The Best Practices of a Social Enterprise in Cebu, Philippines
Lauro Cipriano R. Silapan, Jr., Marites A. Khanser, Lolita V. Velita, and Christopher S. Malaya
University of San Carlos
Abstract
Results
Social entrepreneurship (SE) has been the central focus of many studies that address social ills including poverty in the past two decades. It was observed that SE research lags behind its practice. One important gap is the type of organization employed to achieve both economic and social goals. This is a
case study whose aims were to describe the characteristics of a social enterprise and attempt to explain
how it managed to stay sustainable. This research focused on Oriental Port and Allied Services Corporation (OPASCOR), a workers enterprise based in Cebu, Philippines. As a workers enterprise founded
in 1990, its ownership is shared among its employees. The company is granted by Cebu Ports Authority
a contract to engage in the handling of cargoes exclusively at the Cebu International Port. These very
characteristics as well as the existence of a formal management system contributed to the companys
success. A strong and adaptive leadership that upholds the organizations values of integrity, openness,
accessibility, and participation was instrumental in harnessing the employees to achieve economic and
social goals of the social enterprise. The study proposes a social enterprise model that is owned by its
workers, has management system focused on balancing social and economic goals, and adaptive leadership.
OPASCOR is a workers enterprise established in June 1990 with a contract from Cebu Ports Authority to
serve the cargo handling service needs of clients using the Cebu International Port. Presently, it has more than
500 employees. Ownership of the company is shared: 80% of shares owned by rank and file workers and supervisors and 20% of shares owned by managers and executives.
The company owns lifting equipment (e.g., quay cranes, rubber-tyred gantry cranes, forklifts), moving equipment, and bulk handling facility among others. It performs loading and unloading of cargoes to and from vessels as well as movement/transfer/shifting of cargoes within the container yard.
OPASCOR is an internationally-recognized world-class global Port Operator, with their strong partners and
supporters they contribute to the nations economic development by achieving profit with honor.
Introduction
Social entrepreneurship in this study is defined as a disciplined, innovative, risk-tolerant entrepreneurial process of opportunity recognition and resource assembly directed toward creating social value
by changing underlying social and economic structures (Hill, Kothari, & Shea, 2010, p. 21). As a process, it involves the creation of social enterprises which may take several forms and conceptualized as a
spectrum of nonprofit (e.g., cooperatives, fair trade, and non-government organizations among others)
to for-profit enterprises. In practice, strong competition for shrinking resources caused a shift toward hybrid forms and even for-profits to achieve sustainability.
In the late 1980s, poverty in Central Visayas, where Cebu City is located, is said to be at its worst.
Studies showed that among those receiving below the legislated minimum wage were port workers.
This studys context is Cebu City, Philippines. The study focused on a social enterprise founded in
1990 by port workers formerly employed by a cargo handling company at the Cebu International Port
(CIP) which was subjected to the privatization policy of the government in the 1980s.
The delivery of services emanating from the use of sea ports is under the jurisdiction of the Philippine Ports Authority (PPA). PPA is a government-owned and controlled corporation created in 1974 but
took over the administration of all Philippine ports only in 1976.It assumed the operation of Cebu port in
1977. In 1996 however, Cebu Ports Authority (CPA), created in 1992, took over the management of all
ports in Cebu.
The focus of the study is OPASCOR, designated by CPA as the exclusive cargo handling service
provider at CIP. The study has the following objectives: 1) describe the characteristics of OPASCOR
that made it a sustainable social enterprise; 2) explain how the organization successfully managed the
business using the Ferreira and Otley (2009) management framework; 3) identify key intangible performance indicators and determine how these contributed to the success of the social enterprise; and
4) propose a sustainable social enterprise framework.
Fig. 4 Shipcalls and Container Traffic (TEUs)
at CIP
Their Mission is three-fold:
1. To preserve and strengthen the company for future generations;
2. To continually improve in order to serve our customers efficiently and effectively;
3. To ensure that OPASCOR has sufficient, appropriate and modern port equipment and
facilities.
In order to achieve its Vision and Mission, OPASCOR focuses on:
1. Glorifying God for making OPASCOR a living testimony of His love for the underprivileged;
2. Uplifting economic, social and spiritual well-being of the companys workers and their families;
3. Putting OPASCORs sustained growth as a matter of honor beginning at our Top Management level;
4. Ensuring that OPASCOR is a professional workers enterprise composed on competent, well-trained and
experienced officers and employees working together as one strong team.
Governance and Management Processes:
Policy makers are managers and workers;
Close communication ushered in industrial peace
Implementation of ISO 9001:2008 involved everyone in achieving optimum service quality and better
management
Implementation of ISO and CPA audits as well as annual management reviews
High levels of productivity: 25 to as much as 30 moves per hour;
Workers are well cared for.
Adaptive Leadership enabled the chief executive officer to lead effectively.
Fig. 2 Cebu Base Port
Method
This research used the case study research methodology (Yin, 2014) to investigate how a social
enterprise involved in port operations (e.g., sea cargo handling service) in Cebu, Philippines managed to
stay successful. The data gathering process made use of the case protocol as basis for the interview of
various key informants. The study also used other sources of evidence from actual observation, company documents, financial reports from SEC, articles, books, magazines, websites, etc.
Fig. 5. Year-on-Year Changes
Conclusions
OPASCOR as a workers enterprise was successful
Fit was attained among the operating model, resource strategy, and social
impact theory
Membership interlocks in both OPASCOR and CPA boards contributed to
the success of OPASCOR.
High levels of productivity afforded generous benefit package for the
workers
There is a need to rationalize the role of OPASCORs board and create a
balance between social and economic goals.
References
Ferreira, A. & Otley, D. (2009). The design and use of performance management systems: An extended
Fig. 1 Poverty Incidence in the Philippines in 1988
Fig. 3 Lifting Equipment, Bulk Handling
Facility, and CIP Container Yard
framework for analysis. Management Accounting Research, 20, 263-282.
Hill, T. L., Kothari, T. H., & Shea, M. (2010). Patterns of meaning in the social entrepreneurship literature: A research platform. Journal of Social Entrepreneurship, 1 (1), 5-31.
Ramanathan, K. (2012). Toward a theory of corporate social accounting. In R. Gray, J. Bebbington &
S. Gray (Eds), In Social and environmental accounting, Volume I, Laying the Foundations (pp. 41-56).
California, USA: Sage Publications Ltd.
Yin, R. K. (2014). Case study research design and methods (5th Ed). Los Angeles, California, USA:
Sage Publications, Inc.
Acknowledgements
The researchers would like to thank CIMA and the COE for funding this project, University of San Carlos for the use of facilities, and OPASCOR for their story.
Contact Information
School of Business and Economics
University of San Carlos
P. del Rosario Street
Cebu City Philippines
Website: ww.usc.edu.ph
Email Address: [email protected]
Mobile No.: +63 917 620 6564
Phone No.: +63 32 253 1000 local 284
