PNOC EDC Case

The Budget Meeting Attendees

Statement of the Problem:

What measures should Paul Aquino consider in order to address the issues of the geothermal site and headquarters PNOC EDC employees on the annual budget for energy camps?

Objectives:

• Identify the significant issues of the employees about the subsidizing of the budget for CSR programs
• Determine the cause of the under appreciation of CSR programs by PNOC EDC’s own employees
• Diagnose shortcomings of the company in regards to business ethics towards its employees, and
• Establish a sound recommendation with the regards of the issue confronted by management

• Energy Camps and CSR Programs
• Annual Budget for Camps (600,000 PHP for 2007)

B. Ethical Issues: Business Ethics Perspective

• PNOC EDC as the acting government in far-flung areas
• PNOC EDC as being accountable to the public

Safety of employees (Geothermal and HQ)

Geothermal Employee’s Satisfaction

Headquarter Employee’s Satisfaction

Public Image

Sustainability of the Company and its projects and programs

Criteria Weights

Safety - 25%

Geothermal Employee's Satisfaction - 15%

Headquarter Employee’s Satisfaction - 15%

Public Image - 10%

Sustainability of the Company and its projects and programs

- 35%

ACA 1: Status Quo: Retain allocated budget to Energy Camps

ACA 2: Service Learning Program

ACA 3: Allocate the P600,000 to the benefit of the Fort employees

Step 1. Identify incentive needed for the employees who participate in the CSR Programs with the help of Human Resource Department

Step 2. Create the Service Learning program for the employees who will participate in the camps together with their own training that can help them in improving their technical and soft skills. This will also entail the roles and responsibility of the employees during the camps

Step 3. Identify the budget needed for the participation of the employees

Step 4. Select how many employees will participate in first camp of the year as the pioneer batch

Step 5. Document the experience of the HO employees (this will enable them to share their experience with their fellow employees (just like the way the kids share theirs that made others wanted to join the camp). Through this, the company can measure the effectiveness of the camps with the employees involve.

Step 6. Gradually increase the number of employees per batch that will attend the energy camp

Decision Criteria

Case Narrative

Alternative Course of Action

Budget Meeting

Classmates as the Employees

Accounting Manager

Philippine National Oil Company -

Energy Development Corp.

Company Profile

• Presidential Decree no. 334
• A state owned company
• Develop alternative ways of producing energy
• The second largest producer of geothermal power in the world
• generated close to 75,000 gigawatt-hours of steam and electricity, which displaced more than 123.5 million barrels of oil

Implementation

EVALUATION

ACA 1: Status Quo: Retain allocated budget to Energy Camps

ACA 2: Service Learning Program

ACA 3: Allocate the P600,000 to the benefit of the Fort employees

PNOC EDC Case Study