Sunday, January 6, 2013

BUSINESS ETHICS FOR NATION BUILDING AND STRATEGIC MANAGEMENT

 BUSINESS ETHICS FOR NATION BUILDING AND STRATEGIC MANAGEMENT

Land Bank of the Philippines Code of Conduct Month

7 January 2013

On May 10,  2010, in what many believe was  a minor miracle, the Filipino people elected a reluctant candidate. President Benigno S. Aquino III became the President of the Philippines. Some of us think the miracle was the precise timing of the death of his mother, the  saintly Cory Aquino; the sudden, overwhelming realization of our people that there have been government officials who served with integrity; and the withdrawal of Mar Roxas to make way for Noynoy Aquino.

The miracle continues in President Aquino himself. He has changed the course of history and continues to do so. In his inaugural speech on July 1, 2010, he outlined his social contract with all of us.

He made a ringing promise – wala nang wang-wang – that resonated with each and every one of us. It was the most applauded statement in his entire speech, because it captured in those four words, the root of many of the problems that beset our country. Those four simple Pilipino words  spoke volumes. Those four Pilipino words encapsulated the principles he would live by as our President. Those four Pilipino words can guide us in our code of conduct

Wang-wang depicted power; position; prestige. It also depicted arrogance; a “me-first” attitude; “I’m more important than all of you”; “san tabi muna kayo diyan”. It was a symbol of a society that had forgotten the principles of democracy; of equality; of service; of those having less in life being given more attention. It was a symbol of the abuse of power and pelf that has become a social cancer, gnawing at the heart and soul of the country.
Everything the President has done since has flowed from  that simple promise.

The antithesis of wang-wang is good governance, and he has made that his single most important cause.  He declared war against corruption, a social evil that has become so ingrained in our society that very few people thought he would succeed. But these past two and a half years have seen a sea-change in the attitudes of our people.

Two dramatic events have demonstrated how corruption has become such a mind-setamong our government officials that they no longer realized they had destroyed their own lives and possibly those of their families. The investigation into the so-called “pabaon” of tens and hundreds of millions of pesos to top officials of the military showed, in the clearest of terms, how the government coffers could be raided with impunity. The image presented by a witness of huge vaults bulging with cash, to be dispensed  by a simple controller, was mind-boggling. It  symbolized the worst form of pillage, of arrogance, of evil. It resulted in one man committing suicide, possibly to atone for his sins, as the Japanese used to do, and possibly to spare his family from the pain and the shame of being investigated as well. 

The impeachment of Chief Justice Corona showed another insidious practice in the country – the total disregard for rules and regulations by those in power. As in the case of Al Capone, the Philippine government used the tools of accounting to show that a person’s net worth was not supported by his or her income tax returns, or in the case of Corona, by his SALN. Because of these cases, people  could no longer complain  that the government only runs after the “small fish”. The Chief Justice is after all  Number three in the government, right after the President and Vice President.

Perhaps less dramatic has been the continuing saga of former President Gloria Macapagal Arroyo, but it is instructive nonetheless that even the highest official of the land can be investigated and arrested.

These cases, together with the unrelenting drive of Commissioner Kim Henares against tax evaders, have shown that yes, it can be done. It needs political will and a strong moral compass that will guide one in everything we do.

The President’s relentless campaign against corruption and for good governance has resulted in  an unprecedented economic boom that has our stock exchange soaring, various industries like the BPO, real estate, and tourism sizzling; and indications of a brain gain – overseas Filipinos coming home.

But many problems remain. The President has called for “inclusive growth” to ensure that the benefits of economic development will improve the lives of those who need it most – the families at the base and at the very bottom of the pyramid. He has also made a clarion call for each and every one of us to help him achieve these goals. How do we respond?

First we have to start with ourselves. We must live the enduring values of honesty,diligence, and excellence in our own personal lives. If we don’t, we cannot do so in our professional lives. Do we tell the truth? Do we pay our taxes properly? Do we follow traffic rules? Do we raise our children in these eternal values? 

What about at the Land Bank? You who work at the Land Bank are in  a unique time andplace to be a strong partner of the President in ensuring that these goals – of inclusive growth and of good governance – are achieved and, more important, sustained beyond 2016.

What role  can each and every one of you play in this great adventure that the President has set out for us? Perhaps the best way is to do what he does. The President can be our role model in determining our Code of Conduct as servants of the people.

·       Land Bank as  a GOCC must show best practice in business ethics
·       Follow “matuwid na daan”; zero tolerance for corruption
·       Achieve highest levels of service orientation to clients
·       Focus on its niche as the bank that grows the agriculture sector  of the country
·       Importance of food security
·       Serve those at the base of the pyramid

A.     ZERO TOLERANCE FOR CORRUPTION
The President has shown that yes, it can be done. We CAN root out corruption. But yes, it will take some time to reach a state when good governance is the norm. We must  start with ourselves. Each one of us, especially those of you who hold higher positions in the bank, must be paragons of virtue, shining examples of integrity so that we can inspire everyone around us to do so themselves. Good governance  must become so ingrained in each official and staff of the Land Bank that it becomes  a way of life. It becomes part of the corporate culture.
My late husband Francis made a big to-do about this at the Sandiganbayan.  Once appointed by President Cory Aquino he immediately sent word to his relatives and friends that they should not approach him for any case pending in the Sandiganbayan. When one family dared come to our house, he did not even allow them to get out of their car. He went out to meet them and to tell them not to even try. Sometimes it is good to make a clear statement on the matter so that people already know that you cannot be “approached”.

B.     IT CANNOT BE A QUIET CAMPAIGN – People have to see and hear, be aware, be vigilant. It is a WAR, and we have to arm ourselves with the equipment to win. Systems and processes must be tightened to make corruption difficult, without unduly burdening those we serve with bureaucracy. There must be constant reminders to comport ourselves at  the highest levels of integrity. Posters, suggestion boxes, incentives for whistleblowers etc can be utilized for the campaign.

C.     A CULTURE OF EXCELLENCE AND SERVICE
You at the Land Bank have a fantastic opportunity to make a significant impact on the lives of the 50M Filipinos who labor in the agricultural sector. You have the financial resources, a whole host of talent and expertise within your ranks. You also have the geographic reach to serve those who may still live at the margins of society.
Every day you should be thinking about how best to serve the farmers, those who till the land for whom this bank was established. It is not enough for the bank to make money. Your success should be measured in the lives you have improved; in the agri-based enterprises you have helped grow; in the improved productivity of our farmlands; in the support services you have put in place in the remotest farms in the country.

D.     BE BOLD; BE INNOVATIVE
President Aquino would not have succeeded in his campaign against corruption if he had merely taken little steps to curb it. He had to be bold. To take on big issues; to take on important people; to show that no one is above the law.
In your line of work, you can be bold in reaching out to your farmer-constituents instead of waiting for them to come to you with their problems or their dreams. Go out into the field, talk to them, listen to them, let them guide you in your strategic planning sessions. What is it they need? What are their aspirations? How can you help them solve their problems and achieve their dreams? The branches that serve the CCT beneficiaries can be at the forefront of this effort. Innovate product offerings, adjust price points, develop new approaches to  serving your constituency.

E.     FIND THE SWEET SPOT – DOING GOOD AND DOING WELL – SOCIAL ENTREPRENEURSHIP
At the risk of being politically incorrect, I believe that the Land Bank can and should be a Social Enterprise. With all the talent and resources at your command, the bank can focus on service perhaps even more than profit. 
Despite the great economic numbers that our country now enjoys, many challenges remain. These are especially true in the rural areas, where the Land Bank should be operating. That is where your rubber should meet the road.

The problems remain:
  •   High Incidence of Poverty  
  •   Challenges in public education, public health
  •   Lack of basic services in rural areas; inadequate infrastructure
  •   High unemployment and underemployment rates
  •   Limited access to credit
One way is for Land Bank to pilot programs for the farmers and farming communities that are strategic, scalable, and sustainable.

My family was subject to land reform way back in the 1960’s. As the youngest of our family, I was not personally involved in the farm and was glad when they property was turned over to those who till the land. However, I have always wondered whether lives of our tenants actually improved over the past 50 years. Sadly, when we visited one of the communities last week, I was deeply disappointed to see that they still lived in nipa huts; they were still living a hand-to-mouth existence. 

THE LAND BACK SHOULD BECOME A SOCIAL ENTERPRISE – find your way to the double or triple bottom line. Your success should be in the measured in the number of farmers who are no longer poor; who can send their children to school; who can bring their families to a doctor; who can start his own business; who can retire in relative comfort. Even if it takes the P9B in profit to do so, it will make a significant impact not only on the farmer’s families but on the entire country as well. it may take a lot of advocacy, it may shake the tree or rock the boat, but it is the only way it can truly say that it serves the countryside. 

The Land Bank can be the role model for good governance and by the power of its example in serving the poor and disadvantaged at the bottom of the pyramid. If all the GOCCs were to then follow your example, then the dream of President Aquino, which is the dream of every Filipino, will live on beyond his term. It is you who are in government who can help ensure that the reforms started by President Aquino will be sustained. GOOD GOVERNANCE; DRIVE FOR EXCELLENCE; PASSION FOR SERVICE. 

The challenge is there before you. The power is in your hands. May the Holy Spirit guide you, inspire you, protect you and bless you.