Final Strama.pdf

I.

A.

Company Background

Company Profile1

Figure 1. The Company Logo. This is the official logo of the Philippine Business for Social Progress (PBSP).

The Philippine Business for Social Progress (PBSP) is the largest corporateled social development foundation in the Philippines. Founded in 1970, PBSP was the first in Asia to lead the promotion and practice of corporate social responsibility (CSR). Comprising more than 260 businesses, PBSP operates nationwide programs in education, health, livelihood and the environment. PBSP had benefited 4.5 million Filipinos, and assisted 6,200 development projects through PHP 7 billion in grants and loans. As the leading social development organization in the Philippines, PBSP continues to partner with international and local organizations to advance and scale up its work and impact.

1

https://www.pbsp.org.ph/about/who_we_are

i.

Caucus of Development NGO Networks (CODE-NGO)

PBSP sits on the National Board of Trustees of the largest coalition of NGOs working for social development. CODE-NGO represents 1,600 development NGOs, people’s organizations and cooperatives nationwide.

ii.

Philippine Development Assistance Program (PDAP)

PBSP sits on the Board of Trustees of this consortium of Filipino and Canadian nongovernment organizations (NGOs). PDAP promotes rural enterprises for poverty reduction and as a tool in promoting peace in conflict-affected areas.

iii.

Philippine Council for NGO Certification (PCNC)

PBSP is a founding member of this voluntary, non-stock, non-profit service organization. PCNC promotes professionalism, accountability, and transparency among NGOs and pursues tax incentives for NGO donors. PBSP also maintains its donee institution-status with PCNC.

iv.

United Way International (UWI)

PBSP is a member of the Leadership Group of United Way International’s Global Standards for United Ways initiative, representing the Asia-Pacific.

v.

International Business Leaders Forum (IBLF)

IBLF is an independent, not-for-profit global organization promoting responsible business, particularly in developing markets. In the Philippines, PBSP provides the resources of an

IBLF affiliate. As part of The Princes Charities, The Prince of Wales serves as the President of both IBLF and BITC.

vi.

Shared Value Initiative

Shared Value Initiatives and PBSP believe that shared value is not about redistributing value created through philanthropy or about including stakeholders’ values in corporate decisions. Rather, shared value focuses on the creation of meaningful economic and social value – new benefits that exceed the costs for the business and society.

vii.

Business in the Community

Business in the Community is a respected CSR network in the UK which is also part of The Princes Charities. PBSP is the only organization in the Philippines affiliated with the CSR360 Global Partner Network which is convened by the organization. By engaging with the International Campaign at Business in the Community, PBSP helps Philippine companies to become leading exponents of international corporate responsibility.

viii.

Foundation for a Sustainable Society, Inc. (FSSI)

FSSI aims to contribute to the sustainability of local economies and ecosystems in focus and priority areas in the Philippines. PBSP works with FSSI to help sustainable local economies refer to a network of viable social enterprises owned, managed and/or participated in principally by the enterprising poor (small farmers, fishers, agricultural workers, indigenous peoples, women, and other marginalized sectors) that are using local resources in consideration with the needs of future generations.

B.

The Business Model Canvas

Key Partners

Key Activities

Value Proposition

Relationships

Member Companies Fund Donors LGUs Government - DOH - DSWD - DENR - DTI - DA Micro Enterprise SMEs Local Organizations

Development Programs for: - Health - Education - Environment - Livelihood - Institutional Support - Finance Key Resources

Mission - PBSP is committed to poverty reduction by promoting business sector leadership in, and commitment to programs that lead to self-reliance.

Program Delivery methods; co-delivery, working with them to deliver.

Technical Expertise Field Experience Project Management Experience Human Resource Mapping Tool

Beneficiaries

Marginalized sector Poor Unemployed Out of school Member Companies Ultimate beneficiaries; Fund Donors Mitigation. LGUs Government - DOH - DSWD Channels - DENR - DTI Direct interaction - DA Meetings Micro Enterprise Project bids Strategic partnerships SMEs with international and Local Organizations local organizations

Cost Structure

Revenue Streams

Salaries expenses, General and Administrative expenses, Consultation fees, Representation expenses, Project costs, Utilities expenses

Project funding Other income

C.

Nature of Business, Products and Services2

Philippine Business for Social Progress (PBSP) is a private and non-profit foundation dedicated to promoting business sector commitment to social development. It was organized in December 1970 by 50 of the country's prominent business leaders, and has since grown to become the nation's largest and most influential business-led social development foundation. From an initial membership of 50 business companies, it has grown to more than 160 members, worked with some 2,500 partner organizations, provided over P4.6 billion in financial assistance which supported over 5,000 projects, and benefited close to 2.5 million poor households. For the past 32 years, PBSP has been the business sector's vehicle in delivering organized, professional, and sustainable assistance to the Filipino poor, particularly the landless farmers, fisher folk, rural workers, urban poor, and indigenous cultural communities. An aggressive membership and corporate involvement program continuously invites corporations from all over the country to join the PBSP membership. As member companies, corporations commit to allocate 20 percent of one percent of net income before taxes to fund the Foundation's operations and programs. The Foundation considers as its key strengths: development technology, which is founded on the premise that development is about helping people to help themselves; and corporate support, in the form of financial resources, time and competencies that its member companies invest to help improve the quality of life of the Filipinos

2

The Philippine Business for Social Progress Annual Report 2017

D.

Evaluation of Vision and Mission Statement

Through the years, The Philippine Business for Social Progress has formed its foundation from good business practices and strong core values. It reached numerous milestones as a development organization and it felt accomplished by its nationwide reach, by the positive reputation it has earned from its donors and clients and by the number and scope of successful programs towards the goal of contributing sustainable development and reducing poverty in the Philippines. The Philippine Business for Social Progress continues to create sustainable solutions to societal problems in its core program areas which are Health, Education, Environment, and Livelihood and Enterprise Development.

Vision3

i.

To lead the business sectors’ efforts to reduce poverty in the Philippines.

Mission4

ii.

PBSP is committed to poverty reduction by promoting business sector leadership in, and commitment to programs that lead to self-reliance.

3 4

https://www.pbsp.org.ph/about/who_we_are Ibid.

Statement of Commitment5

iii.

a.

PRIVATE ENTERPRISE, by creatively and efficiently utilizing capital, land, and

labor, generates employment opportunities, expands the economic capabilities of our society, and improves the quality of our national life.

b.

THE MOST VALUABLE RESOURCE in any country is the person. The higher

purpose of private enterprise is to build social and economic conditions, which shall promote the development of the person and the well-being of the community.

c.

THE GROWTH AND VIGOROUS development of private enterprise must be

anchored on sound economic and social conditions.

d.

PRIVATE ENTERPRISE must discharge its social responsibility towards society in a

way which befits its unique competence. It should involve itself more and more in social development for the total well-being of the nation.

e.

PRIVATE ENTERPRISE is financially and technologically equipped to participate

actively in social development. In terms of scientific technology and managerial competence, private enterprise can help provide the total approach for social development in our depressed communities.

5

https://www.pbsp.org.ph/about/who_we_are

f.

PRIVATE ENTERPRISE, together with other sectors of society, shares obligations

and responsibilities, which it must discharge to the national community. The ultimate objective of the private enterprise is to help create and maintain in the Philippines a home worthy of the dignity of the person.

Therefore, to better fulfill its social responsibilities, private enterprise must earmark a portion of its income for social development.

We hereby declare our commitment to Philippine Business for Social Progress, which shall be private enterprise’s social development arm dedicated to the empowerment of the poor and self-reliance of communities.

ELEMENTS

YES

Services

✔

Customer

✔

Market

✔ ✔

Technology Philosophy

✔

Self-Concept

✔ ✔

Sustainability Public Image

NO

✔

✔ Employees Figure 2. Vision-Mission Statement Component Analysis. This figure illustrates the elements present of in the Vision-Mission Statement of PBSP.

The Philippine Business for Social Progress covered 6/9 elements based on the Mission Statement Components Analysis. The mission of the company comprises of mentioning its services, customer, market, philosophy, self-concept, concern for public image. The mission, however, does not mention technology, sustainability, and its employees. Overall, it clearly defines who the organization is and what the organization is all about. However, it needs to mention the latter in order for it to be unique compared to other similar businesses.

E.

The Management

For over 40 years, PBSP sustains its programs and maintains its reputation for efficiency and financial prudence through a cadre of 400-strong managers and staff, who are committed to build better communities and empower the poor.

PBSP is managed by social development professionals who are coached by prominent chief executives in business principles, financial accountability and effective project management.

Our foundation staff is guided by PBSP’s Core Values of Integrity, Service, Quality, Teamwork and Work-Life Balance.6

6

https://www.pbsp.org.ph/about/our_team

Figure 3.Executive Director of PBSP, Mr. Reynaldo Antonio D. Laguda. This figure illustrates the image of the executive director of PBSP. Reynaldo Antonio D. Laguda7 Executive Director Reynaldo Antonio D. Laguda is the Executive Director of the Philippine Business for Social Progress (PBSP). PBSP is the country’s largest corporate-led non-profit organization that unites like-minded business leaders and their companies behind social advocacies that aim to make the benefits of business activity more felt by an increasingly larger constituency.

7

https://www.pbsp.org.ph/about/our_team

THE MANAGEMENT TEAM

Cañete, Rowena

Daclison, Jerome

Manager

Manager

Health

Corporate Affairs

Rivadelo, Kristine

Millan, Angelie

Manager

Manager

Luzon Regional Center

Visayas Regional Center

Enriquez, Garibaldi Alvin

Fernandez, Ramon

Manager

Manager

Mindanao Regional Center

Human Resources

Nemil, Ulysses Ursie

Nalda, Reno Carter

Internal Auditor

The Global Fund NFM

Internal Audit Unit

For TB project

Muncada, Marylin

Pedragosa, Caroline Grace

Director

Director

PMO-Education

PMO-Livelihood

Uichico, Benjamin

Rivera, Rowena

Chief finance officer

Head

Finance department

Procurement

Sigales, Danilo

Tonog, Felix A.

Manager

Director

Information Technology

Office of Strategic Management

Department

Querido, Daisy Manager Finance Department

F.

Organization Structure

Figure3.PBSP Organizational Chart. This figure illustrates the organizational chart of PBSP.

II. a.

Research Methodology

Research Design

All data information used in the external analysis and other sections of the paper were obtained through various sources. Economic data were sourced from publications and articles released by organizations and were also obtained directly from the Philippine Business for Social Progress through coordination with its personnel. Published documents from the European Union and the United Nations Economic and Social Commission in Asia and the Pacific helped identify certain factors deemed critical to the successful operation of social development organizations. To gather pertinent information regarding the key competitors of the company, copies of the audited financial statements for multiple years of the respective companies were requested from the Securities and Exchange Commission. Online web sites of key competitors were also referenced to gather relevant information and acquire copies of annual reports of some key competitors. Various internal publications, confidential documents, and other materials inclusive of the audited financial statements were also referenced extensively to gain more information about the company.

III.

A.

Industry and Market Analysis, Forecast and Perspectives

Current Industry Situation

By 2017, it was estimated that there were 164,743 development organizations currently operating in the Philippines whose top objectives are to generate employment, improve a local community, alleviate poverty, and empower marginalized groups.8

Source

Number

Prevalence Rate

Expected Number

NGOs (Securities and Exchange Commission)

128,268

30.06%

38,482

MSMEs (Department of Trade and Industry)

896,839

12.92%

115,856

Cooperatives (Cooperative Development Authority)

24,652

40.28%

9,929

Total

164,473

Figure 4. Estimated number of development organizations in the Philippines. This figure illustrates the estimation of the number of development organizations in the Philippines.

Most social enterprise and development foundations in the Philippines are concentrated in major urban areas like Metro Manila, Cebu, and Davao yet; several organizations have recognized the need to extend their campaigns outside Metro Manila. There are a growing number of initiatives who engage with these kinds of activities to other regions especially in poor provinces in the country and few of them were already achieving national impact. This

British Council (2017) Reaching the Farthest First: The State of Social Enterprise in the Philippines. Retrieved from www.britishcouncil.org 8

suggests that there are many opportunities for social development to extend their operations elsewhere.

B.

Current Market Situation

The Philippine Business for Social Progress is now one of the largest grant-making and project-implementing foundations in the Philippines. Since its establishment almost 47 years ago, it has disbursed approximately 2.7 billion pesos, being the largest disbursement so far, exceeding its target by almost 1 billion in support of health related issues, scholarships on education, environmental concerns, and provision on livelihood of the marginalized and target communities, all for the benefit of the Filipino People.

IV.

A.

i.

External Analysis

Societal Environment

Political Political events and situations could contribute in the development of PBSP or could form problems that might hinder its function. Decision-making where there is supposed to be NGO participation is still lodged with the Some issues where lack of participation from the Local Government Units during the planning and formulation stage especially when officials do not want the programs, services or goods to be provided and usually through influence peddling or palakasan. There should be a clear authority in decision-making, unbiased officials to encourage numerous foundations in the future, and full support from the government throughout the whole process for active participation and attendance.

ii.

Economic Social Enterprises and Development Foundations in the Philippines have become a solution in reducing poverty in the country. They have reached the poorest of the poor in the provinces and succeeded in reducing poverty. Many underprivileged were given a chance to taste education as scholars of foundations. Education level will surely create a positive impact to the income of the household which helps to reduce poverty.

Increasing unemployment rate will also be a great factor since it will decrease the availability of income and possibly increasing the number of people seeking assistance from an organization.

iii.

Social

Demographics and lifestyle changes can also be part of the socio-cultural factors that may affect the macro-environment PBSP. This could be seen in the point of view of the people and numerous business organizations who will contribute to the funds of PBSP. These donations do not have to be in the form of money as they can take different forms like school supplies, clothes, etc.

iv.

Technological PBSP should deal with issues regarding technology as it is affected by means of communication. New methods of reaching communication should be applied such as using social media. In order to use new forms of technology and automation, significant costs are needed and training should be the employees.

v.

Legal PBSP should follow the laws mandated by the Philippine government regarding charitable works and activities, rules and regulations of non-government organizations, and health and safety guidelines. Workers also have to respect these guidelines and not violate them in order not to be prone to any legal issues.

vi.

Environmental The role of PBSP is to keep the environment clean, dispose waste properly, and minimize energy consumption. A review with these factors should be undertaken with which may highlight areas where performance can be improved and costs decreased.

B.

i.

Systems Environment

Government The government requires annual reports to all organizations in relation to the performance of its operation. These are deposited in their own system as records of information and statistics about the company and the industry. This information, depending on its confidentiality, can be requested by various stakeholders of the foundation. The state also recognizes the role of information in nation-building and its inherent obligation to ensure that information in the government and in the private sector is secured and protected.

ii.

Political Political decision could affect the business system because of possible legislations influenced by the rate of emergence and acceptance of new technologies required in a business environment.

iii.

Transportation

Logistics is seriously needed with regards to vast amount of transactions that require important files and documents to be forwarded to other places as fast as possible to complete

the business process. Receiving updates from logistic companies will easily let the company update the system to inform the status of the transportation.

iv.

Communication Conveying information through email support and the use of instant messaging, video conference, and audio transmission with the use of mobile phones will make the business process easier.

v.

Technology Through technological advancement and innovation, the database of PBSP has been stored to software which connects each departments and the entire business process. Reports are made easier to generate because of the presence of filtering options. They have also connected this database to its regional offices for real-time updates and report generation with the use of internet.

C.

i.

Task Environment

Competition in the Industry There are an estimated 164,743 development organizations in the Philippines today. In Metro Manila area alone, there are numerous organizations providing similar services to the area’s homeless population. Therefore, it is important to understand this competition in the market in order to have positive impacts to other communities.

ii.

Potential of New Entrants into the Industry As the number of development organizations increases, donor agencies and companies tend to search for reasonable processes, outcomes and measurable impacts of social development activities in relation to donated funds. New foundations can be limited due to the loyalty of donors. However, if the demand for a particular service is very high and the costs to provide assistance are low, new organizations and programs might enter the market.

iii.

Power of Suppliers

Donors play a very important role in the life of PBSP. As PBSP continues to provide numerous, valuable and gratifying programs and being able to demonstrate the impact of their work in a way that is more tangible, measurable and traceable than other organizations, more and more organizations will be willing to take part, to contribute, and to provide what is best for its future programs.

iv.

Power of Customers The sick, the poor, and the needy are the primary consumers of the industry. Without effective and efficient programs, they will tend to search for different organizations which provide better services.

v.

Threat of Substitute Products Existence of various organizations with similar programs or presence of free and functional government health assistance that will provide a better service will be the most possible reason for a grant maker or community member to switch to other organizations.

D.

External Factor Analysis Summary

External Factors

Weight

Rating

Score

0.10

3

0.30

0.16

4

0.64

Opportunities O1. Expansion of programs to other categories of social needs O2. Support from future member companies, donor partners, and other social development organizations. O3. Various demands from the poorest of the poor in rural areas where transportation and communication is a problem. O4. Niche of individuals affected with unemployment and foreclosures due to the recent economic downturn. O5. Tailored laws, policies and guidelines that will enable to maximize the full potential of development organization. Threats T1. Problems in accessing target groups and communities through transportation and communication, and government restrictions T2. Sustainability problems due to shortages in funding. T3. Division on the direction of the organization due to disagreement on spending unrestricted funds. T4. Established numbers of competitors locally and internationally. T5. Lack of demand for programs and services

0.08

2

0.16

0.04

2

0.08

0.12

3

0.36

0.12

3

0.36

0.16

4

0.64

0.04

4

0.16

0.08

2

0.24

0.10

3

0.30

Total 1.00 3.24 Rating Score: 4 - superior response, 3 - above average, 2 - average, 1 - poor Figure 5.Opportunites and Threats Analysis. This figure illustrates the opportunities and threats and their corresponding score.

PBSP has an above average responsiveness to threats and opportunities as indicated by its total weighted score of 3.24 which is higher than the average of 2.5. This means that PBSP takes advantage of its opportunities and minimize the effects of its threats. However, given that the highest possible score is 4, PBSP still has a lot of space for improvement. First, it should strive to make its presence felt and on what areas it will direct its resources. This will extend its network and reduce poverty in the Philippines.

E.

Competitive Profile Matrix

Critical Success Factors

Weight

Score

Score

Innovation

0.08

3

0.24

Marketing

0.10

2

0.20

Brand Reputation

0.14

3

0.42

Financial Position

0.12

4

0.48

Quality of Service

0.10

3

0.30

Technological Advancement

0.12

3

0.36

Range of Service

0.10

2

0.20

Geographic Reach

0.07

3

0.21

Management Expertise

0.08

4

0.32

Employee Competency

0.09

3

0.27

Total 1.00 3.00 Figure 6.Competitive Profile Matrix. This figure illustrates the critical success factors of the company and their corresponding score.

V.

A.

Internal Analysis

Management Aspects

PBSP utilizes strategic management concepts by engaging in strategic formulation, implementation, and evaluation. PBSP has its own strategic management process in place which is done in-house to address concerns of staffs due to series of changes. The process includes the formulation of strategic objectives as well as the evaluation of its performance based on balance scorecard. The strategy is formed by management staff and assisted by technical staff in consultation with major stakeholders. The strategy is approved by the Board of Trustees and is then translated into blueprints or annual plans. It involves all levels of the organization and is conducted annually. The plans cover a 5 year time period but is adjusted and updated annually. The process involves utilizing tools such as SWOT analysis, balance scorecards, worksheets, action plans, and performance plans. Individual employees are even partly evaluated in the performance appraisal process by comparing their actual performance versus the individual performance plans they created and submitted during the process. There is a clear line of authority and department heads had delegated the responsibilities of their subordinates. Since individual employees are held responsible for achieving the objectives and goals stated in their individual performance plans, the company empowers individuals with the authority necessary to accomplish their tasks and achieve their objectives and goals. In terms of structure, PBSP has an organizational structure that utilizes a combination of the vertical functional approach and divisional approach that focuses on each program. They had

able to practice efficient use of resources to adapt and respond to the changing environment of the industry.

B.

i.

Human Resource Aspects

Issues relating to Purpose PBSP, as stated in their commitments, strives to help create and maintain in the Philippines a home worthy of the dignity of the person through its wide array of programs in four distinct categories. Funds, as required by different donors, should be disbursed properly without conflict of interest. However, there are times when PBSP uses these funds for organizational matters just to reach its required disbursements not deliberating on working towards the development of other purposes. It could be the time for PBSP to attack into developmental work on other areas of developmental work which if implemented and delivered greatly that would maintain its funder and attract other relevant resources as well.

ii.

Issues Relating to Structure There appeared to be a lack of clarity regarding the organizational structure of PBSP in the minds of all the employees, including the management. There is still confusion over the structure that exists because of having both a decentralized management and a program driven organization. The resultant matrix structure caused confusion in clarifying reporting relationships. Since the organization is structured around programs such as Health, Education, Environment and Livelihood on one hand and around Luzon, Visayas, and

Mindanao on the other hand with separate coordinators for each project and regions, there was confusion regarding reporting relationships and authority.

iii.

Issues relating to Leadership

The leadership of development organizations faces challenges such as limited number resources in uncertain circumstances to help the marginalized and disadvantaged members of the communities. One absolute problem of PBSP is the rapid turnover of its employees in different positions and the difficulty to replace them. Failure of leadership could possibly results to organizational collapse.

iv.

Issues relating to Relationships The high degree of decentralization had granted a great degree of autonomy and coordination was a problem. There had been a noticeable decline over the years in the number of meetings when staffs from different regions meet and this are probably the reason for it. This lack of coordination led to confusion about roles.

v.

Issues relating to Rewards Being a developmental organization that has to depend on external sources of fund, the issue of job security and continued association with PBSP was always a matter of concern. There will always be fear for project-based employees that one major fund donors that they are connected into may close shutters someday. Some form of assurance from the management for the continuity or clarity on the future of PBSP may ease the sense of insecurity.

vi.

Issues relating to other Helpful Mechanisms There were some concerns on the irregularity of reporting of some project-based coordinators. Attending to administrative tasks serves as a helpful mechanism for the company, however the tardiness to turn in reports on the progress of the projects by most coordinators should be done on a regular basis to each heads to fill in gaps of information whenever required. Thus, formal system of submitting and checking of reports should emphasized.

C.

Marketing Aspects

PBSP segments markets depending on the type of program an individual or a community needs such as Health, Education, Environment and Livelihood. The organization then identifies projects or donor partners and member companies based on the roles it plays in the development process to be able establish programs to potential beneficiaries. The company’s strategy entails relying on deep and well established relationships donor partners and member companies to differentiate itself against competitors. Considering the increase in number of the PBSP’s donor partners and member companies, its marketing and advertising team seems to be very effective. The company also seems to excel in terms of quality service which is evident by bagging the major awards in the Asia-Pacific Day of Action contest of American non-profit organization United Way Worldwide (UWW).

The company is also a co-founder of Philippine Council for NGO Certification and meets established criteria for financial management and accountability in the service to underprivileged Filipinos. To educate not only the people but also business around the world, the company promotes and advertises areas which are greatly affected by calamities and the marginalized sector for possible project funding and partnership.

D.

Operational Aspects

The head office and the regional offices of PBSP, its facilities, and its equipment are in good condition and well maintained which is evident through an ocular inspection valued at Php 11,758,535 on tis financial statement. PBSP has different offices spread throughout the country, there are offices in Luzon, Visayas, and Mindanao and a head office strategically situated in Intramuros which is a business district of the country.

E.

Technological Aspects

PBSP is aware about the importance, potential, and the role of information technology for an organization. It owns state of the art equipment and various hardware and software essential to perform efficient tasks but some employees are still not comfortable in using it. Senior employees need to familiarize themselves with new technologies to achieve the company’s objectives. Presence of database systems that are interconnected to the roles of each

department in the main and regional offices of PBSP creates competitive advantage to other development organizations. PBSP owns a website and web-based and online technologies, and they are continuing to allocate greater resources in using them in the whole business process. Using online technology will enable the organization to collect information, process faster, advertise effectively, and obtain feedbacks that were never before possible.

F.

Research and Development

Research planning, design, implementation, and reporting are done by the research department of PBSP. Its major role is to research for emerging issues in social development and generate solutions through effective and efficient programs to be implemented including its monitoring and evaluation. Internal and external analysis of the company including funding, partnerships, advocacies and social movements that PBSP could participate are also included in their duties.

G.

Financial Aspect

Philippine Business for Social Progress STATEMENT OF FINANCIAL POSITION 2015-2017 (Amounts in Million Pesos) 201610

201511

1,254,399,739

473,949,522

Trustee-Managed Funds

175,294,561

236,001,230

Receivables - Net

106,605,580

149,961,200

Biological Assets

1,375,880

1,533,084

Other Current Assets

16,727,044

13,403,410

1,554,402,804

874,848,446

Trustee-Managed Funds

287,518,303

232,863,204

Investment in Bonds

24,645,815

22,848,385

Property and Equipment - Net

11,998,230

10,856,119

Investment Properties

9,061,744

9,061,744

104,824,747

24,159,622

438,048,839

299,783,074

ACCOUNTS

20179

ASSETS Current Assets Cash and Cash Equivalents Available-for-Sale Financial Assets

Total Current Asset Non-Current Assets Available for Sale Financial Assets

Other Non-Current Assets - Net Total Non-Current Asset TOTAL ASSETS LIABILITIES AND FUND BALANCE 9

The Philippine Business for Social Progress Annual Report 2017 The Philippine Business for Social Progress Annual Report 2016 11 The Philippine Business for Social Progress Annual Report 2015 10

1,992,451,643 1,174,631,520

Current Liabilities Accounts Payable and Accrued Expenses Total Current Liabilities

149,074,655

164,728,581

149,074,655

164,728,581

Non-Current Liabilities Post-Employees defined Benefit Obligation Deferred Support

15,530,348

8,072,664

1,369,916,675

542,803,984

1,385,447,023

542,876,648

1,534,521,678

707,605,229

457,929,965

467,026,291

Total Non-Current Liabilities Total Liabilities Fund Balance TOTAL LIABILITIES AND FUND BALANCE

1,992,451,643 1,174,631,520

Figure 7.Statement of Financial Position. This figure illustrates the comparison of the account balances of the company for the year 2015 to 2017.

H.

Internal Factors Analysis Summary

Internal Factors

Weight

Rating

Score

0.10

5

0.50

0.12

4

0.48

0.16

4

0.64

0.10

4

0.40

0.08

4

0.32

3

0.18

3

0.12

4

0.56

3

0.36

3

0.24

Strengths One of the largest grant-making and project-implementing foundations in the Philippines Strong relationship with member companies and stakeholders Total Support and Income grossed a total of PhP2.829 billion from donor partners and member companies Achieved majority of programs' outputs, outcomes and targets New project approvals amounted to PhP1.75 billion for Health, Education, Environment and Livelihood

Weaknesses Investment Income dipped PhP19.779M 0.06 due to volatility experience Project Development and Monitoring Expenses and General Operating 0.04 Expenses increased Majority of its fund are donated by 0.14 project-based organizations Problems in reconciling program and financial data between regions and the 0.12 head office Database system depends solely online or 0.08 through Internet.

Total 3.80 Rating Score: 4 - major strength, 3 - minor strength, 2 - minor weakness, 1 - major weakness

Figure 8.Strengths and Weaknesses Analysis. This figure illustrates the strengths and weaknesses and their corresponding score.

PBSP received a total weighted score of 3.8 which is higher than the average of 2.5. Even though this indicates that the company has an internal position strength that is above average, there is still room for improvement. First, the company should still look at expand its member companies and fund donors. Another possible course of action is to invest to other possible companies to lessen the risk of returns on investment. Third, the company should try to rectify the negative effect of the internet so it can reverse the decline in the quality of the performance of its processes and make the level of productivity much better. The company can use its performance evaluation to come up with recommended improvements. Fourth, the company should try to improve its cost management strategy so it can at least beat par in terms of project development, monitoring, and general operating expenses. This can be done by instructing its internal audit department to thoroughly examine the accounts that comprise general expenses. The company can begin by looking at accounts that posted a significant increase compared to the previous year.