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.