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. companies and firms can also choose to support micro entrepreneurs. Moreover,

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 companys 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 UNs report on Unleashing Entrepreneurship: Making Business Work that helps small and medium-sized enterprises unleash their full economic and social potential, and advocate nutrition education through mass media in which buyers will patronize products with Sangkap Pinoy seal.

INSIGHTS: Business. This term is plays an important role in ones economy. Businesses are the growth of the most successful economy since they create products and services which people can use and utilize to become more productive in their daily lives. Moreover, they also provide employment opportunities to people, which can become reasonable career paths and choices. Because of these, some countries economy continue to soar high and prosper due to good business techniques and strategies. Amidst the economical prosperity experienced by some of the developing countries, we cannot deny that there are still flaws that delay them in attaining absolute affluence. We can name poverty as one of these flaws. Poverty is very crucial to business since it can have a direct effect to the former. You cannot have business in a community dominated by poor people. If you do, how can you sell your products to them? Is it through discounts and sales? That cant be. That is why it is just right to say that companies and firms should help the unfortunate people in leveling up their status because it is not just for this kind of people; it is also for their benefit. Businessmen can perform this through giving jobs and employment. This action will be the foundation of progress. However, I believe there are still other actions businessmen can do in order to address this issue of poverty. It is so depressing to know that the Philippines is one of those countries having high rate of impoverished families. The issue here is not only about the availability of jobs and employment and the lack of governmental and banking support but I consider that it is also because of the attitude of the people to be lazy. Although we are rich in natural resources, people do not know how to utilize these resources efficiently. Our country has agriculture potential, agriculture resources and agriculture goods that can really help people to advance. Conversely, care-takers of these, especially the farmers, are becoming indolent resulting in many farmers investing even less or no extra efforts at all to improve harvest or to improve quality of agriculture products and efforts to expand period of possible harvest which leads to increase volume of harvest widely missing. Now, government sectors are targeting two distinct factors of poverty. The proportion of families living under the subsistence level of about Php107.00 or the Php21.50 per capita food threshold should be split fifty-fifty. Yes, it is a good plan but I think, as mentioned earlier, it could be more easily ended if people will try to work hard and use their capabilities to utilize their available resources in order for them to develop. They shouldnt just depend and depend on the help coming from the government. They shouldnt put their lives at risk. Through this, it will not take time for the plan to take effect anymore then there should businesses follow. Giving these people jobs would supplement the process of their growth

as inhabitants of the society. Nevertheless, providing careers for them is also problematic in areas where peace and order are rare -- ARMM for example. Investing businesses there would be odd because investors are afraid that they might have a loss since sales in this kind of place is contained due to wars and killings. It is discouraging us to know that just because of this, other nations already called Philippines as a country of high-risk business location. That is where I am confused about. I dont have an idea how the government would solve this kind of trouble. I am really hopeful that through time, this view would be changed and that we will be called as the country of business. The number of people who consume below the minimum level of dietary energy consumption and the number of children who are underweight should be halved. It is indeed a brilliant but problematic plan. The government cannot immediately solve this just by a snap of the fingers or just by a blink of an eye. People first should have an adequate resource in order to prevent malnutrition; but how can they achieve this if there is an unfair distribution of these resources. The blessed ones receive more while leaving a few to the unfortunate ones or sometimes, none at all. The government should not start directly to the issue of malnutrition but from itself the officials, employees and the powerful. All these times, the government had been implementing laws regarding the distribution of the basic commodities to poor families but the reason why we can barely see improvement is that the government itself is also problematic. Improve yourself first so you can help improve others as well. And so, my fellow Americans: ask not what your country can do for you. Ask what you can do for your country. This line by J.F. Kennedy might inspire businessmen to help their country by providing jobs to unemployed ones. I believe that this can help lessen the case of poverty. Since people have the finance to buy and eat three times a day, there will also be less rate of malnourishment. Companies can redirect a portion of their investment resources to provide employment or generate business opportunities with the spin-off effect of creating more jobs and raising more incomes. Furthermore, the banking and financing sector can expand credit facilities to underserved areas in order to reach SMEs. I deem that the firms and the employees will have mutual effect through this. This will be chance of those unskilled people and those who werent able to graduate schooling and therefore lack experience to earn in a good way and be active citizens of this country while they also make the firms that helped them to earn more profit. I just have this theory that if also large scale business corporations and companies are willing to do this, there will be a great chance that poverty rate of our country would immensely decline and the economy will boom.

How about those people who already had micro businesses? Based on my readings, this kind of business plays a major role in the economy since they hold 99% of the businesses in the country so they must have a huge impact in the economy. In order not to depress our economy, big businesses should aid in improving them. Companies could establish relationship between them by engaging them as service providers or building their capacities to become a potential part of the companys supply chain. Assisting them financially is also like assisting the economy. As well, if all of the micro businesses are given support, there is no doubt for a better economy. The nation is what it is because its citizens are what they are. This comply the food fortification and nutrition program. If the people are progressive, so does the country. If the people arent productive, so does the nation. To avoid this, the government must empower its citizens to be as productive as they can be so they can do the best they can do. It can be done through making them healthy and fit so they can perform their duties and responsibilities well; but how? The government can create nutrition program and food

fortification which should be put into practice in all areas of the country. The creation of Sangkap Pinoy seal is a grand step in accomplishing this aim. Of course, businesses must find their niche in the society in order to work well and gain profit. I guess the problem of our businesses is that there are some places which do not fit for some businesses like the ARMM perhaps. Businesses rarely work there.

Businesses should follow the societal trend of a place (not just the trend but also the season). If this is achieved, then mentoring of the employees of the business techniques and strategies follows. Incompetent employees are problem of the businesses here in the Philippines. They should be taught well of some business things and technologies so they can be of good use to the country someday. Furthermore, companies establishing feeding programs are, I can say, are smart and considerate ones of thinking of the peoples welfare. While doing this, they are already helping their company for marketing while also helping the fellow Filipinos as well. It is only wise that all companies would do this since they are not just helping the unfortunate people but they are also protecting their firms. Thinking about the society its trends, composition, and etc. is a very strategic business way. Since only opening up, starting businesses should not be given lots of requirements before the government can call these businesses as legal or recognize them as part of the countrys operating businesses. The reason why small businessmen in the Philippines are being discouraged to continue operate their business formally is that the government is clipping them. Aside from requirements galore, they are not given enough and adequate incentives so they can operate their businesses well. Through this, I can say that making

businesses work for the poor will be of no difficulty. The government can now focus on the poor people on how to function businesses in their locale. It should not be just the work and responsibility of huge businesses but also of the poor people. They should try hard to accept and availability of themselves to deal with business. I agree that the things should be done as an initiative includes the teaching of the various business knowledge, expertise, resources and relationships (as an orientation). After the orientation is the training. Big

businesses can also share their wealth to them so the latter can have access to larger markets, finance their needs, and acquire business skills. I believe that all of these things should be solely given to those families who are in the bottom of the pyramid. If the government intensifies the completion of acquiring the Sangkap Pinoy seal for the companies here in the country, our economy will not only increase its rate but it will also decrease the rate of poverty and malnutrition. Through this, they will feed the malnourished children healthy food while making their profit gain more through the media. The media is an important device for businesses to maximize profit. If they vest the seal on their products, they are not only trying to help the children but they also have their market advantage. The government and the media will endorse those products with the seal. As a two way result, the consumers will tend to buy these products more while making profitable income for the companies manufacturing these products. As we can see business and poverty are very much related. If businesses boom, poverty falls. I hope that businessmen will not close their doors to the poor and unfortunate ones. If they would just help them, they will lose nothing; in fact they will gain something. They will also benefit in their aid to them. Business and government should also work hand in hand in order to achieve absolute affect on busting the issue of poverty in the country. The more I study the wealthy.. in an effort to learn how to help more people around the world become one of them.. Im stunned by how many people are actually not rich. I hope this line of David Bach will be an inspiration to the businessmen, not just in our country but also with the other countries.

RECOMMENDATIONS: To fully achieve the goals of the government regarding the incident of poverty in the Philippines, they should strongly overcome the hindering factors that prevent them to achieve what they aim for. They should fight in any way they can just for the betterment of the majority. They should not settle for mediocrity; they should aim high. In the case of the ARMM peace and order state, I recommend that the government should first know and understand why the rebellions are doing what they are doing now. They should be understood of what they are asking for. If it is possible to give, then why not give it to them if the outcome will be a better economy and peace and order state? They should analyze well if the government will be benefited more than the armed groups. Through this, it will be safer for the businessmen to invest in any part of the country making our economic activity function well while lessening the incidence rate of poverty in the Philippines. In the case of the government incompetency, I think the government should check first have an internal check up for some deficiencies and deficits. They government officials, employees, and everybody else in the sectors should primarily be competent enough to do work and projects, etc. They should be competent first before would try to have an action on the above mentioned goals and objectives for the country.

RESPONDING TO THE MILLENIUM DEVELOPMENT CHALLENGE:

A Roadmap for Philippine Business

BUSINESS and POVERTY

(A Requirement of Economics 11) First Semester A.Y. 2010-2011

Submitted by: Kevinson Justol Obrero B.S. in Management II

Submitted to: Professor Anna Marie P. Talam Faculty Economics 11