POLYTECHNIC UNIVERSITY OF THE PHILIPPINES COLLEGE OF ACCOUNTANCY STA. MESA, MANILA CORPORATE SOCIAL RESPONSIBILITY AND GOOD GOVERNANCE NORTHERN CEMENT CORPORATION Group 5 Bergonia, Noel A. Labiste, Janet T. Manarang, Shalla Marie C. Maestrecampo, Diana A. Miguel, Sherelyn A. Mora, Angelina G. Rance, Sarah Jane M. BSA H 3-2D PROF. GLORIA TOLENTINO-BAYSA PUP, CoA INTRODUCTION One of the important components in constructing a house is cement. It binds the materials to build houses, buildings and other infrastructures.
In the year 1969, Northern Cement Corporation (Labayug, Sison, Pangasinan) rose as the country’s producer of quality cement. For four decades of its existence, the company was engaged in delivering quality cements in our country and exporting its products from 1970 to the 80’s satisfying customers in India, Bangladesh, Kuwait, Bahrain, Saudi Arabia, China and other countries in the region. An undeniable proof that quality product defies distance. The company added to its mantle the certification on ISO 9002:1994 on September 2, 1999 and on October 25, 2002, the ISO 9001:2000, in its commitment towards consistent product quality.
On January 19, 2006, Northern Cement Corporation focused on strengthening further its existing Quality Management System by including ISO 14001:2004 and OHSAS 18001:1999 for environmental protection and occupational safety & health, respectively. Northern Cement Corporation envisioned itself as being an all-Filipino cement manufacturing plant in Northern Luzon that offers quality cement products to consumers. The company is supported by technology which is driven by cost-effective and efficient operations, and ran by dynamic organization of people committed to achieving targets and objectives.
They want to build a culture of excellence that will differentiate the organization from its competitors; to be the leader among their peers; to be the first among their equals and to be the best in the industry. They want to stamp their seal of excellence on their products by operating as a corporate citizen that contributes to the country’s economic growth by being active in country-side developments, supportive of the government environmental programs, compliance with all applicable legal and other requirements and committed in promoting health and safety standards in its business operations.
THE NORTHERN CEMENT CORPORATION’S SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM As part of giving back the blessings they have received to the society and to comply with their build up Integrated Management System (IMS) Policy, they tend to promote quality, environmental, safety and health, and educational awareness among employees, contactors, suppliers, customers and stakeholders. Since 1999, thru implementation of social development and management programs in some barangay and towns specifically in Pangasinan, they had made all these things possible. President VP for Operation VP for Marketing VP for Finance VP for External Affairs
Manufacturing Engineering Accounting Treasury Distribution Sales SDMP Research Personnel Legal FIGURE 1: ORGANIZATIONAL STRUCTURE: NORTHERN CEMENT CORPORATION To effectively manage the fulfilment of these corporate social responsibility programs, the company has built-in on its organizational structure people who can contribute to the success of the company. Figure 1 shows the organizational structure of the company for almost 13 years. It embraces the line type of organization.
The company had its own department for Corporate Social Development and Management Program (SDMP) to promote corporate social responsibility. This department creates programs that are integrated in the company’s operations, it is not only beneficial to the organization but also to the society. The Social Development and Management Program (SDMP) department engages in quantitative or statistical (samplings and surveys) and location techniques in order for the organization to know where their programs are needed most. SDMP and the Research department walk hand in hand in choosing the right barangays or towns as beneficiaries.
As of January 2011, there are already 4 barangays in Sison, Pangasinan (BARANGAY LABAYUG, SUGCONG, INMALOG, and SAGUITLANG), 3 other towns in Pangasinan and some barangays in La Union that the company had served. PRICE (per bag) : Php 195. 00 COST (per bag) : Php 134. 50 PROFIT (per bag) :Php 60. 50 SALES : 259, 671 bags FUNDING : Php 60. 50 x 15% = Php 9. 075 per bags FUNDS (available): Php 2, 356,514. 325 EDUCATION : Php 942, 605. 73 HEALTH : Php 706, 954. 2975 ENVIRONMENT : Php 353, 477. 1488 UTILITIES and SPORTS : Php 353, 477. 1488
FIGURE 2: AMOUNTS (as of Dec. 2010) FOR THE FUNDING OF 2011 PROJECTS Figure 2 shows that 15 percent of the profits were used for the achievement of the social development and management programs. This percentage had increased over the years since the beginning of the program (1999). The Board of Directors are the ones responsible in deliberating the percentage of sales to be contributed to its social development and management funds. On the yearly board meeting held in 2007, the board increased the percentage of contribution from 15% to 18%. However, this increase was abruptly disregarded due to the decline in sales in that year.
The 15% share on profit continued to be distributed to different project plans: 40% to education, 30% to health, 15% to environmental projects and 15% to utilities and sports. The unused budget from the projects was accumulated and to be used on succeeding years. From 1999 up to December 31, 2010, the company had produced 24 classrooms, constructed 15 canals and drainages across Pangasinan, gave 127 basketball courts on different sitios, barrios and towns, planted almost 20,000 trees and distributed millions of medicines in different clinics and hospitals. The company was dedicated in delivering these programs. Ibinabalik lang naman namin ang aming tagumpay at patuloy na operasyon sa mga tao. It’s because of them for we have achieved almost 40 years of excellence. ”—Emeterio Asuncion, Plant Manager The company also imposed some controlling measures on the fund for the social development and management programs’ projects. On their cash funds, the project funds’ share on daily sales was deposited the day after sales were made through the companies’ bank. On the other hand, the sales on account are transferred to the project fund upon collection.
They use perpetual inventory system for inventories (supplies, materials, etc. ) and also though they perform physical counting weekly. All the expenses for the projects were being reported separately as charitable contributions (as to general account). ACHIEVEMENT OF THE CORPORATE SOCIAL RESPONSIBILITIES EDUCATION Almost 40% of the programs’ funds were used for the implementation of educational purposes. It funded the construction of elementary school rooms in nearby barangays and the scholarship grants of their first ever scholars in year 2008, Miss Jessa T.
Valdez and Mr. Jumar C. Torres of Barangay Labayug. As of last year, they already have constructed 24 school rooms. This year they are targeting to construct 2 classrooms in Urdaneta City and to have two more additional scholars. “Malaki ang naitulong ng scholarship program ng Northern Cement Corporation. Sa kada buwan kong allowance na Php. 1,500. 00 at pang tuition na Php 15,000. 00 kada semester, malapit na kong makapagtapos ng aking pag-aaral. Salamat sa kanila. ” said Miss Jessa T. Valdez. “At least the NCC was committed on their projects toward education.
The classrooms that they have constructed in our school were a great help. ” from the principal of Labayug Elementary School, Mr. Ariez Carbillon. The management of NCC said, “As our company continues its operations; these educational programs will likewise continue. ” This simply shows that the organization is taking part in giving opportunities for those people to encourage them to live their dreams. Their educational projects are worth more than gold for those who have received it. HEALTH Sharing part of their profits to the society is an enormous deed for the company.
Distributing medicines to the different clinics free of charge produces this light-headed feeling that you want to do more. For 2010, they have distributed to 11 barangay clinics in Pangasinan and 5 barangays in La Union Php 574, 671. 88 worth of medicines and Php. 102, 456. 00 for their monthly feeding program. For 2011, they are dedicating to give more medicines to people and to extend their health programs to the rest of the north-central Luzon. Part of the company’s 2011 SDMP plans is conducting health mission namely “NCC: Oplan Kalusugan. ” This health mission offers not only free consultations but also free medicines.
ENVIRONMENT Thru the implementation of environmental activities under the Annual Environmental Protection and Enhancement Program (AEPEP), the company showed the importance of the environment. Different projects were implemented and are still continued until today. These includes: Dust Suppression Activities, Reforestation Programs, Increase density of vegetation along the sapid mini forest area, Solid Waste Management, and Information, Education and Communication Campaign (IEC). The beneficiaries of these environmental activities said that with the help of NCC, they were able to protect their communities from the harmful effects f pollution and lessen the effect of environmental disasters. For 2011, they will be having a tree planting program at the San Roque Dam, in coordination with the Department of Environment and Natural Resources, of almost 1,000 seedlings of mahogany. They are going to conduct environmental seminars on different places regarding proper waste disposal as well as environmental protection. Their concern in the environment had earned the company various awards from different environmental concerned groups in our country. UTILITIES and SPORTS
Northern Cement Corporation has been noted for giving importance to sports by building basketball courts and other infrastructures in different places. They believed that by building sports awareness with these programs could help prevent youth on engaging in unlawful acts such as drug addiction. As of December 2010 records, they had constructed 127 basketball courts. For this year, they are planning to replace establishing basketball courts by building playgrounds for the children. By mid-year, the company will conduct a sport fest for the youth (13 to 20 years old).
Aside from sports utilities and events, they are also engaged in rehabilitating public infrastructures like canals, drainages and road reconstructions. The fund for sports and utilities on 2010 had an excess of Php 88, 456. 05. This amount will be used as an addition to this year’s projects. NCC is also planning to build small sports’ centers in Pozzurubio, Pangasinan and Agoo, La Union. RELATED PHOTOS Trees planted for the reforestation program ACKNOWLEDEMENT * NORTHERN CEMENT CORPORATION * Emeterio O. Asuncion- Plant Manager * Feliciana E. Pascua- Head, SMDP Department * Mariano P. Catalugan- Head, Accounting Department Carina O. Martinez- Head, Research Department * Employees of NCC * Miss Jessa T. Valdez, Labayug, Sison, Pangasinan * Mr. Ariez Carbillon, Principal II of Labayug Elementary School * LGU-Sison, Pangasinan * Beneficiaries of SDMP programs and Annual Environmental Protection and Enhancement Program (AEPEP) REFERENCES * Northern Cement Corporation: 40 Years of Success (Documentary) * Integrated Management System Policy: NCC * Pillar- Official NCC Publication * SDMP programs and Annual Environmental Protection and Enhancement Program (AEPEP)- Pamphlets * NCC- Accounting System * http://sharp. ph/nc/annoucement. html