accounting business case
DESCRIPTION
For Academics PurposesTRANSCRIPT
BUSINESS CASE
Presented to the
Accountancy Department
De La Salle University
In partial fulfillment
Of the course requirements
In ACCTBA2 (K42)
Llantino, Juan Paolo
Barcia, Jose
Aningat, Pauline
Tan, Jhann
Llopez, Clement Justin
Luzuriaga, Ivan
December 17, 2013
The corporation we chose is the Bank of the Philippine Islands. The nature of
their business is primarily the service of their clients and investors to ensure their
interests are well looked after and also, the expansion of their company on a global
scale and to ensure maximum efficiency with their company. As for the Board of
Directors, they are composed of the following people:
1. Jaime Augusto Zobel De Ayala 9. Octavio V. Espiritu
2. Aurelio R. Montinola III 10. Antonio Jose U. Periquet
3. Chng Sok Hui 11. Xavier P. Loinaz
4. Cezar P. Consing 12. Mercedita S. Nolledo
5. Rebecca G. Fernando 13. Oscar S. Reyes
6. Artemio V. Panganiban 14. Tan Kong Khoon
7. Fernando Zobel De Ayala 15. Khoo Teng Cheong
8. Romeo L. Bernardo
The chairman of the board is Jaime Augusto Zobel De Ayala and the president of
Bank of the Philippine Islands is Aurelio R. Montinola III.
The types of stock that they are authorized to issue are the common shares and
preferred shares which are classified under share capital. Based on the 2012 annual
report, the Bank of the Philippine Islands have 49, 600, 000 authorized shares at P10
par value per share. As of December 31, 2012, there were 3,556,356,173 issued
common shares and no preferred shares issued and outstanding at December 31,
2012. There were no subscribed common and preferred shares as of December 31,
2012. The total amount of the Shareholders’ Equity of the Bank of Philippine Islands as
of 2012 was P98, 522, 000.
Based on the Annual report for 2012 of The Bank of the Philippine Islands for the
year ended December 31, 2012 there are no Treasury Shares recorded on the
functional currency audited Financial Statements.
VII. Notes to Financial Statements
Seeing BPI’s Integrated Annual and Sustainability Report, there is a full
disclosure on corporate social responsibility regarding the environment, labor related
issues and societal and community concerns. Page numbers were indicated in the
“Performance Indicators” section of the report giving full detail on how the management
approaches them. The disclosure regarding corporate social responsibility was not
directly in the notes to financial statement but it did tell us where to look for it. It states in
their full disclosure (regarding environmental issues) that they are trying to integrate
sustainability objectives with the business strategies by actively managing the socio-
environmental risks of their transactions by engaging stakeholders in order to step up
their efforts for a “greener” planet. Some of these objectives include climate change
study and how it relates to business opportunities, conducive environment-friendly
workplaces, energy-efficient light bulbs, sub-contracting of armored vehicles for lesser
gas emission, energy finance programs, etc.
As for employee-related objectives, BPI talks about its workforce and the different
policies of their workforce. Most of their policies aim employee development wherein
their work is evaluated and compensated for a job well done. They also have a policy of
continuing education wherein its main focus is employee training and development.
When it comes to employee turnover and retention, they try to be competitive although it
is below the industry average as of the year 2012 (10.1% for BPI). For employees to
actually stay in a company, they must be cared for as well and with that, BPI has health
education programs for the employees and they can avail of free health care in
designated areas and selected services. BPI is also a law-abiding company as it strictly
adheres to labor laws. They grievance mechanism embedded in the Collective
Bargaining Agreement to promptly dispose and amicably settle all grievances. Lastly,
they have “employee volunteerism” where the employees have a chance to grow,
develop themselves and give back to society by volunteering in community-related
tasks.
As for community concerns, it is sort of embedded in the disclosure of
environmental issues. BPI employees, as mentioned, volunteer to serve the community.
BPI has this project called “Bayanihan Para sa Inang Bayan” where the employees go
to a volunteerism project and engage in community work and make an impact on places
where they operate. They also have a child-centered project called “Keep Fit, Feed A
Child” where the program aims to create awareness on child malnutrition. Other
programs are not explicitly defined in the notes to financial statements but some are
implicit in their other projects.