CHIMES ENTERPRISES UNITED NATIONS GLOBAL COMPACT INITIATIVE Communication On Progress -2006 COMPANY BACKGROUND In May 1998, Salvador Rico Poserio ventured in a sole proprietorship type of enterprise. He put up CHIMES Enterprises, a marketing and service company in Poblacion, Calasiao, Pangasinan (a small town). Back then, the business operated under the name Christian Marc Enterprises (CME), specializing in the provision/ repair/ maintenance of office machinery such as typewriters, calculators, and school or office supplies. Over time, the company became the exclusive distributor of ACER plain copies. Alongside the distribution of these products, CME also covered sales of office machineries manufactured by Olympia, Kodak, Compaq and Hewlett-Packard as well as other brand names synonymous to office automation. The company further diversified its offerings by marketing quality local or imported furniture with complementary furnishing lines and products. To better cater to its expanding clientele, the Christian Marc Enterprises moved into its current home at Perez Boulevard Dagupan City (1998). Poserio took this opportunity to rename the company as CHIMES Enterprises, deriving the tag as an abridgement of “Christ Is the Manager of this Enterprise.” The 1990s were years of steady growth for CHIMES Enterprises, expanding its market coverage outside Pangasinan Province by opening an outlet at San Fernando, La Union (1990) and another at Baguio City (mid-1999). In the process, the company gained a reputable name in Region I and the Cordillera Region, eventually becoming a leading distributor of its kind in the said regions. To supplement its drive to becoming a total marketing and service company, CHIMES also began to proffer computer training, programming and photocopying services to its customers. The company even acts as a procurement agent of specific office and business needs for selected clients. In the period 2000-2001, the Enterprise grew further with the opening of CHIMES Musicmate in Burgos Street, Dagupan City (April 2000) and other CHIMES outlet in Laoag City (2001). CHIMES Musicmate operates both as a music school and dealer of musical instruments with Yamaha products and JB Music as its specialty merchandise. CHIMES Laoag on the other hand, follows the path of the earlier CHIMES establishments with the dealership of office machinery, furniture supplies, and music instruments. In June 2002, the CHIMES Group expanded into retailing of Christian literature, audio and video materials through the acquisition of a House of Praise franchise from Praise Incorporated. Two branches were opened simultaneously in Center mall at Baguio City and the Magic Club at Guilig Street, Dagupan City. As of the present, CHIMES Enterprises is continuously improving its product portfolio and service capabilities to sustain its hard-earned reputation as one of the best furnishing design and automation centers in its chosen market. The year 1997 saw the onset of the Asian economic crisis that adversely affected business performance in the region. CHIMES Enterprises was no exemption to this predicament. Coinciding with the external crisis, losses amounting P600 000 due to the burglary incidence in the Perez Boulevard display room of CHIMES further negated the company performance. The owner was not discouraged. He took the situation as a challenge for the company. He asked the cooperation of the employees in sharing the burden of keeping the enterprise operational and informed everyone that salary increases would have to be suspended. Employees accepted with the promise of having back the annual increases along with more benefits/ incentives when the crisis is over and the losses somehow recouped. The crisis situation also became a starting point for promoting business transparency. Poserio began sharing with the employees all relevant figures and facts pertaining to the performance of the company. Everybody then knew where the business stood and if any headway was being made. Each member of the CHIMES management and staff collectively worked towards keeping the business going through the difficult years of 1998 and 1999. Maintaining a harmonious relationship through an open line of communication between the parties enabled the company to steadily recover from whatever losses it had incurred during the crisis period. The Chief Executive Officer and manager of CHIMES Enterprises, in his search of measures to keep both his people and the business well-directed, going and sustainable, conceptualized this study. CEO STATEMENT CHIMES Enterprises is a signatory to the UN Global Compact Initiative, which it formalized during the 23rd National Conference of Employers in May 2002. The Sole Proprietor and CEO, Mr. Salvador R. Poserio participated in the Global Compact Leaders Summit in the Un headquarters, new York last June 2004 and the 2005 Global Compact Leaders Summit at China where the principles of anti-corruption, protection of human rights, upholding of Labor’s freedom of association & right to collective bargaining, elimination of compulsory labor, abolition of child labor, elimination of discrimination in employment, and specially the promotion of greater environmental responsibility has impacted and eventually brought change to the company. CHIMES Enterprises continues to believe, support and compliant to the principles of the United Nations Global Compact. In our belief and support to these principles of the Global Compact, our company had incorporated these principles in its mission and vision. In the accomplishment of the company’s mission and vision, we have set as one of our programmes and implemented the Work-Life Balance. This is one programme of CHIMES manifests its belief that success is brought about by giving employees choices to be able to fully commit themselves to work and feel comfortable about both commitments, which constitute their attitude toward their work. Our employees are our strength. Our employees’ benefits include medical, profit sharing, free education for their deserving dependents, interest free loans and subsidized housing. A twice a year company outings is consistently done to improve employer and employee relationship. We also want to be contributor to their spiritual upliftment so an annual retreat is always conducted. We instill in them that they are not merely employees but more so partners to let them feel their importance in the company. It is our company’s mission and vision to not only develop our employees for our own interest but to see them in the future as entrepreneur opening more job opportunities. Not only to develop entrepreneurs but more so people with integrity, responsible, not a burden to its own country but an asset and God loving/fearing individual, who could be assets not burdens. Our concern is not only confined within our company. We had outstretched our hands to be able to reach out to others. Being aware of the government’s unemployment problem, we coordinated with the Department of Labor in order that we could help in their project called the “WORKERS APPRENTICESHIP PROGRAMME (WAP)”. WAP is a programme open only to all unemployed in-school and out of school youth between the ages 18 to 25 years old, hiring of which should not exceed 3 months, with a compensation not to exceed 75% of the existing minimum wage as mandated by Labor Laws and Standards. CHIMES had been a supporter of this programme since it was launched in 2001. We are also a firm believer that youths are the hope of one nation. This belief inspired us to open doors for in-school youth for free trainings in order not to deprive them of gaining knowledge. In line with our company’s environmental programme, we had set a policy that every employee on his/her birthday will plant a tree. This programme of CHIMES had started in year 2005 and so far a total of 350 trees had been planted on a lot where the housing project for CHIMES employees is located. Aside from this programme, we also practice recycling particularly on papers. Our employees are also informed on the proper classification of garbage which they practice not only within our company but also in their homes. We continue to actively participate in the BE HONEST campaign of the Brotherhood of Christian Businessman and Professionals to instill in the minds of not only of our employees but also to the whole citizenry transparency, integrity and accountability. We take part in rallies and posting of posters to promote the advocacy. We are grateful to the United Nations through the Global Compact for this brilliant endeavor, that through business enterprise, big or small, a social change could be achieved. The establishment of a benchmarks and principles provided models that could be followed and emulated by a social citizen such as us We believe that we could make this world a better place to live if only we are willing to make our own little contribution. We, in our company believe that the light of a lighted candle could be shared if this is placed on place where this could be seen. HUMAN RIGHTS – principles 1 and 2>>> CHIMES Enterprises in its existence in the business community had always upheld the Universal Declaration of Human Rights. This is evidenced by the existence of an employees manual where our employees are informed of their rights and privileges., one of which is the establishment of an open communication between management and the employees through a regular employer/employee dialogue. A clear description and definition of duties and responsibilities of employees is also included in the manual. With the manual, the employees are then given the options/rights to be with the company or not. The employees also are given the benefit to grow in their own field or skill, as management offers/sponsors training/seminars. This privilege of development is not only extended to employees but also to their dependents who are deserving of scholarships. We believe that every human being has the right to education. A balance of work and life in effect. This implementation of the Global compact’s principles on human rights is not only confined by management in its workplace but also in its area of influence. We support our government’s programme particularly that of the Department of Labor, which is the WORKERS APPRENTICESHIP PROGRAMME (WAP). WAP is a programme open only to all unemployed in – school and out of school youth, between the ages 18-25 years old, hiring of which should not exceed 3 months, with a compensation not to exceed 75% of the existing minimum wage as mandated by the Labor Laws and Standards.. As of this date, CHIMES had hired a total of 15 youth, out of which 8 were hired. We believe that through this programme we were able to help in decreasing the percentage of unemployment in our area which in effect alleviate poverty. We also sponsored training for in-school youth for free in order not to deprive these youth of trainings and experience. A total of 60 in-school youth had benefited from our free trainings. CHIMES understand that every human being has a right to live a decent life, hence we are committed to give employment and we can only achieve this goal if we continuously grow as a business entity. We also believe on the principle of this dictum which states “Give man a fish and you feed him a day, teach a man how to fish and you feed him a lifetime.” LABOR STANDARDS – principles 3-6>>> A balance of work and life also demands compliance to standards of labor which is one of the principles of the Global Compact. Our support for the Global Compact’s Labor Standards is manifested by our compliance with the required labor rates. Our employees received the minimum wage required in our region. Incentives are also given to as a means of rewarding their efforts in achieving targets/goals of management. Among these are gain-sharing and other incentives. Compliance with required polices and regulations by employees such as no late no absence policy is also given due rewards such as free groceries and cash incentives. Hospital assistance are also provided to employees. CHIMES also complies with Government required contributions such as the Social Security System, Philippine Health Insurance and Pag-Ibig Funds. Leave credits are also provided to the employees not only as a right but also as a privilege for them to have time for their families and themselves. CHIMES is not only pro-actively promoting labour standards within its workplace but also outside of it, especially in its area of influence, such as the business community. A regular communication with labor groups is one that assures of its our compliance with the labour laws and standards. CHIMES was also conferred by the Employers’ Confederation of the Philippines with a distinct award in recognition of its principle as a child friendly business entity. CHIMES also supports programmes/projects of some organizations/communities such as the Missionaries of Charity in the alleviation of the living situations of the poor, abandoned, orphaned and street children. ENVIRONMENT- principles 7-9>>> CHIMES concern is not only confined within its business environment but also extends outside its environment. This proves its commitment and continuous support with the City Government Projects especially on Safety and Cleanliness. Our employees are instructed to orient our customers in the disposal of their used powder inks and the recycling of cartridges of printer ribbons. In our own business place, we practice recycling particularly on papers. We also practice the classification of garbage from bio-degradable and degradable. We, at CHIMES, exerts all efforts so that in our own little way we may be able to support the Global Compact’s principle on environment. Just recently, CHIMES takes initiative to promote greater environmental responsibility through tree planting and caring advocacy as a company policy. Every employee is required to plant a dozen of tree during his/her natal day and he/she is responsible for taking care of the baby tree provided by the company until it turns to a full-grown tree. ANTI-CORRUPTION>>> CHIMES had joined Christian community in promoting public awareness on honesty which we believe will help in curtailing graft and corruption in our country. We supported the advocacy and social responsibility on “BE HONEST “ campaign of the Brotherhood of Businessmen and Professionals local chapter headed by the CEO of CHIMES. Below is the slogan of the campaign, which was launched through a motorcade as a means of intensive public information, BE HONEST Even if others are not Even if others will not Even if others cannot As a means of our support to this “BE HONEST” campaign, we printed stickers and banners and had it posted in all areas of our business entity visible to all clients and constituents and distributed them too to other businesses establishments. CHIMES Enterprises is also a member of a the Pangasinan Movement for Good Governance, a provincial based organization actively promoting a “Corruption free Community” and supporting all related programs that will stop corruption in our country.