erec0tiveBranch:Chieiol stale PresdentA,4egawat Slkarnoputr andVce kince23J!ly2001) President Hamzah HM (slnce 26 Juy 2001), note.thepres dents bolhlhechrefofstateandheadof cabinetCabinet !overnment; appointed bythepr€sident; eiectonspresidenl andvice y bythe separate ;xesdenle ected People s Cofsu laliveAssemby !,[JPBforfrveyearterms; nert r lctiontobehed n J!|y2004; I accordaice withconstitutlona

"Jar.a The fir'stlorownhuman thc Man" ot Homo erectus madcIndonesia hishome. (Durch ph1'sician a natural bridge ro the Philippines, and manv traces L,ugenel)ubois fbund thc fossils ofFilipino culture can still he found there. Filipinos on the islandof Java.)Todav,Indonesia, rvith more have influenced and encouragedthe Iocal than200 millionpcople,is a spectrum of all Asian populations ro raisecoconurs, making Sularvesia culrures,racesand religions.As the lourth largesr largeconcenrrarionofcoconut rreesthan anv other populationin the rvorld,Indonesiahasover300 part oflndonesia. ethnicgroupsrvith a Irian Jaya is a diversiwof cusroms, lndonesia,with more than 200 million hot hunid island languages, beliefsancl 'rvirh some of the artistrr,:l heJavanese people,is a spectrumofall Asran most denseand is rhe largest impenetrablc connruniryin rhe cultures,racesand religions.It hasover junglesin the Iodonesian .100ethnicgroups\\'irha divcriiri of rvorid. It also has population.Tracesof Clhincse. Incloc-hinese, customs,languages, beliefi and artisrry capped mountain Arab,turopean, ridgesmore than Polvnesian and orher 5,000metershigh, rvirhrvallsplungehundredsof SoutheasrAsian peoplescan be found. metersdorvnonro floorsfilled with smallglacier Indonesia is most renorvned fbr thc rvayang lakes.The islandis Indonesia's largestarrd and the barik. \X/avangor shadow-rheareris rhe trative headquartcrsand are rhe focus ofsecular Talaud island ro the north ofthe nainland, fbrm

e J \ l e r n m O \ tP I O \I l l L e .

"Ultimate The island ofBali, rcgardedas rhe Island" bv travelers,is the mosr enchanting travel and hoiiday dcstination in the rvorld. I'coprc arc drawn to rhe island not only becauseof its phvsicJ beaun, the ).ear'-roundpleasantclimate, irs wide variew ofatrractions, its fiiendly pcople, and the absenceofsecuriw problems bur also becauscof a specialmagic that is dillicult ro grasp or explain. Bali's culture is very uniquc. Pcople sav char rhe Balinese,who h're reachedself-conrent,live without the worries of mundane lifi. l'he Balinesedoes nor resistchangesbur rarher adapt them to rheir own rra. .,flrle. e"J. rnd .pirir, havcbrcn rrr imporranr pat ofBali s daily life fbr hundre& ofvears.Gunung Agung Bali's holy mountain - is internationallv "Chakra" regardedas one of che eight poinrs of thc rvorld.

most proninent theatrical expressionsin the corrnrrv. parricularly in Bali. \i/arang kulir. rhe popular wavang fbrm. flac cu-our figures are silhouctted againsta translucent,lvhitc screen.with a coconurJrusklamp asits sorrlceofiighr. It is mostly enactmentsof religious mrthology blended wirh historical lacts. I hesewavang figurcs lre nanipulated rviih rods bv the puppeteer or dalang, u4ro cellsthe storv accompanied bv a ganrelan orchestraand occasionalchanrine or singing of a singer Barik, on rhe other hancl, is a popular method ofapplvilg parternro rexriles.Dveing using *a-r, lndonesian tcxtilcs arc some ofthe linesr in the world. The country's nationd languageis rhe Bahasa Indoncsia sirce lndonesia'.sindepeodence.An cstimatecl583 languagesand dialectsar€ spoken in rhe counrrt'- English is the most widelv

Lurderstoodfi'rcilgr languLtgc,r',hiie Dur,:h is still spc,kcn

rri. the eldrsrdaughteroflndonesiesfir-stpresident

bv sorneclderlv pc.,ple. 'fhe vast nrajorin,of Indonesiansare Muslirns :urd rhe minoriry rcligiousgror4x an (iluistians,llindus

ocratic Parrv firr Strupglc,ln.lolesia witncsseda pres-

in.[rkarte, rvhich and Buddhisrs.The lstiqlal i\'losL1Lrc took 17long vearsro builcl, is the largestirt South Ert Asia.nd secondlargestin rhe rvorld.lburisrs .rnd non Muslirnsare rcquircdto rakc pcrnrissionltlirrc cnrcring

'l_he first dernocraticelectionon Jrrne1, 1999 rv;rsr lantimark lbr thc couotrv afier morc than rlrrec

Sockamc,,an.l thc chairmi n oithe hdorrcsian Dcmidcntial clertiorrb' cicnro.rati(:tnd constitrLtional

dccadesofauthorirari:rrrrule. I he scriesc,ilrllicr sr,ged the mosque. br'srudenrsliorn all univeriries ir Lrdoncsiederliurding The freedonrof religiouspr.rcriccrsenstLred b_v rcfbrms in dre govellmcnt letl to thc resigruri,rn of rhe Consritution. Everl cirizen h.rstlrc nglrt to adhert: Soeharc,r in 1998 aftcr 3l vearsof porver. to the religion ofhis lndoncsia's -fhc choicc. cconc,ml is closcro firll Constitution aiscr rccoverv.According co The Asian f)evel,rpsafiguards irs peoplc ateinstanv rciigious discriminationt horvever.rhe last ferv y.'arswitttcssed terrifi ing religious violcncc in Indoncsia. Thc Christian ethnic Chinese rvereamong thc first victims. religirusturmoil in some palrs of the counrn lcfi thousandskilled.

rnent Ourlook 1003,:ur annualAsian I)evel oprnent Bank publication that lc,ok rt economic trends in dre regiou, Indoncsia s economy rs expecredto show modesrgrowth of 4oloil 2004". lt also 'ihe rnoderate saysrhar expansionin thc nexc nvo years u,ill be

A denocraric countryl [)iah Permata

supportcd by an improvlng external€nvrronmen! and i

Megawati

pickup in investment

Soekarnoputri is Indonesi:rsfifth and

spending". For the past few

first woman presidcnr until the cnd of her (enn rhis year.Former

vcars, lndoncsia hm been facedwith serious inrer-religiousand inrer-

Prcsidcnt Abdurlahnun Vahicl,

ethlic conflicts, par"ethnic cicularlv the

popularlvkoorvnasGus Dur, whoscrcrnrofofTicc r,"assuPposed to run unril l{X)4, losLhis presidenq (ionsultarive,\semlrlv revokedirs rvhenthe People's mandatcandappoinrcd\'lega*ariSoekarnopurri, Lhen vicepresidcnr,asrhc new,prcsirlcnt on the grounds that \X'ahidhad exceeded his authorin'.p:rrticularlr' b1,issuinga tlecreesuspending theAssenrblv arrdthe Llouseof R!'presentarives. \Xlirhtheappoinrnentof\legir*ari S.rkarnopu-

'Ioda1,, cleansing"massecres. conflicts,human rights violations, lorvlerelofsecurityandthrearofrerrorism in sornepartsof rhe countryaresrillrvaitingto be rrsoh,ed. 1'hechallengcs Indonesiais confrontedwith, ;rlongside phrsiol grandeutdiverse culrurt, chenation'.s rich liistorr,,andits leadership rolesin the Associarion of SouthEastAian Nacions(ASLA.N),havetruly madclndolesiathe spiceof the continent.

TheExecutiveLifelongLearningCenter(EXCELL) of the As€n lnstitute af Managementis deliveringits 30week ManagementTtansfatmatonProgram(MTP)fd ChinaNationalOffshoreOil Cotporation(CNOOC)in Jakafta,lndonesia.lt concludedits fist t"re weekson DecemberlZ 2003andrcsumeddeliwringthe remaining 2B weeks of MTP on January26, 2004. The whole pragram is expectedto be completed on Octobet this yeat.Attending the prcgrcm are 250 CNOOCmanagersand seniorstaffs. CNOOC-South East Sumatera is the secondlargestoil producerin lndonesiaaftet PT CaltexPaciftclndonesta.

changes, thee ection ofthepresident andvicepresid€nt willbebydrrect vote ol lhec tizenry House Legislativo B.anch:UnicameGl of Representatves orDewan Per\4akilan (DPR)(500 Fakyat seats,462 elected by popular vote,38areappolnted rnilitary representatives when until2004electron military seats €xpire; mernbers serve fiveyearterms) JudicialBlanch:Supreme Courtor (lLsilces I\,4ahkamah Agung appointed by thepresrdent froma listof candidates approved bythelegisature); note the Supreme Co!rtis prepafing to assume adminlstrative responsibl tyforthelower courtsystemcurrently runbytheMinistry ol Justice andHuman Bights;a separcte Constitutiona I Court wasinvested bythe president on16August 2003 Intemational organiz6tiol panicipation:APEC, ABIASDB, ASFAN, FAO, CEESCAP G.15, G.19, G.77,IAEA, IBFD,ICAO,ICC,ICFIU,ICBI\,4, ]DA,IDB, tFAD. tFC,tFBCS, tH0.tL0. \,4F,\,40, nterpol, l0C,l0M(obseNer), lS0,lTU, I\,1ONUC, NAM,OIC.OPCWOPEC, UN, UNAMSIL, UNCTAD, UNESCO. UNIDO, UNIKOM, UNI\,40P UNIV]OI UNI\,4IBH, UPU, WCL,WCO,WFIU,WHO, UNOI\iIIG, WlP0.WM0,V{to0,!4TrO tlag descriptiofilwo equalhorizontal bands ofred(top)and whlte; similarto theflagofl\,4onaco, whichisshorter;also similarto thellagof Poland, whichis white(top)and rcd l{.tionalA hom: Indonesia Raya (Greal lndonesia) powerparity' GDP:Purchasing (2002 est.) billion $714.2 GDP- realgrowthr.te:3.7olo (2002 est.) power GDP- per c.pita: punhasing parity'$3,100 (2002 est.) Populatiorholowpovsrlylioei 27%(1SS9) lill.tion t'te (consonerpdces): (2002est.l 119o/o Lahorforce:99 millioi(1999) Lahorforce- byoccupation: agriculture 45%.lndustry 16%, seryrces 39%{1999est.) ljnrmployme r.te: 10.6%(2002est.) gas; Industries: Petroleum andnatural textiles, andfootr,vear; mining, apparel, plta,vood; f ertilizers, cernent, chemical rubber; food;tourism (l0R) lndonesian rupiah Currency: Currency code IDR per Exchanoo aata6: Indonesian rupiahs USdollar9,311 1S(20021.10,260.8 (2001), (199S}. 8.421.77 7.855.15 {2000). (tSSB) 10.013.6 yeaf;notefiscalyeaa:Calendar previously was1April-31March, but staning with2001,hasbeenchanqed to caren0aryear Into.natcounlrycodo:.id

C O V E FS T O R Y

Corporate Social (CSR) Responsibility As Business Strategy

By Jusn Miguel Luz

Asso..dtFororassor ror ledve)rJi alr y sFturlg Fnanceand an aDDointmentas Undersecretarvof (Philippines) Administraton, Departrnenl of Education

lobalizationpresentsnew opportunitiesand exciting from a businessstrategypoint ofview. But challenges the impacton developmenthasnot all beenpositive. \/'4rile poverry hasbeen reducedin certain countries in quite a dramaticway,worldwidepovertyin absolutenumbershasactually risen.The life expectancyin most countrieshasincreased, yet the nutritional statusofmany ofthe world'sinfants (including in the United States)placesmany of thesevery young children at risk. V/hile health statusmay have improved for most, the threatof HIV-AIDS is rising in alarmingnumbersin certain economiesto pandemiclevels.Worse,the true HIV afflicdon rate may be hidden giventhe relativelylong gestationperiodof the illnessand culturd biasesrhar chooseto hide the disease ratherthan report it. Peopleflock to urban arcasto pursueopportunities that are not readily availablein rural areas,but are forcedto Iive in horribleslum conditionsor ro commurcover long distances or both because ofpoor earningpower.Democratization may be on the riseasevidencedby the openingof mar.ketsand polidcal systems,but with it hasalsorisenthe unfortunatephenomenonofcorruption. In all this, the growh and expansionofcivil societyasa sectorplacesgreaterdemandson corporationsto be becer corporatecitizensand on governmentsto exercise and pracricegoodgouernance. For the business corporation,thesedevelopments or the lack rhereofwill have implications in three srrategicareas: Implications on markets. \X/hat impact do development issuessuch aspoverry socialexclusion,and deprivation haveon markes and on economicwell-beingi !?hat is the impact of urbanization and democratizarionon the growth of markets? Implications on political rislc'\00hatdevelopment/social issueswill be ofimponance to humanitytodayand in the future?

\X/hatwill be the demandson organizations(government,business,civil sociery)? Implications on leadership.\Vhat tools should leadershave issues? in orderto address suchsocial/development The traditional responsem developmentand the concern for the provisionofpublic goodshasbeenthe domainofgovernments.Sincethe Rio Summit (1992)and the peoplepoweryears prior to that leadingup to the third waveofglobal democratization, civil socieryand the private sectorhavebeen brought more closelyinto the debate,For Business, the questionaskedhasbeen: "Is therea marketsolutionto public issues?" And the alswer increasinglypositive with leading companiesmking a market approach asa responseto this new or heighteneddemand. Framing the Corporate Social Responsibility Response tJ(/hathavecompaniesdone to respondto socialsituations and in its besrinrerest?CSR, in this regard,presentfour levelsof response basedon the levelofcorporateinvolvementrequired. r Resourcetransfer (corporate-giving and philanthropy) r Community relations (direct involvement in community-basedprojects) r Business/industry practicâ&#x201A;Źs (CSR through codesof conduct; value chain management) r Businessoppomrnity - market solution to public needs/problems(CSR asbusinessstratery) ResourceTiansfer C-orporate-givingis the easiestresponseto comprehend.The origins ofphilanthropy in Asia havelargely beendriven by individual and carriedoverto corporationsasan extensionofindividual beliefs.In the Philippines, taking after American law, such giving

A n c e a d o p l e d t r o m ' C S Rn l h e G r o b aC o h m u n , t eA M J o u m a II]E ASAN MANAGEF

MAFCN2004 IASAN

N S I I T I ] T EO F M A N A G E M E N T

hasits own immediatebenefits(e.g.tax creditsand shields)quite separatefiom the benefis derived by the recipiens ofgrants and which may be the single most important driver (though in many In Chinesesocieties, instances this is not so for corporarions). howevet motivations are more personalgrounded in individual 'return to societywhat socieryhasgiven erhicsand a concern to them first.' The dangerofsuch giving is the creationofa dole-out situarion where the granteesare no better off becauseof dependencyon the resourcetransfer Major corporationshavebeganto rethink corporate giving programsto try to minimize this dependency,Somehave beganto look at this involvement asa form of community or social investment.By beingmorefocusedand targetedand by looking at multiplier effecrs,they haveframed the giving in terms ofthe renrns to the communiry or sociery. Key Questions Asked of Corporate-Civi ng r \W/hois/arerhe focus of the giving? Are thesekey publics of the corporation? r 'i(4.ratis the intervention for which the funds will be an investmentl r Vhar arethe returnsro rhe communiryor sociery? r Do rh€ retumsiustifuthe investmentmade? r Havewe learnedsomethingfrom the relationship? r Are we all betrer off from the investment? Community Relations ommuniw relationsinvolvesmorea corDoralionin /l programsin rheform oftime. effort communiry-grounded f V "nd aoour"as.Lomoanreshavechosento undenar{erhrs involvement directly either by rhemselves;in partnershipwith an NGO, communiryassociation or localgovernment;or in coalition with other businesses, The coalirionapproachto developmentis common in a countries. numbel ofsituationsborh in developingand developed In all coalition arrangements,there is the desireto pool resources to achievesomecritical mass.In developingcountries,howevet the coalition arrangementshavealsooccurredin situationswhere sucharralgemens arcviewedasa viable(albeittemporary)a.lternative solution to Government'sinabiliry to deliver specificsocialservices or to respondto certain socialdemand.And in such instances,the coalitional arrangementhasprovided insuranceor hedgedthe risk that could hurt companiesif theyengagedin suchprojectsdirectly and on their own.

TheFutureof CSRas BusinessStrategy Whatis the landscapefor corporatesocialresponsibility? SomeCSRareasBusinesshasto address: Blr*inf wi$ thc PoocWbllb Crsrlion .t d|! Co.muity lrvol ls thsre 8 marketfor creditamongthe poor?Ars ths poora highcredhrisk?

E||.hLr Blaic Edrcalior I Do6seducationm8ttEr?what arelhe socialretJmson educslion? culturalbariorsto Wonenbagencyaodsocialchanoo:Howdoyouovercomo in education? imp.ovegirl'spanicipation

wasfoundedin 1970 PhilippineBusiness for SocialProgress by 50 leadingcorporations,both Philippineand muldnational, "do to somethingabout who sawthe needto pool resources development"in the faceofworseningpoliticaland economic situationjust beforethe declarationof martiallaw.By pledgingto put asideone percentofnet incomebeforetaxes(andplace600lo corpsofsocial ofthat amountto be managedby a professional workersin a non-profitfoundationcalledPBSP),a development and usedasdwelopmeot substantia.l amount of frrndswereaggregated capitalfor a rangeofsocial developmentprogramstargetingthe hadgrownto 180 Philippinepoor By 2003,PBSPTmembership corporations,a number of*tich had setup corporatefoundations to carryout direct involvementprojecs for their own employeesand their own in'housecommunigvrelations(comrel)programs, Thai Business InitiariveForRural Development(TBIRD) wasset up by the Population and Communiry DevelopmentAssoin socia.l ciationin 1990asa meansto directlyinvolvecorporarions development.Through TBIRD, compariesadoptedvillageshelping projectsin a wide rangeof areas- livelihood, organizevillageJevel manufacturing,socialservices,community development- based .rssessment. on a tripartiteTBTRD-company-communiry lnitiativein SouthAfrica is a coalition The NationalBusiness ofbusinesscorporationsthat werepart ofrhree previousbusiness associations formedto addresthe effectsofapartheidon the future ofthe country Upon his assumptionofofice, PresidentNelson "instructed" Mandela the NBI to be directlyinvolvbdin addressing the masshousingproblemsof SoudrAfiica, an areathey had worked on wen during the daysofapartheid. The Corporate Nework for DisasterResponse(CNDR) in rhe Philippineswasformed asa coalition of30 businessorganizations 'and foundationsthat first respondedto two major naturaldisasters eanhquakethat hit and lsveled in the early 1990s- the devastating portionsofCenrral Luzon in 1990and the eruptionofMount Pin4tubo a yearafter.Sincethen, CNDR hasdweloped and trained mitigationand and individualsin disasterresponse, organizations stafand growing and so with a small professional preparedness, does corporatemembership. In the United States,at leastthreecoalitionalanangements partnerships cometo mind, all ofr4rich arebuilt on public-private involving Government,Businessand Civil Socierygroups: r The Atlanta Project,which is involved in broad communiry development; r RebuildLA, setup in the aftermarhofthe 1992Easttos RodneyKing Angelesriots followingchecontroversial verdiccand.

lho Flilur! of fi. EducrlionSy6i.n: c|rild rd Urd8nge Lrborl Wlatis a reasonabls agofor work?Wrat is a livingwage? Socill flo.lth: fllV/Al0S in Oe Urod(phc. incidence risingin Asia,whatisthe impactonths $,oddorco? WithHIV/A|0S ro HIV/AIDSprevention? ls therea marketrssponss/solurion beingpriced Wrththeriseof HIV/AIDS as a publicheahfiissus,srs medicines attordabl€? lo keepmedicines outolr€ach0f most?lstherea socialobligation Urt dzdioe md tl|t Oorth ol .!aciti6 pressure is the Infrasructure andlheburdenondeliveryot ssrvicos:What impactonqualityof litu(HDlindicatorsl? to megacity Aretheremarkstsolutions Innov€tivs msqacityprobl€m-solving: problems?The in .apidlyexpanding cities sconornics otrr/astsdisposal

T H E A S A N M A N A G E F I M A B C H 2 O O 4 I A S A N I N S T I T U T EO F M A N A G E M E N T

r The New York Ciry Partnership, involved in inner-ciry rehabilitarion and renewal. But there have dso been instances where companies have undertaken communiry reladons directly or through their own foundations. In the Philippines, two banks approach comrel rhrough community lending programs. Planters Development Bank, rhe largest private development bank in the country has chosen to stay a developmenr bank working prima-rily with farmen. A special lending unit within its own operations group does urgeted 'not-yet-benkable" frmers with the aim of bringing lending for them into the mainsrream businos over rime. The Bank of the Philippine Islands, on the other hand, the country's second largest prirate cornmercial bank has maintained "Banking a with the Poor" prograrn under its own corporate foun&tion lending capita.l to microenterprises following a modified Grameen Bank (Bangladesh) set-r.rp. C,ompanies in the natural resources sector (i.e. mining, quarrying etc.) often act as de facto local governments viz towns set up around operations. The Phinma Group in the Philippines is the largest manufacturer ofcement, alr industry which can have negative effects on the environment and the communiry At the height ofrhe economic crisis ofthe mid-1980s that resulted in massive worker layoffs, Phinma's management set up communiry relations projects to help assist displaced workers. The effort has been institutionalized in a comrel department which has a unit in every factory and plant. The Group has changed its relationship with company towns into community partnershipswith strong links to the loel governments. In Thailand, shoe manufacturers including the Pan Group, the largestmanufucturer ofshoes under (original equipment manufacturer) OEM and other arrangemenrs and Bata Shoes have reengineered their operations moving a large bulk of production from large central factories to village-based production centers under province-based network centers. The move was done to help address the problems of in-migration of workers to the metropolitan Bangkok area. In the United States, the South Shore Bank in Chicago recreated itselffrom being solely a bank to that ofa bank cum communiry developer. The Southern Development Bancorporation was established as a partnership with the communiry and others as a vehicle for undertaking inner city renewal. The bancorporation has since done work all over the world in similar fashion. 'Vhile comrel has a range ofproject possibilities, rhe most interesting have been those which have been direcdy related

Urt nirdionrndli. llrrd for$|.lbl housing Housing $e poor: Wroc8nafiofdhousing? Howcanlowincom€ bo segments of$s popul€tion? mado aftordable tofie poorest

ro the business of the corporation and which is linked to their expertise areas.These have been the engagements that have been most sustainable from a strategic point ofview. Comrel efforts not related to the business have the added burden of continuously marketing the effort to publics within the organization. Not a few ofthese projecc have actually ceasedupon the retirement, removal or transfer of the principal movers within the company especiallythe CEO. Key Questions Asked of Comrnunity Relations r Is the specific communiry a major public for dre cornpany?Ifnot a major public, what is the relationship envisionedi How will the relationship be sustained? r Should the comrel effort be related to the business? Should a company bring its expertiseor core comlxtenc€ into irs comreli Or should the comrel effort be completely away from the business? r How should efforts be measured?t{4rat is rhe value-added to. the cornmunily of a company being directly involvedi tX4rat is the "alue-added to the comoanvl Business and Industry Practices CSR through codesofconduct is the manner by which so"best practices" begin to be viewed as standards for business called or for industries. Such codes ofconduct have been important selfregulating mechanisms as well as vehicles for corporations to buyinto industry-wide practices.A number ofsuch codes exist. Two industries are particularly strong in this regard given the pressure placed on them by home-markets: grments alrrd footwear The hotel industry has been particularly successlirlin its international environment initiative with almost all major chains buying-into promoted by the initiative. the indusrrypracrices One area which is still largely undersubscribed in Asia is that ofenvironmental management systems.Few Asian firms havelSO 14000 ratings or have even began considering such. The few, however, who have taken it on are beginning to show how the value chain management (and the concept of"Greening the supply chain') can give them strategic advantageand help in managing the bottom line. The major issueswith codes ofconduct lie in the differences in standards berween what the codes advocate and national , corporate practices and labor regimes. To the extent that codes are mutually-agreed upon between the brand holder and its suppliers, there should be no quarrel. ri0here such international srandards are linked to trade, howevet the issues of non-tariff barriers and discriminatory trade become real and problematic.

Urtr z.tio[ lnd low-hconcllourine Theoconomics oflow-income housing: lo low-income housing? ls$srsa ma*etsolution

Bu.i[or! rndfte Envi]oflrort Uirnirrtio[.d th. Into|tmlSoclor for housioq, wator,hoalftcareandother TowhomisEusiness accountableto intermsotfie environmont? Howdoesthsinfonnal sectorprovids incident urhan BremSoar services, including employnent in$e highly competitive area{megacitjes)?Seetheboxon$e ShellGrouo shareholders andstaksholders? withtheintormal sector? Whatis$ebalancelo bereached betweer Horr/ doeslholomal sectorinterface/interact .

Ufiolirdioi lod Accs to lrtilili.. mo|lg thi Poor (squstters) elechicity. water, odrer Should illegal occupants begiven accessto Whstare$e risksinproviding basicsErvices to illegol occupsnts? sorvicos? Inlargeillegaloccupam situations, canthey Howcan suchriskbemanaged? beignored?

I H E A S I A N M A N A G E R I M A B C H 2 O O 4 I A S I A N I N S T I T U T €O F M A N A G E M I N T

PublicGoram cerd lhaEO.niion ol Gonqlion gndemictoAsian society? \l hatis$e degree ofcorruption inAsi€? lscorruplion private torpublic rctums compensats Th8Economic costsolcorruptionr0o costs? Togivsorootto give?

Kry Questions askedofC-odesof C-onduct r Are codesof conduct consistentwith the operaringcontexta r Ale the standardsin the codesachievableat rhe local Ievel? r Do codeshelp raisenational standards? r Is CSR in the operationsunderstoodrhroughout the company? r Is it becomingpart of the corporateculrure?

ofcorporations by choiceor driven by communiry pressurehasled to benchmarkingCSRasa part ofbusinessoperationsifnot strategy rooay. Suchbenchmarkinghasrequiredthat Business be much more proactivein its CSR stanceascomparedto the reactiveposition manytook in part. Beingproacrivenow requiresa moresrraregic oudook in view ofopportunitiesthat beginto meld the for-profit sideofbusinessto its socialresponsibiliryThus, the future ofCSR is in business models: 'Vhat r worls bestfor the company and for society? r \Whatis most sustainablel I What cleatesmost financial, economic and socialvalue?

Market Solutions to Public Problems CSR asbusinessstraregyis the new areaofdevelopment and as oudined above,there are rwo modalities: (l) As an alternativedelivWhy CSR? ery mechanismfor a public good, and (2) Privatizarionofthe public service. The conrext for engagingin CSR in dweloping countriessuch asthe Philippines,Indonesia,China, India, andThailandwill be In the Philippines, an exampleofthe first is characterizedby "Depressed the framed around questionsofpoverry needs,governanceand governArea Electrificadon Program"ofthe Manila Electric ment responses. Company (Meralco). There, poverrylevelsare relativelyhigh exacerbated The latter includesthe privatization of the managementof the in rhe late 1990sby the Asian financial crisiswhere the borderline waspoor and the lower middle income groupswere hit hardest. Metropolitan Manila Vater and SewerageSystemby the Government into two concessionsmanagedby two ofthe largestPhilippine Vhere economic crisis his, socialtensionsare srrongesr.But a conbusinessgroups- the Ayala Group and the Benpres/lopez Group tinuing downturn hasimpacts on marketsfor businessaswell. both ofwhich havepartneredwith international warer utiliry firms. Compounding the poverty picture is skewedincome distribuBy 2003, however,the Easrconcessionheld by the lopcz Group tion which can alsoprovoke rcnsion especiallywhere largeportions (Maynilad) was in financia.ldifficulry with the Governmentmulling ofthe popularion havelittle accessto or control over producdve whether to retakethe concesresources other than their slon. The provisionofelectriciry serviceto illegal occuemplovmentindreforma 'lquatters" operating context? Are the standards in pants or is a new sector can place tremendous part of the business that is not traditionally addressedbecauseofa numberofreasons includinghigh ris( Iow incomes,legal constraina, and Asia,theunderground' ls CSR in the operations understood surely,morket bias.The queseconomyhasbecomethe don ofwhether there might saferynetthoushdrisca throughout the company? ls it becoming in fact be a reasonablereturn on such an investmentor a way by which productivity In such a context, is gainscan be realizedby rhe Businessexpectedto delivcompany is a question grappledat the highesrlevelsof the company eri Vhy shouldnt Government take râ&#x201A;Źsponsibility for taking careof (e.g. Board of Directors). Likewise,rhe participation of companies the publicgoodsand needsofits peoplei Ii?hereGovernment'sability to deliver is STRONG against in areasthat govemmentstraditionally servedrequiresa changein HIGH constituencydemand,this becomesa questionofcapaciry. the mindset and a new view to how Businesscan carry out its business, Can Government deliver?In the pastdecade,developedcountries "Reinventing Ever sincethe followed by developingcountdeshaveseenthe opening up ofareas Government" movement in the U.S., enough experiencehasbeenrealizedofprirete corporations of opportuniry where public-privare partnenhips dweloped in the "reinventing becominginvolvedin rhe deliveryofbasicgovemmentservices delivery of such public goods.In government", rhese inhaveincluded the outright privatization offacilities, the privatizacluding masshousing, masseducation,health servicesdelivery,solid wastemanagement,and a host ofother public goodsservices. tion ofservices(public ownership,private managcmcnt)and wen The key question raised:Is there a market solution to rhe spebuild-operate-transfermodalities in such areasasbuilding public infrastructure, health and educationsystems,public udlities, public cific public probleml services(garbagecollection, recycling,and the like). 'Vhere Government'sabiliry to deliver is VEAK versusHIGH The Future of CSR '!0hat constituencydemand,t}te questionsbecomesone ofcapability. Is is the future of CSR?From the behavior-driven practicesof managersin rhe 1960s through the 1970s,direct involvement (Continud on pag. 73)

Are codesof conductconsistent with the

*fi:,t"X*'::'ffi'1T.,-

the codesachievable at the locallevel? i,'.*T::"J*:'trfi:i: Docodeshelpraisenationalstandards? *U::;'l;'"n"i:;:"

partof thecorporate culture?

:::'"ffil"#"|.T

I H E A S A N T V I A N A G E FI M A F C H 2 0 0 4 I A S A N I N S T I T U T EO F M A N A G E M E N I

Positigling tg m.arket oneselfis a wtnntns

;,r;t.sr-f";.$abffiipg

relationship" a business with the company'j,, , ;,, a, .:

CorporatePoliticsrCanYou Handlelt? by l$anlah Ancir

l\y'anaging Crisisby S.moor Rrina

CorporatePolitics:Can you handleit? MY FRIEND RAHUL, A I]ARD \(/ORKERAND A brilliantperformer at work,hasnot beenableto geta single

of'bad' politics.Thesenegativeeffectsofpolitics seemto prevent peoplefrom givingtheir best.Yetaccordingto AJM Professor Jose 'good' promotion sincehe startedwork four yearsago.He is now reporting M. Faustino, politicsdoesexist- and it canbeseenasmaking whom he believedareperformingbelowstandards. thingshappen.Accordingto him, managers ro colleagues needto mastermicro"Corporate The reasonis simple;he is unawareofthe Politics" politicalbehaviorin the workplaceif theyareto survivein the "Corporate that happensin his office. Politics"may soundlike corporate,ungle. "The a new jargon, unheardof by many but I am sureit is not new. Accordingto Donna Scheeder, author of An ofPracticing "the Ask almostanyoneifhe haseverexperienced politicsin his office Good Politics", differencebetweengood and badpolitics is that and he will havea story ro tell about having beenthe innocent ofactionsthat supportthe objectives ofone'sorganization vs.those victim ofsomemalevolent plot by an n that wastethe resources ofthe organizatron unscrupulouscolleagueor boss.These the pursuitofpersonalgain." incidenrs,evenif they occurredyears Badpoliticalbehavioris the one that is ago,remainvivid and often painful usedto furtheran individual'sneeds,often memoriesfor thoserecountingthem. at the expense ofothers.Good politicsis the Thesekindsof micro-political happyblendofindividual and organizational behaviorin the workplacehaveinobjectives. creasedover the pastfew years.The rise Managers shouldknowhowro useinfluencing 'bad' in politicJ behavioris linkedwith behaviorratherthan self-interested polrimesofchange. and ro someexrenr. ir itics. One caneitherchooseto participatein seemsthereis a link. \X/henthe status the political processor not, but theremay be quo is disturbed,sometakethe opporseriousrepercussions for refusingto do things tuniry to enhancetheir own position, at work only to avoid political situations. olienat theexpen.e oftheir colleague': Politicalbehaviorcanstraddlethe boundothers.appear to usepoliticalbehavior ary betweenthe ethicaland the unethical.This . t to defendtheir'turf'. Evenin relatively is a line most arenot preparedto cross.For l'osrtlontng to marl(et stabletimes,olficepoliticsis clearly instance,few resortto someof rhe strategies visibleasemployees and departments usedby peoplethey describeashighlyeffective comperefor power,resources and stapoliricalacrors,suchasreleasing informarion tus.Corporateor OfTicePolitics,when selectively, beingselectively supportiveof others viewedasa negativeinfluence,canreand manipulatingpeople.For somemanagers, duceorganizational productivity;crethe endwould not justifr the meansif it meant area lackoftrusri negativelyaffect being unscrupulous. wlth the comDany. morale;excludekey peoplefrom the fu a newresearch by RolleyParkInrrirute decision-making processes; reduce reveals, women like ro play by the rulesand faith in top management; increase internalcomperirionand conthey dependmore than men on presentinglogicalargumentsas flict; hamperknowledgesharing;preventmerit from being rewardto why they behavedifferendyaccordingto the situation/role/person ed; and leadto the lossofvaluabletalent. involved.Although women appearto be usingmore political Describedin otherrermssuchx manipulation,backstabbing behavior,men appearbetterat bendingthe rulesand eking the 'dark and the side'ofoflice life, micro-politicsis predorninanrly credit. Indeedmany men gaspar everyopportunity to increase viewedasdetrimentalto organizations. But at rhesametime, many their visibiliry whereaswomenappearlessadeptat putting them' managers believethat ofiicepoliticsis a factoflife, evena natural selvesforward.Men alsospendmore time than women locating part ofhuman behavior.Someseeit asa justifiableform ofsafesourcesofinformation and establishingan effectiveinformation guardingmuch-needed resources. network. Some managersclaim that the lack oftrust, backstabbingand Corporatepoliticsis a fact oflife. It seemslike we run into risk-avene behavior that is evident in their oreanizations is the result rhesamepersonalirygpes, and the samecliquesagainand again.

oneselfis a winning strategyfor establishing a businessrelationship

(Continucd on pagc 52)

MAFCF 2O04

AS AI']INSTTUTE OF MANAGEMENT

ManagingCrisis \THEN \(/RITTEN IN CHINESETHE \ ORD ''CRl, - one represenrs SIS" is composedof two characters dangerand the othcr represents opportuniry JohnF Kennedl,address, 12 April 1959 We live in interesting,yet troubled rimes. Everymajor crisiswe encounter, be it the 9/11 attack,the collapse ofEnron and Arthur Andersenor the scandalsin the Catholic Church, challcngcs our assumptions aboutour world. Theseassumptions arealsotestedin an increasingly globalizedand networkedeconomy in which an organization has to cngage and is answerable to mulriple stakeholders. One way to preparean organira

prietary dara, falsifi,ing data etc), natural clusters (earthqLrakes, fircs, floods ctc.). Preparing a portfolio of responsesto different clustersofcrises increasesrhe likelihood that ifa crisisoccurs, people will rhink clearly and improvise to deal with the immediate situation, gather factsquickly, and make decisionsand take action to ensure the besr responsepossible. Havc a crisis signal detection mechanism in place.An information systemthat detectsearly warning signalsofpotential crises enablesan organization to undertake crisis containment and recoverv measures.The earlier a crisis rs detected, the casicr it is to manage. t{4ren r h . f i n r . i g r r r l ' o f , p o r e n t i arl r i . i ' a r e detected,mustering even minimal resources will enable rhe organization to manage the

rion for this change in paradigm is to have a crisis management strateg). Proactive decisionsand acrions can help

situation swiftly. The crisissignalscan come from many sources;both internal and ex-

organizations avoid the types ofcrises that po.e the mo't dcv:srrting rhreacs. or effecrively manage those most likely

ternal to the organization.Some common sourcesofpotential signalsare the employee grapevine, communities, special interest

to happen. In well-prepared organiza-

groupsr consumerslmedia, government, IT

tions, executivesand other key crisismanaSemenr per\onnelgarherro discusr strategies[or prrparing. enhrn.ing and

systemswithin the company etc. Undersrand vour organization'sinternal system. After short listing the rypes of

eren developingnew. innovarireoprion' for dealing with the unexpected. In the best prepared organizations, rhese key .takeholdersacruall) 'imuhre . ri.e. and crisis responsesto assessand improve their crisis-management capabiliries. Ahhough crisis management approaches vary widely, the improvised responseson \ e p t e m b e rl l d e m o n ' t r : t e dr h a rp r e p ararion.ofany kind pur an organizarion on bemer footing for managing any rype

...organrzatlonsmust

considerwhether their existingstrategies, structuresand policies would facilitateor impede tnelr resDonseto crlses.

ofincident that may occur. \Vhar can you do?

No organizationis capableofpreparingfor all crisesthat might potentiallyaffecrir, nor shouldit attemptto developthar capabiliryThe key to successful managementand conlainmenr ofcrisis is to practiceproactivecrisisleadership. Form a robustcrisisporfolio. The first stepis to idenrif' and preparea list ofcr; ; rypesor crisisclustersand the impacr that eachtype hason your business. Examplesofcrisis typesor clusterscould be economic(laborstrikes,marketcrashdecline in earningsetc), informational(lossof key,con0dentialor pro-

N S TT ! I !

VANAGFL'FNI

crisesthat the organization would prepare for and identi$'ing rhe channels by which information about thesecrisesflow within rhe companv, rhe organization should then assess how well ir is positioned to deal with them. To prepererhrrn.elver.org:nizarion. must considerwhether their existing strategics,structures and policies would fi. ilir: re or impederheir respon'ero cri'es. They need to be on the lookout for gaps

and misa.lignmentsthat might be hazardous. For example, ifone ofthese crisescomes to pass,will currenr reporring relarionshipsspeedup signals,or slow them downl Will the organizationt existing communication systens make it easier to detect and evaluate potential signals for rhe selectedcrises?It is importanr to assess rhe poteltiirl effectsoforganizational culture on crisis readinessand response.How would the organizationt cuhure affect its ability to manage the selectedcrises?At a fundarnental level, misalignment berween arriculared values and rhe valuesin practice (that is, the culture) can act as potential barriers lo cnsls management.

Understandrhe natureofstakeholdersand designstrategies to engagethem. Smkeholderscome in yarious shapesard sizes.A key strateryin crisispreparationis to identift stakeholders, categorize rhem on predeterminedparameterssuchaspower,resources, information,influence,and designstrategies to engagethem in both good times and bad times. Somekey stakeholdersare employees, media,governments,creditors,specialinterestgroups,etc. The following area few importanr pointersthat leadingcrisismalagementexpertsMitroffand Pearsonrecommendwhen dealingwith crises: "spin Fire the doctors!"Ger rid ofcommunication profes"spin," sionalsthat areonly interestedin reactingto a crisiswith ratherrhan finding and preparingfor potendalcrises. Tell the worst aboutyourselfassoonand ascompletelyas possibleand never lie. The muth will come out anyway and will only prolong and worsenthe crisis. Do not blameothers,ir will only worsenthe crisisand do nor givestatisricsasto why you actedor did not acr the way you did. Statisticsarenot only meaningless to most people,but they arecold and,therefore,an indicationofguilt and callowness, especially ifthere weredeathsald seriousinjuries.Rememberthat aboveall you will be judged on your mora.lcharacter. Make crisispreparationan ongoingprocess.Crisismaaagement is an ongoingprocessthat requirescarefuland constant modificationby seniorexecutives ascoretechnologies, environments and stakeholdersshift, Once preparationsare in order, the best-preparedorganizationsrevisit their strategiesand consider new contingenciesregularly. Make time to learn after the crisis haspass€d.After the crisis haspassedand businessis returningto normal,thereexistsan extraordinary opportunity for organizational learning. Take time

out to examinewhat happened,and makeadjusrmentsto plans and practices.Theselearningt canpayoffwhen the next crisisoccurs,or whenyou arefortunateenoughto be ableto averrthe nexr crisis. Rememberyour employees. After the smokehascleared, in someorganizations lamentthat they werenot ableto employees find out whar wasgoing on in their own organizationwhile the crisiswasoccurring.It is demeaningand dangerousto discount survival. thosewho will be key to your organization's ofbad news.Vhen a crisisis looming, Supportmessengers your most valuableresourceis the individual who informsyou about the threateningsituationquickly,Reducinginternalhierarand improvingcommunication chicalbarriersro communicarion with externa.l stakeholders enhancesthe likelihood that your organizationwill hearabout rhe situationearly,when responses are easiestand far lesscostly. Build positiverelationshipswith key smkeholders in advance.Once notified that a crisishasbrokenout; the bestan orgafrom thosewithin and nization canhopefor is effectiveassistarce outsidethe organization.To increasethe probabiliryofthis happening,takethe time ro build positiverelationshipswith employeesand externalstakeholders well in advanceofany crisis.Doing so allowsyou to havea clearersenseofwhich individualsyou might count on, aswell asthe ways and extent to which key stakeholders can and will be of assistance. By S.nel, R,n!a,itBA 2qr3

Bibli€raphy lan M lroif - CrisisMamgem9nl,2002 Chr sl ne Pearson B uepinr ior Cr s s Ma.agemenr, Jan Feb, 2002 S1€v6Cm g - DisasterSurvvalPanningNetMrk OaM Yank€eov, A"SPoctxaid Fob€n L BrcNn, Gree.ebaLm Doil & V.Do.ald oLLC- Dedli! wirl- BddCorpo.areBelddo.srpr

(Cotpotate Polities...fon page 50)

\ii'e alwap wonderrvhy we didn't seeit coming.Oncepeopleposition and market themselveson the job, other minor problemsbecome easierto handle. Positioningto market oneselfis a winning stratery for establishinga businessrelationshipwith the company.This relationshipis different liom a romantic affair,which carriesa lot of risks.You can avoid politics in your oftice ifyou know the stategies for suwiving in a politica.llaadscape.Thesestrategiesvary according to your position in the organizationaswell asthe position ofdre peopleyou interactwirhin the organization. ' For an Entry lrvel Employee,knowing first his/her personality type or working sryle,and how he relarcsto other personaliryrypes is importanr. Mosr of the graduates.afterjoining corporateenvironment, smn showingtheir revoludonaryideas.Howwer, that should be donewith precaution,Firsdy,one must try to spendtime knowing the culture ofthe organizationand the bestway to work out things in his organization.Nonetheless,he should emphasizcon being productiveand getting alongwith people,not with formal power or manaEement. He shouldavoid sarcasmor bluntnessand know when "death marcn"'or the to get out ofa project, when dre project is a environment is doomed to be disagreeable. C,orporarePolitics comesinto play asone assumessomemanagementresponsibilities.One hasto know where the power lies in

the organization.This includesidentifying the seniormanagersand orher agencwho havepolitical influence.One shoulddeterminethe most effectivechannelsof communication to mobilize support for his ideas.It is imponant to €ke som€time and try to understand , about rhe boss'spenona.lityand motivations.Getting a gra.spofwhat makesbossesrick will at leastalleviatesom€of the suessa-ndpolitical problems, AIso, one should andcipaterhe suategiesothersare likely to employand must blendwith other people'sneeds.Vtile ofice gossip seemsto be a full-time occupation for some,one must avoid it like rhe plague.Not only canhe end up beingforcedto rakesideswherher on may very he wantsto or not, any words.or information he passes well come back to haunt him. C,onclusively,we can boil it down ro a stratery in which one doesnot cut himself oE but enjoy favorable relationshipswith his peen.The bonom line is to be trusted,respected and liked. My ftiend Rahul, an assistantbrand managerof an FMCG 'positioning ' is a.llabout. lt's iust that he not company,knowswhat only needsto useit to position the brandsofhis companybut a.lso needsto useit on himself His peers,subordinaresand bossesare his targermarker Ifhe doesthat properly,who knows he could be a By irlnidr A'nei., MsA 2oo4 market leadersoon. . . Time will tell.

IBE AS AN MANAGEF]MAFCH20O4 IASAN

N S T I T T ] TOEF M A N A G E M E N T

A umni News N,4essage from the Chairman MBA

'74: A Wid Man s Journey

'79: lvlBA AIM's SilverJubilarians AIM AlumniRockthe World LETTEBSFRON,,1 ALUI\,,1NI CLASSNOTES

A L U M N IN E W S

AlumnifusociationofAIM Honors OutstandingGraduates THE ALUMNI ASSOCIATION OF AIM HONORED OUC standingAIM AJumni through its Honor and PrestigeAwardson November12,2003 and on February25,2O04at the lopez Gallery ofthe AsianInstituteof Malagement.The honoreesincludedNelly MBA 1973,taurice Cuillen, MAP 2003,Joaquin Favis-Villafuerte, Henson.MBA 1975, and.lllacDiaz, ME 6, in Novemberand LyndonTan, MBA 1996,Nelia Sarcol,TMP 1998, Robert Kuan, MBA 1975 and TMP 1993,and Rodolfo Biazon,TMP 1987,in Februarv of N.lly Favi.-Villatuorte is the PhilippineUndersecretary Tiadeand Industry Shewasrecentlyappointedto oveneethe Depanment's regionaloperations.Tiro yearsearlier,shemanagedthe overall tradepromotionsard marketingfirnctionsofDTI, which comprise the international sectorof that governmentunit. A most decorated professional,shehasbeena presidentidawardeefor her contributions to exportpromouons, Laurico Guillen is a fameddirectorwhosenameis associated with someofthe bestfilms in Philippinecinemaand hasreceived She a string of awardsfrom localand internationalorganizations. hasservedasco-chairmanofthe film committeeofthe National Commissionon Culture and the Arts, executivevicePresidentand founding member of rhe Kapisaun ng mgaDitehnr ng Pelik ang Pilipino (ScreenDiretor's Guild), presidentofthe Film Dwelopment Foundationofthe Philippines,and founding memberofthe InrernarionalVisitorsProgram.Shewasrecentlynamedchairmanand chiefexecutiveofficerofthe Film DevelopmentCouncil of the Philippines. Joaquin Henron is a popularsportsjourndist who, in the last 12 months,hasservedasthe main alchor during the recentAsian Gamesin Busanand wasthe only fuian sportscasterto be pan ofthe one-on-oneinterviewson NBA rclevision.He hasbeena sought-after resourcespeakeraswâ&#x201A;Źll, being the only sponsjournalist to be invited ' askeynotespeakerat the TeodoroValencial,ecmreseries,the National andunircnities. Adrlaic Associationandseveralorier colleges C-ollegiate journalism is a career in sports Behindthesepronouncedsuccesses at the Philippine dratwashonedin investmentbanking,with stints RefiningCompany,AsianInstituteof Maragementand Bancom DevelopmentC-orporationwherehewasvicepresident.He wasrecendy awardedthe first everOlympian award for Sponsjournalism by the PhilippineOlympic Committee. llliac Angelo Ane,ellotiDiaz is the first graduareofthe AIM master'sin entrepreneurshipprogram to becomea member of the H&P Circle.A memberof the ME classof 2001,he wasrecendy "Johnny Valker SocialEntrepreneur"awardeefor 2003. namesasthe ofhis The highlightofhis selectionto this awardis the uniqueness enterprisethat is built arounda senseofpurpose,Through his PIER ONE dorms,he hashelpedimprove the living conditionsof maritime studenc, employeesand professionalseafarerswho would not have By addressing hadan alternativeto crampodanddrngerousliving spaces.

he has the needsofFilipino seamenawaitingdeploymentoverseas, to over30,000 maritime workers.The uniqueness givenjob assistance is the element ofhis own enterpriseagainstother profitablebusinesses of purpose,which makeshis brand of entrepreneurshipstard out for its socialorientation. expert.He currentlyruns Basic LyndonTanis an agri-business Inc., a vegetable companythat growsand sellshigh-value Necessity, cropssuchaslettuce,culinary herbs,cherrytomatoes,etc. Basic Necessiry, Inc. supportsthe agriculturesectorby enhancingand of agriculturalproduceparticularly improving the competitiveness high valuedcommercialcrops(HVCC) through the adoptionof and markering moderntechnologyon the production,post-harvest crops.The ultimateobjectiveis to produceHVCC that canmeet for exports,henceincreasingexport internationalqualiry/standards earningsofthe country BasicNecessity,lnc. wasableto stop importation ofAlfalfa sproutsfrom Australia.It hasalsosuccessfully containedthe importation ofcherry tomatoesand culinary herbs grown hydroponicslettuce.Lydon wasa Ten and hassuccessfully Ouatanding YoungMen (TOYM) Awardeefor Agriculturaland FoodTechnologyi4 2003. He wasawardedby PresidentGloria ofagrifor his contribution in the advancement Macapagal-Arroyo culturalcommunityby providingyoungperons with opportunities and fellorship for to developleadershipskills,socialresponsibiliry, "GAW,{D-SAKA" a positivechange.He wasalsoa Presidential Aw4rdeefor HVCC in 2002. Netia Cruz S.rcol is currently the Chairman ofthe Board of and CEO ofC-entrefor InternaGlobalmind,lnc. and the President tional Fiucation Globd C-olleges,Inc., and ofthe Global Mllage KnowledgeCompanies,Inc, amongothers.Shewasrecendyconferred the Star ofAsia Award by the TexasAsian Chamber of Commerce. The awardis presentedto individualswho havesuccessfiJlyled other businessmenin capita.lizingon trade and investmentopportunities in the expandingeconomiesofAsia. Shewasalsogiventhe Distinguished Women'sAward on November2003 by the Nonhwood University USA, an awardwhich recognizeswomen for their enormouscontriand public volunteeragencies, bution to communities,businesses, worldwide, and privaresectorservices Robort ltuan wasa Tiiple A awardeein 198 I ard an Agora awardeefor Most Outstanding Achievementin Entrepreneurshipin I 996. He wasalsoconferredtie 1999 FranchiseExcellenceAward as the Most PromisingFilipino Franchiseof the Yearon Food Category by the Philippine FranchiseAssociationin 1999. He is currently the Chairman of tlre Board ofthe CreativeDining lncorporatedand the Chairman ofthe Board ofTiusteesofSt. Lulet Medical C.enter. He is alsoa memberofdre BoardofTiusteesofBrent Intemationd School, Inc., the Brent Intemational Schoolof Manila and the Tiiniry College ofQuemn Ciry. He wasthe founderthe Presidentfrom 1985to 2000 of Chowking Food Corporation. PhilippineSenatorRodollb Biazon is currentlythe Chairman

THE ASIAN MANACER

MARCH 2OO4

ASIAN NST TUTE OF MANAGEMENI

A L U M N IN E W S

thc ofthe SenareConrmitteeon Nerionll DcfenseanclSecurirr'. SenareCornnittee on Ulban l'lannilg, l{ousing lnd Reserrlcnrenr, and the SenateClommirteeon (iooperetivcs.He:rlso servesas rhe Vice-Chairnen ofrhe Committcc on Forcign Rcllionr and rhe ( lonr nritteeon Agriculturelnd Foocl.,\ide lrom his other governnrent

l"(lR [)elcn:e (bmm.rnd to (]Li.ioiSr.rflol thc Arrrccl Iirrcesof rhc Philippines.hr has receivtJlf, pcrson.rland c.rmpaignmedals. (lontluct Srer- thc scconrlhighesr ont ofrlrcr,r ir thc IlisringLrishecl

positionsand lppoinrments,he is elsodre Presidentofrhe Asi:rn Regionel CoLrncil-(ilobal |arlianrcntariars on llirbitirt, thc Vicc Irres on Hrbitet, and e (ir iclentfor Aria-GloLralParlianrentarians

Rccognirionis.ontcrrcciro ln altrnrnus l ht Honor and PrcsLige fiom .l.ssnietcs:trr.lfiitnds. l hc .rlurnnusnust througlrnonrin.rtions or scrviccfor rhc haveh:1.1 rrcognitrortfirr oLrtstanding:rchievcment

Chairpersonof the PhilippineLegislarors(iornmirreeon Ibpulation & DevelopmenrFoundecion.lnc. (I'LCPI)). t laving scneclin rhc and l'hilippine Scnatesince 1992, fre hasaurhored.co'arrdror-ecl sponsoreda nunber of Bills rvhich wereerracredinto I-arvsLLch as

pa"t vrar'.hacl Ltcn clecrcd ro i distineuished oflicc or had been irppoinrecitr a significentposirioniu thc governnrcntor rhe privlre secnrrthus clrting the opponurritv ro influenct rhe lircs oirhe Filipinos. The acconplishnents mar lrc itr lrcls sttch as government, plivarc scctor,non-govcrnnrenrorgenizarions,spora antl rht like. (lreared bv

\bring bv Qualified Filipinos RepublicAcr No. 9lil9. .A.bsentee Abroad' , I{epublic Acr No. 90,i0. Nledal of\ilor l-rrv" and Republic to the AntiNloncv l-aunclelingAct of Act N*o.9194, Anrencimenrs ' 2(X)l among others. ln his vear-soi servicc fiom Supcrintcntlcnt of dre I' hilippinc Military Acadcnrl'to (iornmending (iener.rl ot thc

.rwrld next to the \lrclal oi \':rl.rrrlurilg rhe .lcicnscof thc l{cpubli,. irr (iarnp AgrLineldoin l)ecemtrel 1989.

rhc f00l alumni troartlofAlNJ, rhc rccognitionis atrributedfor the honor and prcstigc firr such exceprionalrrnclcltakingsto AIi\4 and ro its alunrni. Arvardeesuill bc rcknou4eclgedoncc nrore drLring rhe Anual Alumni Homecorring.

FAIMholdsmeetingin Singapore

'88 (Tharand), 'B0 nd (Fromleft to righl)Brotherv na Viriyavidhayangs, Fsg,MM MohanPhadke,Mlvl a), Cyntha Marcelo N,IBA99 (USA. Derek l '84 (Malaysra), '73, '84,FAIIV (Korea), (Singapore), Eduardo La HuatChrng,fVM LieWMBA FAIMViceCharrman SugarHan,IVBA Charrperson '79 (Phippines), '95 (Ta rector, B ma] n, MDM 96 wan),DulceCasacang,MBA 73, FAIMExecutive D Chapaga Baaaga, IVIBA JerryK.T.Su,MM TeddyVilanueva, MBA'73, FAlMTreasurer, andGregAtienza,MBA 83,A M AlumnrReat ons Director {Nepal),

AIM AIUMNI ASSOCIATIONCIIAPTERHEADSfiom rhe variouscountriesmet at the lntercontinentalHotel in SingaporelastNovember22-23,2003 for rheirannualFAIM meering. SonnyColoma (MBA 1978)AIM AssociateDeanof EXCELL (ExecuriveLifelongLearning),gavea pleasantsurpriseby his unexpectedpresence and openedthe meetingwith a brief the needto build a talk on AIM direcrions.He emphasized of rhe various strongernetworkto increasealumni awareness programofferingsof AIM. "Sugar" IAIM chairte-Sook Han (MBA 1984)ofSouth Koreaconductedrhe meeting.GregAtienza(MBA 1983),AIM\

his prograrnfbr all alumni newalumnirelationsdirector,presented worldwide. on Among the highlightsofthe meeringwasrhediscussion to be heldon March4, the firsreverAIM lnternationalConqrcss willbe heldviasatellitewithsi"rto eightcountry 2004.The congress throughthe Global chaptersgettinginvolvedin rheconference Distancel.earningNerwork (GDLN) hcilities put up bv the World Bankin AIM and in variouscounrries. Singapore alumni led by DerekLiew (MBA 1973)larer hosteda dinnel fbr the chapterheadsat rheCiurryHouseat fur'er Qu"y.

A L U M N IN E W S

BookLaunching Raises Funds forAIMScholarships

On Octoberl, 2003, the alumni ofthe Managingthe Arts held a book Program(MAP) and the Masterin Entrepreneurship "Ten launchingof UniversalPrinciplesof Greatfut andTheir Applicationsto kadership andManagement",a colorfrrland inspiring photo-essayby AJM's very own Renaisanceman, Prol EduardoA. Morato, Jr The fund-raising event,for the benefit ofthe MAP washeld asa celebradon ofthe secondanniversary of Scholarship,

when the AsianInstitureofManagement the AIM Renaissance, which arelxof management branchedout into new non-tradition:rl includedthe arts,healthand education This book is an elegantdistillationofthe rnosrimporrant and management, uniquelvrendered aspects ofgreat Ieadership photographs. throughProl Morato'swordsand masterlully-crafted An award-winningphotographer, Prol Morato is alsothe currentDeanofthe AIM !?l SvcipGraduateSchoolofBusiness. Prior to this appointment,he wasthe l)ean ofrhe lnstitutefrom 2000to 2002,andwasrhechampionofthe entireAIM Renaissance movement. The book launchwasheld at theAIM ConferenceCenter Manila, and wasattendedby membersofthe AIM community and AIM alumni alike.Hostedby the ProgramDirectorfor the AIM Managingthe futs Program,CecileB. Manikan,the eventwas highlightedby the excitinglive auctionofhi-tech archivalprints of DeanMorato'sphotographyart, which raisedP348,000for the from MBA 1972, MAP ScholarshipFund. DeanMoratoi classmares who werea.lsopresenrthar wening, gavefi-rllsupponby alsodonating wereNational Fund. Gracingrhe ceremonies to the Scholarship Anist for Music and MAP alumnusAndreaVeneracion,Ambassador ReneeVeyretofFrance,Cultural C-enterof the Philippinespresident NestorJardin,former SenatorRaulRoco,and distinguishedmembers ofthe businesscommuniry The Philippine BalletTheaterand MAP GraceNono andJoeyAyalaspicedup the eveningwith graduates Towardsthe continuanceofche their outstandingperformances. the rights Managingthe Arts Program,DeanMorato hasassigned and proceedsof the book and the an auctionto the MAP Scholarship that will enrichthe Fund and its conrinuingcasewriting research programasit coversmorecountriesin Asia.

A I MA l u m nCi l u bo f Thailand Welcomes the NewACTPresident After nine yearsofserviceto *re AIM Alumni Club ofThailand, PorntipIyimapunpassed on the batonto Bro.Vinai Virilavidhayavongs, Fsg.,formallypresentinghim to membersasthe newACT Presidenron February4, 2004 at the Grant Hlatt Erawan, Thailand. AIM Governor Pridiyathorn Dwakula wasalsopresentat the welcomedinner.After warm congratulationsand heamfeltthanks, the Governorgraciouslygavea talk on the economicstateofThailand and entertaineda few ouestionsfrom the alumni.

L-R Bro.VnaiVlrlyavdhayavongs,Fsg.,A M GovernorPridryathorn Devak!laand Porntiplyimapun

M A F C t s ?O O l

45 AN

M E S S A G EF R O M T H E C H A I R M A N

Creatingvaluefor the Alumni members,the Institute I

/'-\

and tne Lommunlry Edu.rdo Baiaga, MBA '79 AIM Alumni Association Philippine chapter chaiman Fe|ow Arumni:

Warmgreetingsfrom yourAssociation. Thereis so muchpotentialfor achievement in an association whichcountsamongits memberssome 15- 20,000leadeF managers, occupyingkeypositionsin theirorganizations. YourAssociation hasthereforeembarkedon a moreproactive roleto fulflllits missionof creatingvalueior the alumnimembers,the Instituteandthe community.Our new identity: 'AlM Alumni.Leadership. Liveit'; reflectsour commitmenttowardsour visionto be the leadingalumniassociation in graduatemanagement schoolsin Asia. In responseto yourrequests,we haveoperationalize an Executive Search& Placement servicefor alumnilookingfor bettercareeropportunities. Tothosewho havegoneinto business,we are readyto promoteyourbusinessto fellow alumnithroughour BusinessPromotions & Networkingservice.We haveLifelongEducation programs, electronicCanGroupHelpline, amongotherservices.All thesecanbe accessedthroughour website:aimalumniphil.org or throughour Association Office at ACCM. To recognize and honorour fellowalumnifor theirachievements we havethe Honor& PrestigeAwards, and leadership, in additionto the annualTnple A Award.Thisyear,Herminio"Sonny"Coloma,MBA 78, will be our nextTripleA awardee from the Philiooines. To reach-out to alumnimembersoutsideMetro Manila,we haverevivedprovincial chapterswith new officers,starting with Cebuand Davao.BaguioCity and lloilo/Bacolod are expectedto follow soon.We havelikewisestartedeffortsto get backinto the loop batchesafter batches,who havebeen disconnectedfrom the Institute.We encourageeveryoneto form and/orjointheirbatche-groups. Greatalumnieventsare plannedeachyearto renewfellowshipand proude opportunitiesfor networking.Thesequarterly eventslikewiseprovideour sponsorswith mediamileageto promotetheir leadership brandsto a formidablemarketb a s e t, h 6A I M a l u m n i .

Tothe Institute, we havea renewedcommitment to v\6lkhand-in-hand togetherto maintain AIM'sstatusasa topgraduate management schoolinAsia.Tothisend,we haveprioritized theAIMAlumniFaculty Development Fund,amongother projects. f und-raising Through theAllvlAlumniFoundation, programs, theAssociation youthandenvironmental undertakes socialoutreach projects. We do oursharein community building. TheAssociation is yourgatewayto an enviable networkof AIMAlumni,who areleaders, moversandshakers of industry, menandwomenwith a passionfor excellence, drivenby commongoals,peoplewho makea difference, a cut-abovethe rest. Puta faceto ournewidentitv. Leadershto. Liveit.

THE ASIAN MANAGER

MAR'N 2OCI

ASiAN NST TUTE OF MANA6EMENT

MBA '74: The\7ild Mant Journey By GeryA Crev, IIiBA "4

man,yt by thetetears,a little bo1again, I'hrouing mlsdfon thesand,confi'ontingthe uarcs, l, rhanrerofpnins andjoys, uniet of hereand hercaJier Tiking all hiuts to ute them.but *'ifil, leapingbelonrlthem. A rcminiscente sing' - Vah txlhittud,, (rn oltl( (:ftth l',/l!e\lr R.tI;"f

Perhapsthe disrincrprivilegeand gift of MBA 74 (fbrmerlv '74) MBM is the wisdomthe classhasgatheredthroughthe last from AIM. Bur equallvimportant threedecades aftergraduating is rhe gif'roffriendshipand camaraderie which our particularbarch ycars. hasdisplayedthroughthe Onewayto vieu dreclassis throughthe prismofeachmember takinga journev, similarro thespirirualjournevin rheLrook bf RichardRohr andJosephMartos- Tbe Vild MansJournev: Reflecrions on Male Spririrualirv. 'lihen we werestutlentsand immediatelyaftergrarluation.

"heroicjourney' idealisric,all action, we rvereon a earnesr, "dragons." independent. seekingvictory over This strupglewas epitomizedduring the class'first homecomingin 1984with the "The Mlth themc:Backro Basics. Herethe classhada skir entided, ofSislphus" abouta man,Sisyphus,rolling a boulderupwards towardsthe mountaintoponly ro haverhe bouldercrashbackand the man strugglingto go backup again.It wasa momentofselfanalysisrvhereinthe classrealizedthat theresmoreto dealingwith lift than the business toolslearnedat AIM. Bv the time ofthe secondhornecomingin 1994and onwards, "mid-life many membersofthe classhad undergonea crisis"- a conlrontationwith onei limits, paradox.mysterysufferingand "peak' in their careers: dearharemet. Many had reachedtheir Young had AllAsia Roland becomeChairmanof Capital;Nonoy krlo wasPresident ofthe PhilippineStockExchangcGerryJavellana wasPresidentof VicroriasMilling Corp.; IR. Mohan wasGM of - Major GeneralBootsde GenDiesel;the classharl threegenerals

Veyra,Gen. NonoyAcot, and Gen.JohnnyDator Therewerealso - BernaIomotan with her pearlfum maly successlirlentrepreneurs asidefrom her other busineses;Magno Carn and PerryRamoswith rheir piggery;Bert l-ocsin with his furniture expons;Nitoy Estrellas with his aquaculturebusiness; Chito Blancorunning his family business;Tlde Villarosawith his farm and law profession(and fatherhoodafterhegor marriedto kislie). The classhadalsomany exportsin foreign soils- Pietro ReyesIII nnd JoeMacmangin New ElsaBuenavenYork Ed Castellanes and Hermie la Rosain C-anada, Alampay in Indonesia, and some orherunrurain Singapore, Jing for dassmates like Don-Don Villa somewhere in Europe accounted andAlbert Martinezwith the World Bank. 'We had a third homecomingin 1999,whereinwe werethe '79. of class Here we could feelsome honorees(25th anniversary) alreadyon a wisdomjourneyand someon an embitteringjourney. The Philippineeconomywasstill feelingthe effectsofthe Asian financialcrisisin 1997.On a personallevel,many membershad broken dreamsonly to dreamagain of new paths and new ground. somefound new jobsand new Somewereretiredor semi-retired, So what is the distilled wisdom we havegatheredthrough in The Vild Mans Jourriey rheseyears?Perhapsthe five messages would echothe class'sentiment: Life is hard. Know this aheadof time and do not wasteyour life trying to makeit easyfor yoursell asall uninitiatedmen will try to do. In the book of M. Scott Peck,The Road lrss Tiaveled,this idea of "life " that is hard is a cornerstone to leadinga acknowledging maturelife. M. ScottPeckpushesthis furtherwhen in his sequel FurtherAlong the RoadLesstaveled, positsthat Iife is complex. (The twistsand turns in the livesofour classmares and professors showthis complexityand hardship.During the dark yearsofthe "underground Marcos era, our faculty memberswho beceme heroes"rlere GasryOrtigas, Ed Olaguer,and Allan Jazmines,) You are going to die. Mortaliry must be maderealto the boy by cials, hazing,scarring, facingdeathand the fearofdeath. Wirhout a trurhlil cosmology,we aretrappedin our patholory,andwho is to blamefor "sacred wounds"to prepareus for iti All woundingsmust become the final letting go. (fu ofthis writing, the membersofthe class who havepassedawayare: Daby Friedland,Visit Charerntantanakul, OscarCanlas,Ahmad, Abid Abidin, RafaelDayrit, Bert whose Morco, and Eddlx Ballesteros.rVe alsohad classmares had passedawaylike JoeMacmangand Magno Cam. spouses Among our faculry who passedawayare: Fr JamesDonelan, SJ., GastonZ. Ortigas,A-ntonG. Estrada,SergioB. Sdas) You are not that important. The initiatemust be righdy situatedin the world that desenseof himself mandsrespectfiom him, or he will havea fa.lse Humiliry is of centralimoorthat will needconstantreassurance. tancefor human truth and haooiness.

N,r _ -. or v^\dcavt\_

You are not in control. The initiatemust be led to the limits ofhis own resources and ability to controloutcomes,so he will learnro relyupon the b,-rtin facta limited Orher.It is nor a world of unlimited progress, world. God is in control.\Ve must admit that powerlessness. (Our classmates in New York- JoeMacmangand PietroReyesIII witnessedrhe terroristartackon the \?orld liade Centerand the unfoldingsufferingand confusionthat ensued). Your life is not about you. Youarea fragmentofsomethingand Somebodymuch bigger than yoursell Yourjob is to listen,obeyand adore,not calculare. You area part ofa greatand holy m1st..y. Otherwiseyou will assumethat you crea[eall the patterns, and it is your job to figurerhemout by yoursell (This is perhaps and friendshipthat bindsthe class- rhe the glueofcamaraderie your realizationihat Iife is nor aboutyou bur aboutthe relationshipsthar we createald nurture throughoutour lives). '\visdoni' '74 from class is only one Theselittle tidbitsof aspectofthe class.The bondingoffriendshipand camaraderie nurruredthroughthe yearswould be hard to graspin just one article.A coregroupofclassmembersusedto meetalmo$ monrhin rheir homes ly in a revolvinghostingby severdclassmates and/oroffices,e.g.T.R. Mohan, RolandYoung,OogiePenaDolina, Boorsde Veyra,Nonoy Acor, BoyetLimon, Manny and "lndian dinners"at L MarissaSibal,TR. Mohan is popularfor his MerropolCondominium.RolandYoungusedro hosrpartiesar his homeand alsoduring the peakofhis careerat Makati Shangrila Hotel. OogiePena-Dolina,who hada masterlist of everyone's telephonenumber,wasfond oforganizingChristmaspartiesin her housein Alabang.Maj. Gen. Bootsde Veyrawould host reunions in his,homebut the most memorablewaswhen he retiredftom military life and somemembersof the classwencup ro PMA in (A separate sectionon Baguioto witnessthe turnoverceremonies. "spoof this reunionis in anotherpart ofthis articlerogetherwith a issue"on his retirement). \ii'e alsoattendedthe reunionin Gen. Nonoy Acot'shome in Villamor Airbase.BoyetLimon usedto host reunionsin his 'home in Alabangand during the openingofhis wife'sschool. Manny and MarissaSibalwould alsohavereunionsin their Quezon Ciry housewhereone rime they had invited the Spirit of67 band. reunionspartly exV4ile thesealmostmonthly face-to-face plain rhe phenomenonofour strongbonding, perhapsthis spirit is bettercapturedifan outsiderentersthe world ofthe classwebsite:whereour moderator,Joe'Macmanghasthroughthe pastdecadebeencarefullytendingto the almostdaily barrageofjokes, wisdomsayings,picturesfrom all overthe world, and collaboration abouralmostanythingunderthesun- guns.sex,terrorism. the U.S. presidenry,the Philippinepoliricalsituation,personal tidbits abouteachone,wearherconditionsin New Yorkand Canada,etc. Therearecurrently52 membersin this Yahoogroups, "crushes", -TeriJavthe secretaries and rheseincludeour former ier,TessDoria, and []o Echevarria(all aremarriednow) and some - Bing Azanzaand Fr.Teri Barcelon,S.J. ofour professors

J' /,\

MBA'79:.AIM's SilverJubilarians HE IAST FE\T\â&#x201A;ŹARS OF THE'7OSUSHEREDTHE endofthe love PowerandHippielookasit witnessed brave MBA '79soulsdonbell-bottom pants,longhairwith sideburnsForguysand flippedhairdofor ladies. As JohnTiavolta burst backinto the scenewith "Stayng Alive', it wasactually FreddieAquilar'.s"Anak' which lorded ic over the airlanesand the folkhouses. In hct, MBM'79 membersRuelSevilla and NestorAbanil joined the Follaingingfad (nowadays known as the acousticcraze)with their hit renditionofSimon and Garfunkel's "The Boxer"duringclassbeerpub gtherings.The periodalsowirnessed rhe Circus Bandand The New Minsrrelswax their last performances ro bow our ofrhe musicscenelor gooc. It was Martial Law still and everybodyhad to beat the road back to AIM Dorm beforethe 12 am curfew Yes,everybodywas bookedat the AIM then. The lone FloatingCasinodockedat the Manila Baywasthe venueto relaxstressed minds. Believeit or not. unaccomoaniedPinols wereofl-limitsro rheca.sino then.A-noveneas classmare h;d ro bring his passporrasa gatepassro beatthe gameofluck, At the campus,the AIM wasabourro reachthe end ofits firsr roaringdecade.The SunkenGarden(now calledthe Zen Garden) stoodasa familiarbastionfor annualgraduationrites. Nearbywas the L-shapedpool, a silentwitnessto manya rowdyand noisy "dunking" sessions for birthdaycelebrants, HP graderecipientsfor '!7AC (shortfor Written AnalysisofC-ases), or otherssimply ambu,shed for the fun ofit. An aftermathofrhesedunkingsessions led to the defectionof Harvardlaw graduateVild-Bill-Hickok, John Codv, from MBA ro the one-yearMM program. Atop the 6-storeyAIM Dorm, one canseethe smrt-up Makati Commercial Center, then with RizalTheater, Shakeyt Pizzaand The PlazaRestaurant.All that could be seenofwhat is now known astrendy GreenbeltMall wasmileJongstrerches ofwild grass.To the left of AIM waslikewisemainlysomegrassypatchwirh the first building, LegaspiTowers,gleamingwhite beforereachingAyalaAvenue. Vhat wasit aboutthe initial Fridaynightsof first yearMBA that the whole classwelcomedwith suchunaffectedgusro?Definitely, the BeerPubs.The beerpus were alwaysa welcomerespitefrom rhe sightofrhe ever-increasing pile-upof casematerialsshovedinto the dormitory pigeonholes. Suchoccasions broughtto fore the dancing '79 prowessof MBA C-oordinator,Prof l-eni Panganiban,asshetook to the dancefloor with then AIM prexy,GabbyMendoza.Talk about foresight,the duo introducedballroom dancingsomel5 yearsbefore

ItsE AS AN MANAGER

MARCH 2OO4

AS AN INSI IL,IE OF MANAGEMENl

it fully invadedthe entertainmentscene. In SearchofOpprotunities,AIM Sq'le Many times,Datuk SaripBin Hamid would gazefar and wide liom the Dorm window internalizingPro[ Mc Lin ingan'scontinuous searchfor opportunities.Today,Saripis the ExecutiveChairmanof publicly-listedAIC CnrporationBerhadof Malapia, a highlysuccesslirl entrepreneurwho achievedthe covetedAIM Tiiple A awardgiven to outstandingdumni. SamsonChoachuy,now known worldwide asMasterChoa Kuk Sui,foundedthe InstituteofPranicHeding to propagate rhepractice ofnatural healing.He hasauthoredseveralbooksand is now a recognizedauthoriryin the field ofpranic healing. A gpical path taken by classmembersis to start offtheir entrepreneurialventuresin industriesthat areclosestto their hearc. or one,Lito Yabutstarredhis own radiobroadcast business, Primax Marketing,afterfruitfirl yearsofexperiencein rheir family-owned broadcasrfirm. It is to Lito! credit that the Kapisananng Brodkasters saPilipinas(KBP) hasgrownto be sucha powerlirlforcein the broadcast industry havingservedasits Chairmanfor several years. And then rheretmathematician JeneAliralas who hascome full circlewherethe field oflnformarion Technoloryis concerned. and spouseJosieAliwalas,pur up Jene,in tandemwith classmate IT Dlnamics, Inc. Outsource which undenakessoftwaredorelopment, . systemconsultingandbusiness process re-engineering. Notably,Josie Cruz-Aliwdashad a prior stinr asAIM's Vice President for Fund Development whereshespearheaded fundingofthe lnstitute'smajor initiativesincludingthe AIM ConferenceCenterbuilding project. As a banker,JohnRanaacquiredthe business acumenoftaking the roadleadingto the growthindustries.TodayJohn ownsand managesthe Divine Mercy School.ShrikantVad, on the other hand, capitalizedon lndiat assetand hasbecomea leaderin the granite business, asPresidentofPrit Enterprises. ManyMBA 79-entrepreneurs wearseveral hats.GenyNepomuceno usedto berery inolved with the Holy AngelsUniversiryin Angela City. Tirday,he pua most ofhis energrinto managingthe operatiorsof dre clan'sAngelesElecrricC-ompanyPhillip Chungdivideshis time beween rhelamilli rexrile.cigarene andlood burinerses. Thn is well-entrenched in the steelbusinessasPresidentof Jasper SteelproPhilippineswhile AgribusinessexpenFrmkie Pascuais Chief OperatingOlficer ofhis family-ownedbusinessfood distri-

DUUOnnlm.

f)odie Yuicois into consumerfinance.asPresidentofTii-Summit lrnding. Emil Reya put up his o*,n R&R Insunnceand Financial into Imprinr.a prinringpress. among Advisorr.RamieSanrorvenrured other businesspursuirs, a family-orvnedrecruitmentandconstruction JoelFerer manages Nina Montoya-Cxntenois doing well with her construction business. company,AssetBuilders.Inc. Harry Abrillo, afterhis stint asheadof MeralcoFoundation,hasbeendoing consultancywork with ADB and othen asPresident ofGlobal BridgeCorp. Mary Meeja-Hamftom Seoul in EastTimor. is connecedwith ADB and curently assigned PolyNg h now a faculty memberof the AteneoGraduateSchool Mon Romano,who of Business following his retirementftom C-alte<. alsoretiredftom C-altex,recentlystanedhis orvnbusiness. ElviraGotuaco-Lulrn is a iet-setterwho ceowru a kiddie enteruntainmentcenterin Cebu. BedimpledMinna C.onstantino-Velasco denakesspecialprojectconsulmncyrogetherwith her lawyer-spouse. remainsactivein her realesateentrepreneurial Zny l-anguido-Nolasco ventule.

PropertiesHoldings, Inc. which handlesShangri-la Mall & ShangriIa Edsaand Makati Hotels. "Lilit" followinghis Mcente Lim, oneof theThreeMusketeers, work, bankingstint, hasbeeninvolvedin investmentconsultancy includingone in lndonesiajust recently.He is now backin Manila honing his golf gameto leadthe MBA'79 golf team. Marketing Whiz Kids "Kalanden'Salas, ladie Pro[ Mc Dinglasani The lateProfessor "Reversible Prof. Ned Roberto's wizardry on consumer and Jeans" market researchgot the classexcitedwith what Marketing wasall about. Unfonunately very few went the way of Marketing. Everthe extrovertand incessant golfer,Liro Cruz,continuesto do very well at Zuellig Pharma,asVP-GeneralSalesManager.Danny Lim is the OperationsDirectorofElancoAnimal Health,a division of Eli Lillv (Phils). SuaveGerry Casto handlesmarketingfor DreamTheater Mon deJoya,is no longeractivelyinvolvedwith the family-ownedAMA work. DDB Philippines,Inc. but doesadvertisingconsultancy

Still Into Raios and Benchmad..... Malagemeng Prirae or Govemment he financeguys took off from shadesof influence from Professors Ed Moraro, \4cky Licuanan,Ed Limon and Toby Canto.The two SGV Scholan,BenValdezandJimmy arestill at the forefrontoffinancialandaudit services. Ben Cabangis, fuaullo & Assois now a Partneroftop auditingfirm Punongbayan, with theJG SummitGroup\ Digitel ciateswhileJimmyis connected BobbyBenares, currentlyconnectedwith AfRGlecomunications. lnc., hasbeenin investment bankingsince Kim EngCapitalPartners, real estateprojectcongraduation.Bobby,the batchhead,starteda witb the AsianAlliance, suhancywith Al Mayordgo. Al is connected doing realestateprojects. Al continuesto be the ExecutiveDirectorofthe AIM Alumni '79 asa socialoutreacharm Foundadon,which wasput-up by MBA Bobbvis the Chairmanofthe Board. ofthe Alumni Association. BingleDiagocontinuesto be connectedwith somebusinesses but mainly involvedasCFO ofDirectoriesPhilippinesCorp. MonettePosadas, a memberofthe HamburgerBoys,is Vice Presidentof RCBC Capital. Alex Margate hasalwaysbeeninvolved in top hotelsand is todaythe FinancialControllerofShangri-l-a MactanHotel in CebuCiry. "Atenisra' Zamora, Likewiseoneofthe SGV Boyswaslouie alsoa memberof the HamburgerBop, who continuesto beconnected with LiberryFlour Mills asVice President. Lito Sarmientois FinancialConrrollerofgiant AlaskaMilk Corporation.Wilben Lim waslastknown to be the regionalVP for the SourhofPBCOM Bank.FreddieDomingo headsthe Credit Group of the Bankof Commerce. Policyand Supervision "Virh distinction'Myra Chan-Cruz,looking asyoungand welte, now on its continuesto run her life insurance underwdtingbusiness, music, 18thyear,while finishinganotherdegree, this time in classical major in piano performancr.Mlta and Lito Cruz andJosieCruz and JeneAlir,lalaswerethe only two pairswhich startedout ofthe MBA '79 batch.Both aresrill goingstrong25 yearsafter. Jory Batiquinfrom CebuCity is connectedwith the Aboitiz Group asCFO. Mnce Formosofollowing his stint with Asia Breweries is connectedwith the Kuok Group asMce President/Tieasurer ofEdsa

At the AIM, onegetsto understandManagementasthe an of "Do not do gettingthingsdonethroughothers.Put in anotherway: thingsthat otherscar do for you." ofthe Armed Forces GeneralEd Adan usedto be the Spokesman ofthe Philippines(AIP) during the heightofthe Abu Salafkidnapping problem,until he becamethe Superintendentofthe PhilippineMilitary AcademyEd is the first recipientin the batchofthe Honor & Prestige RecognitionAwardby the AIM Alumni Association. Chopper-pilocBongEbuen,finally got hissecondstarasCeneral, movedfrom the Air ForceRescueWing and is involvedwith the AFP "New Hair" Martinez, Retirementand InvestmentFund, C-olonelMon Philippine Army. retiredfrom the onc ofthe ThreeMusketeers, "Jig' Tan, has been with the GovThe ever-smiling, Gregorio of the National Floor ernmenrfor sometimeasDeputy Mministrator (NFA). Authority ln the privatesecror,Ed Banaga,a memberofthe Hamburger Boysis the Country GM ofthe GoodrichGroup,a Singaporean company.ElectedasChairmanofthe AIM Alumni Association the brandingof the AssoPhilippinesfor 2003-2004,he spearheaded ciation and launchedits perpetualfund-raisingmachineryto support projectsthar createsvaluefor the alumni members,the Institute and the communiry Now Abroad '79 lndonaia" our MBA havebeenlongbasedin nearbyJakarta, "With Distinction' Noel C-anivelhasbeena top oflicer of StandardChaneredBank,Jalorta and saidcohaveextended moreyears.Swash-buckling Rodollb his stint with the bank for severa.l "Popo" Panojahasbeena long-timeresidentofJakara, connectedwith companiesunderthe big WidjayaGroup.He is now ManagingDirector ofPT SieradProduce. Oniet Banaquiaswasthe third long-timeJakarta'79, for sometimewith the Gajahlirnggal Group, moved basedMBA to l-agos,Nigeriaa few yean ago. "Bobo1' Mendozawason-and-offin Three MusketeersAlrgelo

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f)aruk Saripbin Hamid fiom KualaLumpur,Malaysiabecamerhe3rd and most recentTripleAAwardeefiom rhe batch. l^.,^-L-,1 l^ ( i-^- ^^.he was Mentionedearlier;lsthe mosrsuccessful enrrepreneur, wirh BankBuniputra togetherwith a few batchrnaces alier AIM. Menjie CapistranohasbeenHong Kong-basedfbr a inco rubber business which was the topic now Metro Pacific Group. He soon went the glove long- time under the n l h i . r h e . i . l.- r . mt h r r c .h . * . n r r o h i g . t i m c. a rc o m p o n e n r SomeMBA'79 migratedpermanenrly ro rhe land of milk and honey.Marlon Youngcontinuesto be connected manuficturing,headingrhe pr.rbliccornpanltAIC CORPOM.TION "Fajardo" York. Ramirez, one of the BERHAD, with Citibank New Roel HamburgerBoys,hasbeeninvolvedin resrauranrs and horels, Chun, Mui and Saripprovedrruc what onelearnsat the "LPs" for AIM: projectionsand surprises arerrvosidesof the samecoin". is basedin windy Chicago.Roelusedto have 'My from saida bespectacled nameis Moses Singapore", breakfast. Tong. Whoever renembers Moses? Tly, the leaderof Gil Chico,'lechieJacobo-Blakeney, EvelynCreencia, Tav Chin rhe Hamburger Boys,beMiriam de Veyraand camea professor at the Dennis Reyesare now AlM, rvrotecases including well'serrledin cheVest fhnous Baiiaga Marketthe CoastofUSA. So are ing in honor ofa roommate Jojo Jugo and Carmel (guess who?),marrieda FilVillarosawho both visipina dencisc andwent back it Manila from time to ro Singapore to his old love time. Carmelwho is al"Tay compurerchips. so a lawyerin the USA looksand soundsawfully goesback to hometown like before,"saysJosieAIiCebu everynow and walaswho mer with him rethen. " S(ith centlvin Singapore. Raisbin Majid wasone Disrinction" Rogelio "Boy" offive guysfrom Bank BuLasetis still conmipurrawho joinedMBA nectedwith Bank of '79, togetherwith Sarip.Rais Montreal, Canada.Alwasa memberofthe Hamso in Canadais "Bert" burgerBoyswho playedgreat Roberto Roberukeleleaswell. Raisneverleft to. Jojo Marigomen for llUlrata race it was, MBA'79.Tales of victory Bank Bumiputrabut hasbeen somerimewith Citat the finish line seemed to erase the false assignedoversea-s. Presently,he ibank Seoul,is now is basedin Bahrain.Anorher starts, the half starts, the tensions. said to be basedin "Honey" memberof the Hamburger Mexicol Joey Boysand likewisecomingfrom Bank Bumipurrais Amir bin Sorianohasa businessin Los Angelesbut flies back to Manila Harun. Curly topsAmir joinedTelekomMalaysiaafterleaving often, still engagedwirh his passionfor long-distancebiking. the bankand is now basedin KualaLumpur. Betry Kaamino-Tlchoepkeafter AIM went to Germany,got a "Gunie" in lndonesia. Gunawanis into broadcasting doctoratedegreeand found a husband.Shecameback asPro' Harry Oesepwho almosrsetthe AIM Dorm Kretek-smoking gram Director ar the Universiryof Asia & Pacificand is presand teachiog. afire, owns his own companyin Jakarta.Low-waistgang ently backin Berlindoing consukancy member,Alex1liyana,is a successful businessman selling in Jakarta.His low-waistpantsarenow back Foreigners trainingcourses "Safe Sex" in vogue,25 yearsafter.V/ho will everforget Supot supplybusiness Surikune.Supotnow hashis own electronics Threeforeignclassmares did the MBA'79 proud by getin Bangkok. ting rhe Tiiple A Award from the FAIM. Thll and handsomeAthar Naseemis a successfulinvestMui Dilokwanich-Kaewkoonof Bangkok,the pony"Valking Tlll" Deepak menr bankerin Pakistan.Nepalese teamwas tailedand only girl-memberofSectionB Basketball Shatyais with rhe UnitedNationsup therein Kathmandau. a pleasantsurprisewhen sheromped awaywith the first Tiiple entreprePalm-reading Anup Ranais saidro be a successful A Award for the batch. Shewasthen Presidentof Robinson's neurwirh his chainofschoolsin India. Department Store.Today,sheis a top honcho ofAdvanced In\fhat a raceit was,MBA'79. Talesofvictory at the finfo Service(AIS),the telecomgiantofThailand. ish line seemedto erasethe falsestarts,the halfstarts,the tenNot to be outdone by Mui's feat, Chun Jin Suk, the everwasin the mood to reminiscethe sions.Suddenll everybody youngJooking financewhiz from Seoulfollowed suir asthe the ocFridaybeerpubs,the can-groups, the dunkingsprees, secondrecipientoftheTiiple AAward from the batch,asthe casionaloutings.ft seemsnobodywantedto rememberthe then Presidentof the Bank of Korea.Today,semi-retiredand "LPs". cases,the WACs, most speciallythe an avid golfer, he is Presidentof Hana Securities. Jakartawith the SalimGroup,but is now involvedin a srarrup ventureofPeterGonthaandJohnnyVidjaja, ro be

T t s EA 5 A N M A N A C E F

MAFCH 2OOJ

AS AN NSI IL-I"' OF MANAGEMENT

-AIM ALU!'lNl ROGK THiWORLD!

By Maya DeBoac

,F"*

"How

do you eat an elephanti"askeda favorite '84, professorof MBA ProfessorKurupath Balakrisgnan. Not one in the class cameup with a good answer. "Bala" finally told his "You stumpedstudenc: eat :.

^^-.

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This and a lot ofgood other memorieswill be relived during the coming homecomingweekstartingon March 3, 2004, whereovera thousandalumni areexpectedto get togetherfor the annualrreat. Honoreebatchesfor this yeararethe '7 '7 PearlJubilarianclass esof MBA 4 and MM 4 '79 aswell asthe SilverJubilarian classesofMBA and "Aithough MM'79. specialtributeswill be given to the honoreeclasses, wed like this yeart homecoming to be equallyenjoyedby all the alumni, from the degreeprogramsand the non-degreeprogramslike the BMP ardTMP" saidBu Casro. MBA'84 Batch "So Coordinator. the invitation is open to everyone, and everybatch regardless ofirs year,will celebrate " its anniversary. The membersofthe AIM BoardofTiustees, Boardof Governors,Administrationoficials and Faculrymembersled by AIM PresidentBobby De Ocampo, aswell asAlumni officersand directorslike the presentChairpersonofthe FederationofAIM (FAIM), Ms. SugarHan (MBA Alumni Associations '84), the Chairmanofthe AIM Alumni Association,

'79) Ed Bafiata (MBA , and variousPhilippine Alumni Chapterofficerswill be on hand to sharethe night togetherwith the resrofthe alumni. Theme '84, This yeart host classes,MBA togetherwith '84, MM havechosena recuring themefor thisyeark homecomingfestivities,focusingon one ofthe key attributesofLeadership:Compassion.Aside from a goodvision,excellentplanningand organizingskills, and the will, courageand persistence to executethe plans,the compassionate AIM leaderhasthe good heart to do what is righr... the right way. LeadVith Your Heart, therefore,is rhe call of the moment. lst AIM Leadership Cup The homecomingweekliterally startswith a strongdrive! An inter-batchgolftournament, dubbedthe Ist AIM I-eadershipCup, will be held on W'ednesday, March J. Over 120 alumni golfersareexpectedro play the mean.greens ofthe LegendsCourseofthe Manila SouthwoodsGolfand Country Club in Carmona, Cavite.Tee-offstartsat 7:00 a.m. A perpetual trophy specially-designedby noted glasssculptorRamonOrlina is at stakefor the batch competirion.Batchesthat senda contingentoffive or more playersarequalifiedto play and vie for one yearofbragging righrs asrhe first batch winner ofthe AIM LeadershipCup. The AIM LeadershipTiophy will be prominently displayedin the instrtute. To accommodate batchesthat cansenda lesser

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ffi ltp

conringenr,drreeto four playen.a glassetchedteamtrophy is alsoat stake.[n this TeamCompetition, the bestthreeplaycrs ofthe ChampionTeamwill get individual glasstrophiesalsomadeby Orlina. Accordingto Golf CommitteeCoChairmanRico Merioles(MBA'84), the objectiveofthis tournamentis to promote camaraderie and cohesiveness amongthe "This batches. is why we madeit a point to offer a very atuactiveincentive-the Orlina sculpture."Various trophiesand prizesarealsoat srakefor individual playerslike the LowestGross,LowestNet (basedon the System36-Stableford format), Runner-up(net), LongestDrive, Nearestto the Pin, Most Number ofBirdies, Parsand Bogeysand the traditional Most Exercised PlayerAward (HighestGross).As ofthis writing, greatefforts are being made to sweerenthe tournament pot with an alluring Hole-in-One prize. lst AIM International LeadershipConference

This evenron Thursday,March4 promise,, ro be a record of'firsts' amongstthe numeroushomecomingactivitiesrhat alreadytook placeoverthe years.For one, FAIM and its local chaprer,AAIM, the host batchesof MBAJMM'84, the Alumni RelationsOffice (ARO) and the FaculryDeansofthe Institute havejoined handsfor the first time to launch the lst everAIM Internarional kadership ConferenceacrosssevenAsian counrries into a Live Videoconferencing went. Likewise,this initial InternationalConferenceintendsro becomean institute-wideeventbringing togethernot just AJM Overseas Alumni Communitiesbut alsoparticipationfrom the largernon-MBA and MM alumni groupsof AIM, suchasgraduatesfrom the Entrepreneurshipand Dwelopment Management courses, Through the Vorld Bank Global Distancelearning facilities and communicationsnenvork,the Institutewill connectwith irs regionalnework of alumni communitiesin more than six Asiancountriesvia this historic Live Videoconference that will be beamedsimultaneouslyto the following sites:Philippines (host),SGV ConferenceHall, ACCEED Bldg.,AIM; India, T.E.R.I. DefenseMinistry; lndonesia,\iTorldBank Country Of0ce; Malalsia, MalaysianBritish Council; Singapore,Civil ServiceCollege;Thailand,ChulalongkornUniversiry;and Metnam, Vietnam DevelopmentInformation Center. The themechosenby rhc organizers is: kadership: BreakthroughThinking. This eventshallbe rransformedrnro an intellectualassetofthe Institute,to be held regularlyasan Annual kadership Conference acrossdifferenthost countriesin Asia. Lynn Sy (MBA'84), who wasoneofthosewho cultivatedthis trail-blazingproject,revealed that evenbeforethe actualholding ofthe lst Conference,our Mdaysian counterpartsaswell asthe India alumni chaptershavealreadyvoiced

TNE ASIAN MANAGEF

MARCN 2004

AS AN rNSI IIlTE OF MANAGEtv]ENT

interestin hostingnext year'sL-eadership Con"Even ferenceevent. the alumni chaptersin the U.S. havesentus queriesofinterest on the activitiesbehind this event,"Li'nn said. Already, the eventt Globa.lPerspeoiveis within logistical reach. Gracedby no lessthan AIM Board CovernorTimothy Ong (Brunei)and Y2004 AsiaMoney adjudgedBestCompany CEO ofAsia, Mr. Manuel V Pargilinan (PLDT CEO/President) togetherwith the presenceofour esteemedDeansfrom the four SchoolsofAlM, the lst InternationalLeadershipConferencepromisesto be an excitingand enrichingforum for a broad and in-depth dialogueamongsttodayt Asian Business Leaders. AIM A.lumni Homecoming Party

AIM leaders. . . Rock The \lVorld! "retro" "Ve'll How retrocan getl stricdyplay musicfrom the late 50t to the early80t," saidJimmy Teotico (MBA84), 'hnd HomecomingPartyCo-Chairman, no songwill be played twice." It will be a trip down memorylane,from the ambience musicasregistrationstartsat 5 p.m., through variousvideo'sof live performances and MTV's asdusk comes,a-trddl during the showthat is expectedto start at 7 p.m. Music from Elvis Presley, the EverlyBrothers,the Beatles, the BeachBop, the DaveClark 5, the E:gles,the Doobie Brothen, Chicago,Santana,MichaelJackson,Madonna, Duran Duran, the Cars... they will all be there... ar the GrandAIM Alumni HomecomingPary 2004,which will be held on Friday,March 5, under the stars and on the grounds ofthe

Megaworld Forbestown Center,at the Fort, Global Ciry. Entertainment will be provided byJenine Desiderio(former Miss Saigon), Rockin Revival Bald (an all star ensemblecomposedoforiginal membersofvarious greatbandsof the '60s '70s), and Dream Sequence Band (a rio ofyoung excellentsingersand musicianswhoserepertoireincludesmaly retrc songs,ano a re-

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L E T T E R SF R O M A L U M N I

TheMDM Experience

ing actually. We cameback to AIM at 3 a.m. the next day.After a few hours of sleep, I had to be readyat 8 a.m. for the group presentationof rhe final assessment for "Learning the subject Methodologies". ln the afternoon,we continuedwith another subjectin the caseroom. At the end of the day, I was really exhausted b u r e x c i r e dT. h a n k sr o A I M f o r g i v i n g m e i n r e r e s t i nagn d r i g n i f i c a nlre a r n i n g experiences."

TranThanh Huyen MDM 2002,Project Coordinator for the Supportto Women Economic DeveloomenTrrorectTor

OxfamOuebecin

Hanoi writes: "I

am now working in a development project which is mobilizing a lot of the knowledgeand experiences I gained from my MDM classes. It is interesting and very helpful ro strive for poverty reduction in termsof economicdevelopment and women empowermenrin the Vietnam context. I cannot forget the lessonsI Iearnedfrom my AIM professors- Confessor,Lim, Raymundo, Roberto, and Garilao. I think it wasalsothe pressurern AIM that I remembermost. Still very clearin my mind wasthe two heavydays in the third module. !7e startedfrom 8 a.m. to 5 p.m. as usualin the classroom. During lunch time and afternoonafter 5 p.m. (up to l0 p.m.), thereweretwo different group discussions(for rwo different subjects).They seemedto havelasted much longer,but we had to stop for the trip to the Navotasfish market during rhe night a. a requiremenr o[ rhe subjecr "Source and Useof Power".lr wasexcit-

TheMM Experience B u i l d i nag Hospital RodolfoKintanar MM 1987, Executive Vice rresroenloTuersus Pharmaceuticals

Philippines, Inc. writes: "After

my stint with AIM, I, along with a groupofphysiciansbuilt a hospital. We had to look for a name which eventuallybecameVestern Mindanao MedicalCentet Inc. \i'e had to look for stockholders, registerwith the Securities and ExchangeCommission, searchfor and purchaseland, constructthe hospital,hirâ&#x201A;Ź

employees, buy equipment,run the hospital asadministrator,havethe hospital raisedto tertiarylevel, pay for the initial loan, expandit to the secondfloor... I wasthere.Building the Vestern Mindanao Medical Center wasan interesring experience. Imagineyourselfworking among kings{thedocrorsarekingsin rheirclinics. rheygiveordersand nobodyquesrions ir). rVhat happensif mortds are caught in a disagreement amongkings?Monals patch up the disagreements and point to the objectivesor to a commondanger The module,Sourcesand Usesof Power,in the MM coursehelped. Findinga commonenemyor a common dangerto direct rhe aggressive tendenciesofkings in collisioncoursedefused the potentialconflict. Pleasenote the term defused.The potentialconflict is still there. 'Vhen the conflict rearsits head up again,a reminderofthe commonproblem becomesa usefultool again. The hospital creationwasa learning experience. Building CelsusPharmaceuticals Philippines,Inc., the first OFPatent Filipino Ophthalmic PharmaceuticalCompan)., camenext. DiscussingCelsusand is products herewill make this write up long. CelsusPharmacru ricat Philippina.lnc. websiteis presendyat http://das;stems.com/celsus. One ofthesedaysI'll write about C-els'-rs, the pharmaceuticalcompany, not CelsusL. Kintanar,my secondson.I'll write aboutCelsus,the person'srole in CelsusPharmaceuticals.I'll alsowrite aboutPerlasL. Kintanar-l,orenzo, M.D. D.PB.O., the eyespecialist, my eldest daqghterwho is CelsusPharmaceuticals Chairmanof the Board. C,ebus Pbarmaceuticals Philippines,Inc. 1I 5 ScoutRallosSt., Q1.umnCity 1103 Phihppines Tel.(632)928-8208 Fax (632)928-08I J e-mail: rchintqho nnail com

ASIdN VdNdG'C

TI TI

OT VA\AGIVFN

L E T T E R SF R O M A L U M N I

producrnEnagement, contract and analysis, management, publicrelations, andsalessrrar egy.Both aregreatfriendsofErick Manzano and theyvisit Erick in Cebuofren." Michellcis the VicePresidcntoflnterna-

MichelleBoquiren MBA2000.writes:

tional ManagedA."et,6 FeeBa.ed\eruice'n New Yorh.Shecat bereacheddt boquimiEyxchange.ml.com. "This

wasuken in the serviceapartment in london in earlyOctober2003.I wort<eo

outofMerrillLynch's londonoffice fcjrthree JOCelVn week. I am r.rorking *irh MerrillLyn.h.

Befnal

GlobalPrivateClientGroup,basedinNe* 2001, MM

This wastaken at the Long Bar in the famousRafflesHotel ofSingaporein midOctober2003. I flew in from london for two weeksto work with FinancialAdvisersat the Singapore ollice. Kalyan(SectionB), Erick (Seaion B), Rohit (SectionC) and I eachhad a Singapore Sling.KalyanKrishnamurthyis workingwith Procterand GambleInternational Operationsin SingaporeasManager FemofProduct SupplyFinancefor BabyC,are for Asean/Australia/India. He CareBusiness is newlywed to his beautifularchitectwife Soumya.(Kalyan I believewasalsoan exchangestudent.)Erick Manzanois with Alala land, Inc. basedin C-ebuGty and is working asa Division Head for ProjectDevelopment and ProperryManagement(\4sMin). He reiterates that SectionB rulesand rhat Bar None (ofthe Marriot Hotel in Singapore) rockslHe hadjust comefrom a trip to China and highly recommends rhat we all vistt Beijingand mostespecially Shanghai.Erick wasalsoan exchangestudent and went to fuchard lvey in Canada.Rohit Muley, who I haveto sayis the most relaxedguy,is a ManagementConsultantwith StemStewart& Co., alsobasedin SingaporealthoughI think he travelsa lor in *re Asianregion.lt wassuch a fun night!

M A F C N2 O 0 4

Yorkwith responsibilities in ProductDevelopmentand Managementfor International ManagedAssersand FeeBa.sed I Services. havebeenwith Merrill for threeyearshaving joined soonafter I finishedthe exchangeprogrrm at Kenan-Flagler Bu.ines.Schoolin LNC. DeepakMnston who had dinnerat the apartment,who is from SectionB like myself.i' a \urvivorar LucenrTechnologie. basedin I-ondon.\X4renaskedwhar his .."deliver sponsibilities are,he saysto shareholdervalue."Deepakwasalsoan exchange studentat the UniversiryofChicagoat Urba-na Champagne.

This was taken in early January2004 in GreenbeltMakati. I haddinnerwidr Gabby (SecrionB) and l-ester(SectionA). Gabbyis HeadofAyalaport'sServices and Standards Divisionwhile LesterTongsonis Headof M;rkeringlor Ayalaport. Cabby. respon'i. bilities areSecurity,Human Resources, Qualiw and PolicyManagementand more.Gabby wasalsoan exchangestudent at McGill Universiryin Canada.Lesterfocuses on research

A S A N N S I 1 U 1 EO F M A N A C E M I N I

baSed

in the USEastCoast wntes:

"Greg Atienza,Alumni ReladoruDirector ofAlM, washostedby somemembersof the NYC basedalumni group.On December19, 2003,Mr. Atienzamet up widr Mark Sanchez, Rajah Solanki,YakubMathew andJocelynBernalar Divine Bar for a few drinksand tapas.Mr. Atienzagavecopiesof the latestissueofthe AsianManagerand encouraged usto conrributearticlesald class notessothat otherclassmates canreadabout our latestaccomplishments and activities. The AIM Alumni basedin the East Coastwishesone and all a great2004 ahead!"

ClassNotes Directorand ErecuriveVce PresidentofATR Kim Eng FinancialCorporation, x director and presidenr ofSucat[.ald Clrporation,and x directorofAsianLife & Genenl Assurance Corp.

1978 Azaman bin Abu Bakar, MM 1978, is now rhe Lrecutive Direcror/DeputyChairman of MUDA Holdings Berhadwith businessaddress at Lot 7, Jalan5lA/241,46100Petaling Jaya,Selangor Darul Ehsan,Malaysia.His favoriteAIM professorwasthe late AJejandroReyes.He wrrtes: ''Ir'' beene uhrle 'in. e I graduared. and oncein a while onecannotbur reminisce aboutlife at AIM and the classmates that one would reallylike ro meetagain.Perhaps,with the databasewe can againrenewacquaintances and havea good laugh overdinner"

t979 Shrikant \V'ad,MBA 1979,is now GeneralManager ofPrit Enterprises, Inc. wirh business address at Prit House,2/F 5888 Enriquezcor Cloria Sts.,Poblacion, Makati. His favorheAIM professorwasVictor Limhngan.

Horacio M. Borromeo.Jr

1981 Ajai Randhata, MBA t 98t, is now the Managing Director of MetecnoThailand Ltd / Metoxide Thailand Ltd. with businessaddressar l0l/5 Narenakorn Industrial&tate PathumthaniThailand.His unfor"Craduating gettableAIM experiencei top ofhis "ProfBernardo.' class!"His favoriteAIM professor?

1983 Achara CharoensukPricha, MBA 1983, is now the SecondVice PresidentoflCC InternationalPublic Co. Ltd with business addressat 757lt0 PradooL SarhooPraditRoad,BangPongpang, Yannava, "l Bangkok1Ol20,Thailand.Shewrites: havetwo (15) (10). kids a gid and a boy I havebeenworking with a cosmeticcompanyfor 15 vears,and I can sayI am prettiernow comparedbeforebecause of the natureofmyworkl I enjoypla,vinggolfand seldomgo swimmingnow bequseI don'r have*re time to havemy hair doneafterswimming!Haw a ruce davlIt s me ...Jeedy(Achata)."

1984

enwervou passby Honolulu,jusr gi"e me a cJl at mv celiphone(808)381-20-17 or at our telef* ar (808) 422-22-76.Otherwise,e-mailme at MCTANEGA@hawaii.rcomrwo davsprior ro vour arrival.My husbandand I will be glad to treatyou ro the Hale Koa Hotel's luau (FlawaiiarIfesrivemeal with entertainment)or ro a light Japanese lunch at Gvotaku.lfvou rre on drer.wecanju'r giver"u : fiee rour ofrhe Hickam furforceBaseand Pearl Harbor Definitely.we arein Honolulu from mrdJanuarrtill mid-April." CharlesRoben B. Davis,MBA 1988,is now a Direcmrfor &hical Businersand Businessl)evelopment with businessaddressat PI DaryaVariaTbk., Jalan MelawaiRavaNo 93JakarraI 2 I 30, Indonesia.His farrcriteAIM profasor les Netl Robeno.

1991 SylviaM. Duque, Ml)P I991. is now the VP and CrrporareHR Directorofthe AlcanraraCroupwith business address atAlsonsBldg,2286 PrsongTamo Exrension,Makati. Hanis Hashim, MM I 99 I , is now the GeneralManagerofGoLdenHope PlantationsBerhadin Malay:sia. His unforgeaableAIM experiencewasdre eanhquake of 1990.

"Tony" Antonio P Soriano,MM 1984,is a member ofthe BoardofDirecrors of Public EstatesAuthority. "l Tonywrire.: am presently a Presidenrial Appoinrer Paun Varshnei,MBA I991, is nolv rie \4r- Praidenr servingon the BoardsofPublic Estates Authority oflintas, India Lrd. wi6 bwinessaddrasat 13.Tolstov (PEA),PEATollwayCorp. (PEATCoperatesthe lale.\ew Delhi.larrwrres: Iam nowuJringrr Manila-Gvite Toll Expresswaf, and Bay Dredging academicbreal<I havebeenselected asa Sr Clrevrning Inc. (JV berweenPEA andJande Nul, Belgium). Scholarin Globalizationandl-eadershipto *re l-ondon ' Schoolof Economics. Neville Re1as,MBA 1984,is now tle Chief Exmrtrve Ol}icerofthe RuralElectrification FinancingCorp. Guy Tonorici, MM 1991,is now a VP & Manager - C-ommercialRealLstareofFreedomFinancia.lFund(REFC)with business address at Suite40l, OMMCitra Building, 39 SanMiguelAvenue, Onigas Cen' ing Corporationwith business addressat 1056J ter. 1605PasigCiw. BrunswickRd.. Suire7 GrassVall€yCA 95945.

1980

1985

Mohan Madhav Phadke,MM 1980, is FAIM headin India and vice presidentfor businessdevelopmentof Ballarpur IndustriesLtd. Thapar House.He recendyreceivedthe Distinguished Alumnus Award from the National Instirure of Technology,\Tarangal.Mohan graduatedfrom the NITW in 1969with a degreein Merallurgical Engineering. The award waspresentedto Mohan by rhe HonorableUnion Minister ofHuman Resource Development,Dr Murli ManoharJoshiat the First InternationalMeet ofthe NITW Aiumni in New Delhi on 15th October2003.The went wx graced by eminentpersonalities from the corporateworld and alsothe Union StateMinister for ExrernalAffairs, Mr. DigvijavSingh.

Noel De kon, MBA 1985,is now d-rePresidentand CEO of MercerHR Consulringwith businessaddress at l9lF Citibank Center,Paseode Roxas,Makati Ciry Noel's favoriteprofessorar AIM wasMayo Lopez.

ChangYoonJeong"Johnny'', MBA 1980,is now with KT&C (KoreaTomorrow & Global) as Experr Advisor,wirh businessaddressat New BusinessDevelopmenrBureau,lTrh Floor, Kosmo -lower 1002 Daech-dong,Gangnam-gu,Seoul . Korea 135-280.His favoriteAIM professorwas

MAR'ts 2OO1

1986 K Ravi,MM 1986,is now rhe Vice Presidentof TTK HealthcareLtd with business addressar 6th Floor.Vulcanlr:surance Bldg.,Churclgare.Mumbei. Indi:. Hi. favorire AIM profe"ori' lun Borromeo. and his unforgenableAIM experienceis 'the I st case on Mondaysby JoeF..TakeCoverlli"

1988

1993 Maria IsabelSalazar,MBA 1991.is a Controllerat ePLDT, Inc. (seconded to InfocomTechnologies, Inc.) with business address at 3/F PLDT Tower t, 6799AyalaAvenue,Makati Ciw.

1994 JohnYarg MM I $4, is now the PresidentofApex PharmaCo, Lrd. with buinessaddresat I lF 6,No.l28,Sec2,TirnHua S. Rd, Taipei,Taiwan. Hermilando D. Aberia, MDM 1994. is now an Area Coordinator for the Kalahi-CIDSS: KKB Projecrbasedin Balangiga,EasternSamar.

Maria Cynthia Tanega,MBA 1988,writes:"Hello 1995 (MBA '88), fellow A.lumni and Professors Classmates of AIM! You can seea picure ofme and readseveral Anup Jagwa-ni. MBA 1995.After graduaringfrom linesaboutmy activities(pastand present)ifyou AIM wirh distinction,he had briefsrintswith Cirnavigateto http://chem.biotech.hawaii.edu, click members,then click my name(Tanega,Maria C.). ibank in India and AndersenConsultingtstrategr

AS AN INSI TUTE OE MA\AGEI./]EN'

ClassNotes practicein SouthEastAsia.He subsequentry joined a medium-sizedcompany in the construction materialsbusinessasthe Chief Financial Officer before becomingthe ChiefOperating Officer shortly rhereafterAfter two yearsin rhe Company, he joined the Manila offce oflnternationalFinanceCorporation (IFC) , the private sectorarm of the Vorld Bank where he helped identifi appraise and manageexistingprojectsin a rangeofsectors includingmanufacruring, enerryand technology. Aftet about five yean in the IFC Marrila ofice and with responsibilities for someprojectsin the Indochinaregion,he is now movingto the HQof IFC in VashingtonDC. "The AIM e4rerienrr wasparticularly helpful in handlingsituationsat the workplacewhich arevery much like the casesin AlM. The work situariondemrndscriticalthinking and working in teams,somethingthar rheAIM approachencouragedrrudenr'ro do. IFC i' a mulri-cultural environment and the AIM experiencewasuselirl."

1996 Alok Shanlar.M BA lqq6, is now r Director- Operations& CommercialofBrightpoint Middle EastFZE with business address at PO Box 54322, DubaiAirport FreeZone,Dubai, UAE. His 6vorite AJM profes'orwasNirhikant Mukherjee.

1997 ShankarS Raman, MBA 1997, is now a Manâ&#x201A;Źing C-onsultantofTowers Perrin with businessaddress at 33-01 MenaraDion, 27 JalanSultanIsmail, Kuala Lumpur, Malaysia.Vhen askedwho rs the "lt professorhe remembersmost, Shankarreplies, is dillculi to choose- all were incomparable.Every " bit of my AIM experiencewas unforgatable. "l Augustus C-aesarE"smera.lda, MM I 997, writes: jusrgor promotedasRegionalDirecrorofSecuriry covering 16 hotels ofShangri-Ia Hotels and Resortsin the Philippines,Malaysia,Thailand,Singaporeand Mlalrmar My favorite professorat AIM is Victor Lim and my mosr memorableexperiencewas our classwalkabout in Mindanao." "SG M Ii Girish Pai, MBA 1997,writes: Pai InvestmentAdvisors,a firm that w:s founded by my wife and me, is involved in advising High Netwonh Individuals on theirequiryinvesrmenrs in the Indian StockMarket." His business addressis 201,Josephine, 44, St. AndrewsRoad,Bancra Vest, Mumbai, India - 400050.

t998 MarkJ. Sanchez,MBA 1998,is now Assistant Treasurer ofthe BankofNew Yorkwirh businers addressat I 0 I Barday St. 22nd Floor, NY I 0286. He and another AIM alumna, Jocelyn Bernal,

MM 200 I , are very active in bringing togetherall Tirday, SanMiguel Corporation is expandingagAIM alumni from the U.S. EastCoast.You may gressivelyfor both the food and beveragebusrness, sendemailsto Mark at mjsanchez@bankofny.com. hoping to becomeone ofthe major playersin the A.siatacific region. His favoriteAIM professoris Catherine Xianyan Chen, MBA 1998, is norv a Tommy Lopez. Senior Manager (lnvestment Banking) for Shanghai SecuritiesCo. Shewrites: "After I graduatedin TCWee (WeeTium Chor), EMBA 1999,wnres: "l 1998,I went to SanFranciscoto work in the Inam a chemist by qualification and I havc been vestrnentBanking industry then back to Shangwo&ing in the ChemicalIndustryfor rhepast l8 hai. Now I am working with a securitiesfirm, foycars.I completedmy eMBA in 1999, being the cusing on M&A I am promoting the Philippines lsr barchof eMBA graduatesin Malaysia.My and rhe Asian Institute ofManagement vigorously projecrpaperwas How to bring comperitive herein Shanghai,asI enjoy meeting people ftom advantageto my corporation through Supply the Philippines.I now havea new Filipinafriend Chain Management". I learneda lot and built a lot (SheilaBaylon, MM 2003) and our AIM alumni ofself-confidence aftercompletingmy projecr. "l group here is more than l0 peoplenow, and it am now working in Cabot Specialty grows in number asmany come to Shanghaifor Chemicals(a Boston-basedcompany)asRebater careeropportuniries. I mis AIM, my dassgional Marketing Managerfor the Asia Pacific mates,and the wonderfirl timc I spenrin the Philrcgion. h is about two yearsnow sinceI joined "Scone ippines! Bestregardsto all ofyou!" Catherine'sfathis company.I regularlyaaend thc Parvorite professorswere Gabby Mendoza,Jun Borty" organizedbyAIM-Alumni in Malaysia.I romeo, Gloria Chan, Pat Lontoc, and Denise lolook forward to more exciting prgrams/acnvrpez. Sheremembersmost her sleeplessnights wrrtties by AIM A.lumni in Kl. "l ing VAG. am alsointercstcdin becomingmore involvedin AIM activities, particularlyhaving the opportuniry to meetAIM alumni groups JosephineFa$regasC,oncepion, MBA 1998, is now the Human ResourcesDirector for Eli Lilly ouaide ofMalaysia. I usedto visit AIM Manila Philippina, Inc. with businessaddressat l8/F during my businesstrip to the Philippines.UnGalleriaCorporateCxnter,RobinsonsGallerra, fortunately,my professorswere not in the AIM OnigasCenrer campuswhen I visitcd in July 2002. I missttrc classesconducted by Prol Azanza (Financial Analysis)and the jokesthat camealongwith the 1999 lessons!I alsolook forward to seeingPro( Toby Canto again."Fellow alumni can sendan email Nicolas G, Saplagio,MM 1999, is now Marketing to TC at tcwee2000@yahoo.com. Manager for the Asia-PacificRegion (FeedsBusiness)ofthe SanMiguel Corporation.Nicolas writes:"TnJanurry2001.Ay.rJ.r 2000 Agri. my previous emploJ'erdecidedto sell the company.I wasunemployed for three months until PurefoodsCorp., a Guderian Monta6o, MBA 2000, is now the Gensistercompany ofAyala Agri, hired me asmarkec era.lManagerof Rub;star Services[nc. with busiing managerfor its feedsbusinessin April of the nes addressat 6032J.D. Mllena, Poblacion, sameyear In May 2001, SanMiguel Corporatron Makati City. Hh favorite AIM professorwasGabbousht Purefoods.I wasone ofthose Purefooos by Mendoza and he counts learning the PORTER .-p-ioyees *ho were scaredof the threat of being MODEL ashis unforgetable AIM experience. fired knowing rhar I wasa new employee.But after severalmonths ofstruggle, I was retained and xDeepakVinston, MBA 2000, is now an assoclate signedto Monterey FoodsCorp, a subsidiaryof with Lucent Technologies.His businessaddressis SMC, assalesand distribution manager I personE66, DuCane Court, Balham High Road, lonaon ally suspectthat it wasn't just pure luck, but it had swl7zL. something to do with my irnpressiveemployment rract recordsand being a graduateof AIM. Edgar Q. Edralin is now a Quality Management "Just last March, I wasassignedasmarketfupresentative/Director, TQM of the Dr la Salle ing marager for the fee& expansionproject ofSan University Medical Center basedin Congressional Miguel in the Asia Pacific region. Itt a very chalRoad, Dasmarirus,Cavite. M took a Productand lenging job to study sevencountries (Australia, ServiceMa-rketingcourseat AIM in July 2000 and Tiiwan, China, \4etnam, Indonesia,Malapia and his hvorire professorsindude frof Tommy lopez "The Thailand) and make a businessand market entry and Prof Tony Perez.He writes: learningexstrategr for the company.hst October 2003, we periencethat I had with AIM molded me into what bought a company in South Vetnam engagedin I am today.The inputs from the ptofessors,the piggery and feedsproduction. This )r-ar,we will be learnings,ideas,CAN group discussions,multiconsideringthree feedscompany in China and brmdenedmy inculnrralexposureand experiences one company in Indonesiafor a I 00o/obuy out. sightsand helpedme makebenerdecisiors."

T I ] EA S A N M A N A G E F l M A F C H z O 0 4 I A S A N

NSIIIUIE OF MANAGEMENT

ClassNotes 'Jory" In&nte Hemandez,MBA 2000, JuanVictor is now the BusinessHead, C-orporareRegionalBusinessofThe PhilippineI-ongDisranceTelephone Co. with addrcssat 2/F PLDT Mabolo Exchange, J. Luna Ave., Mabolo, Cebu City. Jor.y,who was marriedend had a sonwhile studlng in AIM, is now expectinga daughterafter l0 years.He recrndy relocaredro Cebu ro manageC-orporare Businesr in Visayas.In spiteofhis busyschedule,he was able to catchup on the latestwith his batcnmate, Eric Manzanowho is now workins wirh Cebu Holdings/Ayala. Jory wasalso rece-ntlyable ro artend an AIM alumni homecomins in Cebu, spearheaded by rheAlumni Association ofAIM (AAAIM) wherehe met other Cxbubasedalumni and rekindled old times witl' . few professors. StevieMartinez, MBA 2000, is now the ProgramManagerfor Marketing and Career ManagementofThe Asian Institute of Management.You can contact Stevieat fmartinez@mail.aim.edu.ph. Michelle M. Boquiren, MBA 2000, is now Vice Presidentof Int'l ManagedAesets& FeeBasedServiccswith businessaddrcs at 250 VeseySt., 23rd Floor New York, NY I 0080. Michelle writes: "l am working with Merrill Lynch'sGlobal Prirate Client Group, bascdin New York with responsibilitiesin Product Development and Managementfor International ManagedAssetsand FeeBasedServices.I havebeenwith Menill for threeyearshavingjoined soon after I finished the exchangeprograrn at Kenan-FlagletBusinessSchool in IJNC. Deepak Vinston who had dinner at the apartment, wno s from Section B like myself, is a survivor at Lucent Technologiesba3edin hndon. en askedwhat his responsibilitiesare,he sap to 'delivershareholder value.' Deepakwasalsoan exchangestudenr at the Universiry ofChicago ar Urbana Champagne." "I wasable to meet up with someofmy batchmatesduring my businesstrips in London and Singaporeduring Q4 2003 aswcll asduring my holidaysin Manila. In mid-October 2003, I flew in from london to Singaporeto work for two weekswith FinancialAdviscrsat the SingaporeoIfice. Kalyan (SectionB), Erick (Section B), Rohit (SectionC) and I eachhad a Singapore Sling. Kalyan lirishnamurthy is working wth Procrerand Gamble InternationalOperatronsin SingaporeasManagerofProducr Supply Finance for BabyCareFemCareBusinessfor Asean/Australia/lndia.He is newly wed to his beautiful architect wife Soumla. (Ka.lyanI believe wasalsoan exchangestudent.)Erick Manzanols with Ayala land, Inc. basedin Cebu Ciry and is working asa Division Head for ProjectDevelopment and ProperryManagement(VisMin). He reiteraresthat SectionB rulesand thar Bar None (ofthe Marriot Hotel in Singapore)rocks!He had just comefrom a trip ro China and highly recommendsthar we all visit Beijing and mosr

IHE AS AN i,IANAGER

MARCH 2OO4

Rolando "Rolly''C. Lawas,6lst MDP 2002, is a project direcror of Fluor Daniel Inc. Phils. He vividly recountshis last day at AIM: "During the final day, I wasthe lasr to presentnry VMOKRAPI paperro Prof. Tiro Ortigas and Prof. Patt Lonroc. Ve ran overrime.lr waspasr I2NN. my cL'srnares wrre ar rhegr.rduation hall waiting for the start ofthe ceremonres and 2001 I wassrill presentingwith a few colleagues.I calledmyself The Last Man Sranding'during my inrroducrionand ir bec;mean exprssion PatcharapornChinanuvathana,MDM 2001, is associated to me during our graduationrites. I a Fund-RaisingManagerofthe SOS Foundation wasgreatlysurprisedwhen I wasincluded in ofThailand, under rhe royal Patronageof H.M. "Best the PerformanceAward" categoryduring the Queen Sirikit. Her unforgenableAIM expethe graduationceremonrc'.Rolly! favorire rienceis the Area Study and shecounts Prol AIM professorswere Part Lonroc,JJ Roces, Victor E. Thn and Prof.Tommy l,opez asher favorite AIM professors. Sonny Coloma and NievesConfessor. Shewrites that shcwill be 'Afier gettingmarriedinJanuary2004 "to a friend lrom MDP, I moved to Project Managcmenrand got inrolvedwirh rwo offshoreprojecr MBA 2002". proposalefforts.The firsr projecr involved a "Oiie" three-monthassignmentin Jakarta,lndonesia T. Ruiz III, ME 2001, is now the Jose Managing Director of25by8 Inc. with busrness and was completedduring the week that Marriort Hotel in Jakartawas bombed.The second addressat P3 Manila Luxury Condominrum, involvementwhich is srill ongoing, is with Flulearl Drive corner Cold Loop. OrrigasCenrer. or's parrner in the UK for a Floaring Production Pasig.Ojiet favorite AIM professoris Ed Moraro. and SrorageOffloading (FPSO) facility off rhe coastofNigeria. My companyis bidding the enVncent R, Leyson,ME 2001, is now the COO ofTouchcom Phils.,[nc. with businessaddressat gineeringand designwork for theserwo projects and will seethe resulrsfirsr quarterof2004. Thf 4/F FestivalSupermall,Filinvest,Alabang,Metro ' project which will be awardedro Fluor, will deManila. Vincent counm Danny Antonio and Ed termine my project assignmentfor rhis year.AdMorato ashis favoriteAIM professors and recalls ditionally, I'm also part of the office leadership with fondnesshis AIM classes team of facilitatorsconducring in-houseleaderin Baguio. ship trainings to our managersand projecr leads. 'We train them around rhe comperenciâ&#x201A;Źsneeded Ir. Muhammad Abdullah P.E.,MM 2001, is ' in the industry environmenrFluor is in now with thc TechnologySection,?T Badak NGL Bontang,EasrKalimantan Indonesia.He writes;"lt is my pleasurcto hearagainfrom AIM. JoseEmmanuel P Guillermo ME 2002, is now the Presidenr& Chairman ofthe Board of Royal Pleasesend my great salam ro my AIM colleagues ClassTrading Corporation.Joel'sfavoriteAIM in Makati and alsoto the professors.Is Ms. Phia professorswere Dean Morato, Dâ&#x201A;Źan Ferenaand Galangstill in AIM Makati?Ifyes, sendmy salem Dean Jun Bcrnardo.He shares,"The strategiesI aswell". learnedfrom AIM mademy businesses susrarntts growth despitedre crisisrhat we'renow experiencJun D.L. Camerino, BMP 2001, is now the Fiing. Also The QDP Concept madeus realizedhow nanceManagerofPhilippine Animarion Studio, important our customefi are. Inc. with businessaddressat 2lO0 PasongTamo "Afier AIM I havecontinued to expandin Extension,Makati City 1231, Philippines. otherfieldsofendeavorwhile our other buunesses arestagnanrdue ro its dependence on government 2002 expenditures.Our Servicescompanycontinued to growtut collection is alsovery much deiayed Gerry de kon, 60th MDP 2002, is now the Asfrom our principals.Generally,we are doing fine sistantVice President- EnrerpriseNetworksSerand looking forward to a betrer future for Filipinos vicesof ETSI TechnologiesInc., a SiemensAG after rhe 2004 election." at Joint VentureCompany,wirh businessadctress MercedesBusinessPark,MercedesAve., Cainta Mazumdar Debjyoti, MM 2002, consultantfor Rizal 1900, Philippines. Gerryt favorireprofesRenoir Consulting Limired UK writes: 'l am sor at AIM was Patt Lonroc. currently working on a consulringproject with "Bobby" Pineda.MBA 2002,is now RoyalDutch Shellin KSA, and I am implemenc Jonathan an assistantmanagerfor P&J Agricultural ing a lot ofthe lessonsfrom AIM here,such as Trading, Inc. with businessaddressat 184 rhe BalanceScorecardamong many others. "On Dr. Sixto Antonio Ave., PasigCity, Philipother front, Alladi got his PR. I too alongwith my family gor permanentlyreiocated Prnes, especiallyShanghai.Erick wasalsoan exchange studentand went to Richard Ivey in Canada. Rohit Muley whom I haveto sayis tie most rehxed guy is a ManagementC-onsultantwi r SternStewart & Co., also basedin Singaporealthough I think he travelsa lor in the Asian region. Ir wassuch a 6rn nightl"

ASIAN INSTTUTE OF MANAGEIV]ENT

ClassNotes in SingaporeasPR. Made a lot of new friends courtesyofAlladi who helpedus a lor to ger ourselve:reloc:tedwirhoutanyproblem:in Singapore.I take this opportuniry ro conveymy heartfeltappreciationto Alladi, Chakraand Ravi for their continuedand valuedsupport. iAmong our classmates in MM 2002, two haveturned into very successful entrepreneurs: Chakrapaniand Krish Hariharan.They aredoing exceedinglywell. "Alladi, our lovableSubbuis wirh HP SingaporeasSAPSD-MM consultant.Emersonrs with a new assignmenrwith Alcan Packaging StarpacCorp., and he is soon going to be a proud papa.Jayant(MBA 2003) is with Motan Srngapore,and Saurabh(MBA 2003) is with Chemoil Singapore,they roo aredoing fine. Kaushik (MBA 2003) is wirh HDFC BalrrkIndia - he is quite happywith his new assignment.It is reallygreatro seeall ofus doing well by the grace ofGod. My warmestgreetingsto AIM and its alumnil" ClarenceYu, EMBA Menila 2002, is now the Vice PresidentofTwin Oala/SucereFoodsCorporation with businessaddressar 130A 20th Avenue, CubaoQuezonCiry I109/ First BulacanIndusrrialCiry Malolos, Bulacan. "l Naoko Takasu,MDM 2002, writes to say would like to inform you that I leftJBIC ar the end ofAugust and joined UNDP Pakistanin the middle ofOctober. I am a ProgrammeOfticer at the SustainableLivelihoodsUnit and living and working in Islamabad.So, this will be the first time for me to put my MDM into practice.kt's hope that I will not feel that I haveto go back to schoolagCin.lJfish everythingis going well with all ofyou." Romi fuarwal, MM 2002. wrire': I m now in Dhaka involvedwirh rhe assignmentofrestrucruring the company.In the last I I months, the workforcehasgotten down by abouc1400people and the production levelsofthe companyare unchanged.This is a step ro preparefor posr200+period.Thl i. rhe re"ulrof rhelearning arAIM and rhe blessingofGuru's like NievesConfesor." Bina Thapa, MDM 2002, is now a SpeciallnitiarivesOfhcer for CARE Nepal, with br.rsiness addressat PO.Box-1661, KathmanduNepal. Her favoriteAIM professorsiProfessors Confesorand "those sleepLimlingan. Bina alwaysremembers lessnights duringVAC tesrsand the fun we had wirh colleagues coming from l4 different counrries."

2003 "l Md Rr.rsliHjAhmed, 63rd MDP 2003, writes, attestto the wonderful learningenvironmcnrand

courtesyofthe Filipinosduring my staythere.[n fact I havemanagedto sharetheseexperiences within my immediatecircle in Malalsia and they seemedall impresscdand cagerro Lnow more." "Roger" Rogelio C. Ormilon, MM 200J. is now the Audit SeniorManaserofPricewaterhouseCoopers,with businessaddressat 29th Floor, PhilamlifeTower,Paseode Roxas,Makati. Roger "l writes: worried a lot in December2002 be' causeI wasplacedin the watch lisr in the lst module, my gradesbecamelower in the second module,and my MRRproponent stoppedcooperatingwith me io Dccember2002, henceI needed to find a new proponent.It appearedar thar rime thar heavenis falling on me. But with renewed dedicarion ro the program, my gradesimproued; lor and I won oneofthe fiveDistrnctive Performance awardsin the Walkabout in April 2003. "l am 4ow seeingthe effectofthe MM program on me asmy pcersand superiorshavebeen seeingsignificantchangesin the way I think and speakwith confidence. Since the MM, I have now becomebolder in speakingour my mind whenevet I know that I can contribute to the betrc.'crr of my company'soperations.\?hile many of my superiorshavebeenquite shocLedat rhe way I speakout my mind, and someofrhem havenor beenappreciaringit (because my commentshighlight many oftheir deficiencies),I feel greatbecausemany ofwhat I s:y now seemto wake up many ofthe peoplein authority who havebeen not doing the right thing the past many years.I am now consideringtransferringto the consulting division ofmy firm, or on another outside consufting companl hereor abroad,where I believe I can m:ximize rhe MM learnings.I am still working on my MRR and expectto get my diploma by the time ofthe new MM 2004 batch. Regardsto all my professorsand my favorite professor-- Prof. Titong Gavino!" Alfie A. Rodriguez, MM 2003 is now the Regional ChannelManagerof Carrier InternationalCorporarionwith businessaddressar Carrier Internarional Corporation, Km 20 EastSâ&#x201A;ŹrvcieRoad, South Superhighway, Alabang,Muntinlupa Ciry, Philippines1700.His favoriteprofessorwaskni Panganibanand his unforgettableexperiencewas his MRR defensewith Prof. Gabby Mendoza. Ngo Huong. MDM 200J,is r SeniorOfficerImpact Assessment and Sharedl-earningfor ActionAid Metnam (INGO) with addressat 521 "l Kim Ma, Hanoi,Viernam.He writes: miss AIM with all my professorsand classmates. It was quite a shockcoming back to work afterone year ofstudy. The environmentatAIM hasgiven me a strongexperienceof internationallearning. Thoughwe rsstuden* werealwayson a righr schedule,work evenrequiresmote from us. So guys,who arestudyingnow donf complain and

just enjoy your beautiful time there.Be prepared for culture shockwhen you go backto work." Llharnsuren Ulambatz-t, MM 2003, is the Directorof InternationalRelationsDepartmentof the Anodbank ofMongolia with businessaddress at Anodbank Building, KhudaldaanyGudami 18, UlaanbaatarMongolia 210613. He writes: "Thanla especiallyto Creat to all MM professors, Vic Lim, Dean Morato, and Prol. l,eni." Merlita V Pactanacis a graduateof Entrepreneuria.lMarketing lasrSeptember2003. Sheis an AssociateProfessorV Manager,PSU Bookstore "lt ofthe PalawanStateUniversity.Shewrites: wasa memorableexperiencetraining at AIM. I had a greartime while I wesundetgoingthat rraining. It broadenedmy teachinghorizon and I cameto realizethat thereis still a lot to learn.I wasable to get fresh and innovative ideasfrom AIM. All ofthe professorswerereallygood and I look forward to meetingthem againin thc future." Gerard A. Ceballos, MM 2003, is now the EVP COO of GeneralMercantileCo., Inc. GEMCO House, with businessaddtessar 94 Sen.Gil J. PuyatAve.,cor SSH, Makati. Gerardwtites to "l rayrhat am now engaged rn imporringequipmenrsand suppliesfrom variouscountriesworldwide. Theseitems aresuppliedby our company to the DepartmentofHealth, Agriculture,and Educationofthe Republicofthe Philippines. I would like to invite the AIM community to broadenmy contactsofsuppliers." lellow alumni may contacrGerardar igvertex@i-manila.com.ph. ReynaldoM. Jimenez,ITPM 2003, is the Branch HeadofPhilippineSavings Bankwirh business addressat G/F, CAP Bldg., BurgosSt., Dagupan City 2400. M. Jayaraajan,BMP-111, is now ChiefManager address ar Vijaya ofViiayaBankwirh business Bank, H.O., CentralAccountsDept., 4l12, "lt wasrcM.G.Road, Bangalore-560 001, lndia. ally a wonderful experiencestudying in AIM. It wasa privilegero haveuery learnedprofessors.interactionswith peopleof differenrcountries,leadershipdevclopment,projcct waluation, etc. All havecontributed to a grearcxtent in personality reformation.The atmospherein the lnstitute was very conduciveto learningand I wish moreand more peoplewould be ableto receivcthe benefits oftaking AIM programsin the yeats

YVT.R,S.Sarma,1l IBMP 2003, is now the AssistanrManagerfor Client Relationsfor Andhra Bank with businessaddrcssat PancomBusrncss Centre,Ameerpet'x Road,Hyderabad,Andhra Pradesh,lndia.

I MAFCH 2004 I ASIAN NSIlTUTE OF MANAGEMENI

(CorporatcSocial...fon pagc48) Government able to deliver? It is in this situation that many NGO programs came into being as alternative solutiorx to Covernment's inability to deliver One only has to look at such staresasBangladesh, the Philippines, Indonesia, India, Thailand, where there is a vibrant NGO sector to seethat this is v/hat has happened in a wide range of public goodsareas- health delivery education, microente4rrise development, communiry organizing and mobilization. Interestingly, as NCOs in the past decadehave retooled themselveswith management skills ro manage their notfor-profit operarions, there are now companies that have seensuch public goods areasasopportunities where their management expenise can best addressdre problems. Here lics the most er<citing new areafor corporate social rcsponsibiliry. There is an immediate view aniculated by Brian Whitaker, director ofthe National BusinessInitiarive in South Africa, thar looks at the social condition arrd asks whar should be done to ensurethat both sociery and the corporation can survive Presentation made by Brian Vhitaker, Seminar on Busi-

nessCoalitions in Development, organized by the Prince of Wales BusinessLeaders Forum, November 1999. "lmagine this: ifa largeproportion ofthe wotkforce was illiterate, if half lived in shack setdements without adequateshelter; if more than 8090 could not afford bas ic health care; ifa thousand people joined the economy every day of the year and fewer than a hundred found work in the formal sectot Ifthat can be im€ined, then imagine what the posirion of the company will be in ten, fifteen, or twenty ycars hence. "It would have to be concluded that without change in . those social conditions, lhe company would not survive. It is on these grounds rhat the business community has a vital role in developing countries, not only to respond to the plight of the poor out of a senseof chariry or as good citizens, but to do so in order to secure its own survival." The long view by Amartya Sen, Nobel Prize winner in economics, speaksof development as fteedom: Amanya Sm, Detlopmmt at Fredom, Aachor Boobs,

r999

"Dwelopmenr

can be seen... asa processofexpanding the real fieedoms that people enjoy... and (removing)thc sources of unfieedom: poverty, tt'ranny, poor economic opportunities, rystematic social deprivation, neglect of public facilities, intolerance, rePressryestates.. . "The relation between individual freedom and the achievement ofsocial development.. . is inlluenced by economic opponunities, political libenies, social powers, and the enabling conditions of good health, basic education, and the encouragernentand cultivation of initiatives,... by the exerciseof people's freedom, through the liberry to panicipate in social choice and in making public decisions that impel the progressofthese opponunities." Markets work becauseof fteedom ofchoicc. Choicr requires dwelopment. Tiue development is built on a foundadon gfparticipation. Participation is assured through institutional arangements. Br.riness is one type of institutiona.l arrangement. Hence, corporate social responsibiliry is an imperative to dwelopment and corporations do have a

social purpose. at is the role ofBusiness in addressingsocialisuesl Perhaps, it is about creating opportunities for panicipation and in the proces, social value. fue there marker solutions to public problems?In a world where more choice drives higher *pectations from a more demanding citizcnry and more people participating in the process,perhaps it is inevitable.

Commun{Gs CaseStud6strom rhe Ph ppnes lcase$udyorlhePrail.Gbaik6 sxE, ence),Ph, ppne 3us n.$ ro. Soc'a

r M Luz tsandb@roi Comhli ry B8anons lcase studv on Ph nmas com,€ro'oqrail Phr ppme Busnass ror Soc,s,P,osress1996 Bus ^ess & Communlv j.to. rol SBb'n6b 1y Mak ^g susrd ^ab' iv ope.ar onarlDrarrRopo{1. Bus'nessL€ad66

RonardGrryrnsk lrre Ns OidFash,o^6dBd^r,ns 1ca3snudy otthe soull, shore Banrr !icomna^d Pe ohan.e The Ai o1 Derver ns Ouarry S.iv,ce HatuardAu3n6ss Schoo Press 199a J A Ma@eer, MERALCOTD€pressedA.@ Co* 3€n6Jl Anaivsc r199or1cas6dud, Inrnur. or Ma^dq6h6n! 2001

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(AIM Al"nn; RuL... fron pag. 65.) unturned. Budding atist Mayone and somealumni ftom the hosr classeswill shareemceeduties. Jimmy added that the show would do away with the usual long video documentaries. And tlat a.ll the AVPI will be briefand amusing. "Ved like to get dght into "rockin' the world" as soon aswe canl \fle'd rather expect the alumni to come prepared to rock'ri roll. Because the band will be rcady to stay and play until the cowscome home." Food will flow (roast calves and assorted bar chow) and so will the apptopriate drinks. There will be many prizes rafiled-offto luclg alumni. A specialaward shell b€ giv-

en to the largcst batch contingent present (excluding the anniversary '89, '94 barchesof'74,'79,'84, and '99).

kadenhip

With A Hean

Tlue to their theme, Lead With Your Hean, the host classes havc chosen ro donate its shareof the net procced.sof the three homecoming events to hclp two specific chaities. First, to providc addirional beds and other living facilitics for the streetchildren *ards ofthe Bahay lr&ria Child C-enterin Makati Gry, and second,the improrrement ofthe drainageand comfon room facilities

IN€ A5IAN MANAGEF I MAFCN 2004 I AS AN NSI TUTE OF MANAGEMENT

gf thc Antonio Maceda Integrated High School in Sta.Mesa,Manila. "rVe wanted very specific and '84 simple outreach projects," MBA Batch C,oordinator arrd Tieasurer "'We Siony Mendoza emphasized. wanted to make sure thaa el€ry centavo goes to the actual needsofthe beneficiaries. We're determined to help thesechildren in the best possible way our humble donation can help." A ponion of the net proceeds will also go to tie AIM Paw Fund for faculty development. Thanks also to the supporr given by Petron, Smart, Pagcor, Megaworld (for the free use ofthe Homecoming Party venue

and other facilities),Philippine Daily Inquirer,JoeyFM Radio, Manila BroadcastingCorp., Fedcx and Nestle', the Homecoming week promises to be an outstanding affair. And how do you enjoy this triple homecomingtreatl Pan... by pan. One wonderftrl event... at a time. Your Alumni Association office shall alsohelp you contacr'our batchmares. Email alumniclub@aimonline.orgor visit wwwaimalumniphil.org. COME HOME, AIUMNI, DONT MISS THE FT]N.

\,\herci'\\) -Ari 1 o,AY..vro,Y\nIer Arc rou an alumnuswho hasn'treceivedrhe larestissucofThe Asian Mrnager?Or areyou an alumnuswho has ncvcr rcceiveda copy ofThe Asian Manager?Ve arc looLing for you, OUR Asian ManagerlSo please hclp us keepour alumni database up to dare.If you *ant to receive1'ourcopy of our alumni magazine regularlr.', kindly 6ll'up thisform and fa-rit to THE ALUMNI REL{TIONS OFFICE at (632)893-7410. You can also update vour contact informarion ONLINE by registeringat w1wv.aimalumni.org and as a hearing bonus,vou will receiveyour freeAIM EMAIL FOR\(ARDINC FOR LIFE. \(e rvouldako appreciate lVe hope ro hearfiom vou PS Do take vouLviewsabout this issue.You can email us at ram@aim.edu.ph. a peekat The AsianManageronlineat wwwtam.aim.edu.ph.

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A I M n o w p . o v i d e s y o L rw i i h o l r e e E M c r F o r w o r d n g f o r L i f e o d o r e s r l E F t j . w h i c h w i l i d e n l i f y y o u o so m e m b e r o f ihe AM olumnicommunty. Ths oynornc lnk wll keep you n loLrch wlh clatsmoles ond your 5chool even d u r i n g c o r e e r l r o n s l i r o n so n d c h o n g e r i n n i e i n e i 5 e r v ; c e p f o v i d e r s T o o v o i l o f y o u r o w n p e r g o n o A M E F L ,p e o s e g c 1 0 w w w . o i m o l u m n r o r g o n d c i c k o n R E GS T E RY. o u w fecelve on emoil irom lhe Aumn Relnlons Off ce once your occount hos been oct:vofed.

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AiM A irrnnl 5 presence on ihe Wor d WicieWeb inc ude! . .!a ..a!l ntorrot on or reuror)s crnd honrecomfg5 o pholo golery or news trorn oiumn frorn oround the lomecomings word ond o clireclory cn Alufirn Choplers. C)lher inlerocllve innovotlon5wil be com ng soon. P eose vlsil r oy og l h e o L r r n n p o d o o l w w w . o i m o l u r n n l o r 9 . Y o L -m i l L a . M o u . i p o ' o o - e , o h , r , 6a l ' a e d ' o y o u r eF L .

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F ; n do L r lw h o i y o u r c l c r s s n l o l e so n d o i h e r o l L , m n io r e L . r pi o through the new e-9roup focililyoi lhe AIM Alumni Porlo. .loin dlscl.]s!on boords ond publish perrono ond D T c f e so sno updoles of your own. To he p deve op your closs weos i,o coniocl lhe Alumni Relotions Oflice 01 o m o l i J m n i qo i m e c i L r . p h .

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Conneclwlih AiM o umni in your ci1y.couniry cornponY o r c o 5 s l h r o u g hl h e o u r n n ll o c o l o rl n l h e A M o u r n n porlo Ths is o seorchobledolobose ocoled in lhe A M olumnlporlo. Shoud ycu need ony osssloncen coniociing olher olumnl.peose send us on emo ol oirn.eduph. oimolurnni(4 CLASS

NOTES

Send us ihe loierl news oboul your personol ono professionoi we w lbe hoppy to publish ochievements. NOTES seclionol the lhesepiusyourpicturesln the CLASS "lhe AsionMonoger'. Ari cleson ony lopic lhol moy be ol inleresi lo the AIM olumni communly ore most we come. Pleose send your conlribulions 10 oimolumnl@olm.edu.ph. ONLINE

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TIOI!, Conlocl lhe Alumni RelotionsOffice whenever you chqnge your emoalor tob. Pleosecoll lhe AIM AlumniOffice PROFIIE ln lhe AtJmniPortolthroughlhe UPDATE 3n.s, cd {632) 892-401Ilocol 540-541,or send on emoil 1o oimolumni@oim.edu.ph.