CDO-Foodsphere, Inc and the UN Global Compact:
Our Communication on
Progress
CDO-FOODSPHERE, INC. (FSI) reaffirms our support to the ten principles of the
Global Compact in respect to human rights, labour rights, the protection of the
environment and anti-corruption. With this communication, we intend to report on our
policies, activities and other programs in relation to Global Compact’s principles.
-- JEROME D. ONG
President-General Manager
Human Rights
 Principle 1 – Businesses should support and respect the protection of
internationally proclaimed human rights; and
 Principle 2 – Make sure that they are not complicit in human rights abuses.
Labor Standards
 Principle 3 – Businesses should uphold the freedom of association and the
effective recognition of the right to collective bargaining
 Principle 4 – The elimination of all forms of forced and compulsory labor
 Principle 5 – The effective abolition of child labor
 Principle 6 – The elimination of discrimination in respect of employment and
occupation
Environment
 Principle 7 – Businesses should support a precautionary approach to
environmental challenges
 Principle 8 – Undertake initiatives to promote greater environmental
responsibility
 Principle 9 – Encourage the development and diffusion of environmentally
friendly technologies
Anti-Corruption
 Principle 10 – Businesses should work against all forms of corruption, including
extortion and bribery.
 Human Rights
Principles 1 & 2
We, at FSI, recognize our responsibility to uphold human rights in the workplace as well
as within our sphere of influence. We firmly believe that our employees play a vital role
in the success and continuous growth we are experiencing right now. Thus, one way of
showing them how we truly appreciate their efforts in helping us realize our goals and
objectives is through the benefits1 that we continue to provide them with. Examples
include:
 Educational Subsidy – Education is believed to be a strong foundation for future
success and excellence of an individual. FSI believes in the philosophy, and this
is manifested in its Dependents Educational Subsidy. This program enables
dependents of employees to avail financial support during the school years of
their dependents.
 Birthday Benefit – The Company grants a birthday leave with pay for each
covered employee. Work rendered during a birthday shall be paid double his/her
basic rate for that date. The Company has also institutionalised the giving of
personalized birthday cards and birthday tokens for each employee.
 Service Loyalty Award – FSI gives out service loyalty award to its employees
who have had five (5) years and above of service. This is in the form of
Certificate of Recognition, a special gift and a cash incentive.
 Company Retirement Benefit Program – On the 27th Anniversary celebration, a
superior but non-contributory Retirement Benefit Program took effect. It covered
separation pay and retirement benefit in recognition of length of service and age.
Benefit ranges from 0% to 50% of the salary, for service rendered 6 years and
above, 75% of salary, if 50 yrs. old and with 5 years of service as early retirement,
and 100% of salary, if 60 yrs. old and with 5 years of service.
1
The term benefits used here refers to the benefits in addition to those which are mandated by the
government. For a complete list of benefits provided to employees, please refer to CDO-Foodsphere, Inc.
Benefits Manual. (Annex 1)
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Traditional Pamano – It has been a part of FSI’s culture since its existence to
give cash gifts for every dependent of its employees after having traditional
‘pamano’. This is usually done during the company’s Christmas Celebration.
Group Accident Insurance – FSI also ensures security of field personnel who are
prone to risk or accidents. Managers, Heads and field personnel who are covered
by this plan can avail the benefits of such in time of death, disability and physical
injuries and medical expenses due to accident.
Operators Insurance – FSI also provides assistance to its machine operators.
They can avail of this insurance security in case of accidents.
Uniform Subsidy – Office and plant uniforms of regular employees are issued by
the company free of charge. For newly-hired plant workers, T-shirt, safety boots,
water repellant pants, facial mask, head cap, hair net and gloves are provided.
The payment for these materials is deducted through salary deduction scheme.
Plant uniforms issued are necessary, adaptable and sufficient with respect to
working condition and hygienic to food manufacturing.
Product Discounts – An employee could avail discounts from the existing list
price of CDO products through the factory outlet. For fresh processed meat
products, an employee has 10% discount and 5% discount on canned products of
the company.
Physical Fitness – The Company promotes physical fitness among its employees
by conducting sports activities such as basketball and volleyball, and provides a
P150.00 uniform subsidy for each player subject to the existing guidelines on
maximum number of teams and players per team.
Bereavement Assistance – The Company provides bereavement assistance to
covered employees in the amount of P10,000.00 in case of death of a regular
employee and P5,000.00 in case of death of legal spouse/child of married
employees, or parents for single employees.
Per diem/Lodging Allowance/Car Plan – Per diem or meal allowance and
lodging allowance is given to employees who are in fieldwork or out of base. A
Car Plan is also provided to managerial position holders and those who are always
on fieldwork. FSI gives them the opportunity to own a car through this program
for mobility convenience purposes.
We, at FSI, also adhere to the Workplace Drug-Free Policy of the Department of Labor
and Employment. As of 2004, we have been formally declared as a drug-free workplace
for two (2) consecutive years.
 Labor Standards
Principles 3, 5 & 6
FSI also believes that it is our responsibility to uphold the elimination of discrimination
in respect of employment and occupation. This can be demonstrated through the high
regard we give to women in our organization. We have not limited them to occupy only
the rank and file positions but have recognized their capabilities and have considered
them even for higher positions such as Supervisory, Managerial and Executive. To date,
female employees account to about 45% of our total workforce.
In addition, pregnant employees, may opt not to be assigned to work shift between 10:00
p.m. and 6:00 a.m. of the following morning. The grant of such consideration is
evaluated upon formal request and the due assessment of the employee.
FSI also believes that it is our responsibility to eliminate all forms of child labor. For that
matter, we see to it that we do not engage any minor as part of our workforce, whether for
manufacturing operations or office work.
We also recognize that our employees have the right to freedom of association and
collective bargaining. As such, Management supports our employees organization, the
Foodsphere, Inc. Employees Independent Organization (FIEIO), as well as its activities
and programs. The company also provides the Union with an air-conditioned office,
complete with furnishings, within the company premises. The Company also assist the
Union in organizing a credit cooperative by granting a loan of one hundred thousand
pesos (P100,000.00) which the latter shall pay within three years without interest in 36
equal monthly instalments.
FSI and FIEIO also created a Labor-Management Coordinating Council for the purpose
of discussing issues affecting them. Both also agree to cooperate and develop
Management-Employees Program designed to increase productivity, promote work
values, commitment and to evaluate employee’s performance efficiency and competence.
 Environment
Principle 7
In response to the call for companies to be more environmentally concerned, FSI had
appointed a Pollution Control Officer (PCO) to actually monitor the company’s activities
that could potentially harm the environment. The PCO submits quarterly a SelfMonitoring Report (SMR) to the Department of Environment and Natural Resources
(DENR). The SMR contains the company’s report on its actual performance in
compliance with DENR requirements. We also engage in other projects in collaboration
with DENR, examples of which include the water scrubber, bunker fuel testing and
wastewater testing.
 A glimpse of 2004
In June 2004, Odyssey Foundation, Inc. (OFI) was launched as the corporate social arm
of CDO-Foodsphere, Inc. The establishment of OFI is a clear manifestation of the
organization’s pursuit to widen its community involvement and increase social
responsibility. (Principle 1)
Odyssey Foundation is a charitable, humanitarian, philanthropic research and advocacy
foundation. Its mission is to provide a channel of aid and assistance to benefit the needy,
particularly the children. Its vision is geared, towards nourishment of less fortunate
Filipinos; child and youth welfare development; livelihood enhancement program; health
& nutrition advocacy and promotion.
Since its inception, OFI has done so much in extending help to our less fortunate brothers
and sisters. Some of its regular beneficiaries are Project Matthew and He Cares
Foundation2. OFI had also made a number of donations to the typhoon victims (Dec.
2004) thru ABS Foundation and GMA Kapuso Foundation.
Another project which is a manifestation of FSI’s social responsibility is the Blood
Letting Program, being held annually. This is done regularly to support the Blood
Donation Drive of Philippine National Red Cross-Valenzuela Chapter. All blood
‘He Cares Foundation’ is a streetchildren caring center. At present, the Foundation cares for about 300
streetchildren. Its program includes Balik Loob sa Diyos; Balik Kalusugan’ Balik Bahay; Balik Arak and
Balik Hanapbuhay.
2
donations will then be distributed to the different hospitals within Valenzuela City.
Employee-donors totalled to around 61 last year.
It
was also in 2004 when FSI had another round of review of the existing Salary
Structure. (Principle 1 & 6) The purpose of this is to re-align the level of technical and
other positions in the structure. Indeed, there were some positions that were affected by
said re-alignment. While most organizations tend to regard their employees’ roles as
only limited in the production and manufacture of the company’s goods, here at FSI, we
treat them differently. They are not only seen as individuals performing only specific
tasks assigned to them but more importantly, members of the organization who each has
significant contribution to the organization’s overall success.
In turn, this salary re-structuring had resulted to positive outcome in the form of
increased employee motivation. The employees also see this as an opportunity for them
to further improve their performance as a way to prove that they are worth the importance
being given to them by top management. This also helped foster an environment wherein
employees feel that they are considered as important part of the organization and that
their performance are given due recognition.
As
earlier mentioned, the company has an existing program called ‘Dependents
Educational Subsidy.’ (Principle 1) It’s worth mentioning that last year’s total expenditure
on educational subsidy increased by 35.374% compared to previous year.3 The figure
only shows how FSI values education. This is also a means by which the company
extends its concern to employees’ dependents. The program is a great help especially to
those whose earnings are at minimum level. This is also one way of reflecting the
company’s interest to promote and instil the value of education to its employees. Since
one of the requirements to avail the benefit is to submit a copy of the grades, the
dependents (students) are also encouraged to do better in school. Parents (employees) are
also encouraged to encourage their children to study harder. And they are even doubly
rewarded when they receive honours and awards.
Another regular project of FSI to promote the well-being of its employees is the Medical
Mission.4 This is provided to all employees including their dependents. This is being
done every year and some of the medical services that can be availed are Pediatric and
3
4
Refer to HRD records/report on Educational Subsidy Comparison 2003 & 2004 (Annex 2)
Refer to HRD records/report on Medical Mission 2004 (Annex 3)
OB-Gyn consultation, dental check-up and tooth extraction, eye check-up, minor surgery,
ECG, and free medicines.
FSI
continues to practice globally recognized food safety systems such as Good
Manufacturing Practices (GMP) and Standard Sanitation Operating Procedures (SSOP).
It’s effort and dedication to excellence has been rewarded when the Department of
Agriculture – National Meat Inspection Commission granted HACCP Certificate to CDO
Bibbo! Hotdog, as well as (Pizza Hut’s) Pork and Beef Toppings in 2004. HACCP
(Hazard Analysis and Critical Control Points) is a preventive and systematic approach
used all over the world to protect food supply against hazards to human health. (Principle
1& 2) HACCP is synonymous to global food safety. It is recognized and recommended
by the Food and Agriculture Organization of the United Nations as the most effective
way to prevent food-borne illness. As an internationally recognized system, it addresses
biological, chemical and physical hazards by anticipating and preventing occurrence of
such. Having granted the certificate means that the manufacturing process for Bibbo!
Hotdog, Pork and Beef toppings have passed the rules mandated by HACCP, signifying
the product’s safety and highest quality.
ANNEX 1
FOODSPHERE, INC. BENEFITS MANUAL
The CDO Way
Recognized as the country’s “Best Meat Processing Plant” for three consecutive years (1999, 2000 and
2001) by the Department of Agriculture (DA) through the National Meat Inspection Commission (NMIC),
CDO-Foodsphere, Inc. is committed to uphold on its dream to provide customers high quality nutritious
food products at lower prices. Today, Foodsphere dedicates itself to the pursuit of dynamic objectives : To
Nourish Life and To Nurture Partnerships.
Behind the company’s continuous growth and excellence in the field of meat processing are its high calibre
employees who are focused on the realization of Total Quality Management.
In return, let us see how the company takes care of its employees.
Statutory Benefits
FSI has always been socially responsible in all its dealings. That is why it is very particular in following all
government mandates, especially in terms of employee benefits. They are as follows:
Overtime and Night Differential Compensation
Employees working in excess of their regular working hour are paid, provided that the excess of
their eight-hours work has been outranged and approved by their immediate superior and they are
accordingly paid based on the premium of OT/RD/NDP in accordance with our labor code.
Rest Day
Regular working days shall normally be six days per week, from Monday to Saturday. The usual
rest day is Sunday.
SSS/Philhealth/PAG-IBIG
We, at FSI, are all members of SSS, Philhealth and Pag-ibig. We enjoy the benefits being
provided by these agencies which include sickness, disability, retirement, death and maternity
reimbursement as well as loan availment.
13th Month Benefit
As the year ends, we at FSI are confident that we will be receiving our 13 th month pay. FSI grants
13th month equivalent to one (1) month salary in full, provided that the employee has not exceeded
five (5) days of leave without pay during the duration of the year. Otherwise, benefit shall be
computed on a pro-rata basis.
Paid Holidays
Legal holidays shall be paid as provided for by law.
Maternity Leave
For maternity leave:
78 days leave (caesarian)
60 days leave (normal)
Retirement and Separation Pays
Any employee, upon reaching sixty (60) years old, may retire from the service of the company and
shall be entitled to a retirement pay of fifteen (15) days for every year based on his/her recent
basic rate. Also, as provided by law, employee who resigned voluntarily is not entitled to
separation pay.
Company Work-Related Benefits
FSI always set in its vision that all covered employees receive the most basic of benefits that will be of
great help in the performance of their duties. Here they are:
Plant Uniform
Office and plant uniforms of regular employees are issued by the company free of charge. For
newly-hired plant workers, T-shirt, boots, water repellant pants, facial mask, head cap, hair net and
gloves are provided. The payment for these materials is deducted through salary deduction
scheme. Plant uniforms issued are necessary, adaptable and sufficient with respect to working
condition and hygienic to food manufacturing.
Canteen Services
To ensure that employees will be eating clean, delicious and nutritious food within the company
premises, the company provides a company-operated canteen at cheaper/reasonable prices.
Car Plan/Car Loan Program
For managerial position holders or those who are always on fieldwork, FSI gives them an
opportunity to own a car through this program for mobility convenience purposes.
Locker Facilities
These facilities are provided to suffice temporary storage/shelter for the employee’s personal
belongings taking into consideration hygiene and sanitation and employee’s safety and
orderliness.
Christmas Bonus
Employees of FSI also enjoys P500.00 as their Christmas bonus.
Shuttle Bus Services
FSI takes care even the manner of how employees get to the office! Shuttle bus services are
provided with strategically situated pick-up and drop-off points for employees convenience.
Surely, on this company’s program, employees will substantially save a part of their transportation
expense.
Paternity Leave
For paternity leave:
Pursuant to R.A. 8187, the company is giving 7 days paternity leave.
Birthday Benefit
The company grants a birthday leave with pay for each covered employee. Work rendered during
a birthday shall be paid double his basic rate for that date. With due recognition, the company is
giving away a personalized birthday card.
Medical Benefit
The company provides free annual medical check-up to all covered regular employees who have
rendered at least one (1) year of service to maintain physical and medical fitness.
Aside from regular nurses, retained company doctors and an accredited hospital attend to the
employees’ medical needs and hospitalisation in case of emergency in 24 hours basis.
Expense incurred in hospitalisation and confinement due to work related injuries are shouldered
by the company without reimbursing the benefit of the employee derived from Philhealth and SSS.
FSI has also created a Safety and Health Committee who are responsible for promotion of the
health and safety of workers.
Medicines
Medicines are available at the Clinic/HRD Office for employees to avail in times first aid
treatment is needed. Medical assistance by the health officer of the company is offered free.
Blood Donation Incentive
In times of humanity calling, employees of FSI are always there to share the fluid of life – blood –
to their in need brothers and sisters.
An incentive of P300.00 as cash allowance is given. Aside from that, a one (1) day vacation leave
with pay is issued to those who have passed the screening and have donated blood.
A certificate of recognition is issued to those who have taken part in giving second life to those
whom they have helped.
Educational Subsidy
Education is believed to be the strong foundation for future success and excellence of an
individual. FSI believes in the philosophy, that’s why it has its own Dependents Educational
Subsidy. This program enables dependents of employees to avail financial support during the
school years of their dependents.
Company Product Discounts and On-Credit (ECAF)
An employee could avail discounts from the existing list price of CDO products through the
factory outlet. For fresh processed meat products, an employee has 10% discount and 5%
discount on canned goods product of the company.
Aside from the discounts an employee could avail, Employees Credit Approval Form is issued, for
them to bring home CDO products and pay the purchased products through a salary deduction
scheme.
Sports and Recreation
The company promotes physical fitness among its employees by conducting sports activities such
as outdoor games like basketball and volleyball and indoor games like chess, darts and table
tennis. There is also a P150.00 uniform subsidy for each player subject to the existing guidelines
on maximum number of teams and players per team.
Salary Alignment
I am assured that my salary is within the standards set by the government and competitive with the
industry bracket where my company is operating on.
Per Diem/Lodging Allowance
Per diem or meal allowance and lodging allowance is given to employees who are in fieldwork or
out of base.
Traditional ‘Pamano’
It has been a part of FSI’s culture since its existence to give P100.00 for every dependent of its
employees after having traditional ‘pagmano’. This is usually done during the Christmas
Celebration of the company.
Christmas Party, Anniversary, Company Outing
FSI employees also have time to unwind from their work. Special gatherings on special occasions
are prepared for every year for FSI employees to enjoy their stay with the company. Christmas
party usually happens on the month of January.
Service Loyalty Award
FSI gives out service loyalty award to its employees who have had five (5) years and above of
service. These are in the form of Certificate of Recognition, a special gift and a cash incentive.
Paid Leaves and Allowances
In the course of one’s employment, he can avail of the following paid leaves and allowances.
Vacation and Sick Leave
The company provides service incentive leaves. The incentive is patterned as follows:
Sick Leave – 9 days
Vacation Leave – 7 days
Unused SL and VL credits earned during the calendar year shall be converted into cash and will be
received not later than the 30th of March of the succeeding year.
Supervisor’s Allowance
FSI Management recognizes actual extra time rendered by employees who no longer enjoy
overtime pay under eight (8) hours rule, and the need to grant them equivalent benefit. This
benefit will replace existing overtime pay previously agreed and enjoyed by other Supervisors.
Group Accident Insurance
FSI also ensures security of field personnel who are prone to risk or accidents. Managers, Heads
and field personnel who are covered by this plan can avail the benefits of such in time of death,
disability and physical injuries and medical expenses due to accident.
Company Retirement Benefit Program
On the 27th Anniversary celebration, the Company Retirement Benefit Program took effect. It
covered separation pay and retirement benefit in recognition of length of service and age. Benefit
ranges from 0% to 50% of the salary, for service rendered more than 5 years, or 75% to 100% of
salary, if 50 years old and 5 years of service and above.
Operators Insurance
FSI also provide its assistance to its machine operators. In case of accidents, an insurance security
is there for them.
Death Support
Bereavement assistance to covered employees:
P10,000.00 in case of death of a regular employee,
P5,000.00 in case of death of legal spouse/child of married employees, and;
P5,000.00 in case of death of parents of single employees.
Truly, Foodsphere, Inc. gives its utmost best in taking care of its employees. One can repay such
kindness of the company through hard work, dedication, loyalty and commitment to every aspect
of the CDO-Foodsphere, Inc. way.
Indeed, with FSI “ANDITO NA LAHAT, WALA KA NANG HAHANAPIN PA!”
ANNEX 2
65
77
21
33
35
80
30
75
25
70
20
65
15
10
60
5
55
1
0
2
1
Note:
65 (46%) employees avails the Educ. Subsidy last 2003
77 (54%) employees avails the Educ. Subsidy last 2004
Note:
21 employees did not submit/avail the educ.subsidy for 2004
additional 33 employees avails educ. subsidy for year 2004
51,450
69,650
58%
Note:
51,450 - Total amount for 2003
69, 650 - Total amount for 2004
2
42%
ANNEX 3
MEDICAL MISSION 2004
Services
MEDICAL
PEDIA
DENTAL
SURGERY
OB/GYNE
EYE CHECK-UP
ECG
No. of persons who availed
56
101
119
40
9
28
33
MEDICAL
7%
9%
PEDIA
15%
DENTAL
2%
10%
SURGERY
OB/GYNE
26%
31%
EYE CHECK-UP
ECG