Published Research in Corporate Citizenship and Governance

International Peer Reviewed Journal

79

Corporate Citizenship and Governance Practices in Holy Name University,

Bohol, Philippines

ERNESTO [email protected]

Holy Name University, Tagbilaran City, Bohol

MARIA VICTORIA U. [email protected]

University of San Jose Recoletos

Abstract - Holy Name University (HNU) just like any other academic institution is largely dependent on community trust, employees loyalty and collaborative efforts in order to attain its goals and objectives. However in the past few years, the administration noticed that there were lapses in addressing societal concerns and collaborative efforts among HNUs various stakeholders which in a way affected the operations of the school. It is within this context that this study was made. The primary aim of the study was to assess HNUs practices in terms of corporate citizenship and governance in order to design schemes to enhance its implementation and ensure its continued success. The study used the descriptive survey method. The findings showed that except for promoting environmental sustainability, all the components of corporate citizenship and governance were manifested and adhered to a great extent. In the light of these findings, the proponent concluded that while HNU upheld and integrated CSR and governance in its operations, there were certain aspects of the processes that needed to be enhanced to fulfill its obligations expected of it by its various stakeholders.

Vol. 1 March 2012 International Peer Reviewed Journal

IAMURE: International Journal of Business

and Management

IAMURE: International Journal of Business and Management

80

Keywords corporate citizenship, governance, ethical behavior, internal control, risk management.

INTRODUCTION

Organizations today face increasingly complex and often competing motives and incentives in their decision making. These range from well defined strategic directions, sustain operational viability, maintain a productive workforce, establish a collaborative relationship with the community where the organization belongs to name a few. It is from this contention that the organization needs to evolve from its traditional mantra of being a profit seeker into an agent of social transformation.

Satisfying the responsibilities of corporate citizenship is a never ending process of continuous improvement. From the school perspective, corporate citizenship is the adoption by an institution of a strategic focus for fulfilling the economic , legal , ethical , and philanthropic social responsibilities expected of it by its different stakeholders. The concept is not just an academic term, it also involves action and results.

Schools though operating fairly independent by nature has expressed the need for the creation of a system that takes into account the needs ; goals and expectations of its various stakeholders. Holy Name University of Tagbilaran City, Bohol, Philippines respond to these pressures, by implementing policies that provide strategic guidance on appropriate courses of action. This focus is part of corporate governance, the system of checks and balances that ensures that the institution is fulfilling its economic, legal, ethical and citizenship responsibilities. It deserves broader consideration as there is evidence of a link between good governance and strong corporate citizenship. The dynamism in making it a point that the organization properly regards its stakeholders as governed by the mandate of a good corporate citizenship would still become in vain and valued less if such undertaking seems to disconnect to the fact that good stakeholder mapping is nothing without policies and procedures in place. Taking this issue into consideration, the dichotomy between corporate citizenship and good governance seemed inseparable for one


81

cannot stand effectively without the other. Good governance cannot by itself propel without the stakeholders participation.

Just like any other academic institution, Holy Name University considers corporate governance and responsible citizenship as the key drivers of change for the school in the new millennium. It has adopted and implemented various measures related to these two key factors to sustain public trust, earn employees loyalty and cooperation and foster harmonious relations with its various stakeholders to ensure its continual success. However, there have been certain incidents in the institution ranging from employee misconduct, poor internal control systems, conflict of interests among the administrators and a lot more which prompted certain sectors to question the effectiveness of the corporate citizenship and governance practices adhered to by HNU. In the light of these circumstances, the school administration intends to determine the current status of these practices in order to ensure that the universitys motives and action direction are clear, transparent and ethical. Hence this study is conducted.

FRAMEWORK

This study is anchored on the doctrine espoused by Thorne and Ferrell who contended that companies which establish a reputation for trust, fairness and integrity develop a valuable resource that fosters success, which then translates to greater financial performance and improved stakeholder relationships. These theories complemented to the arguments advanced by the writers/researchers property attributed in this paper.

Mckie (2006) postulated that corporate citizenship evolved from the notion of corporations obligations to work for social betterment to corporate social responsiveness or the capacity of a corporation to respond to social pressures. Zadeck (2007) stated that the concept of corporate citizenship has acquired relevance in the past decade to incorporate a global focus and the concrete approach of the stakeholder theory into corporate citizenship.

According to Fumbrum (2007) Corporate Citizenship comprises the following four core components: 1.)a corporations continuing


82

commitment to behave ethically in operating its business and optimizing its returns; 2.) corporations continuing commitment to minimize any negative economic, social and environmental impacts on the society; 3.)a corporations continuing commitment to contribute to the society, through its various philanthropic acts, volunteering and charitable donations, etc; and 4.)a corporations continuing commitment to contribute internally to improving the well-being of its employees and their families, through appropriate values education, staff development, learning programmes and measures to raise the quality of life.

A high level of personal morality may not be sufficient to prevent an individual from violating the law in an organizational context in which even experienced lawyers debate the exact meaning of the law. Since it is impossible to train all the members of an organization as lawyers, the identification of ethical issues and implementation of standards of conduct that incorporate both legal and ethical concerns are the best approach to preventing crime and avoid civil litigation (Leclair 2007).

On the other hand, corporate governance relates to the exercise of control and authority. Most organizations are systematically organized so that control and authority are clearly delineated. Although many companies have adopted decentralized decision making, empowerment, and less hierarchical structures, governance remains important as a mechanism for ensuring continued growth, change, and accountability for organizational members.

According to the Solomon (2007), corporate governance takes place within the corporation and as such it depends very much on investors, boards and managements for its successful implementation. The report noted that for corporate governance to be effective in attracting capital, it must focus on four core components/principles such as; fairness; transparency; accountability; responsibility.

In the academe, fairness is magnified through the promotion of the equality of representation. Ordinary personnel like teachers should not be deprived of their basic rights to be represented and be heard on matters involving the welfare of all like redistribution of wealth (salary adjustments and other fringe benefits), access and use of school resources and facilities, non-hostile treatment of the administration


83

when ordinary workers start to question the merit and benefit of any policy formulated.

OBJECTIVES OF THE STUDY

This study aimed to evaluate the extent to which Holy Name University in Tagbilaran City, Bohol, Philippines adhered to the thrusts of corporate citizenship and governance in the course of its operations. Specifically, this research addressed the following objectives: (1.) to determine the extent to which HNU manifest the core components of Corporate Citizenship in the areas of ethical behavior, promotion of environmental sustainability, philanthropic acts and improvement of the well-being of employees; (2.) to ascertain the extent to which the university exhibit the essentials elements of corporate governance as to protection of the stakeholders rights, internal control, risk management and information disclosure and transparency; and, (3) to propose schemes designed to enhance the implementation of corporate citizenship and governance in the university.

MATERIALS AND METHODS

The study used the qualitative method of research. Researcher made questionnaires which were validated by a panel of technical experts was utilized as survey instruments among the respondents. All the academic administrators, full time tenured faculty members and regular staff from all support offices were involved in this activity. Complete enumeration was effected in this paper where the 317 respondents composed of the school administrators (SVD Priest and Middle Managers=12%), Faculty members (48%) and non-teaching personnel (40%) were given opportunities to assess the school are regards to the parameters of corporate citizenship and corporate governance. Due to non-homogeneity of the respondents, weighted mean was used in interpreting the varied responses.

Qualitative unstructured interviews were also conducted at random among selected respondents to cross-check the data gathered from the instruments and provided secondary data for further interpretation of the results.


84

RESULTS AND DISCUSSION

Extent to which the core components of corporatecitizenship are manifested.

Table 1. Extent of Manifesting Ethical Behavior

Indicators Administra-tors

N=39

FacultyN= 153

Non-TeachingN= 125 Item Mean

Int Int Int Int

Ensures fairness and truthful-ness in all aspects of its activi-ties and practices

3.18 GE 3.00 GE 3.04 GE 3.07 GE

Provides all customers with the highest quality of service consistent with the schools standards

3.26 VGE 3.19 GE 3.19 GE 3.22 GE

Assures respect for human dig-nity and integrity of all stake-holders of the school

3.53 VGE 3.36 VGE 3.22 GE 3.37 VGE

Avoids discriminatory prac-tices and guarantee equal treatmentequal treatment and opportunities for all

3.18 GE 2.99 GE 2.79 GE 2.99 GE

Pays suppliers/creditors on time in accordance with the agreed terms and conditions

3.41 VGE 3.26 VGE 3.00 GE 3.22 GE

Ensures that all activities are free from coercion and unnec-essary litigation

3.34 VGE 3.16 GE 2.99 GE 3.16 GE

FACTOR MEAN 3.32 VGE 3.16 GE 3.04 GE 3.17 GE

Legend: Range Interpretation 3.26 4.00 Very Great Extent (VGE) 2.51 3.25 Great Extent (GE) 1.76 2.50 Less Extent (LE) 1.00 1.75 Never (N)


85

Ethical behavior is a virtue fully embraced in the Vision-Mission Statement of all Society of the Divine Word (SVD) Missionary schools. The factor mean of 3.17 is indicative that the said parameter is practiced and manifested to a great extent.

Specifically, in terms of ensuring fairness and truthfulness in all aspects of activities and practices, the respondents unanimously agreed that the school practiced this to a great extent. It can be deduced from the findings that the various stakeholders of HNU carry out their responsibilities with professionalism, highest sense of integrity and moral judgment.

In terms of providing all customers with the highest quality of service consistent with the schools standards, this was practiced to a great extent as shown by the item mean of 3.22. This means that the school tries to strive continually to improve its employees competencies by rendering quality service to the best of the members ability. However, in some cases, top management failed to hear the views of the lower strata of the organization. Feedbacking mechanism was not properly installed, those who openly criticized some practices and policies are not even viewed as collaborators but rather branded as adversaries.

To a very great extent (=3.37); the school assures respect for human dignity and integrity of all stakeholders. HNUs dedication of treating every stakeholder with respect and honor has been touted as a very effective way of building value for all employees. Avoidance of discriminatory practices was also adhered too.

As to whether the school pays suppliers and creditors on time in accordance with the agreed terms and conditions, this practice was adhered to a great extent =3.22. HNU has the reputation of settling its obligations with various business partners on time. This they do as they expect other stakeholders to do business with them in the same manner.

The item mean of 3.16 revealed that the institution to a great extent ensured that all activities conducted by the school are free from coercion and unnecessary litigation. Conflicts were settled amicably without jeopardizing anyone.


86

Table 2. Extent of Promoting Environmental Sustainability


N=39

FacultyN= 153

Non-TeachingN= 125

Item Mean

Int Int Int Int

Encourages recycling of biode-gradable materials

2.76 GE 2.64 GE 2.64 GE 2.68 GE

Implements waste segregation throughoutthe university

2.50 GE 2.38 LE 2.53 GE 2.46 LE

Promotes conservation in the consumption of water and other natural resources

3.03 GE 3.01 GE 2.81 GE 2.95 GE

Discourages the use of plastic, styrofoam and other non-biode-gradable materials

2.16 LE 2.13 LE 2.27 LE 2.18 LE

Supports activities to reduce emission of hazardous chemi-cals to minimize pollution

2.58 GE 2.46 LE 2.59 GE 2.55 GE

Creates a material recovery facility

1.81 LE 2.01 LE 2.28 LE 2.04 LE

FACTOR MEAN 2.47 LE 2.44 LE 2.52 GE 2.48 LE

The school operates under the mantra of vigilance and stewardship of Gods creation. The Vision, Mission and Goals (VMG) of the University clearly state that the school is highly obligated to become the protector of the integrity of the creation. Tagged with this idealistic chore is the fact that environmental protection is not an overnight affair. It requires long-term goals and sustainability.

The results of the study conveyed a different message. A factor mean of 2.48 showed that promotion of environmental stability was done to a less extent. The data showed uncorrelated results, some environmental concerns were addressed while others were overlooked.

For example, recycling of biodegradable materials as revealed by the item mean of 2.68 indicated that this was adhered to a great extent. The administrators felt this was done at a higher level tagged with the


87

ratings of 2.50 (Great Extent) in consonance with the valuation of the non-teaching personnel at 2.53 (Great Extent). But the faculty spoke otherwise. They only rated this metric at 2.38 (Less Extent). The very reason for this intriguing disparity is due to the variances of standards. The non-teaching personnel are not really aware of the standards required by the National Solid waste Management Commission (NSMC). Likewise, though ironic to note, most of the administrators simply pass on the obligations of enforcing the requirements of the law to the lower level of the organization. Seldom had it happened that they did ocular inspections to assess the implementation of garbage segregation.

On the other hand, the teachers are well exposed to the mandate of the law; hence they strongly insist that the mode of garbage segregation done in Holy Name University runs contrary to what ought to be proper and ideal. Be it known that the university practiced 3-way garbage segregation (3 trash cans) for hazardous, non-hazardous and biodegradable materials. However, garbage collection is awkward since the garbage collector employed by the school simply mixed the assorted garbage when loading it to the garbage trucks.

The schools gained favorable ratings among the three groups of respondents in terms of promoting the conservation of water and other natural resources. The item mean of 2.95 revealed that the said function was done to a great extent. It is worthwhile mentioning that among all the other parameters of environmental sustainability, the school garnered the highest ratings in this area due to the installation of the water testing laboratory which advocates and promotes water conservation and the drinking of safe and clean water.

While the school performs well in some parameters of environmental sustainability, it is also obvious that some greater areas of concerns were left unattended. The school to a less extent (= 2.18) practiced the advocacy of non-usage of plastic, styrofoam and other non-biodegradable materials. Under this parameter, the administrators, faculty and non-teaching personnel all agreed that this area needed immediate attention since all ratings yielded a qualitative interpretation of less extent. Despite the information drive made, many sectors of HNU failed to comply with this policy.


88

The administrators felt that they never lacked any substantial support pertaining to any activities designed to reduce the emission of hazardous chemicals to minimize pollution. They fairly rated this area at 2.58 (Great Extent) in the same manner, the non-teaching personnel seemed to subscribe to their arguments as manifested by their ratings at 2.59 (Great Extent). But then again, the faculty trumpeted the unpopular interpretation of less extent. While it is true that the school is very observant and strict on the implementation on the non-emission of hazardous chemicals, the faculty have found out that the administration never imposed a single policy prohibiting open-burning of garbage. They seemed to have tolerated the practice of burning dead leaves of trees and grass which was found out by many environmentalists as contributor to ozone depletion. As the environmentalists advanced their arguments, this minute burning simply transformed the garbage from solid to its gaseous form, hence burning never eliminated the garbage but simply transformed them into another form of matter.

In terms of the creation of a material recovery facility this was rated to be practiced to a less extent ( = 2.04). The previous school administrator planned to construct a material recovery facility as a gesture of support to the existing national laws on solid waste management- the Republic Act 9003 of 2000. Everything was properly designed but only in paper, up to the present time, such design has not been concretized.

Table 3. Extent of Manifesting Philanthropic Acts


N=39

FacultyN= 153

Non-TeachingN= 125

Item Mean

Int Int Int Int

Provides monetary and non-monetary support to charitable organizations

3.00 GE 3.09 GE 3.12 GE 3.07 GE

Collaborates with various sec-tors of the community dedi-cated to raising standards of health, safety and economic well-being

3.26 VGE 3.16 GE 3.04 GE 3.15 GE


89

Support employee participation in community and civic affairs

3.37 VGE 3.17 GE 3.17 GE 3.24 GE

Provides a variety of scholar-ship grants to deserving stu-dents

3.47 VGE 2.87 GE 3.48 VGE 3.41 VGE

Sponsors outreach programs designed to improve the welfare of the people in the adopted communities

3.50 VGE 3.41 VGE 3.50 VGE 3.46 VGE

The VMG of the school promised to uplift the welfare of children, women, disabled and marginalized members of society. Indeed, altruism is part and parcel of its existence. The factor average of 3.29 strongly supports this claim that philanthropic acts were implemented to a great extent. Specifically, the item average of 3.07 showed that providing monetary and non-monetary support to charitable organizations was adhered to a great extent. HNU supports certain organizations as a manifestation of their community outreach objectives.

To a great extent ( = 3.15), HNU collaborates with various sectors of the community dedicated to raising standards of health, safety and economic well-being. Through further inquiry, the researcher discovered that the existing linkage program of the school is non-sustainable because of the absence of a proper office and personnel to execute the job. As of the moment, establishment of linkages is channeled through the alumni office manned by only one personnel loaded with diverse functions and responsibilities. On the other hand, the community extension office only confines itself to addressing the concerns of the potential partners and funders.

HNU to a great extent (=3.24), supports employees in participating community and civic affairs. Whenever outreach programs are conducted, the school allots time and resources for their employees to be motivated and committed in their undertakings. In terms of providing a variety of scholarship grants to deserving students, the item mean of 3.41 indicated that this was done to a very great extent. Academic and non academic grants were made to help those mentally gifted but financially deprived students to pursue their degrees. However, some respondents averred that there is a need to properly


90

screen applicants for scholarship since many recipients do not deserve due to economic capacity, hence there is a need to reach out to the genuine poor and deserving students.

In terms of sponsoring outreach program designed to improve the welfare of the people in the adopted communities, the item average of 3.46 showed that the school performed this to a very great extent. It is aligned with the corporate mission of HNU to uplift the welfare of the marginalized sectors of the community. Respect for human rights and democratic institutions (3.41) were also put to practice.

Table 4. Extent of Implementing Improvement on the Well-Being of the Employees


N=39

FacultyN= 153

Non-Teach-ing

N= 125Item Mean

Int Int Int Int

Provides working conditions that protect the employees health and dignity

3.52 VGE 3.27 VGE 3.23 GE 3.34 VGE

Engages in good faith negotia-tion when conflict arises

3.44 VGE 3.09 GE 2.94 GE 3.16 GE

Provides jobs and compensation that improves employees living condition

3.60 VGE 3.24 GE 3.13 GE 3.32 VGE

Promotes open and honest com-munication among all school employees

3.37 VGE 3.00 GE 2.84 GE 3.07 GE

Provides training and develop-ment opportunities to all de-serving employees

3.28 VGE 3.02 GE 2.87 GE 3.06 GE

Acts on employee suggestions, ideas, requests and complaints on time

2.94 GE 2.79 GE 2.68 GE 2.80 GE

FACTORMEAN

3.36 VGE 3.07 GE 2.95 GE 3.12 GE

This area gained an overall rating of 3.12 (great extent). The administrators asserted that everyone is accorded with better working


91

condition which safeguards ones dignity and health. However, some non-teaching personnel designated as garbage collectors, welders and carpenters complained that the school never provided them dignified working conditions.

Settlement of conflicts generated favorable responses (3.16-great extent). To dig deeper, an interview was conducted which uncovered the following information. First, there was no functional grievance committee installed; when conflict arises, settlement was normally done without documentation and the supposed sanctions outlined in the faculty manual were not imposed. Second, there was no specific limit or boundary to the extension of the so called humanitarian considerations. Hence the erring employee feels that it is alright to commit the same mistakes. Third, the employees held no fear to authorities because they were certain that the term of office of the administrator was limited. (Interview, December 2009).

An item mean of 3.32 indicated that HNU provides jobs and compensation that improves employees living conditions. In terms of communication patterns, the item mean 3.07 revealed that the school promotes open and honest communication among all employees. Though this is the stance adopted by the administration, yet, certain sectors of the school are becoming cynical, because those who openly and constructively criticized some policies were singled-out and reprimanded that they should not rock the boat. Second, only few employees would dare to go against the will of their administrators or else they will join the march of the outcast flock. Third, there is no accurate baseline as to how honest is being honest. Sometimes, employees were preconditioned with fear and hesitation, thus the real message of the complaint was lost in the process.

Training and development opportunities are essential in a dynamic organization. HNU cares for the growth of its workers. Again, even if the rating is highly favorable, the faculty and non-teaching personnel still holds reservations as to the authenticity and fairness of extending the said privilege. Through key informant review, it was found out that the school does not have proper career pathing for its workers.

In the area of responding to employees suggestions, ideas, requests and complaints on time, the item mean of 2.80 showed that this was adhered to a great extent. It can be deduced from the finding that this


92

practice though implemented, the employees were inclined to believe that it was done on a selective basis only.

Extent to which the core components of corporategovernance are manifested.

Table 5. Degree of Protecting Stakeholders Rights


N=39

FacultyN= 153

Non-Teach-ing

N= 125Item Mean

Int Int Int Int

Applies professional and dili-gent management toensure the schools survival

3.55 A 3.29 A 3.28 A 3.38 A

Conserves, protects and increas-es the schools resources

3.39 A 3.27 A 3.27 A 3.31 A

Fosters long term stability in the schools operations in return for value, quality and competitive-ness

3.50 A 3.26 A 3.22 O 3.32 A

Refuses to acquire assets by dishonest or unethical means

3.39 A 3.34 A 3.14 O 3.29 A

Encourages active cooperation between the school and its vari-ous stakeholders in sustaining the schools existence

3.42 A 3.23 O 3.27 A 3.30 A

Ensures that all the stakeholders have the opportunity to obtain effective redress for violation of their rights

3.21 O 3.02 O 3.07 O 3.10 O

FACTOR MEAN 3.41 A 3.24 O 3.21 O 3.28 A

Legend: Range Interpretation 3.26 4.00 Always (A) 2.51 3.25 Often (O) 1.76 2.50 Sometimes (S) 1.00 1.75 Never (N)


93

This component has a factor mean of 3.28 based on the group average of 3.41 from the administrators, 3.24 from the faculty, and 3.21 from the non-teaching staff. It disclosed that HNU always pursued activities designed to safeguard stakeholders rights.Professional and diligent management were taken cared properly. In fact, HNU formulates prudent professional policies and procedures necessary to sustain the schools operations. Further, the result shows that the school conserves, protects and increases its resources, but most importantly to ensure its survival and competitive advantage.

With conviction, the school refuses to acquire assets by dishonest or unethical manner. Likewise, an item mean of 3.30 unveiled that HNU always encourage active cooperation between the school and its various stakeholders in sustaining its existence.The results also indicated that the school often ensures that all the stakeholders have the opportunity to obtain effective redress for violation of their rights (=3.10). When conflicts arise, the aggrieved party is given the opportunity to file for grievance.

Table 6. Degree of Implementing Internal Control


N=39

FacultyN= 153


Int Int Int Int

Segregates job functions to re-duce opportunityfor malpractices

3.24 O 2.99 O 2.88 O 3.03 O

Screens applicants thoroughly particularly thosewho will assume sensitive posi-tions

3.18 O 2.99 O 2.93 O 3.03 O

Limits access to valuable assets and financialresources to authorized person-nel

3.39 A 3.12 O 3.11 O 3.21 O

Implements effective accounting and control standards

3.47 A 3.23 O 3.11 O 3.27 A


94

Establishes accountability for all functions performed

3.44 A 3.20 O 3.11 O 3.26 A

Conducts regular review of the adequacy andintegrity of the schools control systems

3.10 O 2.99 O 2.97 O 3.02 O

FACTOR MEAN 3.30 A 3.09 O 3.02 O 3.14 O

A mechanism for internal control is often adhered to in HNU. Specifically, it is evident from the data (=3.14) that the school often segregates job functions to reduce opportunity for malpractices. This calls for clear delineation of responsibilities to avoid duplication of duties which could possibly lead to the commission of discrepancies.

Proper selection and screening particularly to those who will assume sensitive positions are part of the tradition of the school. HNU administration is picky as those individuals who will be made to assume positions of trust. Thus, in this area, the recruitment process is more stringent.

In terms of limiting the access to valuable assets and financial resources to authorized personnel only, this was often manifested. It can deduce from this finding that HNU administration is prudent and cautious in entrusting the management of its valuable assets and financial resources. This was delegated to a few key people in the organization. The school was deemed to always-implement effective accounting and control standards, HNU administrators upholds the philosophy that controls are fundamental to effective operations, thus they make sure that adequate mechanisms are implemented to safeguard the schools resources.

Trust and confidence were also institutionalized. In principle, everyone is held accountable for his action or judgment. It can be gathered from the finding that the school empowers its people to perform things for the betterment of the university with the truism that the same people are also held responsible for their actions and the results of such behavior. Everyone recognized the need to conduct regular review of the adequacy and integrity of the schools control system wherein the administrators take into account the formation of an oversight committee to assess the integrity and effectiveness of the internal control system.


95

Table 7. Degree of Adhering to Risk Management


N=39

FacultyN= 153


Int Int Int Int

Identifies the various types of risks the school has to face

3.00 O 2.94 O 3.01 O 2.98 O

Ensures that procedures are in place to identify and evaluate alternatives for managing risk exposures

2.89 O 2.88 O 2.92 O 2.90 O

Implements appropriate actions to counters riskexposures like theft, fraud and others

3.10 O 3.00 O 2.98 O 3.02 O

Ensures that the risk manage-ment process isconsistent with the goals of the organization

3.13 O 3.12 O 3.00 O 3.08 O

Encourages risk taking activities among the various stakeholders of the school at an acceptable level

2.97 O 2.94 O 2.89 O 2.94 O

Formulates a risk management framework that gives the school a competitive advantage

2.95 O 2.95 O 2.92 O 2.94 O

FACTOR MEAN 3.00 O 2.97 O 2.95 O 2.98 O

The factor mean of 2.98 taken from the group mean 3.00 from the administrators, 2.97 from the faculty and 2.95 from the non-teaching staff indicated that the management of risk was often observed in HNU. Identification of risk was being practiced. This finding showcased that the school operates its risk management framework by identifying first all those events or actions that will adversely affect the institutions ability to achieve its goals.

Procedures in identifying and evaluating alternatives in managing risk exposures were in place. The school often implements appropriate actions to counters risk exposures like theft, fraud and others. While


96

at the same time reviewing the adequacy and integrity of the schools internal control system in overcoming such exigencies. Complementing with these efforts is the fact that the school always ensures that the risk management process was consistent with the goals of the organization. This means that the administration was aware of the possible impact of a risk or the organizations strategies.

As to encouraging risk taking activities among the various stakeholders of the school at an acceptable level, this was often done based on the item mean 2.94, HNU administration believes that if organizations are more aggressive and risk-takers coupled with safety nets, the possible reward is higher to being conservative and passive.The entry of potential competitors cannot to be taken for granted. Hence, the school often (=2.94) formulates a risk management framework that gives the university a competitive advantage, over and above the other schools in the region. The framework is designed by a core group representing various units/departments and incorporating their inputs into one general plan.

Table 8. Degree of Adhering to Information Disclosure and Transparency


N=39

FacultyN= 153


Int Int Int Int

Involves all employees of the school in the formulation of plans and policies

3.15 O 2.68 O 2.57 O 2.80 O

Provides timely and full infor-mation concerning the financial performance of the school

2.78 O 2.65 O 2.63 O 2.69 O

Requires all departments to defend their respective budgets before its approval

2.95 O 2.91 O 2.94 O 2.93 O


97

Disseminates to all concerned parties important information affecting the schools operation

3.02 O 2.83 O 2.85 O 2.91 O

Explains to all employees how salaries and benefitsare com-puted

3.28 A 3.01 O 2.95 O 3.08 O

Allows employees to ask ques-tions concerningschool polices, rules and regulations

3.26 A 2.96 O 2.81 O 3.01 O

FACTOR MEAN 3.07 O 2.84 O 2.79 O 2.91 O

Transparency is an essential element of a well-functioning system of corporate governance. The factor mean is 2.91 obtained from the 2.79 from the non-teaching staff indicated that information disclosure and transparency is often observed in HNU (=2.91).The formulation of plans and policies involves all sectors of the school. This was done because HNU believes that the increased disclosure of information would encourage the long term relationship between the administration and its staff.

The school often provides timely and full information concerning its financial performance. However, absolute transparency is impossible due to the confidentiality of some financial figures.For budgeting process, every department is given ample time and opportunity to defend the proposed departmental budget. This is the standard procedure to prevent the existence of unnecessary expenses and allocate fairly scarce resources among all sectors.

In whatever means available, all important information affecting the schools operations are properly disseminated to all concerned parties. This was often done as shown by the item mean 2.91. However, when the respondents were requested to answer this question, many of them do not belong to the so called concerned parties. Hence, their ratings are not Always but are within bounds of the lower qualitative interpretation. The HNU administration often (=3.08) explains to all employees regarding the computation of salaries and other benefits. This was supported by the item mean of 3.28 (Always). But the faculty (3.01) and non-teaching personnel (2.95) obviously disagreed to this finding. Through inquiry, the researcher found out


98

that many employees (faculty and non-teaching) never took the time to ask on the details of their receivables.

The school always allows employees to ask questions concerning policies, rules and regulations. However, some sectors averred that such was not always the case. There are two distinct reasons for this variance in perceptions. First, the formulation of rules and policies was done in the absence of an institutional consultation. Only the middle and top management crafted the policies without getting the voice of the lower strata of the organization. Second, many rules and policies were implemented based on the interpretations of the concerned department head, no uniform interpretation making it very subjective and accommodating to the so called political allies in the academe.

On a positive note, the above findings are indicative of an active organization wherein the stakeholders constructively criticized existing practices not for personal gains but for the glory of their dear Holy Name University.

CONCLUSION Based on the findings of the study, the researcher concluded

that while Holy Name University upheld and integrated the core components of corporate citizenship and governance in its operations, the school and its administrators should not rest on its laurels due to the promising outcome of this research. The nitty-gritty should be attended with urgency and dedication.

Complacency will lead to status quo, gradually molding ones comfort zone, indifference and inaction. If these persist, the school will wake-up one day picking the dust left by the competitors. The proposed intervention program entitled Holy Name University-A Model In Basic Ecclesial Community must be regarded with seriousness and urgency. The said program captures the vision of the school which advanced the view that the institution wanted to become a servant leader with dignity, education and training geared towards the building of Christian communities in Bohol and Beyond.

This program is a seminar workshop which is designed to be done in 6 days and a half and must be participated with all members of Holy Name University (The SVD Priest, Middle Managers, Faculty and Non-


99

Teaching Personnel). To save costs and logistics, it must be conducted within the school premises utilizing the available resources as outlined in the detailed design. The said intervention also incorporated feedbacking mechanism and most of all, proper documentation so that when deviations arise in the future, a hand-pick document can be referred to.

LITERATURE CITED

Ferrell, O.C. 2007 Business ethics: ethical decision making and cases.2nd Edition.

Boston: Houghton Mifflin.

Fumbrum, C. J. 2007 Three pillars of corporate citizenship. San Francisco, CA: The

New Lexington Press.

Leclair, D. T.2007 Integrity management: A guide to 10 managing legal and

ethical issues in the workplace. 5th Edition, Thousand Oaks, CA: Sage.

Mckie, J. W.2006 Social responsibility and the business predicament.8th Edition.

Washington D.C.: The Bookings Institute.

Solomon, J. 2007 Corporate governance and accountability.2ndEdition.

Chichester, England: John Wiley and Sons, Ltd.

Zadeck, S.2007 The civil corporation: The new economy of corporate

citizenship.3rd Edition. London: Earthscan.

Documents

Published Research in Corporate Citizenship and Governance