Chapter VI

SOCIO-ECONOMIC

ASPECT

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Introduction

This study seeks to determine the contribution of the proposed business to the

economy in terms of paying taxes to the government and to identify the effect of the

business project to the environment as well as to the investors. This aims also to specify

other socially desirable contribution.

To come up a business that is worth establishing your assets should not be just

for generating profits but also for socio-economic purpose and desirability as well.

Studying this portion will serve as a way in determining the credibility of the business to

its contribution to different stakeholders.

Government Benefits

Having a facility in a city will benefit both the local residents and factory in

different ways. If the factory was built near a community, then it would bring more

investments. At the same time, it can boost local economic growth and it can offer

people with more job opportunities and raise their living standard at the same time.

Taxes paid by the business in the government will generate additional revenue

for the local government and national government which they will use in their specific

activities.

Employee Benefits

1. Social Security System (SSS) – The Social Security System was created by the

Philippine government. All employees hired by private companies are required to

become an SSS member. This system aims to protect its members for when they

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 are unable to work such as sickness, disability, maternity, old age and death, or

other such contingencies not stated but will result in loss of income or results to a

financial burden. When an employee gets sick, SSS will reimburse them with

their equivalent daily salary multiplied by the number of days absent. When a

female member gives birth, SSS gives the employees 2 months worth of salary

to compensate for the time she will be off from work due to childbirth. The SSS

also serves as a pension plan for its members as SSS returns members’ monthly

contributions after they retire from work. The amount of SSS monthly contribution

is determined from the actual monthly salary an employee receives. 30% of total

monthly contribution is deduced from an employee’s salary, while 70% is

subsidized by the employer.

2. Philippine Health Insurance (PhilHealth) – The Philippine Health Insurance

Corporation is the medical insurance company of the Philippines. All employees

are required to be contributors of this service. Members are given health and

hospitalization subsidies should they or a dependent be hospitalized. Monthly

contributions are based on actual employee monthly salaries and the amount of

employee contribution is matched equally by the employer.

3. Home Development Mutual Fund (Pag-ibig Fund) – Employers are also

required to contribute, on behalf of their employees, to the Home Development

Mutual Fund. This company provides the lowest interest housing and land

acquisition loans to its members that are payable for up to 30 years. This gives

every Filipino worker an opportunity to own a house in easy-payment plans that

can directly be deducted from their monthly wages.

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4. 13th monthly pay – based on presidential decree no. 851, all Filipino employees

are entitled to a year-end bonus equivalent to one (1) monthly salary regardless

of the nature of their employment. The 13th month pay is to be given no later than

December 24 of every year a worker is employed.

5. Meal and rest Periods – According to Article 83 of the Labor Code of the

Philippines, employees are entitled to one (1) hour break for meals on an eight-

hour work day.

6. Service Incentive Leave – an employee who has worked for at least one (1)

year in the company is entitled to five (5) days leave of absence, with pay, every

year.

7. Overtime Pay and Holiday – an employee who renders over eight (8) hours of

service per day shall be given an overtime pay which is equivalent to his regular

hourly wage plus at least twenty-five percent (25%) thereof. If an employee is

asked to work on their scheduled rest day or on a non-working holiday, the

employee shall be paid an additional compensation of at least thirty percent

(30%) of his regular wage.

8. Night Shift Differential – every employee shall be paid a night shift different of

not less than ten percent (10%) of his regular wage for each hour of work

performed between ten o’clock in the evening and six o’clock in the morning.

9. Orientation – the company will assist newly hired employee in adjusting to their

new work environment. These include the employee benefit information,

personnel policies, daily routine, company organization and operations, safety

measures and regulations and facility tour. Other following activities are also

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 included like a review of the job description of them and discussion of their

benefits.

10. Training – In managing a group of employees, the company must manage them

well to help them do better in their career, the added creativity and productivity

they will get will help in the company’s success.

Investors

The investors of Hygieia Manufacturing Company are the seven partners that

established the company. All of the profits of the company will be divided pro rata to the

partners and aside from that, they also received compensation for their service

rendered as a company employee.

Customers

The product is strategically different from other liquid hand soap since not only it

is not synthetic. It also contains properties from talahib that could help those with

rheumatism, cuts, bruises and chaffed skin to be able to wash their hands without the

sting of other liquid hand soap.

Suppliers

The growth of Hygieia Manufacturing Company would increase its material

requirements that are sourced out from established suppliers. It shows that the success

of the company can also affect its suppliers.

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Community

 Annual tree planting to be conducted in mountain and forest regions that was

heavily deforested by illegal logging and such.

 Annual visit to children’s shelter wherein the employees will provide food and

play with people who are less fortunate. Even though the action is small, the

company hopes that it will bring smile on the children’s faces.

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