Doing Good in Business Matters: CSR in the Philippines

A Case Study about PNOC Energy

Development Corporation
Group 2
Jaime Recto B. Borja
Jhun Nester N. Doyogan
Lukas James F. Emocling
Daniel Rho-One L. Huab
Ralph Benetton L. Que Chua
Randolph Keanu T. Sevilleja
Franchesca Angelica F. Zaguirre
THIS IS YOUR
PRESENTATIO
N TITLE
I. SYNTHESIS
Philippine National Oil Company Energy Development Corporation (PNOC EDC) provides viable
solutions to increase the country’s capability to produce indigenous energy while reducing its
dependence on imported fuel.
It explored, delineated developed, used geothermal and wind energy to reduce the country’s
dependence on fossil energy and ensure a cleaner and “greener” energy was harnessed. PNOC
EDC considers itself a part of the community areas where it operated. It participated in the
development of those communities. The company ensured a balance between its operations
and the local interests with strong programs on environmental protection.
I. SYNTHESIS
At dawn of March 26,2004, a band of about 60 armed extremists seized the company’s P100-
million Rig 8 in Barrio Tongonan in Kananga, Leyte, demanding ransom payment. Being
government owned, PNOC EDC ignored the extremists’ demand. When the responding police
neared the seized job site, the extremists opened fire, killing some regular workers who were
coming to work.
I. SYNTHESIS
Paul Aquino, the president of PNOC EDC flew to Leyte to sympathize with the bereaved families of the
dead. As he was looking on the mountain ridges, he has noticed onlookers who that these onlookers are
curious but was not feeling any sympathy for the bereaved families.
An informal survey showed that the residents of the host communities did not relate to PNOC EDC or to its
employee. For them, PNOC EDC only exploited their land area without giving something in return for the local
folks. Aquino considered the situation unhealthy. The host communities and company should have a good
relationship. Armed elements could easily infiltrate and seize rigs if local folks show no concern about the
company. Such events could cripple the operations of PNOC EDC.
I. SYNTHESIS
Aquino was convinced to win the hearts of and minds of the community residents, but
considered that whatever program may be provided it should not look like it is a public
relations stunt. Aquino came to the conclusion that he should start with winning the hearts
and minds of the youth in the host communities.
The case study is taken from the standpoint of the Paul Aquino, the
president of PNOC EDC. As the president of the company where the tragic
accident occurred, PNOC EDC’s president should be held responsible and
accountable for the situation and prevent the unhealthy relationship that
may happen between the host community and company to avoid conflict on
the area where innocent people may be harmed.
Residents of the host communities did not relate to PNOC EDC or to its
employees. For the residents, PNOC EDC just exploited the area without giving
back anything. As the president of PNOC EDC, what are the possible actions to be
taken so that the host communities and the company would have a peaceful
relationship?
How should Aquino approach the problem?
What actions are necessary to avoid further conflict between the host
community, the company and the innocent people that may suffer if conflict
occurs?
The Triple Bottom
Line Framework
The triple bottom line theory
expands the traditional
accounting framework to
include two other performance
areas: the social and
environmental impacts of their
company. These three bottom
lines are often referred to as the
three P’s: people, planet, and
profit.
PEOPLE
• Employees
• Labor
• Community
• PNOC EDC Energy Camps
“People” considers employees, the labor
involved in a corporation’s work, and the wider
community where a corporation does
business. A triple bottom line company pays
fair wages and takes steps to ensure humane
working conditions at supplier factories. Triple
bottom line companies make an effort to “give
back” to the community.
PLANET
• Ecological footprint
• Reducing waste
• Managing natural
resources more
efficiently
The “planet” piece of the triple bottom line
indicates that an organization tries to reduce
its ecological footprint as much as possible.
These efforts can include reducing waste,
investing in renewable energy, managing
natural resources more efficiently, and
improving logistics.
PROFIT
• Financial stability
• Increased revenues
• Increased yield

The financial bottom line is the one that

all companies share, whether they're
using the triple bottom line or not. When
looking at profit from a triple bottom line
standpoint, the idea is that profits will
help empower and sustain the community
as a whole, and not just flow to the CEO
and shareholders.
ACA 1: Hire workers from the community
Hire people that lives inside the community for people to know the
good things happening inside the company

PROS: The community will have fondness towards the company

CONS: Just one little issue then the community will just focus on
the bad
 ACA 2: Host events for the community
The company will host events like fundraising for the benefit of the
community

PROS: Provide budget from the events for the community’s needs like
rebuilding schools and offices

CONS: Accidents may happen in the events

ACA 2: Host events for the community
Both the community and the company could start up an event through
fundraising to be a helping hand for each other. Even though accidents
may happen in the events, the community can help the company since
they work hand in hand together.
A good government serves his people well. And to able to achieve that
certain measures must be accomplished. The establishment of these
energy camps (youth camps) served its purpose by returning favorable
concerns to the communities who have given so much to the
government. A show of concern through programs adopted by the
government but not just more public relations stunt.
The creation of the youth camps enhanced the company`s image in the
eyes of the local folk when new hope were given to their children. Old
folks believed that their children/ the youth are the ones who will elevate
their status out of poverty. On the other hand, the youth given the proper
motivation and experience will be an asset to its society and country. This
just shows that people and its government can work hand in hand in the
light of progress and success of one`s country.