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Corporate Social Responsibility: Lamoiyan Corporation

Making the difference for the glory of God

Table of Contents
Executive Summary___________________________________________________________2
Introduction of Lamoiyan Corporation_______________________________________3
Corporate Social Responsibility of Lamoiyan Corporation__________________5
Local and Global Impact Programs

Vision, Mission, and Core Values

Conclusions and Recommendations


Appendix

10

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

Executive Summary
HISTORY
In 1978, Cecilio Kwok Pedro owned a factory that supplied aluminum toothpaste
tubes for companies like Colgate-Palmolive, Procter & Gamble and Unilever. In
early 1986 however, Pedro and the factory got in a hole when the toothpaste
companies decided to switch from aluminum to plastic tubes. There was no other
option than close the company and send his workers home.
Hapee Toothpaste
But the resilient Pedro, turning adversity into opportunity, reasoned that if nobody
wanted his tubes, then he might as well fill them up with his own toothpaste.
Pedro created the Lamoiyan Corporation and built his own brand of toothpaste.
Through his Lamoiyan Corporation, Pedro introduced Hapee Toothpaste to the
Filipino consumers. After a few years in the market, the company moved away
from using aluminum tubes and turned to the plastic ones too. Today, Lamoiyan
Corp. has their tubes, closures, and cartons made by other packaging companies.
Corporate Social Responsibility
Under the idealistic Dr. Pedro, corporate social responsibility (CSR) in Lamoiyan
Corporation is considered an intrinsic aspect of the companys DNA or reason for
existence. He said: Here at Lamoiyan Corporation, we are fueled by our
corporate philosophy which is to make a difference for the glory of God.
One of the admirable company policies of Lamoiyan is its hiring the hearingimpaired, who make up about 30 percent of their total workforce and who receive
equal opportunities. Proper attention and training are given them. He said: I call
them angels sent by the Lord. When I see them, Im happy because they were
provided by the Lord.
Pedro further elaborated on Lamoiyans experiences with the hearing-impaired:
We have very good experiences with the hearing-impaired as they are always
among the top performers. It is quite good to note that every year, around six or
seven of them are in the Top 10 best performers. It is indeed very rewarding and
fulfilling to provide jobs to people who may not be as fortunate as us. At the same
time, we are able to promote better relationships and a culture of compassion and

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

harmony inside the company. This, I think, is what makes us different from the
world and this is what we believe is making a difference for the glory of God.
About Lamoiyan Corporation
A distinctive homegrown consumer brand in Philippine business, Hapee
toothpaste and its founder Cecilio Kwok Pedro is this year celebrating the brands
25th anniversary, not just of flourishing business, but also of diverse civic
undertakings through their strong corporate social responsibility (CSR). Apart from
strengthening its market share locally, Hapee plans to continue expanding
overseas.
A Christian entrepreneur who passionately believes in private business with a
social conscience, Cecilio K. Pedro has supported the international nongovernmental organization (NGO) Operation Smile Philippines to care for children
afflicted with oral cleft. His factory is unique and noted for employing a lot of
hearing-impaired people.
Lamoiyan Corp. has also donated dental equipment and supplies to the newly
inaugurated Manila Cleft Care Center in Sta. Ana Hospital, Manila City.
Cecilio K. Pedro has also donated various public school-buildings to poor rural
regions of the Philippines through the Operation: Barrio Schools project of the
Federation of Filipino Chinese Chambers of Commerce & Industry, Inc. (FFCCCII),
of which he was in March elected one of this civic and business groups new vice
presidents.

Humble beginnings of a well-loved Philippine brand


Like Jollibee in fast food and Bench in fashion, Hapee has become a progressive
homegrown Filipino brand competing directly with top multinational brands. How
did this brand and product start 25 years ago by seizing an unexpected business
opportunity?
The prime mover behind Hapee toothpaste is entrepreneur Dr. Pedro, president
and chief executive officer of Lamoiyan Corporation. He started out in the 1970s
as an aluminum toothpaste tubes manufacturer to the multinational firms.

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

In 1985, the multinationals started changing their toothpaste packaging from


aluminum to plastic tubes, so Pedro was stuck with industrial equipment but no
customers, plus a stockpile of aluminum tubes. Faced with this crisis, he decided
to venture into toothpaste manufacturing with affordable Hapee and Kutitap
brands. Lamoiyan, the firm name, came from the name of Pedros beloved
grandmother, a gesture of filial love.
Like a David challenging the well-established Goliaths who have for generations
cornered the local market, Pedro changed the dental care landscape in the
country by introducing his own locally-made, world-class quality and affordable
toothpaste brand as a new alternative.
How did Dr. Cecilio K. Pedro come up with the brand name Hapee? He said:
Initially, the brand I chose was Smile because when you brush your teeth, you
are supposed to smile. When you frown, it becomes difficult to brush your teeth.
And when you smile, you look happy.
However, Pedro discovered that the brand Smile had already been registered
and owned by a multinational company. He nevertheless came up with another
brand name with the same positive mindset and cheerful disposition, which best
describes the feeling of people who smile.
I thought happy did not seem suitable as a brand, so I changed it from h-a-p-py to h-a-p-e-e, Pedro explained.
The choice of Hapee as brand name was deemed by marketing observers as a
stroke of genius due to its easy and positive brand recall in the Philippines and
eventually in several foreign markets as well.

Social mission: Offering affordable Filipino brand for basic dental care
The 25-year journey of Lamoiyan Corporation and Hapee toothpaste has been
historic and fulfilling. Dr. Pedro, his dedicated team of executives and employees
competed versus the multinationals with innovations, marketing initiatives and
consistent world-class quality. They envision Hapee to be at par with multinational
brands.

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Corporate Social Responsibility: Lamoiyan Corporation


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Why such optimism about the prospects for Hapee toothpaste? Pedro believes
that Filipino consumers are ready for a good-quality Filipino-made toothpaste as
an alternative and affordable brand.
National University (NU) College of Dentistry dean Dr. Joseph Dy Lim of Dr. Smile
Dental Center at Podium Mall told this writer that one of the social problems of
Philippine society is the large proportion of urban and rural poor who do not have
adequate dental hygiene practices and basic dental care services.
The Professional Regulation Commission (PRC) Board of Dentistry chairman Dr.
Steve Mark G. Gan of Gan Advanced Osseointegration Center (GAOC) also said
that much can still be done to improve accessibility of basic dental care
nationwide.
Pedro said: We introduced world-class quality toothpaste at affordable prices so
that many Filipinos can afford to brush their teeth regularly. We found out that
many Filipinos, especially in the provinces, could not brush their teeth because
toothpaste and toothbrush are expensive.
That dream pushed us initially and we were not afraid to face the multinational
companies because we believe there is this need to help Filipinos, especially
those belonging to the poorest of the poor.
For entrepreneur Pedro, his business has a mission to help improve the peoples
quality of life through affordable and good dental products, and his employees
share his sense of mission for the past 25 years.
Every year we survive the competition thrown at us and we celebrate each
happy moment. Every day that I wake up I consider it a happy moment, thanking
God for giving me another day. There are so many challenges and difficulties in
this world but it really depends on how you look at life. For me, we are so blessed
as a country and as a people. We are fortunate here in Lamoiyan Corporation and
we tell the world that yes, we can survive and we can compete with the best of
the best in the world, he said.

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

Corporate social responsibility as part of Lamoiyan & Hapee DNA


Under the idealistic Dr. Pedro, corporate social responsibility (CSR) in Lamoiyan
Corporation is considered an intrinsic aspect of the companys DNA or reason for
existence. He said: Here at Lamoiyan Corporation, we are fueled by our
corporate philosophy which is to make a difference for the glory of God.
One of the admirable company policies of Lamoiyan is its hiring the hearingimpaired, who make up about 30 percent of their total workforce and who receive
equal opportunities. Proper attention and training are given them. He said: I call
them angels sent by the Lord. When I see them, Im happy because they were
provided by the Lord.
Pedro further elaborated on Lamoiyans experiences with the hearing-impaired:
We have very good experiences with the hearing-impaired as they are always
among the top performers. It is quite good to note that every year, around six or
seven of them are in the Top 10 best performers. It is indeed very rewarding and
fulfilling to provide jobs to people who may not be as fortunate as us. At the same
time, we are able to promote better relationships and a culture of compassion and
harmony inside the company. This, I think, is what makes us different from the
world and this is what we believe is making a difference for the glory of God.

Going global, growing beyond the Philippines


This writer was part of the Philippine business delegation that visited Myanmar in
March, and I observed that one of the entrepreneurs most assiduous in looking
out for economic opportunities in that country was Hapees Dr. Pedro.
The past quarter century of Hapee success in the Philippines has witnessed the
growth of Lamoiyan Corporations manufacturing facilities in Paraaque, Hapee
toothpastes new flavors and the addition of new product lines in the household
and personal care segments through brands like Gumtect, Kutitap, Dazz and
Licealiz.

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

Pedro said that this year Hapee toothpaste is setting its sights higher to go global
with its commitment to world-class quality at affordable prices.
He said: We are very bullish about 2013; we believe this is the year when we will
grow faster than before. This is the year where we will probably also explore
exports to other countries, particularly Southeast Asia, by the grace of God. We
will again be facing the multinational companies, so hopefully we will gain some
footing (there) in the very near future.

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

Vision, Mission, and Our Values


Lamoiyan Corporation is a 100% Filipino-owned Company with 25 years of
manufacturing
excellence.
Here at Lamoiyan Corporation, we are fueled by our corporate philosophy which is
"Making the difference for the glory of God."
OUR VISION
We aspire to have a Lamoiyan product in every home.
OUR MISSION
We exist to improve the quality of life by bringing essential products within the
reach of the common people.
OUR CORE VALUES
We achieve our mission and vision by living according to our corporate values.

SOCIAL RESPONSIBILITY. We make our presence a blessing to society.


PURSUIT OF EXCELLENCE. We do things better than before and better than
competitors.
INTEGRITY. We do things right.
RESPECT FOR THE INDIVIDUAL. We value individuality by treating each other
with fairness.
lNNOVATE. We do our best to improve and introduce new products.
TEAMWORK. We reach collectively goals that we cannot reach separately.

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

Work Culture (IT CAN BE)


In Lamoiyan Corporation, we create a work culture that encourages our
employees to embrace an IT-CAN-BE attitude.

INTEGRITY. We are committed to doing things right in all our endeavors.


TRANSPARENCY. We practice openness and honesty in all our business
transactions.
COMMUNICATION. We provide channels for mutual feedback throughout the
organization.
APPRECIATION. We recognize and reward our employees dedication and service
to the company.
NEVER GIVE UP. We courageously face our competitors until we have achieved
our goals.
BE WILLING TO LISTEN. We strive to learn more and grow as a company.
BE WILLING TO CHANGE. We embrace changes that will transform us for the
better.
BE A LEADER. We develop and train ourselves to become catalysts of change in
our society.

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Corporate Social Responsibility: Lamoiyan Corporation


Making the difference for the glory of God

Conclusion and Recommendation

There are no restrictions in Hapee toothpastes operations in the Philippines and


theres no difficulty on the companys part in dealing with Philippine politics.
This factor directly affects the business because if there is inflation then the
commodity will surely portray a direct effect on its price and probably, availability,
also affecting the consumers purchasing power and the value of their money.
These factors directly affect the consumers preferences and behavior regarding
the product as influenced by their social classes, religion, traditions, beliefs and
practices. These are the things needed to be carefully emphasized if not limit, in
order to be ethical in the business activities like advertising, promotions and
marketing. A factor that always matter and progress specially now.
In this fast growing era wherein almost everyone is internet and computerliterate. This should be taken into consideration in the Philippine setting wherein
everyone in your market is advanced and updated with the latest.
If its marketing strategy will be studied carefully. The ongoing humanitarian
activities of Lamoiyan Corporation will take a bigger leap in touching lives of the
physically challenged individuals.

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Making the difference for the glory of God

Appendix
Awards and Recognition
Mosts Outstanding Toothpaste Manufacturer

Consumers Union of the Philippines


(1990, 1993, 1995, 1996, 1997, 2001, 2002)
AGORA Awards for Marketing Company of the Year
Philippine Marketing Association (1992)
The Big Bird Award:
Asia Licensee of the Year Award
Sesame Street (2007)
TOYM Award on Business Leadership
JCI Philippines (1991)
Consumers Excellence Award
Who's who in the Philippines (1993)
Awards for Excellence
The Manila Times
Dr. Jose P. Rizal (1993)

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Presidential Citation Award


Taking Dentistry to the Next Level
Philippine Dental Association (2007)
Communication Excellence in Organization (CEO Excel Awards)
International Association of Business Communicators (2009)
MVP Bossing Award
PLDT SME Nation
PLDT (2011)
Most Outstanding Supplier
SM Supermarket (2007)
Most Outstanding Program for Equal Employment
Opportunities for the Disabled
PMAP (1993)
Apolinario Mabini Rehabilitation Award
Employer of the Year
Republic of the Philippines (1993)
AGORA Award for Advocacy

Philippine Marketing Association (2012)


Toothpaste of the Olympics
Seoul, South Korea (1988)

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Making the difference for the glory of God

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