Philippine National Oil Company Energy Development Corporation (pnoc) Case Study

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De La Salle University

Ramon V. Del Rosario College of Business

Case 4: PNOC Energy Development Corporation

Lasallian Business Leadership, Ethics and CSR

BUS560M

Submitted  By:

Justin Jamon

Edmond Reyes

Gabriel Sison

Instructor:

Professor Pia Manalastas

      March 1, 2017

1. Introduction

        Charity begins at home. This is what Philippine National Oil Company Energy Development Corporation (PNOC EDC) believes. The company wants to give back P 600,000 as a budget for their camps in 2007 that would provide various programs to the community. The question is what home is for PNOC EDC? Home can be just within the company or it can be also the residents living nearby where PNOC gets its’ resources for their business. In the greater scheme of things P 600,000 is only a fraction of the gross amount that PNOC earns. If you think about it, the company gets the resources where these residents live. PNOC runs energy camps since 2004. These camps originally was designed to promote physical wellness and environmental consciousness among teenage children. The camp was made up of 16 boys and 16 girls. These kids are all children of the employees. The first camp was held in Dumaguete The camp was run by the staff of the Community Partnership Department (CPD) with the help of various employees from PNOC. These participants upon arrival in the camp were issued T-shirts and shorts. This delighted the kids and made them so happy to just receive the new clothes. The CPD engaged the kids in sports and in routine chores as well as various physical activities like hiking and basketball. The kids were also made to cook, make beds, wash dishes, and do their laundry. The importance of environmental protection was also stressed by giving lectures and having environmental trips. The kids were also made to interact with the local farmers and residents to made them see how to setup livelihoods that are sustainable to the environment. The camp was capped with an amazing race activity. The program took 12 days.

The success of the camp paved the way for PNOC to open five more camps in 2005 in various sites. The program was shortened to eight days and opened to the children of the townspeople within the community where there are PNOC projects. The participants now are raised to 48. The president of PNOC, Paul Aquino solicited donations from other companies like California Energy, Toby’s Sports, and San Miguel Corporation to cover items like food and cash. The CPD found that the eight day program was too short so in 2006 the program was spread to ten days. The results to the children were good. It promoted positive thinking and self-discipline. The teachers of these children hearing the good stories from the students asked if they can be also invited to the PNOC camps. The teachers asked a shorter program that would only be five days that totaled P 400,000. This was questioned by the PNOC employees in the head office in Fort Bonifacio. They were questioning why PNOC subsidized these camps. In Aquino’s assessment these camps were appreciated by 80% of the employees. These employees questioning the CSR activities are not situated in the community so they are not aware of the needs of the kids, says Aquino.

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