FINEX Focus 1PB FINEX Focus

FINEX Focus 32 FINEX Focus

guest Speaker 4th General Membership Meeting(April 23, 2014 • Mayuree Ballroom A, Dusit Thani Manila, Makati City)

Hon. PANFILO M. LACSONSecretary

Presidential Assistant for Rehabilitation and Recovery

Rebuilding Communitiesafter Yolanda

of 20022. Republic Act No. 9189, the Absentee Voting Act3. Republic Act No. 9287, the Anti-Jueteng and Illegal

Numbers Game4. Republic Act No. 9406, An Act Reorganizing the Public

Attorney’s Office

 SENATE COMMITTEE CHAIRMANSHIPS & MEMBERSHIPS1. Chairman of the following Committees (14th Congress): a. Accounts b. Ethics and Privileges c. Ways and Means2. Chairman of the Committee on Civil Service and Government Reorganization (13th Congress)3. Member of the following Committees (14th Congress): a. Accountability of Public Officers and Investigations (Blue Ribbon) b. Agriculture and Food c. Banks, Financial Institutions and Currencies d. Finance e. Foreign Relations f. Health and Demography g. Labor, Employment and Human Resource Development h. Local Government i. National Defense and Security j. Public Services k. Rules l. Senate Electoral Tribunal (2007 to 2008)4. Chairman of the following Oversight Committees: a. Oversight Committee on the Proper Implementation of the National Internal Revenue Code b. Oversight Committee on Official Development Assistance (ODA) Law c. Oversight Committee on the Overseas Voting Act of 2003 d. Congressional Oversight Committee on the Anti-Money Laundering Law5. Member of the following Oversight Committees: a. Legislative Oversight Committee on the Visiting Forces Agreement b. Oversight Committee on the Dangerous Drugs Act c. Congressional Oversight Committee on the Comprehensive Tax Reform Program

EDUCATIONAL BACKGROUND Master in Government Management: Pamantasan ng Lungsod ng Maynila (1995-1996) Bachelor of Science: Philippine Military Academy (1967-1971) High School: Imus Institute (1960-1964) Grade School: Bayang Luma Elementary School (1954-1960)

CAREER AS PUBLIC SERVANT Positions Held / Dates Secretary, Presidential Assistant for Rehabilitation and Recovery; Dec. 06, 2013 – present Senator. June 30, 2001– June 30,2013 Chief, Philippine National Police; Nov. 16, 1999 – Jan. 20, 2001 Chief, Presidential Anti-Organized Crime Task Force; June 26, 1998 – Jan. 21, 2001 Project Officer, Special Project Alpha; 1996 – April 1997 Chief, Task Force Habagat, PACC; 1992 – 1995 Provincial Director, Laguna, PC; 1992 Feb. – July Commanding Officer, Cebu Metrodiscom; 1989 – 1992 Provincial Commander, Isabela PC; 1988 – 1989 PC-INP Anti Carnapping Task Force; 1986 – 1988 Metrocom Intelligence and Security Group; 1971 – 1986

ACCOMPLISHMENTS as a SENATOR in 12th, 13th, 14th CONGRESSES:

 BILLS ENACTED INTO LAWOne of the principal authors of the following laws:1. Republic Act No. 9160, as amended by Republic

Act 9194, otherwise known as the Anti-Money Laundering Act

2. Republic Act No. 9163, The National Service Training Program (NSTP) Act of 2001

3. Republic Act No. 9166, An Act Increasing the Base Pay of the Members of the AFP

4. Republic Act No. 9208, The Anti-Trafficking in Persons Act of 2003

5. Republic Act No. 9416, Anti-Cheating Act of 20076. Republic Act No. 9485, Anti-Red Tape Act of 20077. Republic Act No. 9484, The Philippine Dental Act of 2007One of the co-authors of the following laws:1. Republic Act No. 9165, the Dangerous Drugs Act

 COMMISSION ON APPOINTMENTS1. Chairman of the Committee on Constitutional Commissions and Offices 2. Chairman of the Committee on Justice and the Judicial Bar Council (Feb. 2003 – Dec. 2005)3. Member of all the standing Committees in the CA (February 2003 – December 2005)4. Assistant Minority Floor Leader in the CA (2005)

 INVESTIGATIONS INITIATED1. The IMPSA investigation – 20022. The Jose Pidal investigation – 2003 3. The Jueteng investigation – 20054. The Textbook Scam investigation; 2006 – 20075. The plight of Filipino nurses recruited by Sentosa Recruitment Agency – 20076. Alleged bribery in the failed impeachment bid against President Arroyo – 20077. Overpricing in the decorative lampposts used in the Asean summit in Cebu City – 20078. Irregularities in the multibillion-peso Quedancor swine program – 20089. The plan by the Social Security System to channel workers’ pension funds into a gov't economic stimulus program – 2009 10. Alleged irregularities in the purchase of video equipment for the Senate’s Public Relations and Information Bureau – 2009

15th CONGRESS SENATE COMMITTEE CHAIRMANSHIPS & MEMBERSHIPS:1. Chairman of the following Committees: a. Accounts b. National Defense2. Member of the following Committees: a. Accountability of Public Officers and Investigations (Blue Ribbon) b. Agriculture and Food c. Constitutional Amendments, Revision of Codes and Laws d. Finance e. Games and Amusement f. Local Government g. National Defense and Security h. Tourism i. Urban Planning, Housing and Resettlement3. Chairman of the Oversight Committees: a. Congressional Oversight on Philippine Disaster Risk Reduction and Mgt. Act

SEC. LACSON was born on June 1, 1948 at Imus, Cavite (adopted son of Cebu). Married to Alice de Perio of Bolinao, Pangasinan and San Miguel, Bulacan, they have four children: Reginald, Ronald Jay, Panfilo Jr., Jeric.

to page 5

FINEX Focus 32 FINEX Focus

Edmundo Santos Soriano, 2014 FINEX President

PRESIDENT'SMESSAGE

ONE OF the Four Forwards that your leadership is advocating this year is the articulation of FINEX’ Core Values. The establishment of Core Values is one of the most important objectives I want to achieve this year. Our Core Values will define us as an organization. While various projects may come and go every year, with changes in leadership and the election of a new set of Board of Directors, I am hopeful and confident that our Core Values will stand the test of time.

Upon the recommendation of the Ethics and Good Governance Committees, I am pleased to inform you that your Board has approved 5 Core Values that we hope all of us will live out and abide by as FINEX members. The FINEX Core Values are:

Transparency and AccountabilityIntegrity and Truth

Professional ExcellenceProud To Be A FilipinoSocial Responsiveness

Our Ethics Committee will come up with a program of activities through which we can espouse these Core Values. Today’s editorial of FINEX Focus will already cover FINEX’ Core Values. In addition, Digoy Fernandez has written a very thought provoking article on this topic. Let us not only read about these Core Values. Let us practice them.

In addition, your Board has also approved the adoption of new FINEX Mission and Vision Statements. The new Mission and Vision Statements were conceptualized to make it more consistent with our objectives and adhere to the ever-changing world of finance. Rather than re-inventing the wheel, the new statements were adopted based on the recommendation of the 2010 FINEX Board and the Vision 2018 Committee composed mostly of past FINEX Presidents. Our new Mission and Vision Statements are:

MISSION STATEMENTTo promote the progressive and innovative application of financial knowledge and skills in beneficial service

to society, always observing the highest standards of competence and ethical behavior.

VISION STATEMENTTo be the leading national organization

of finance professionals and practitioners dedicated to the advancement of financial knowledge and expertise.

I continue to invite everyone to join at least one of the 32 Committees we have in FINEX. It is never too late to GET INVOLVED.

Join a Committee that interests you.Join a Committee where you can make a difference.Join a Committee where you will learn something new.Join a Committee where you can share your knowledge

and expertise.Join a Committee where you can make new friends.

Below is a list of the various FINEX Committees that are waiting for you:

Under the Institute:1. Affiliates 2. ASEAN Economic Integration3. Audit 4. Capital Markets Development5. CFO of the Year Awards6. Elections 7. Ethics 8. Finance 9. Good Governance 10. ICT 11. International Relations12. Judicial Reform13. Junior FINEX

14. Membership15. National Affairs16. Professional

Development17. Programs and

Meetings 18. Publications19. Speakers’ Bureau20. Sports and Wellness21. Tax and Legal 22. Ways and Means23. World Congress

Under the FINEX Research and Development Foundation:1. Arts 4. Environment2. Business Education 5. Grants and Research3. Citi Junior Bankers 6. Social Involvement

Under the Foundation for Filipino Entrepreneurship:1. Access to Finance 2. Access to Education 3. Access to Markets

GET INVOLVED. BE ENGAGED.

Last March 19, we had the honor of having Secretary Lilia de Lima of the Department of Justice as our guest of honor and speaker. The topic of her speech “DOJ Reforms Toward Justice and Good Governance” provided us insights on the plans and programs of the Department to improve our judicial system. I certainly wish her luck in her mission. She deserves our support and encouragement.

Today, we are privileged to have another very sought after Cabinet Secretary, Presidential Assistant for Rehabilitation and Recovery Secretary, Honorable Panfilo M. Lacson, Sr., as our keynote speaker. Most of us, and our respective companies, have generously donated money, time and material things in support of the needs of our fellowmen who were greatly affected by the recent natural calamities in the Visayas. The Honorable Secretary will update us on the status of the rehabilitation efforts of the government, the challenges that are being faced by the government in its rebuilding programs and government’s plans moving forward.

In an effort to institutionalize the fund raising activities of FINEX, our Ways and Means Committee devised an integrated and centralized fund raising campaign for this year. Hopefully, the program will serve as a template for all fund raising efforts of the Institute going forward and address potential donor fatigue among our friends and benefactors. My special thanks to Past President

to page 4

FINEX Focus 5PB FINEX Focus FINEX Focus PB4 FINEX Focus

Dennis Decena, the Chairman of the Ways and Means Committee and Liaison Director Omar Cruz for coming up with a very attractive and comprehensive prospectus and sponsorship packages.

I invite our members to be the champions of FINEX in your respective companies to become corporate sponsors in support of the various activities of FINEX – our GMMs, seminars and workshops, social involvement advocacies and the World Congress. Various sponsorship packages range from a low of P150,000 to a high of P1.0MM

Last April 12, 2014, the World Congress Sub-committee on Ways and Means sponsored Repertory Philippines’ play, Noises Off. The play was well received. It provided a break from our day to day office and business activities and afforded those who watched an opportunity to have good laughs and great fun. The event was a financial success! Aside from raising money for the World Congress, FINEX will donate 22 boats to the livelihood projects in Samar and Leyte for our brothers. Congratulations to the World Congress Sub-Committee on Ways and Means under the leadership of our very hard working Chairperson, Terrie Magleo. Terrie herself donated 4 boats in lieu of celebrating her 45th birthday with a party.

Thank you very much too to all those who solicited corporate sponsors and bought tickets to the play.

During your Board’s April 10 meeting, we accepted 8 new mem-bers. Some of them will be inducted today, together with those who have not yet been officially welcomed to our organization. The list includes:

1. Gino Baltao, President, Monheim Group of Companies2. Christopher Bautista, CFO, Finance-Malls, SM Prime

Holdings, Inc.3. Rey Richard Caparas, CFO, B Braun Medical Supplies, Inc.4. Anna Josefina Esteban, Finance Director, Miriam College

Foundation, Inc.5. David Nicol, CFO, Metro Pacific Investments Corp.6. Rafael Reyes, CEO, Miascor Holdings, Inc.7. Ruelito Soriano, Co-Managing Partner, Quiason

Makalintal Barot Torres8. Jenny Co-Yang, CFO, Plastmann Industrial Corporation

My heartfelt thanks to the sponsors of some of these new mem-bers, namely, Jeffrey Lim and Gary Legarda, for their recruitment efforts.

As of April, we have already accepted 45 new members vis-à-vis our target of 100 for the year. I encourage everyone to continue inviting their friends, officemates, colleagues in the industry and fellow finance practitioners to join FINEX.

This morning, the ICT Committee under Liaison Director Anton Mauricio and Committee Chair Brian Hachez, with Microsoft Phils. as corporate sponsor, hosted the 4th ICT Conference Series entitled “Cloud Banking and Insurance”. We were privileged to have BSP Deputy Governor Nestor Espenilla and Open Computing Alliance Asia Policy Partners Secretary General Michael Mudd as resource speakers.

After our GMM today, FINEX, in partnership with MAP, Judicial Reforms Initiative (JRI) and Philippine Institute of Arbitrators (PIArb), will conduct a Forum on Alternative Dispute Resolution (ADR). Experts on ADR will serve as resource speakers, namely, Atty. Teodoro Kalaw IV, PIArb President, Atty. Eduardo Ceniza,

PIArb Chairman Emeritus and Atty. Rita Linda Jimeno, Professional Lecturer at the Philippine Judicial Academy. It is the objective of the Judicial Reforms Committee under Liaison Director Baby Nuesa and Committee Chair Santi Dumlao to encourage and actively promote the use of Alternative Dispute Resolution to achieve speedy and impartial resolution of conflicts thereby helping declog our court dockets.

On May 19, FINEX will be one of the industry partners to the Financial Times-First Metro Philippines Investment Summit which will be held at the Mandarin Oriental Hotel. This high-level conference will feature policy-makers, business leaders, economists and bankers led by DOF Secretary Cesar Purisima, BSP Governor Amando Tetangco Jr., and Harvard University’s JFK School of Government Professor Carmen Reinhart. They will talk about why the Philippines is an attractive destination for foreign investments. The registration fee is US$150.00. Kindly indicate that you are registering under FINEX when making the payment.

The first seminar offering of the ASEAN Economic Integration Committee under Liaison Director Dick Du-Baladad and Committee Chair Goody Hernandez will be held on May 28, 2014 at the InterContinental Manila. The seminar entitled, AEC 2015 Forum: Capital and Financial Markets Integration, will feature ADB Senior Economist Thiam Hee Ng, SEC Chairperson Teresita Herbosa, BSP Deputy Governor Diwa Guinigundo, PSE President & CEO Hans Sicat, PDS Group President & CEO Cesar Crisol and BAP Chairman of Capital Markets Committee Enrico Cruz, as speakers. The forum will be moderated by Mr. Omar Cruz, FINEX Director and former National Treasurer. This seminar will be held in partnership with the Management Association of the Philippines.

On May 29, 2014, your Professional Development Committee under Liaison Director Jimmy Ladao and Committee Chair Ned Goseco, will be sponsoring a Power Breakfast Forum on Credit Rating. Moody’s Asia Pacific Regional Head, Dr. Michael Min Ye and India Credit Rating Agency Chairman & Group CEO, Mr. Pranab Kumar Choudhury will share with us the process/methodology and some criteria for doing credit rating for corporate and sovereign accounts as well as corporate governance ratings. In addition, the two resource speakers will also impart macroeconomic updates and bond developments in the region.

FINEX will be hosting the 10th Parangal Golf Tournament in Honor of BSP Governor Amando Tetangco Jr. on June 21, 2014, Saturday, at Mount Malarayat Golf and Country Club. I hope all FINEX golfers will take time to spend a round of golf with our friends from the BSP and other government agencies.

Finally, I would like to reiterate my appeal for all of us to support our hosting of the 44th IAFEI World Congress in October 15-16. We expect a big delegation from our foreign counterparts to be in attendance. I am also pleased to inform you that the website for the World Congress has already been activated. Please visit www.finex.org.ph/44thiafeiworldcongress for complete details and registration. I hope that you will support this event by attending the conference, inviting your friends and colleagues from abroad and the Philippines to participate and by helping us generate corporate sponsors.

If you have ideas or suggestions on how we can make FINEX more relevant and interesting to our members, kindly drop me a note at the FINEX Secretariat or email me at ess@bdo.com.ph. Your lead-ership is always open to new ideas. You can be assured that we will always do what is in the best interest of FINEX and its members!

PRESIDENT'S Message. . . from page 3

4 FINEX Focus

FINEX Focus 5PB FINEX Focus FINEX Focus PB4 FINEX Focus

PERSONAL DICTUM: What is right must be kept right. What is wrong must be set right.

b. Senate Select Oversight Committee on Intelligence and Confidential Funds Programs and Activities c. Legislative Oversight Committee on the Visiting Forces Agreement4. Member of the Oversight Committees: a. Congressional Oversight Committee on the Official Development Assistance (ODA) Law b. Joint Oversight Committee on the Human Security Act of 2007 c. Joint Congressional Oversight Committee on Tourism

 COMMISSION ON APPOINTMENTS:1. Chairman of the Committee on Agrarian Reform2. Vice Chairman of the Committee on National Defense3. Member of the Committees in the CA: a. Agriculture and Food b. Budget and Management c. Constitutional Commissions and Offices d. Education, Culture and Sports e. Energy f. Environment and Natural Resources g. Finance h. Foreign Affairs i. Health j. Interior and Local Government, Regional Consultative Commissions and Regional Autonomous Governments k. Justice and Judicial Bar Council l. Public Works and Highways m. Science and Technology n. Trade and Industry o. Transportation and Communication

 LEGISLATION: Filed 41 bills that aimed to improve public service,

enhance reproductive health, promote investments, bolster the country’s defense capabilities,

One of the main authors of two milestone legislative measures of the Aquino administration, one of which was the Reproductive Health Act.

The measure seeks to promote responsible parenthood and to protect the health of the mother and child by giving them access to reproductive health services.President Benigno

Aquino III certified the bill as urgent, allowing Congress to pass it quickly. President Aquino signed it into law as Republic Act 10354 last December.

Another milestone legislative measure where Lacson was a main author was the Sin Tax Reform Act, which imposes higher taxes on tobacco and alcohol products to deter the public from buying such products. But those who insist on buying such products will have to pay a higher taxes, whose proceeds will go to the government’s universal health program.

For the Sin Tax Reform Act, Lacson had filed Senate Bill No. 2763, which sought to restructure the excise tax on alcohol products; and Senate Bill No. 2764, which sought to restructure the excise tax on tobacco products. President Aquino signed the bill into law as Republic Act 10351.

Authored Senate Bill No. 2783, which strengthened further the Anti-Money Laundering Act of 2001. His work is now part of Republic Act No. 10167, which was approved and signed into law June 18, 2012.

Authored a key amendment to the Armed Forces of the Philippines Modernization Act, which aims to provide more funds to the military for its much-neede capability buildup. President Aquino signed the measure as Republic Act 10349 on December 11, 2012.

Filed Senate Bill No. 2993, An Act Providing for a comprehensive law on firearms, light weapons and ammunitions, which was signed into law as Republic Act 10591.

Authored the law converting Imus, Cavite from a municipality into a city. The measure became Republic Act No. 10161 on May 8, 2012.

Filed Senate Bill No. 2945, which reapportioned the province of Cotabato into three legislative districts. The bill was passed into law as Republic Act 10177.

He filed as well resolutions that led to many officials being held accountable, whether incumbent or former. Among these were:* Resolution No. 518: Directing the Blue Ribbon

Committee to look into the alleged anomalous acquisition by the Philippine National Police of light operational helicopters in 2009. The resolution triggered an investigation that led to the filing of criminal charges against the officials and personalities linked to the questionable purchase. Some of them were dismissed from the service.

* Resolution No. 519: Directing the Senate Blue Ribbon Committee to look into corruption by the previous board of the Philippine Charity

Sweepstakes Office. Many of the officials linked to the irregularity – including former President Gloria Arroyo – have been charged before the graft court.

* Resolution No. 537: Directing the Blue Ribbon Committee to investigate electoral sabotage in the 2004 and 2007 elections, which triggered the charges that led to the arrest and detention of former officials, including former President Gloria Arroyo

* Another resolution, Resolution No. 660, seeks to congratulate new Cardinal and Manila Archbishop Luis Antonio Cardinal Tagle

Lacson also filed resolutions commending members of the police and military for safeguarding Filipinos, including:

* Resolution No. 542: Resolution honoring The Outstanding Philippine Soldiers (TOPS) of 2011

* Resolution No. 562: Resolution commending the Country’s Outstanding Policemen in Service (COPS) of 2011

ACCOMPLISHMENTS AS CHIEF OF PNP Achieved 58% public approval rating for PNP, the

highest in PNP’s history, and 78% approval rating for himself.

Improved police efficiency through the 85-15 rule, by downloading 85% of PNP’s logistics to town and city police stations, while the remaining 15% is retained at headquarters.

Succeeded in eradicating “Kotong” culture among policemen, and earned moniker “Kotong-Buster” from jeepney, taxi, bus and delivery truck drivers, farmers, market vendors, etc.

Instituted “No-Take” policy. Instilled discipline in the national police force and

raised morale of officers by getting rid of ICU: Inept, Corrupt, Undisciplined cops.

Stopped policemen’s use of recovered stolen vehicles.

Founded the PNP Foundation Inc. Helped improve Asian regional police network in

combating manufacture and distribution of illegal drugs in the country and in the region.

SPECIAL CITATIONS:Philippine College of Rotary Governor, Rotary Club of Manila, Lions President League of the Philippines, Philippine Chamber of Commerce & Industry, VACC, Manila Downtown Y’s Men’s Club, Council of Past Lions Governors of the Philippines, Cebu Chamber of Commaerce, Cebu Bankers Club, Cebu City Office for Substance Abuse Prevention, Metro Cebu Uptown Jaycees, Rotary Club of San Fernando (LU), Assusasyon ng Kumentarista at Announcer ng Pilipinas, Pugad Lawin Philippines, Inc., Police Cavaliers Association, Inc., National Police Commission, Federation of Filipino-Chinese Chambers of Commerce, PMA Class ’71 (MATATAG), Rotary Club of Caloocan, Rotary Club of Metro Cebu, Rotary Club of Cebu West, Rotary Club of Cebu Port Center, Rotary International District 390, Rotary Club of Binan, Direct Commission Batch ’71 PNPC Chapter, KBP Metro Manila Chapter. Guest of Honor and Commencement Speaker at the Commencement Exercises of Bicol University, Daraga, Albay.

Medals:17 Military Merit Medals3 Medalya ng Kadakilaan3 Medalya ng Kagalingan2 Outstanding Achievement Medals5 Military Commendation Medals5 Bronze Cross Medals2 Medalya ng PapuriLuzon Campaign MedalVisayas Campaign MedalCombat Efficiency Medal

POLICE/MILITARY TRAINING/ SCHOLARSHIP COURSE Course Taken School/ Location DatesBachelor of Science Phil. Military Academy, Baguio City 1971Intel Officers Basic Course SITS, Fort Bonifacio 1973Military Intel Collection Course SITS, Fort Bonifacio 1974Counter URBAN Guerilla Warfare Course Fort Magsaysay 1972Incident Management Course PSG, Malacañang Airmobile Operations Course Camp Crame, Quezon CityCommand and General Staff Course Command General Staff College Fort Bonifacio

MEDALS/AWARDS/COMMENDATIONS/CITATIONS RECEIVEDDate Award Awarded by1998 Ten Outstanding Policemen of the Philippines Philippine Jaycees Inc. Special Medal of Honor Kapisanan ng mga Brodkaster ng Pilipinas (KBP)1992 Police Director of the Year Regional Command (RECOM) 7, Cebu City1991 Adopted Son of Cebu Cebu City Council Resolution1989 - 1990 Philippine Constabulary Regional Command1990 - 1991 Officer of the Year (RECOM) 7, Cebu City1983 Certificate of Academic Excellence AFP Command and General Staff College1983 PMA Alumni Cavalier Award Philippine Military Academy Alumni (Special Operations) Association Inc.1982 PC Metrocom Officer of the Year Philippine Constabulary

FINEX Focus 5

GUEST SPEAKER. . . from page 2

FINEX Focus 76 FINEX Focus FINEX Focus PB6 FINEX Focus

Editorial NotEs

FINEX Mission, Vision, and Core ValuesBy Reynaldo C. Lugtu, Jr

FINEX Focus 6

AS THE global and regional economies become tightly integrated, there is a greater need for FINEX as a professional organization to adapt to the fast-changing environment where it operates and influences. This calls for the more active and passionate participation and involvement of our members to advance its goals and advocacies that will benefit the organisation as whole and the community and country it serves.

That’s why the Ethics Committee of FINEX headed by its Chair, Atty. Alfredo Javellana II, alongside the support and leadership of President Ed Soriano, have taken great care and participation in reformulating our organization’s vision and mission, and the development of its attendant core values.

Our vision and mission statements are critical components that will attract, inspire and continually motivate our members to actively participate in the projects and programs.

MissionTo promote the progressive and innovative application of

financial knowledge and skills in beneficial service to society, always observing the highest standards of competence and ethical behavior.

VisionTo be the leading national organization of finance

professionals and practitioners dedicated to the advancement of financial knowledge and expertise

The core values of our organization describe what the members believe in, and serve as the linchpin of our mission and vision. These form the foundation on which the members perform their functions and conduct themselves.

In an ever-changing world, core values remain constant. These bolster and sustain leadership, enabling it to maintain the organization’s purpose and make that purpose real to its members, staff, and other stakeholders. Core values should not only represent what the organization stands for, but should also guide each generation of leadership regarding how and where to direct the company. Creating core values that support both vision and purpose is a prerequisite for a thriving organization.

In this regard, FINEX, has created the Five Core Values which define how we want to be known for and how we live and perform our purpose. The Five Core Values are:

1. Transparency and accountabilityTransparency helps create trust among stakeholders,

encourages more informed decision making, and supports greater participation among members. Transparency and trust are inextricably linked. Transparency helps develop a culture in which trust abounds, an environment that creates an organization that is satisfying and enjoyable to join and participate in.

To promote transparency, we need to have clarity and consensus about what constitutes success for FINEX as an

organization; and we need to promote open communication internally to our members and staff and externally to other stakeholders and the general public

A commitment to transparency will define our organization’s reputation and will be used as a value judgment for participation. By gaining a reputation, our organization will win the respect and involvement of current and future members.

Closely related to transparency, accountability, on the other hand, is our obligation as members and leaders of FINEX to account for our activities, accept responsibility for them, and to disclose the results in a transparent manner.

2. Integrity and truthIntegrity means the possession of and steadfast adherence

to high ethical principles and professional standards. We, as members of FINEX, strive to be honest by telling the truth to ourselves and to others, as well as to be ethical and fair in everything we do. We lead by example and focus on doing the right thing every time. We accept responsibility and hold ourselves and each other accountable for our actions.

3. Proud to be a FilipinoNationalism as a core value means the feeling of oneness

and pride among us members of FINEX in particular, and Filipinos, in general. We need to promote national pride in our abilities, resilience, culture, values, and traditions as a people. This will be a vehicle for national consciousness, development, and progress of our country

4. Professional ExcellenceProfessional excellence means upholding the highest

standards, competency, and distinction in our chosen profession. This takes more than just aptitude in our chosen profession, it takes a commitment to doing what’s right, not only for our respective businesses, but for society as a whole. We promote this by practicing our highest standards at work as well as in our conduct in our organization; and this is defines by how we deal with our members, our staff, and other stakeholders.

5. Social ResponsivenessSocial responsiveness involves what we do to uplift and

promote the welfare and interests of the society in which our organization operates. This core value dictates the programs and initiatives we will pursue, and the advocacies we will adopt and promote. This supports FINEX’s mission of promoting the progressive and innovative application of financial knowledge and skills in beneficial service to society

These Mission, Vision, and Core Values are critical to the continued success of FINEX; hence, with the leadership of President Ed Soriano, we want to make sure that these are effectively and unremittingly communicated to our members, through a series of feature discussions in Focus and other fora.

FINEX Focus 76 FINEX Focus FINEX Focus PB6 FINEX Focus

THE Eternal Law-Giver saw fit to establish a set of Natural and Moral laws that have been ingrained in every aspect of creation. If there were no laws or codes, there would be chaos. Thus, birds as a rule were meant and equipped to fly, whereas stones do not have this property or ability. Man alone was given the facility to Think and to use Reason under the gift of Free Will. Therefore, Man has some degree of control over his conduct, but this does not mean that he can run roughshod over the eternal laws and rules that govern the universe. St Thomas says that Natural Law is simply the participation of Man in the Eternal Law. The Eternal Law is God’s Wisdom that ordains and governs all movement and action. Over the centuries, Man has fashioned various codes, charters, constitutions, et al, that sought to put life into Man’s interpretations of what Core Values -- in the light of Natural Law -- should be and how these should govern the conduct of mankind’s affairs.

The past centuries that fostered a culture of untrammelled growth have also seen not just economic and social progress, but also the growth of many displaced peoples and cultures, not to mention the general degradation of the world and the environment we live in today. It is becoming clearer that we can no longer measure the progress of society and the corporation in terms of traditional measures such as GNP, GDP, Net Income, Total Assets, and the like. These measures provide a pure mathematical output, and fail to show what goes into the making of these numbers. In a seminal address made in March of 1968, the late Robert F. Kennedy pointed out that what GNP means and – more important – what it does not mean:

“Too much and too long, we seem to have surrendered community excellence and community values in the mere accumulation of material things. Our GNP…counts air pollution and cigarette advertising and ambulances to clear our highways of carnage. It counts special locks on our doors and jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl….Yet GNP does not allow for the health of our children, the quality of their education…..the strength of our marriages, the intelligence of our public debate or the integrity of our public officials….It measures everything, in short, except that which makes life worthwhile.”

Another radical thought is introduced by another observer whose essay is entitled “Making Money no more the True Measure of Success”. He further observes that the real winners in life will be those companies who best align social, environmental, human, and financial aspects in all their work.

Sometime back, the Publications Committee of FINEX cobbled together one of its regular columns under the unusual title of “Beyond Bottom Lines.” The idea was to highlight those aspects of management and finance that considered more than just the bottom line. It may be opportune to revive this column under a separate set of writers who truly believe in the importance of core values that should guide just about every aspect of a corporation’s and an individual’s actions.

Going beyond bottom lines has become a definitive line of thinking ever since Freer Spreckley and John Elkington first proposed the concept of a Triple Bottom Line, embracing not just the traditional measuring tools, but introducing other less tangible elements into the equation. The Triple Bottom Line is composed of the 3Ps: Profit; Planet; and People. Profit is the most familiar, which is the economic value of the firm or individual after deducting the costs of inputs and the employment of capital. People refers to both the

human element, the stakeholders and publics of a firm, and how decisions and actions of the firm impact on their security, safety, etc. Planet is natural capital, and is mostly concerned with sustainable environmental practice.

The three are intertwined and affect each other and the whole array of publics and stakeholders. Thus, a decision to pursue a mining venture, for example, would probably be considered as a viable economic activity. However, if mining claims are obtained to the detriment of local tribes and peoples, and if they are not compensated properly, then the cost of the economic and social deprivation to the people concerned must be factored into the equation. Furthermore, if unsound mining practices are employed, resulting in denudation of the forest cover, the spillage of dangerous and poisonous elements into the ecosystem, the cost of cleaning this up and the loss of lives and livelihood should also be included in the total computation.

Fortunately, there are companies and countries that have begun to adopt the Triple Bottom Line gradually or wholeheartedly. It requires a start, and perhaps FINEX can spearhead the effort to look and adopt the Triple Bottom Line as a more comprehensive measure of corporate and national performance.

FINEX has been at the forefront of many a social initiative in the past. There is no reason why it cannot take the lead in the adoption of core moral values that can be best measured by way of initiatives like the Triple Bottom Line. In a way, the questions asked by group like Rotary on whether an activity exemplifies the Truth and is best for all concerned will be better addressed by a more comprehensive socio-economic measure. Furthermore, FINEX must advocate inclusive growth strategies that determine success in terms not only of corporate financial performance, but also growth and development that filters down to the Least, the Lost, and the Last members of society.

This line of thinking is outlined very clearly in the newly-adopted acronym (TIPS) to guide FINEX and its members:

• Transparency• Integrity• Professional Excellence or Pinoy Pride (Nationalism)• Social Responsiveness

The development of a core value system for FINEX and its members should not just be the establishment of platitudes and statements that would look good on a plaque or a corporate statement. The development of core values starts with a general statement of the ideal, after which it is properly debated upon and contributed to by the members. Then, steps should be taken to integrate these core values into the very way of life of each FINEX member corporation and individual members. In this way, FINEX can truly be the “salt of the earth” or the lamp that will give light to the rest of Philippine society. We must lead by example, we must walk the talk.

Thus, we propose the following:

• The inculcation of the TIPS philosophy into every aspect of FINEX and to its members

• Encourage every FINEX member to attend a Good Governance course where corporate and personal ethics will be taken in the right context

• Develop a mind-set within FINEX that encourages each member

A CORE VALUE SYSTEM FOR FINEX AND ITS MEMBERSBy Jose Ma "Digoy" J. Fernandez

to page 12

FINEX Focus 9PB FINEX Focus FINEX Focus PB8 FINEX Focus

COMMITTEE UPDATES & ACTIVITIES

Back L-R: Max Paca – FGT 1st Runner-up; Jimmy Panganiban – Low Net Champion.

Front L-R: Reevie Vergara – Class C Champion; Edwin Villanueva – FGT 2nd

Runner-up; Quiel Lampa – Low Gross Champion and FGT Champion;

Jojo Ong – Class B Champion; and, Enrico Leyeza – Class A Champion.

2014 FINEX GOLF TOURKick-Off

Tournament WinnersAlabang Country Club, March 26, 2014

8 FINEX Focus

For details, please call the FINEX Secretariat c/o Analyn Viloria at (02) 811-4052, or 811-4187 to 88, or email at avviloria@finex,org.ph

Power Breakfast Forum on Credit Rating with Moody's & ICRAPasay AB, Makati Shangri-La Manila, Makati CityMay 29, 2014, Thursday7:00 – 8:00 AM – Breakfast Buffet/Registration8:00 – 11:00 AM – Forum Proper

FINANCIAL EXECUTIVES INSTITUTEOF THE PHILIPPINES

FINEX Focus 9PB FINEX Focus FINEX Focus PB8 FINEX Focus FINEX Focus 9

THE Publications Committee chaired by Wilma C. Inventor-Miranda held another successful Kapihan Forum this time at the new headquarters of Globe Telecom at Fort Bonifacio. The venue was made possible through its VP-IT Enabled Services who is also the Editor-in-chief of FINEX Focus and the Sub-Chair of FINEX website. Globe was the main sponsor of the event who provided the venue , the food and the other logistics. Media partners were – GNN TV, TV5, ANC Channel, Business World, Philippine Star, Manila Bulletin, and Business Mirror.

The Speakers Architect Felino Palafox, Jr. and Atty. Karen Jimeno-McBride delivered their messages in an interesting and informative way making the audience clamor for more. However, although he has another appointment Architect Palafox patiently stayed behind longer to personally answer some more questions after the Forum.

The Subchair for the Special Events Abet Delgado was a workhorse to make sure everything is implemented as planned. Liaison Director Flor Tarriela was also very supportive although she cannot attend the event due to a previous appointment. The rest of the members of the core group were there to make sure the event will be truly a success.

KAPIHAN sa FINEX

From l-r: Nikka Abes (Director, IT-Enabled Services, Globe Telecom Inc.), Rey Lugtu (VP, IT- Enabled Services Group, Globe Telecom Inc.), Arch. Felino Palafox, Jr. (Principal Architect- Urban Planner, Founder & Managing Partner of Palafox Associates), Wilma Miranda (Managing Partner, Inventor, Miranda & Associates) & Sarah Coronado (Globe Telecom Inc.)

From l-r: Rey Lugtu (VP, IT- Enabled Services Group, Globe Telecom Inc.), Wilma Miranda (Managing Partner, Inventor, Miranda & Associates), Arch. Felino Palafox, Jr. (Principal Architect- Urban Planner, Founder & Managing Partner of Palafox Associates), Zoilo Dejaresco III (Managing Director, Crusaders Consultancy Services) and Grace P. Tiongco (President, First Credit Consultants Corp.)

(LEFT PHOTO, l-r:) (standing): George Chua (Vice Chairman, First United Broadcasting Corp.), Marybeth Delgado (Managing Director, Expense Reduction Analysts), & Wilma Miranda (Managing Partner, Inventor, Miranda & Associates). (Seated l-r:) Arch. Felino Palafox, Jr. (Principal Architect-Urban Planner, Founder & Managing Partner of Palafox Associates) and Zoilo Dejaresco III (Managing Director, Crusaders Consultancy Services)

(RIGHT PHOTO, l-r:) Wilma Miranda (Managing Partner, Inventor, Miranda & Associates), Rey Lugtu (VP, IT-

Enabled Services Group, Globe Telecom Inc.) & Nikka Abes (Director, IT-Enabled Services, Globe Telecom Inc.)

Master of Ceremonies: Rey Lugtu (VP, IT-Enabled Services Group, Globe Telecom Inc.)

Wilma Miranda (Managing Partner, Inventor, Miranda & Associates)

From l-r: Grace P. Tiongco (President, First Credit Consultants Corp.), Atty. Karen Jimeno-McBride (Director, PARR), Wilma Miranda (Managing Partner, Inventor, Miranda & Associates), George Chua (Vice Chairman, First United Broadcasting Corp.) & Blanca Mercado (VP & Deputy CFO, Businessworld)

From l-r: Rey Lugtu (VP, IT-Enabled Services Group, Globe Telecom Inc.), Arch. Felino Palafox, Jr. (Principal Architect- Urban Planner, Founder & Managing Partner of Palafox Associates), (Atty. Karen Jimeno-McBride (Director, PARR), Wilma Miranda (Managing Partner, Inventor, Miranda & Associates)

From l-r: Rey Lugtu (VP, IT-Enabled Services Group, Globe Telecom Inc.), George Chua (Vice Chairman, First United Broadcasting Corp.), Arch. Felino Palafox, Jr. (Principal Architect- Urban Planner, Founder & Managing Partner of Palafox Associates), Wilma Miranda (Managing Partner, Inventor, Miranda & Associates), Marybeth Delgado (Managing Director, Expense Reduction Analysts) and Ador Abrogena (Treasurer, FINEX and EVP, BDO)

FINEX Focus 11PB FINEX Focus FINEX Focus 1110 FINEX Focus

LAST April 12, 2014, The World Congress

Subcommittee on Ways and Means, headed by Ms.

Terrie Magleo, sponsored the Repertory Philippines’

NOISES OFF PLAY.

The proceeds of this fundraising will support the

Livelihood Project (donation of boats) for the victims of

Typhoon Yolanda and for the successful hosting of the

44th IAFEI World Congress on October 15-17, 2014 in Manila.

NOISES OFF

P L A Y

FINEX Focus 11PB FINEX Focus FINEX Focus 1110 FINEX Focus

Financial Executives Instituteof the Philippines (FINEX )

Roberto F. De Ocampo Centerfor Financial Excellence

19/F 139 Corporate Center Valero St., cor. Sedeño, Salcedo Village, Makati City

Telephone nos. 811-4052, 811-41-86 to 89 Fax No. 811-4185

Email Address: admin@finex.org.ph

2014 Editorial Board President Edmundo Soriano Liaison Director Florencia Tarriela Publications Committee Chairperson Wilma MirandaVice-Chairperson & Sub-Chair for Directory Blanca Mercado Editor-in-Chief/Sub-Committee Chair for Focus & Website Rey LugtuSub-Committee Chair, Special Media Events Marybeth Delgado Sub-Committee Chair, Business Column Ted Estacio Sub-Committee Chair, Broadcast Media Mel Salazar Advisers Benel Lagua / Valentin AranetaFinex Staff Myla Niñofranco

W HAT attire-in-style they

EAR – both for office

ORK & social activities...

executives

on-the-go . . .

FINEX Focus PB12 FINEX Focus

Life's InnerGardenBy Wilma Inventor-Miranda

GOD's EmpowermentDAVID was abundantly blessed by The Lord because He always put God first in his life. He is a powerful king at that time but before he goes to war, he always consults God first. That is why The Lord gave him victories over his enemies and he has conquered so many kingdoms in his lifetime. He is also fair and just in his dealings with other people. This character could only be evident in the life of a person when God indwells in him. God’s empowerment is upon His people who seeks Him in all ways and obey Him.

In Luke 24 Jesus instructs His disciples to stay in Jerusalem until they are empowered by the Holy Spirit. They can go beyond their place only after the Holy Spirit has come upon them. Luke 24:9 “And look, I am sending you * what my Father promised. * But stay in the city * until you have been clothed with power * from on high.”

We are weak because we are humans. When good traits are evident in our lives, it is because of His Spirit in us Who is the Only One Who can conquer the natural tendency of man to lean towards wickedness. We need to seek Him daily and He will empower us to achieve great things for His glory. DAVID was such a humble man and whatever he gains from his conquests he dedicated it to The Lord as a sign that all these victories are not because of his might but by God’s power and might.

Jesus is the ultimate example of all humility and that is because He is God. When He becomes our Lord such humility and empowerment can be abundantly ours. We only need to trust and obey.

2Samuel 7:9"I was with you wherever you went, and I defeated all your enemies before you. Now I will make you as famous as the great men of the earth."

to examine himself / herself and their respective corporations to see if they are practicing true corporate citizenship…aware of the impact of their products and decisions on their many publics, including but not limited to People (inside and outside the corporation), Consumers and Markets, Suppliers, the environment, and the bottom line.

• Begin active dialogue on the possible adoption of the Triple Bottom Line as a more comprehensive measure of corporate and individual performance.

• Encourage members to start asking if each and every action of theirs contributes to the general and specific welfare and happiness of their various publics. This is important when one considers that many economic and financial decisions that impact favourable on the bottom line do not seem to improve the status of the poorest members of society.

• Promote a culture of Honesty and Integrity within the FINEX family and in its dealings with the rest of society.

• Promote the adoption and practice of FINEX core values over time by way of dialogue, seminars, and constant advocacy with the membership.

• Use Social Media to spread the gospel of a good core value system to both FINEX members and to its many publics. Provide for a good feedback system so that the core values can be enhanced or improved as we go on. The Social Media pipeline can highlight instances of good governance and ethical practice by members.

• Sponsor an award based on the concept of good governance and

ethics, probably on the mould of going “Beyond Bottom Lines” to highlight that FINEX members are not just number-crunchers but people who care for their company, their country, their fellowmen.

FINEX CORE VALUES

• FINEX advocates and seeks to inculcate in its members and various publics a system of Core Values based on the intrinsic set of rules built into each individual by the Eternal Law Giver. These are values based on the Natural Law that promotes the well-being of both the Individual and Society and the establishment of sound Economic and Business principles anchored on the promotion of the greater good.

• FINEX advocates the practice of Good Governance and the observance of Ethical practice at all levels of its member firms and individuals.

• The TIPS Program will serve as a guide in the determination of members’ actions: Transparency; Integrity; Professional Excellence; and Social Responsiveness

• FINEX advocates going beyond the traditional bottom line that highlights merely the financial aspect of a firm’s activities. Instead, FINEX will initiate a study into the feasibility of putting into practice the Triple Bottom Line of PEOPLE, PLANET, and PROFITS. This advocacy should begin with FINEX members and eventually become a measure that is practiced by all sectors nationwide.

• The activities of FINEX members must also consider how their activities and programs affect the Least, the Lost and the Last members of society.

CORE Value System . . from page 7