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1. Why is corruption an unwanted activity in a countrylike the Philippines?
Elections are like a sponge, it sucks up all the money, most of it
from corruption.
Among the very first lessons in business is that "THERE IS NO SUCH
THING AS A FREE LUNCH". Somebody is bound to pay, Always. Especially
when it comes to corruption. So how does corruption get to us? Let's count theways.
1. Loss of Government Revenue
The first victim of corruption is government revenue. In a
developing economy like the Philippines, this can be extremelydebilitating. The continuing budgetary deficit of the governmentresults into cutbacks in expenditures for much needed socialservices.
2. Education
The gap of classrooms in public elementary schools isestimated to be about 40,000 this coming school year. The case is
even more pathetic, as the lack of qualified teachers furtherconfound the problems. While student population keeps ongrowing year after year, these gaps in classroom, books and
teachers is widening. What do these lead to? Poor qualityeducation of the future citizens of the Republic furtherundermining their prospects of contributing to nation building.THAT IS A VERY HIGH PRICE TO PAY FOR CORRUPTION.
3. Infrastructure
With tightening sources of funding for infrastructuredevelopment, government has to resort to partnership with theprivate sector. A public good like roads, bridges, ports andairports will necessarily be charging user fees to be able to earn
profit and recover capital. Nothing wrong with because he whobenefits should share the cost. But a lot of these projects requireperformance undertaking from the government to be financeableto lenders. This results into the contingent liabilities of thenational government burgeoning the levels no one wants to evenfind out. Remember the NAIA III Terminal? an edifice that can't be
operated until now. The MACAPAGAL BOULEVARD which caneasily enter the Guinness Book as the world's most expensive
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boulevard? THE SMOKEY MOUNTAIN PROJECT where almost abillion of OFW's money was invested and has not been repaid
until now? Last count in 2003, it stood to over P500 Billion.Thats about over 30,000 pesos per household. THAT IS NO
LOOSE CHANGE TO PAY FOR CORRUPTION.
4. Environment
Because government resources are constrained,environment protection programs are neglected. We passed theClean Air Act and yet we cannot put our acts together in ensuring
clean air. The law is toothless because the government has nomoney to invest in monitoring equipment. Even garbage it cannot
collect. Remember the PAYATAS TRAGEDY? Meanwhile, to beable to generate power and run our heavy industries, lessdesirable Plants are allowed to be established. ASK THE PEOPLE
from CALACA, BATANGAS, PAGBILAO QUEZON, and SUALPANGASINAN, all sites of COAL FIRED POWER PLANTS thatcontribute to withdrawals from our deposit of breathable air,potable water and livable communities. The resource balance ofour children's future is rapidly depleting, A COST OFCORRUPTION THAT WE MAY NEVER BE ABLE TO ACCOUNTFOR.
5. Government Debt and Poverty
Again due to budget deficit, government keeps on
accumulating debt, which at end of 2003 stood at over 2.4 trillionpesos. Thats over 30,000 pesos for every Filipino man, womanand child. At an average interest cost of 10% per year for bothshort and long term loans, that is equivalent to a staggering P240Billion in interest payment alone every year. Thats the amount ofmoney taken away form the mouth of the poor, who account to
more than half of the Philippine population. TURNING OURBACKS FROM OUR MARGINALIZED CITIZEN IS A STEEP PRICETO PAY FOR CORRUPTION.
6. Political Patronage
Corruption doesnt prosper without protection. Those whopractice realize that to keep themselves in their lucrative posts,somebody politically powerful should be able to stop any attempts
to cut him from illicit money flow. In return, he lavishes hispatrons with gifts. Gifts in no small terms, which further corrupt
him and his patron. His patron, in order to accumulate more gifts
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has to increase his influence. To increase his influence, he needsto milk his corrupt benefactors. And it goes on deeper and deeper.
Elections are like a sponge, it sucks up all the money,
most of it from corruption. Election in the Philippines are nothing
but patronage politics. How else does one explain the millionsspent in a campaign in exchange for a few measly thousand pesosin the salary of a public servant? There is only one explanation Ihave, THERE IS NO SUCH THING AS A FREE LUNCH, SOMEONEIS BOUND TO PAY FOR IT.
How do campaign contributors expect to recover theirinvestments? In the form of political protection to allow them to
continue with their illegal activities. In the form of riggedgovernment contracts. In the form of economic rents taxpayerseventually pay for.
7. Crime
Corruption corrupts and the deeper one gets into themire, the more desperate one becomes in defending the well fromwhere he draws his booty. He will be prepared to use trick, treat
and threats to keep his business. And since corruption, like stalefood attract flies and worms, criminal syndicates are not very farfrom them. So do their violent means of doing business.
The problem with the proliferation of illegal drugs can be
linked solidly to corruption. How else do drug lords and pushersdo their business under the noses of law enforcers and localgovernment officials except that they pay-off this public servantsor work in cahoots with them. Remember Mayor Mitra of QuezonProvince? He was caught red handed transporting a ton of shabuusing the town ambulance.
This social ill has led to the commission of many aheinous crime is prospering and multiplying in every Barangay ofthis country because of corruption. RAPES, MURDERS, and
KIDNAPPING FOR RANSOM ARE TOO MUCH TO PAY FOR
CORRUPTION.
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8. High Cost of Doing Business
It is sometimes beyond our imagination for abusinessman to spend three full days in the crowded city hall of a
highly urbanized city trying to get a business license. And he was
just going to buy and sell eggs. How much more if he wants tooperate a industrial project. If there are 20 government offices heneeds to go through for various permits, licenses, certificates,approvals and signatures, he needs an entire army of fixers tohandle them. Precious hours are lost among senior officers of thefirm who have to wine and dine to the whims and caprices ofgovernment officials. Remember the stinking IMPSA and PIATCOdeals?
Those companies whose code of conduct does not permitthem to provide bribes and pseudo-bribes end up spending tons
of money just to end up deciding to leave the country inexasperation.
On the other hand, many of those who stay to do
business have gotten used to government people scratching theirheads as they show up in their offices asking for all sorts of giftsfor every known relatives of a mayor, congressman, senator,department secretary, bureau director or chief of police. Whatdoes the businessman do? He just passes on to his customersthis extra cost incurred in doing business in the Philippines.
Remember the Power Purchase Adjustment (PPA)? This is one
bloody scheme that sucks us dry!!!
9. Loss of Investor Confidence
As Judge W.H. Heath said, if we cannot manage ourmoney and assets, how can we be expected to manage otherpeoples money? Investors demand that there be a reasonablelevel of assurance that they will get their investment back. Thattheir investment will in fact make money. And that it will not betaken over by political forces.
It becomes extremely challenging to attract investors to dobusiness in a country where a fugitive from the FBI and convictedpedophile gets elected in Congress. Or where tax evasion casewith very clear outcomes is lost to technicalities.
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Multilateral donors find it hard to give us loans and
technical assistance grants when they know that a large portionof their money will be used to line up the stomachs of politicians.They will have to invest in additional personnel, incur additional
costs just to watch us spend their money. Every time we submitreceipts they spend thrice the time just verifying whether they aregenuine or not. This is the only country in the world whose
AUTHENTIC DOCUMENTS (as declared and sealed fromMalacanang) has one year expiry date. Believe me it can be tiring
to do these things.
When many in the International community considers
your country as corrupt, it does not feel good. It does not buy yougoodwill. Jeers and sneers YES. But respect? NO!!! Just look athow we PINOYS are treated in foreign airports. Who would forgetSenate President DRILON being forced to remove his shoes in a
US airport despite showing his Diplomatic Passport. I myself hada very disgusting experience in SCHIPOL airport in theNetherlands (CARLO BUTALID & GRACE CABACTULAN MAYNOT AGREE WITH ME) and at Charles de Gaulle in France. Butcan we blame them? Of course not. There's simply too muchPinoys who are going out of the country with spurious
documents, escorted and facilitated by no less than BID
personnel from NAIA. THAT IS WHAT WIDESPREADCORRUPTION IS COSTING US.
We have only just began counting the cost of corruption.It cost us the prostitution of our political institutions. We havenow hoodlums in uniforms and hoodlums in robes. It costs us
many lives and honor lost to crime. It costs us our self respect.And it costs us lost opportunities for a better future of ourchildren.
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2. What is responsibilities of employees must entrepreneurs
be aware of?
Hiring employees requires more work from you as theemployer than simply placing a job ad, hiring the right person
and training them on their role. You need to be aware of the
Labour Law requirements in terms of the various funds and other
stipulated registrations. The law does not differentiate between
different size organizations, and therefore it is imperative that
SMEs fully understand the implications of all aspects of Labour
legislation.
Salary deductions
Employers may only deduct money from a workers salary if
the worker agrees or if they are required to do so. The provisions
for deductions do not apply to workers who work less than 24
hours a month.
Employers may not deduct money from a workers pay unless
o the worker agrees in writing to the deduction of a debt, oro the deduction is made in terms of a collective agreement,
law (e.g. UIF contributions), court order or arbitration
award.
Deductions for damage or loss caused by the worker may only
be made if
o the employer has followed a fair procedure and given theworker a chance to show why the deduction should not be
made,o the worker agrees in writing, ando the total deduction is not more than 25% of the workers net
pay.
http://www.entrepreneurmag.co.za/category/advice/staff/hiring-employees/http://www.entrepreneurmag.co.za/category/advice/staff/hiring-employees/ -
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Employers must pay deductions and employer contributions
to benefit funds (pension, provident, retirement, medical aid, etc.)
to the fund within 7 days.
What is UIFUIF stands for Unemployment Insurance Fund and you
need to register for it, whether or not you employ staff. It applies
to all employers and workers (except those working less than 24
hours a month),learners, public servants, foreigners working on
contract, workers who get a monthly State (old age) pension and
workers who only earn commission. The fund makes short-term
provision for individuals who become unemployed, or are unable
to work because of illness, maternity or adoption leave. It also
provides financial relief to the dependants of deceasedcontributors.
As an employer it is your responsibility to register with UIF
and make the monthly payments. These include a 1% payment
from you (based on your employees individual salaries). Each
individual employee needs to make a further 1% payment, but it
is your duty to deduct this amount from their salary and pay it to
UIF, together with your contribution, on a monthly basis to SARS
if you are registered for PAYE or directly to the UIF if you are not.You can register your business by completing a UF8 form and
each new employee needs to be registered using a UI-19 form.
These can be obtained from the Department of Labour.
What is COIDA
COIDA stands for the Compensation for Occupational
Injuries and Diseases Act and being registered for it works in your
favour. It is based on a no-fault system which means employees
are entitled to compensation regardless of who caused the injuryor illness. But it also exempts you from liability for injuries or
diseases contracted by your employees in the course of their
work. In other words, employees cant claim damages from you in
those events. Instead, COIDA allows them to claim compensation
for total or permanent disablement and death as well as
reasonable medical expenses arising out of injury for two years.
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You are required to pay the employee 75% of their normal salary
for three months during the time that they are injured or ill but
the fund pays you back this entire amount and covers all the
relevant medical expenses.
If you are not registered, however, you are not indemnified.
Getting registered involves submitting a WAs2 form, together with
a copy of the registration certificate from the Registrar of
Companies, or your ID document, if you are a sole proprietor.
Every year before 31 March you will need to submit a statement
of earnings paid to your employees. You will also be required to
pay an assessment tariff, which is fixed according to your class of
industry.
If an employee gets injured during the course of their work
or falls ill as a result of their work, they can claim from the
Workers Compensation fund. Dependants of employees can claim
if a family member dies from an accident or disease. Employees
wishing to claim will need to be furnished with one of the WG30,
WAs2 or WAc1(E) forms, which they need to submit to the
Compensation Commissioner for compensation.
How does Maternity Leave Work?
The law protects women against unfair discrimination
arising from any form of prejudice. An employer may not ask a
candidate who applies for a job if she is pregnant, nor if she is
planning to start a family at any stage. If you do, she could argue
that you are discriminating against her. Equally, she is in no way
obliged to disclose her pregnancy when applying for a position.
The bottom line is that it has nothing to do with the candidates
ability to meet the requirements of the position. And nothing
stops her from resigning once she has returned to work after
taking maternity leave. She has rights regardless.
The Basic Conditions of Employment Act stipulates that an
employee is entitled to four months unpaid maternity leave. All
that is required is a notification by the employee that she is
pregnant, accompanied by a doctors certificate. This leave should
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start four weeks before the expected date of birth, or when a
doctor or midwife certifies that leave is necessary for the health of
the mother or child. An employee must notify her employer in
writing of the date on which she wants to start maternity leave.
She may not work for six weeks after delivery, unless she isdeclared fit to do so.
An employee who has a miscarriage during the last three
months of pregnancy or who bears a stillborn child is also entitled
to six weeks maternity leave, whether or not she has started
maternity leave at the time. Companies in South Africa are not
obliged by law to provide paid maternity leave. A female employee
who works for a company that does not offer maternity benefits
can claim from the Maternity Benefit Fund if she has been
contributing to the Unemployment Insurance Fund (UIF).
An employer who pays maternity leave does have some
rights, however. Paid maternity leave is a benefit, and the
company is within its rights to conclude a contract with the
employee stating that if she does not return to work for at least
one year following her confinement, she will be obliged to return
the salary she earned during her maternity leave.
South Africa has no paternity leave provisions in place, but
workers who have been employed at a company for longer than
four months may take three days paid family responsibility leave
during each year of employment.
Family Responsibility Leave
Workers may take up to three days of paid leave a year to
attend to certain family responsibilities. The provisions for family
responsibility leave do not apply to workers who work less than:
o Four months for their employero Four days a week for one employero 24 hours a month.Family responsibility leave expires at the end of the annual
cycle. Employees may take family responsibility leave:
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o when their child is borno when their child is sicko in the event of the death of a:
o spouse or life partnero parent or adoptive parento grandparento child or adopted childo grandchildo sibling
Employers may require reasonable proof of the birth, illness
or death for which a worker requests leave.
OvertimeThe amount of overtime a worker may work is limited.
Workers must get 1,5 times their normal hourly pay or paid time
off in exchange for overtime. Alternatively, a worker may agree to
receive paid time off or a combination of pay and time off.
The section of the Basic Conditions of Employment Act that
regulate working hours does not apply to:
o workers in senior managemento sales staff who travel and regulate their own working hourso workers who work less than 24 hours in a montho workers who earn more than R115 572 per yearo workers engaged in emergency work are excluded from
certain provisions.
Workers may not work:
o overtime, unless by agreemento more than 10 hours overtime a week (collective agreement
may increase this to 15 hours per week for up to two
months a year)
o more than 12 hours on any day.
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Employee Pay Slips
Each time workers are paid, employers must give them a pay
slip containing certain details. Employers must give workers the
following information in writing when they are paid:
o Employers name and addresso Workers name and occupationo Period for which payment is madeo Total salary or wageso Any deductionso The actual amount paido If relevant to the calculation of pay:
oEmployees pay and overtime rates
o Number of ordinary and overtime hours workedo Number of hours worked on a Sunday or public
holiday
The total number of ordinary and overtime hours worked in
the period of averaging, if a collective agreement to average
working time has been concluded
Public Holidays
Workers must get paid time off for public holidays, but if they
agree to work, they must be paid double their normal daily wage.
The provisions for public holidays do not apply to -
o senior managemento sales staff who travelo workers who work less than 24 hours a monthWorkers must get paid time off for any public holiday that falls
on a working day. Working on a public holiday is by
agreement only. A public holiday can be exchanged with another
day by agreement. A public holiday cannot be counted as annual
leave.
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Employee Sick Leave
Workers may take the number of days they would normally
work in a six-week period for sick leave on full pay in a three-year
period. Employers may insist on proof of illness before paying a
worker for sick leave. The provisions for sick leave do not apply to
-
o workers who work less than 24 hours a montho workers who receive compensation for an occupational
injury or disease
o leave over and above that provided for by the Act.During the first 6 months of employment, workers are only
entitled to one day of paid sick leave for every 26 days worked. An
employer may require a medical certificate before paying workers
who are absent for more than two consecutive days, or who are
often absent (more than twice in an eight-week period).
Staff Working Hours
Basic Conditions of Employment laws set maximum working
hours and minimum rest and break periods for workers. The
section of the Act that regulatesworking hours does not apply to:
o workers in senior managemento sales staff who travel and regulate their own working hourso workers who work less than 24 hours in a montho workers who earn more than R115 572 per yearo workers engaged in emergency work are excluded from
certain provisions.
The maximum ordinary hours per day for someone who works
one to five days per week is nine, the maximum amount of hours
per week is 45. For those who work more than five day per weekshould work a maximum of eight hours per day and 45 hours per
week. Workers may agree, in writing, to work up to 12 hours a
day without getting overtime pay. However, these workers may
not work more than
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o 45 ordinary hours a weeko 10 hours overtime a weeko five days a weekWorkers must have a meal break of 60 minutes after five
hours work. A written agreement may:
o reduce meal intervals to 30 minuteso eliminate meal intervals for workers who work less than 6
hours a day
Workers must have a rest period of 12 hours each day; and 36
consecutive hours each week (must include Sunday, unless
otherwise agreed).
Workers working between 18h00 and 06h00 must:
o get an allowance, oro work reduced hours, ando have transport available to them.
Skills Development Levies
Employers must pay 1% of their workers pay to the skills
development levy. The money goes to Sector Education and
Training Authorities (SETAs) and the Skills Development Fund to
pay for training. The Skills Development Levies Act applies to all
employers except
o the public service;o religious or charity organizations;o public entities that get more than 80% of their money from
Parliament; and
o employers:o
whose total pay to all its workers is less than R 250000 per year; and
o who do not have to register according to the IncomeTax Act
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Employers who are required to pay the skills development
levy must register with the South African Revenue Services
(SARS). Employers must pay 1% of all their workers pay to the
skills development levy every month. Employers must pay the levy
to the South African Revenue Services (SARS) by the seventh dayof each month. Employers who do not pay will have to pay
interest on the money they owe and may also have to pay a
penalty.
What is PAYE
All employers are required to deduct Employees Tax from
their salaries. The amounts deducted must be paid by the
employer to SARS on a monthly basis. The process of deducting
or withholding tax from remuneration as it is earned by anemployee is referred to as Pay-As-You-Earn (PAYE).
Employers are required to:
1. Deduct the correct amount of tax from employeesremuneration.
2. Pay this amount to SARS monthly, ensuring SARS receivesa Monthly Employer Declaration (EMP201).
3. Reconcile these deductions and payments with thecompletion of the interim and annual EmployerReconciliation Declarations. During the reconciliation
periods, employers are required to submit an Employer
Reconciliation Declaration (EMP501) confirming or
correcting the PAYE, SDL and UIF declarations per
EMP201s submitted, the payments made and the tax values
of the Employee Tax Certificates [IRP5/IT3(a)].
4. Issue tax certificates to employees5. An employer must issue an employee with an IRP5/IT3(a)
where remuneration is paid or has become payable and
from which Employees Tax was deducted. The IRP5/IT3(a)
discloses the total employment remuneration earned for the
year of assessment and the total deductions. IRP5/IT3(a)
certificates must be issued to employees during the annual
Employers tax season.
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Seek professional advice
There is a lot to keep track of once you become and
employer. It is advisable to call in an expert. You can use the
services of a suitable experienced and qualified HR consultant
who can help to set up the principles and processes of the above,
and then work on an ad hoc basis only as and when needed
reducing the cost of a full-time HR manager.
3. Do you think entrepreneurship is not for everyone? Why or
Why not..
I think anyone that has their own business can be
"entrepreneurial". If it is on the side, or for fun or extra income or
the like, it is again entrepreneurial in nature. That is not being an
entrepreneur though. Until it is your sole source of income, by
choice, for an extended period of time - it is just an
entrepreneurial hobby or investment. I do think someone that is
truly self employed though is an entrepreneur. Steve Blank calls
them small business entrepreneurs. Again though, that's
assuming it is how they derive their primary income. If it's owninga small flower shop they work in every day, then great, they are a
small business entrepreneur.
4. What tools are used in developing strategy ?
Strategic planning is an important activity for any
business. There are a variety of analytical tools available to
planners that can be readily implemented by both novices and
experts alike. These tools can help the planning team focus on
those activities most important to the organization and ensure
that the plan is designed to meet specific business needs.
SWOT
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The SWOT analysis is a commonly used analytical tool used
during the strategic planning process. It is a simple tool that is
basically a brainstorming process. SWOT stands for strengths,
weaknesses, opportunities and threats. Strengths and
weaknesses are internal to the organization. Opportunities and
threats are external. During the strategic planning process the
team leader will lead the planning group through a brainstorming
exercise covering each of these elements of the SWOT. Once done,
the lists will be prioritized and the items generated will serve as
an important input to the development of goals, objectives,
strategies and tactics.
Scenario Planning
Scenario planning may sound complicated, but it is
actually a very simple process that companies use during
strategic planning to help them consider various impacts on their
business, both positive and negative. By considering things that
might happen, the planning team is able to anticipate various
impacts and plan for those impacts proactively.
Five Forces Analysis
Business expert and Harvard Business School professor
Michael Porter developed five forces analysis in the late 1970s as
a way for strategic planners to consider the various impacts on
their organization from both internal and external perspectives.
During five forces analysis the planning team considers impacts
from five sources: bargaining power of customers, bargaining
power of suppliers, threat of new entrants, threat of substitute
products and rivalry among competitors.
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Submitted By:
Modina, John Michael D.
BSHRM A-22(am) Submitted To:
11-0043 Prof. Nicholas Cage Purog