CHAPTER 6

Seatwork

Choose one company who committed acts of unethical practices in conducting their business. Briefly
describe the nature of their business, their unethical practices, and the impact of those practices.

Magnolia Inc
Magnolia Inc. is a dairy company that operates as a subsidiary of San Miguel Pure foods
Company. The company manufactures butter, margarine and processed cheese, to include jelly
snacks, cooking oil, salad aids and Magnolia ice cream products. its inclusion on the list of top
firms engaged in labor-only contracting stemmed from the workers of an accredited service
provider.

Recently, our company was among many others cited as non-compliant with
government’s ban on ‘labor-only’ contracting, which is said to be used to skirt regularization of
workers. (illegal contracting practices) Too many workplaces are filled with managers and
supervisors who use their position and power to mistreat or disrespect others. Unfortunately,
unless the situation you're in involves race, gender or ethnic origin, there is often no legal
protection against abusive behavior in the workplace

Magnolia is the 10th company on the list with 2,248 workers supposedly affected. The
dairy firm said that the workers who maintain and operate certain machinery and equipment
are not its employees but of the independent service provider. The image of the company was
broken in the eyes of investors.

Department of Labor and

Employment on May 11, 2018,
releases a list of companies who
are suspected
to have illegal practice of
labor-only contracting
Magnolia Inc is a dairy company
that operates as a subsidiary of San
Miguel Pure Foods Company. The
company manufactures butter,
margarine and processed cheese, to
include jelly snacks, cooking oil,
salad
aids and Magnolia ice cream
and milk products. Originally
established in 1981 as Philippine
Dairy
Products Corporation (PDPC), a
joint-venture between San Miguel
Corporation (SMC) and New
Zealand
Dairy Board (NZDB), the
company’s headquarters is in
Mandaluyong City.
Magnolia Inc is a dairy company
that operates as a subsidiary of San
Miguel Pure Foods Company. The
company manufactures butter,
margarine and processed cheese, to
include jelly snacks, cooking oil,
salad
aids and Magnolia ice cream
and milk products
Department of Labor and
Employment on May 11, 2018,
releases a list of companies who
are suspected
to have illegal practice of
labor-only contracting