Thursday, May 26, 2011

Part 2 - anti-trust in BusinessWorld

"Part 2 - Anti-trust protection for SMEs"
by Atty. Lorna Patajo-Kapunan
BusinessWorld Online, 25 May 2011
(Original article available online here)


View Part 1 here and here

"Part II

It cannot be denied that, despite economic reforms, the Philippines continues to move forward as a country of service providers.

The country is replete with BPOs, retailers, distributors, mom and pop stores, "sari-saris" and all forms of SMEs. We provide support and muscle to the brains -- the multinationals who call the shots, lay down the requirements, and demand the services that we provide.

It is not uncommon to have existing service agreements where there is no equal footing between the two parties; the foreign company will typically have more superior leverage and bargaining power than the Filipino SME.

The result is that the relationship will be that of the Filipino SME being at the beck and call of the multinational. There is no real or adequate protection for the middleman -- and more often than not, it is the Filipino SME which acts as the middleman.

While anti-trust cases are few and far between, the Supreme Court has on occasion ruled that the termination of a multinational of the distributorship agreement of its local distributor was illegal and constituted bad faith. In the said case, the Supreme Court ruled that the Filipino SME had to bear the brunt of distribution and impossible sales quotas set by the multinational, with the latter reneging on its earlier promises of support under the agreement.

Yet these kinds of agreements are not only typical but recurrent. Multinationals, after all, maintain the upper hand -- a Filipino SME constantly faces the underlying threat of having its service agreement terminated by the foreign company.

And why not? First, there is no law or policy protecting these Filipino middlemen. Second, a local company providing BPO services to a multinational is just one of many Filipino SMES eagerly lining up to do business with the big foreign company.

If the Filipino SME falls behind a quota set by the foreign "partner," then the latter can just promptly pull the plug -- after all, there are dozens of other small, practically interchangeable, Filipino companies waiting in the wings.

In the scenario mentioned earlier, what is often overlooked is that when a foreign company pulls the plug by deciding to illegally terminate its service contract with a local company, the Filipino SME loses not just a contract, but loses its entire business.

This means people losing their jobs, Filipino entrepreneurs losing everything they put up to start the business. You have cases wherein hundreds of employees are suddenly laid off before Christmas because a multinational decided to terminate its service agreement with its local Filipino distributorship.

There is no real leverage, no equal protection, to ensure that the small Filipino business is treated as a real partner by the foreign company or multinational. This is why there is an urgent need for a comprehensive anti-trust law, and a regulatory agency with teeth.

We are also being encouraged to all collectively be watchdogs for anti-trust acts committed around us -- by the companies we work for, the companies we deal with, and even the companies which provide our basic household needs."

14 comments:

  1. I drop a leave a response when I especially enjoy a post on a site or if I have something to add to the conversation.
    Usually it's a result of the sincerness communicated in the post I browsed. And after this article "Part 2 - anti-trust in BusinessWorld". I was excited enough to post a leave a responsea response ;-) I actually do have a couple of questions for you if you do not mind. Could it be only me or do some of these responses come across like they are left by brain dead visitors? :-P And, if you are posting on other online social sites, I would like to keep up with you. Would you make a list all of your communal sites like your linkedin profile, Facebook page or twitter feed?

    Review my homepage - click here

    ReplyDelete
  2. The oil in hair sprays and hair gels can in a short time clog pores that will create an acne issue.
    If homemade mask doesn't help you, try to increase the risk for other one. In addition, sleep gives our body the rest it requires to be able to maintain all the systems of your body especially the disease fighting capability that protects our skin. With Anorexia, it can be their weight, along with acne dysmorphia, it can be their clear complexion.

    my web blog; http://www.faccedatennis.it/index.php?do=/blog/34435/an-analysis-of-no-fuss-products-of-acne

    ReplyDelete
  3. With sensitive skin, you will need to take some precautions
    with whatever products you choose. If a product is to become
    left around the skin, you might want to rethink that too, and take off it after around
    30 minutes or an hour. It is best to work with natural
    acne products, like Aloe Vera based lotions. This is just to name a
    really few from the most effective acne skin care treatments available.



    my page; http://parfum-brands.ru/node/529897

    ReplyDelete
  4. This formulation could be the result of years of investigation
    and can be a detailed help guide healthy living practices that gets as soon as the cause of acne to prevent
    it from building on skin. The vitamin c in pineapple will reduce acne scars and smooth skin.
    If you try everything placed in this article not less than 6 months, and you also don't see a vast improvement, the following best step would be to see a dermatologist. Another preventative factor to take just isn't
    wearing oily cosmetics in any way or on rare occasion.

    ReplyDelete
  5. Further, initials of the name can be lettered on
    mini pieces of stones to make it even more personal. It's just up to you what type of rings you want to gift your loved one. I know it may seem as if I'm contradicting the advice I have already given you, but
    hear me out.

    Here is my website ... web site

    ReplyDelete
  6. Below are issues that you should know about Bio-Oil Acne Scars Therapy:
    . Neutrogena features a wonderful alcohol free toner or you can check to see if your epidermis care line
    posseses an alcohol free product. After you rub the face by utilizing a towel, be cautious and insure who's is tenderly. Having a face packed with acne is quite annoying to one's
    appearance, specifically in women.

    Also visit my page ... acne Cure

    ReplyDelete
  7. A CZ promise ring is a simulated (man-made) diamond. Two colleges exist at the exact same
    time: organic earth tone beads and colorful and exciting tone beads.

    Sterling silver promise rings are also available for couples on a
    budget, and they still look amazing as a true symbol of your love.


    Review my webpage promise rings for her

    ReplyDelete
  8. Rub raw garlic repeatedly a day about the acne
    prone parts of your face. You want to apply moisturizer once per
    day after cleansing skin. The relationship between acne occurrence and diet has been established by many researchers.

    Having a face packed with acne is incredibly annoying to
    one's appearance, specifically in women.

    Also visit my web-site - acne in early pregnancy (http://adsautopilot.com)

    ReplyDelete
  9. When you put the matching rings sets together, they create a perfectly formed heart
    expensive wedding rings. What this type of ring symbolizes is
    that the couple agrees to not have romantic relationships with others, and later as their relationship grows and develops, the plan is to move to
    an actual engagement ring. The critical element is that the person
    created the promise to abstain from sex until finally
    marriage.

    Feel free to visit my web-site - site []

    ReplyDelete
  10. Everything from engagement rings to promise rings, there are always a variety of diamond rings from which to choose.
    Possibly it's a silver band which has a easy twisted design, or even a restrained series of ridges. Coloured gemstone promise rings are equally classic and appealing.

    Feel free to visit my homepage webpage

    ReplyDelete
  11. ' Diamond rings: Diamond rings are classified as the greatest option with regards to men's rings.

    So just who in Hollywood is wearing a promise ring these days.

    After the removal of the pornographic application known as "Hottest Girls" (designed by app developer Allen Leung) for the increasingly
    popular Apple i - Phone, it seems the multinational consumer electronics giant
    is seeking to clear its name of any connection to sexually explicit material.


    Feel free to visit my web site; web site

    ReplyDelete
  12. These ingredients will absorb the excess oil for the skin and offer oxygen on the skin's environment (bacteria aren't getting along
    with oxygen). Pre-EFT, I would have wrapped my head up in the scarf and skulked on the sidewalk, in terror that I would pass someone about
    the sidewalk, remain visible by anyone. This is specially
    true since you're trying to get rid of the background and present your model inside the most flattering light possible. You can put on cucumber drink for a acne face too.

    Check out my blog; acne collection (http://community.closer2earth.com/blogs/8282/26653/the-options-for-methods-of-acne)

    ReplyDelete
  13. ' Diamond rings: Diamond rings are classified as the greatest option with regards to men's rings.
    Unless you are steeped from the globe of fashion, you will not be uncovered to the nuances
    of seasonal jewellery developments. This necessarily doesn't mean a parent has to give it even a self promise to abstain from these can be symbolized by wearing these rings.

    My site :: homepage

    ReplyDelete
  14. What's the variation in between a cultured pearl as well as a normal pearl. The idea behind pre engagement ring is that they represent sincerity towards a relation without being committed into an engagement. These designs are each bit as exotic and also a great deal a lot more economical than a matched strand.

    Take a look at my blog post :: web site

    ReplyDelete