ECONOMICS TERM PAPER - SUMMARY Business cannot exist in the...

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Unformatted text preview: SUMMARY: Business cannot exist in the ocean of poverty. This simply means that poverty is very crucial to business. If there is high rate of poverty, economic rate is therefore poor which limits the ability of companies and industries to create new jobs and only worsens poverty in our country. In consequence, due to economic slowdown, creating new jobs, providing food and basic needs of the Filipinos is deprived. That is why the Philippines is currently targeting some factors of poverty in order to address this issue in a least consumed time. This include: (1) to halve proportion of subsistence threshold from 20.4% to 10.5%; and (2) to halve the proportion of malnourished children from 9.8% to 4.9%. However, the current situation of some areas of the country regarding state of peace and order, and the poor monitoring of the government implementation of the laws hinder the execution of the plans on poverty to be taken action immediately, making businesses find it hard to intervene with poverty. Nevertheless, there are options for businesses to address poverty using an approach that takes advantage of core business functions and competencies. First is utilizing the core business activity. Companies can heap on employment opportunities through allocating some part of their investment to employment-generating businesses which will lead to creation of jobs while at the same time making profits. Moreover, companies and firms can also choose to support micro entrepreneurs. By establishing relationship between big firms and neighboring communities through providing them credit support, companies can create promising entrepreneurs that will build their capabilities to become a potential part of the company’s supply chain. In order to bear this agenda, banking institutions can offer the poor credit financing facilities or develop new financing products. Aside from this, the companies can help these entrepreneurs by providing market linkage mechanisms especially in the area of product and service outsourcing. One more thing is that food fortification and nutrition program can shape up the implementation of public health initiatives like the feeding programs. Companies have to avail the Sangkap Pinoy seal to comply with the law but at the same time promoting their sales. Another option companies and firms can prefer is through Social Investment. Developing and supporting social enterprise can utilize profit. Companies can also share their valuable core competencies with communities by involving some of their staff in community-based programs. Furthermore, they can integrate health and nutrition agenda into their Community Health Programs. A different option for the companies is to address poverty through policy advocacy or dialogue. They can advocate tax incentives for start-up businesses, popularize and put to action UN’s report on Unleashing Entrepreneurship: Making Business Work that helps small and medium-sized enterprises unleash their full economic and social potential...
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This note was uploaded on 06/08/2011 for the course ECONOMICS 11 taught by Professor Orillo during the Spring '11 term at University of the Philippines Diliman.

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ECONOMICS TERM PAPER - SUMMARY Business cannot exist in the...

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