Better labor practices in PH a must as ASEAN integrates

One way Philippine businesses can increase their value is through better treatment of employees, which can lead to ’employee retention and employee productivity’

MANILA, Philippines – As the Association of Southeast Asian Nations (ASEAN) moves toward a single market and production base, it becomes even more imperative to ensure that Philippine companies treat their employees well.

This is according to Dr Benito Teehankee, Corporate Social Responsibility Chair of the Management Association of the Philippines.

In his talk during the 4th Strategic Management Convention at the De La Salle University (DLSU) on June 6, Teehankee stressed the need for good labor practices in the country to increase the value of Philippine companies.

He also challenged the audience to create services and products that cater to “real needs” and not just “whimsical wants.”

Teehankee said the ASEAN integration is a great opportunity for local businesses to become “value creators for human development.”

Teehankee has written extensively on labor productivity and the “need for virtue among managers.”

“It can be shown that, first, not being profitable does not prevent a company from doing good and that, second, not being profitable does not justify a company’s bad practice,” he wrote in 2011 in a Manila Times column.

Teehankee, who has 3 decades of experience in teaching management-related courses, is founding president and current board member of the Philippine Academy of Management, among other positions in various organizations.

Improve the lives of Filipinos

Citing the example of Filipino brand Rag2Riches, Teehankee said businesses must constantly innovate ways “to improve the lives” of cash-strapped Filipinos.

Rags2Riches markets itself as “a for-profit social enterprise” that creates “eco-ethical fashion and home accessories out of upcycled scrap cloth, organic materials and indigenous fabrics, and by working with artisans living in the poor communities across the country.”

Co-founder Reese Fernandez-Ruiz had explained that the business venture “started out as a small livelihood project,” which then “grew into a platform for artisans to get out of poverty.”

Ruiz was on Forbes’ 2015 list of social entrepreneurs under 30.

Teehankee said one way for businesses to increase their value is through better treatment of employees, which can lead to “employee retention and employee productivity.”

He said most companies increase their value “mainly by cutting down on costs.” Instead of this strategy, he challenged the business-savvy to uplift the quality of lives of workers and create Filipino brands that are well-respected.

Focused on talks about the readiness of the Philippine business sector for the ASEAN economic community, the 4th Strategic Management Convention was hosted by DLSU and its MBA Alumni Club. – Rappler.com