1. Why is corruption an like the Philippines?

unwanted

activity

in

country

Elections are like a sponge, it sucks up all the money, most of it from corruption. Among the very first lessons in business is that "THERE IS NO SUCH THING AS A FREE LUNCH". Somebody is bound to pay, Always. Especially when it comes to corruption. So how does corruption get to us? Let's count the ways. 1. Loss of Government Revenue The first victim of corruption is government revenue. In a developing economy like the Philippines, this can be extremely debilitating. The continuing budgetary deficit of the government results into cutbacks in expenditures for much needed social services. 2. Education The gap of classrooms in public elementary schools is estimated to be about 40,000 this coming school year. The case is even more pathetic, as the lack of qualified teachers further confound the problems. While student population keeps on growing year after year, these gaps in classroom, books and teachers is widening. What do these lead to? Poor quality education of the future citizens of the Republic further undermining their prospects of contributing to nation building. THAT IS A VERY HIGH PRICE TO PAY FOR CORRUPTION. 3. Infrastructure With tightening sources of funding for infrastructure development, government has to resort to partnership with the private sector. A public good like roads, bridges, ports and airports will necessarily be charging user fees to be able to earn profit and recover capital. Nothing wrong with because he who benefits should share the cost. But a lot of these projects require performance undertaking from the government to be financeable to lenders. This results into the contingent liabilities of the national government burgeoning the levels no one wants to even find out. Remember the NAIA III Terminal? an edifice that can't be operated until now. The MACAPAGAL BOULEVARD which can easily enter the Guinness Book as the world's most expensive

boulevard? THE SMOKEY MOUNTAIN PROJECT where almost a billion of OFW's money was invested and has not been repaid until now? Last count in 2003, it stood to over P500 Billion. Thats about over 30,000 pesos per household. THAT IS NO LOOSE CHANGE TO PAY FOR CORRUPTION. 4. Environment Because government resources are constrained, environment protection programs are neglected. We passed the Clean Air Act and yet we cannot put our acts together in ensuring clean air. The law is toothless because the government has no money to invest in monitoring equipment. Even garbage it cannot collect. Remember the PAYATAS TRAGEDY? Meanwhile, to be able to generate power and run our heavy industries, less desirable Plants are allowed to be established. ASK THE PEOPLE from CALACA, BATANGAS, PAGBILAO QUEZON, and SUAL PANGASINAN, all sites of COAL FIRED POWER PLANTS that contribute to withdrawals from our deposit of breathable air, potable water and livable communities. The resource balance of our children's future is rapidly depleting, A COST OF CORRUPTION THAT WE MAY NEVER BE ABLE TO ACCOUNT FOR. 5. Government Debt and Poverty Again due to budget deficit, government keeps on accumulating debt, which at end of 2003 stood at over 2.4 trillion pesos. Thats over 30,000 pesos for every Filipino man, woman and child. At an average interest cost of 10% per year for both short and long term loans, that is equivalent to a staggering P240 Billion in interest payment alone every year. Thats the amount of money taken away form the mouth of the poor, who account to more than half of the Philippine population. TURNING OUR BACKS FROM OUR MARGINALIZED CITIZEN IS A STEEP PRICE TO PAY FOR CORRUPTION. 6. Political Patronage Corruption doesnt prosper without protection. Those who practice realize that to keep themselves in their lucrative posts, somebody politically powerful should be able to stop any attempts to cut him from illicit money flow. In return, he lavishes his patrons with gifts. Gifts in no small terms, which further corrupt him and his patron. His patron, in order to accumulate more gifts

has to increase his influence. To increase his influence, he needs to milk his corrupt benefactors. And it goes on deeper and deeper. Elections are like a sponge, it sucks up all the money, most of it from corruption. Election in the Philippines are nothing but patronage politics. How else does one explain the millions spent in a campaign in exchange for a few measly thousand pesos in the salary of a public servant? There is only one explanation I have, THERE IS NO SUCH THING AS A FREE LUNCH, SOMEONE IS BOUND TO PAY FOR IT. How do campaign contributors expect to recover their investments? In the form of political protection to allow them to continue with their illegal activities. In the form of rigged government contracts. In the form of economic rents taxpayers eventually pay for. 7. Crime Corruption corrupts and the deeper one gets into the mire, the more desperate one becomes in defending the well from where he draws his booty. He will be prepared to use trick, treat and threats to keep his business. And since corruption, like stale food attract flies and worms, criminal syndicates are not very far from them. So do their violent means of doing business. The problem with the proliferation of illegal drugs can be linked solidly to corruption. How else do drug lords and pushers do their business under the noses of law enforcers and local government officials except that they pay-off this public servants or work in cahoots with them. Remember Mayor Mitra of Quezon Province? He was caught red handed transporting a ton of shabu using the town ambulance. This social ill has led to the commission of many a heinous crime is prospering and multiplying in every Barangay of this country because of corruption. RAPES, MURDERS, and KIDNAPPING FOR RANSOM ARE TOO MUCH TO PAY FOR CORRUPTION.

8. High Cost of Doing Business It is sometimes beyond our imagination for a businessman to spend three full days in the crowded city hall of a highly urbanized city trying to get a business license. And he was just going to buy and sell eggs. How much more if he wants to operate a industrial project. If there are 20 government offices he needs to go through for various permits, licenses, certificates, approvals and signatures, he needs an entire army of fixers to handle them. Precious hours are lost among senior officers of the firm who have to wine and dine to the whims and caprices of government officials. Remember the stinking IMPSA and PIATCO deals? Those companies whose code of conduct does not permit them to provide bribes and pseudo-bribes end up spending tons of money just to end up deciding to leave the country in exasperation. On the other hand, many of those who stay to do business have gotten used to government people scratching their heads as they show up in their offices asking for all sorts of gifts for every known relatives of a mayor, congressman, senator, department secretary, bureau director or chief of police. What does the businessman do? He just passes on to his customers this extra cost incurred in doing business in the Philippines. Remember the Power Purchase Adjustment (PPA)? This is one bloody scheme that sucks us dry!!! 9. Loss of Investor Confidence As Judge W.H. Heath said, if we cannot manage our money and assets, how can we be expected to manage other peoples money? Investors demand that there be a reasonable level of assurance that they will get their investment back. That their investment will in fact make money. And that it will not be taken over by political forces. It becomes extremely challenging to attract investors to do business in a country where a fugitive from the FBI and convicted pedophile gets elected in Congress. Or where tax evasion case with very clear outcomes is lost to technicalities.

Multilateral donors find it hard to give us loans and technical assistance grants when they know that a large portion of their money will be used to line up the stomachs of politicians. They will have to invest in additional personnel, incur additional costs just to watch us spend their money. Every time we submit receipts they spend thrice the time just verifying whether they are genuine or not. This is the only country in the world whose AUTHENTIC DOCUMENTS (as declared and sealed from Malacanang) has one year expiry date. Believe me it can be tiring to do these things. When many in the International community considers your country as corrupt, it does not feel good. It does not buy you goodwill. Jeers and sneers YES. But respect? NO!!! Just look at how we PINOYS are treated in foreign airports. Who would forget Senate President DRILON being forced to remove his shoes in a US airport despite showing his Diplomatic Passport. I myself had a very disgusting experience in SCHIPOL airport in the Netherlands (CARLO BUTALID & GRACE CABACTULAN MAY NOT AGREE WITH ME) and at Charles de Gaulle in France. But can we blame them? Of course not. There's simply too much Pinoys who are going out of the country with spurious documents, escorted and facilitated by no less than BID personnel from NAIA. THAT IS WHAT WIDESPREAD CORRUPTION IS COSTING US. We have only just began counting the cost of corruption. It cost us the prostitution of our political institutions. We have now hoodlums in uniforms and hoodlums in robes. It costs us many lives and honor lost to crime. It costs us our self respect. And it costs us lost opportunities for a better future of our children.

2. What is be aware of?

responsibilities of

employees

must

entrepreneurs

Hiring employees requires more work from you as the employer than simply placing a job ad, hiring the right person and training them on their role. You need to be aware of the Labour Law requirements in terms of the various funds and other stipulated registrations. The law does not differentiate between different size organizations, and therefore it is imperative that SMEs fully understand the implications of all aspects of Labour legislation.

Salary deductions Employers may only deduct money from a workers salary if the worker agrees or if they are required to do so. The provisions for deductions do not apply to workers who work less than 24 hours a month. Employers may not deduct money from a workers pay unless
o o

the worker agrees in writing to the deduction of a debt, or the deduction is made in terms of a collective agreement, law (e.g. UIF contributions), court order or arbitration award.

Deductions for damage or loss caused by the worker may only be made if
o

the employer has followed a fair procedure and given the worker a chance to show why the deduction should not be made, the worker agrees in writing, and the total deduction is not more than 25% of the workers net pay.

o o

Employers must pay deductions and employer contributions to benefit funds (pension, provident, retirement, medical aid, etc.) to the fund within 7 days. What is UIF UIF stands for Unemployment Insurance Fund and you need to register for it, whether or not you employ staff. It applies to all employers and workers (except those working less than 24 hours a month),learners, public servants, foreigners working on contract, workers who get a monthly State (old age) pension and workers who only earn commission. The fund makes short-term provision for individuals who become unemployed, or are unable to work because of illness, maternity or adoption leave. It also provides financial relief to the dependants of deceased contributors. As an employer it is your responsibility to register with UIF and make the monthly payments. These include a 1% payment from you (based on your employees individual salaries). Each individual employee needs to make a further 1% payment, but it is your duty to deduct this amount from their salary and pay it to UIF, together with your contribution, on a monthly basis to SARS if you are registered for PAYE or directly to the UIF if you are not. You can register your business by completing a UF8 form and each new employee needs to be registered using a UI-19 form. These can be obtained from the Department of Labour. What is COIDA COIDA stands for the Compensation for Occupational Injuries and Diseases Act and being registered for it works in your favour. It is based on a no-fault system which means employees are entitled to compensation regardless of who caused the injury or illness. But it also exempts you from liability for injuries or diseases contracted by your employees in the course of their work. In other words, employees cant claim damages from you in those events. Instead, COIDA allows them to claim compensation for total or permanent disablement and death as well as reasonable medical expenses arising out of injury for two years.

You are required to pay the employee 75% of their normal salary for three months during the time that they are injured or ill but the fund pays you back this entire amount and covers all the relevant medical expenses. If you are not registered, however, you are not indemnified. Getting registered involves submitting a WAs2 form, together with a copy of the registration certificate from the Registrar of Companies, or your ID document, if you are a sole proprietor. Every year before 31 March you will need to submit a statement of earnings paid to your employees. You will also be required to pay an assessment tariff, which is fixed according to your class of industry. If an employee gets injured during the course of their work or falls ill as a result of their work, they can claim from the Workers Compensation fund. Dependants of employees can claim if a family member dies from an accident or disease. Employees wishing to claim will need to be furnished with one of the WG30, WAs2 or WAc1(E) forms, which they need to submit to the Compensation Commissioner for compensation. How does Maternity Leave Work? The law protects women against unfair discrimination arising from any form of prejudice. An employer may not ask a candidate who applies for a job if she is pregnant, nor if she is planning to start a family at any stage. If you do, she could argue that you are discriminating against her. Equally, she is in no way obliged to disclose her pregnancy when applying for a position. The bottom line is that it has nothing to do with the candidates ability to meet the requirements of the position. And nothing stops her from resigning once she has returned to work after taking maternity leave. She has rights regardless. The Basic Conditions of Employment Act stipulates that an employee is entitled to four months unpaid maternity leave. All that is required is a notification by the employee that she is pregnant, accompanied by a doctors certificate. This leave should

start four weeks before the expected date of birth, or when a doctor or midwife certifies that leave is necessary for the health of the mother or child. An employee must notify her employer in writing of the date on which she wants to start maternity leave. She may not work for six weeks after delivery, unless she is declared fit to do so. An employee who has a miscarriage during the last three months of pregnancy or who bears a stillborn child is also entitled to six weeks maternity leave, whether or not she has started maternity leave at the time. Companies in South Africa are not obliged by law to provide paid maternity leave. A female employee who works for a company that does not offer maternity benefits can claim from the Maternity Benefit Fund if she has been contributing to the Unemployment Insurance Fund (UIF). An employer who pays maternity leave does have some rights, however. Paid maternity leave is a benefit, and the company is within its rights to conclude a contract with the employee stating that if she does not return to work for at least one year following her confinement, she will be obliged to return the salary she earned during her maternity leave. South Africa has no paternity leave provisions in place, but workers who have been employed at a company for longer than four months may take three days paid family responsibility leave during each year of employment. Family Responsibility Leave Workers may take up to three days of paid leave a year to attend to certain family responsibilities. The provisions for family responsibility leave do not apply to workers who work less than:
o o o

Four months for their employer Four days a week for one employer 24 hours a month.

Family responsibility leave expires at the end of the annual cycle. Employees may take family responsibility leave:

o o o

when their child is born when their child is sick in the event of the death of a:
o o o o o o

spouse or life partner parent or adoptive parent grandparent child or adopted child grandchild sibling

Employers may require reasonable proof of the birth, illness or death for which a worker requests leave. Overtime The amount of overtime a worker may work is limited. Workers must get 1,5 times their normal hourly pay or paid time off in exchange for overtime. Alternatively, a worker may agree to receive paid time off or a combination of pay and time off. The section of the Basic Conditions of Employment Act that regulate working hours does not apply to:
o o o o o

workers in senior management sales staff who travel and regulate their own working hours workers who work less than 24 hours in a month workers who earn more than R115 572 per year workers engaged certain provisions. in emergency work are excluded from

Workers may not work:

o o

overtime, unless by agreement more than 10 hours overtime a week (collective agreement may increase this to 15 hours per week for up to two months a year) more than 12 hours on any day.

Employee Pay Slips Each time workers are paid, employers must give them a pay slip containing certain details. Employers must give workers the following information in writing when they are paid:
o o o o o o o

Employers name and address Workers name and occupation Period for which payment is made Total salary or wages Any deductions The actual amount paid If relevant to the calculation of pay:
o o o

Employees pay and overtime rates Number of ordinary and overtime hours worked Number holiday of hours worked on a Sunday or public

The total number of ordinary and overtime hours worked in the period of averaging, if a collective agreement to average working time has been concluded Public Holidays Workers must get paid time off for public holidays, but if they agree to work, they must be paid double their normal daily wage. The provisions for public holidays do not apply to o o o

senior management sales staff who travel workers who work less than 24 hours a month

Workers must get paid time off for any public holiday that falls on a working day. Working on a public holiday is by agreement only. A public holiday can be exchanged with another day by agreement. A public holiday cannot be counted as annual leave.

Employee Sick Leave Workers may take the number of days they would normally work in a six-week period for sick leave on full pay in a three-year period. Employers may insist on proof of illness before paying a worker for sick leave. The provisions for sick leave do not apply to o o

workers who work less than 24 hours a month workers who receive injury or disease compensation for an occupational

leave over and above that provided for by the Act.

During the first 6 months of employment, workers are only entitled to one day of paid sick leave for every 26 days worked. An employer may require a medical certificate before paying workers who are absent for more than two consecutive days, or who are often absent (more than twice in an eight-week period). Staff Working Hours Basic Conditions of Employment laws set maximum working hours and minimum rest and break periods for workers. The section of the Act that regulates working hours does not apply to:
o o o o o

workers in senior management sales staff who travel and regulate their own working hours workers who work less than 24 hours in a month workers who earn more than R115 572 per year workers engaged certain provisions. in emergency work are excluded from

The maximum ordinary hours per day for someone who works one to five days per week is nine, the maximum amount of hours per week is 45. For those who work more than five day per week should work a maximum of eight hours per day and 45 hours per week. Workers may agree, in writing, to work up to 12 hours a day without getting overtime pay. However, these workers may not work more than

o o o

45 ordinary hours a week 10 hours overtime a week five days a week

Workers must have a meal break of 60 minutes after five hours work. A written agreement may:
o o

reduce meal intervals to 30 minutes eliminate meal intervals for workers who work less than 6 hours a day

Workers must have a rest period of 12 hours each day; and 36 consecutive hours each week (must include Sunday, unless otherwise agreed). Workers working between 18h00 and 06h00 must:
o o o

get an allowance, or work reduced hours, and have transport available to them.

Skills Development Levies Employers must pay 1% of their workers pay to the skills development levy. The money goes to Sector Education and Training Authorities (SETAs) and the Skills Development Fund to pay for training. The Skills Development Levies Act applies to all employers except
o o o

the public service; religious or charity organizations; public entities that get more than 80% of their money from Parliament; and employers:
o

whose total pay to all its workers is less than R 250 000 per year; and who do not have to register according to the Income Tax Act

Employers who are required to pay the skills development levy must register with the South African Revenue Services (SARS). Employers must pay 1% of all their workers pay to the skills development levy every month. Employers must pay the levy to the South African Revenue Services (SARS) by the seventh day of each month. Employers who do not pay will have to pay interest on the money they owe and may also have to pay a penalty. What is PAYE All employers are required to deduct Employees Tax from their salaries. The amounts deducted must be paid by the employer to SARS on a monthly basis. The process of deducting or withholding tax from remuneration as it is earned by an employee is referred to as Pay-As-You-Earn (PAYE). Employers are required to: 1. Deduct the remuneration. correct amount of tax from employees

2. Pay this amount to SARS monthly, ensuring SARS receives a Monthly Employer Declaration (EMP201). 3. Reconcile these deductions and payments with the completion of the interim and annual Employer Reconciliation Declarations. During the reconciliation periods, employers are required to submit an Employer Reconciliation Declaration (EMP501) confirming or correcting the PAYE, SDL and UIF declarations per EMP201s submitted, the payments made and the tax values of the Employee Tax Certificates [IRP5/IT3(a)]. 4. Issue tax certificates to employees 5. An employer must issue an employee with an IRP5/IT3(a) where remuneration is paid or has become payable and from which Employees Tax was deducted. The IRP5/IT3(a) discloses the total employment remuneration earned for the year of assessment and the total deductions. IRP5/IT3(a) certificates must be issued to employees during the annual Employers tax season.

Seek professional advice There is a lot to keep track of once you become and employer. It is advisable to call in an expert. You can use the services of a suitable experienced and qualified HR consultant who can help to set up the principles and processes of the above, and then work on an ad hoc basis only as and when needed reducing the cost of a full-time HR manager. 3. Do you think entrepreneurship is not for everyone? Why or Why not.. I think anyone that has their own business can be "entrepreneurial". If it is on the side, or for fun or extra income or the like, it is again entrepreneurial in nature. That is not being an entrepreneur though. Until it is your sole source of income, by choice, for an extended period of time - it is just an entrepreneurial hobby or investment. I do think someone that is truly self employed though is an entrepreneur. Steve Blank calls them small business entrepreneurs. Again though, that's assuming it is how they derive their primary income. If it's owning a small flower shop they work in every day, then great, they are a small business entrepreneur. 4. What tools are used in developing strategy ? Strategic planning is an important activity for any business. There are a variety of analytical tools available to planners that can be readily implemented by both novices and experts alike. These tools can help the planning team focus on those activities most important to the organization and ensure that the plan is designed to meet specific business needs. SWOT

The SWOT analysis is a commonly used analytical tool used during the strategic planning process. It is a simple tool that is basically a brainstorming process. SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal to the organization. Opportunities and threats are external. During the strategic planning process the team leader will lead the planning group through a brainstorming exercise covering each of these elements of the SWOT. Once done, the lists will be prioritized and the items generated will serve as an important input to the development of goals, objectives, strategies and tactics. Scenario Planning Scenario planning may sound complicated, but it is actually a very simple process that companies use during strategic planning to help them consider various impacts on their business, both positive and negative. By considering things that might happen, the planning team is able to anticipate various impacts and plan for those impacts proactively. Five Forces Analysis Business expert and Harvard Business School professor Michael Porter developed five forces analysis in the late 1970s as a way for strategic planners to consider the various impacts on their organization from both internal and external perspectives. During five forces analysis the planning team considers impacts from five sources: bargaining power of customers, bargaining power of suppliers, threat of new entrants, threat of substitute products and rivalry among competitors.

Submitted By: Modina, John Michael D. BSHRM A-22(am) 11-0043 Submitted To: Prof. Nicholas Cage Purog