Case Analysis
SECURITIES AND EXCHANGE
COMMISSION
Submitted by:
Mabalay, Myckell Ericson
Sabandal, Sheena
Submitted to:
Dr. Enrique Rodrigo
Securities and Exchange Commission (SEC) to investigate Rappler over its Philippine
Depository Receipts
I. Environmental Analysis
- The investigation was prompted by a letter from the Solicitor General to the SEC in
December 2016 asking it to investigate Rappler’s PDRs. The SEC arrived at a decision to
revoke the registration of a major news organization following only 5 months of review.
It clearly acted with undue haste and it short-circuited the process. The SEC decision was
promptly followed by subpoenas issued by the National Bureau of Investigation (NBI) in
relation to a Rappler story published way back in 2012.
These developments are also the culmination of almost two years of relentless attacks by
the President’s social media defenders, a number of whom now occupy positions in
government.
In July 2017, no less than President Rodrigo Duterte singled out Rappler in his State of
the Nation Address and falsely claimed that we were 100% foreign-owned – by
Americans.
Rappler is not the only media organization under attack. In his speeches, the President
also relentlessly lashed against the owners of the Philippine Daily Inquirer. He also
threatened to block the renewal of the franchise of broadcast giant ABS-CBN.
II. Time Context
- In December 2016, the Office of the Solicitor General wrote a letter to the Securities and
Exchange Commission (SEC) asking the SEC to investigate Rappler over its PDRs.
III. Viewpoint
- Rappler Holding Corporation
IV. Statement of the Problem
- What are Philippine Depositary Receipts (PDRs)?
- How did the SEC decide other similar cases involving foreign investments in prohibited
sectors?
V. Areas of Consideration
SWOT Analysis
STRENGTH
The SEC showed leniency toward telecommunications giant PLDT, or Philippine
Long Distance & Telephone Co. which was investigated for supposedly skirting
the Constitutional rule on 60% Filipino-40% foreign ownership of public utilities.
The SEC did not order PLDT’s dissolution, arguing that doing so would impair
telco service delivery by PLDT.
The Philippine Center for Investigative Journalism (PCIJ) pointed out that, as a
regulator, the SEC morphed from lenient to severe in deciding the Rappler case.
Weakness
Under the Constitution, it is only media companies that are restricted to100
percent Filipino ownership
SEC used the doctrine of “piercing the veil of corporate personality”
Opportunities
Rappler an assurance of a reversal, it nevertheless is a legally tenable line.
they have exercised due diligence in rendering the decision.
Threats
Press Freedom
A new media organization
Critical News
VI. Alternative Courses of Action
1. Rappler’s shareholders signed an agreement giving full editorial and management control
to the journalists, whose collective aim is to create a truly independent news group and
crowdsourcing platform free of vested interests.
ADVANTAGE
- It will be an easy access to ramdomly check by the official
- Gain some trust
DISADVANTAGE
- Some may tolerate the freedom
- They might post fake news
VII. Plan Action
1. Marketing Aspect
- They can use this to market some business who’s just starting with a small capital. they
can help to advertise them to other people since a lot of people are into social media
2. Production Aspect
- Journalist should have training and knowledge on how to use a right word on explaining
or giving description on something.
3. Management Aspect
- The management should have conduct a training or atleast a introduction.
4. Financial Aspect
- A Corporation should have an equal salary contribution to all the workers.
VIII. Recommendation
- In the meantime, SEC Spokesperson Arman Pan says Rappler can still continue its
operations while its decision is not yet "final and executory." Pan adds the company can
exhaust all legal remedies and can appeal to the Court of Appeals (CA) within 15 days.
- And also we need to stop posting fake news and start posting some news who can help
anybody
