St.

Paul University Philippines Tuguegarao City, Cagayan 3500

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Social Responsibility Practices of

ASA PHILIPPINES FOUNDATION INC.

NON STOCK AND NON PROFIT ORGANIZATION

(MICRO-FINANCING)

__________________________

A Mini-Thesis

Presented to the Faculty of the

SBAHM

ST. PAUL UNIVERSITY PHILIPPINES

Tuguegarao City

In Partial Fulfillment

Of the Requirements in MGT110 –Social Responsibility and

Good Governance

by

ARJAY A. MAG-UYON

BSBA-OM (ETEEAP)

DECEMBER 21, 2022

School of Business, Accountancy and Hospitality Management

 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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THE PROBLEM AND SOLUTION

Introduction:

Women are being hit hard by the fallout of the pandemic. Because

they typically earn less, have fewer savings and hold less secure jobs

to begin with, women are particularly susceptible to economic shocks

in general. The pandemic has devastated feminized sectors like

hospitality, tourism and retail, depriving many women of their

livelihoods. Across all regions, women have been more likely to drop

out of the labour force during the pandemic. The majority of employed

women (58%) work in the informal sector, with few to no worker

protections like paid sick leave and unemployment. For women in

frontline jobs, such as healthcare providers and domestic workers, the

pandemic has forced them to choose between economic security and their

health.

 Vision

We are a not-for-profit organization devoted to helping an increasing

number of poor Filipino families rise out of poverty by providing

microfinancing to help them establish or otherwise improve their own

microenterprises. This shall result in increased family incomes and

savings, while giving them greater access to life support goods and

services in the most cost-effective and sustainable manner.

Communities benefit as well from the goods and services provided by

our micro entrepreneurs.

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 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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 Mission

ASA Philippines Foundation is committed to three sectors. The first

commitment is to the marginalized poor sector for which the Foundation

exists. The second commitment is to the staff members who are

dedicated to achieving the Foundation’s goals. The third commitment is

to the founders and patrons to make ASA Philippines the best and most

self-sustainable MFI in the country. To these ends, we shall:

 deliver the highest value for money, client-responsive

microfinance as well as supplementary products and services to

the poor through the enterprising women of each family;

 create the best place to work in, where all staff members have

the chance to live in dignity, develop a career path and

experience the fulfillment of changing other people’s lives as

well as their own;

 be self-sustaining and be the best managed microfinance

institution in the Philippines.

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 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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BUSINESS PROFILE:
ASA Philippines Foundation was conceptualized by Mr. Kamrul H.
Tarafder. Mr. Tarafder started work in the microfinance industry
with ASA Bangladesh. In 1998, he began working jointly with ASA
Bangladesh and the United Nations Development Program teaching the
ASA methodology to more than 20 microfinance institutions (MFIs) in
the Philippines over a span of 5 years.
In August 2003, Mr. Tarafder met with Ambassador Howard Q. Dee
(former Ambassador of the Philippines to the Holy See and Malta) to
discuss the social and economic benefits received by the poor from
microfinance operations. Soon after, in 2004, with donations from
the Assisi Development Foundation and the Ninoy & Cory Aquino Foun-
dation, ASA Philippines Foundation was born. In November 2007, PLDT
Smart Foundation joined as a third benefactor. Since then, ASA
Philippines has not obtained any grant and, unlike other founda-
tions, it pledges not to source any more. With its excellent per-
formance in the field, ASA Philippines has become one of the best
performing MFIs in the country.

PRODUCT AND SERVICES:

 Financings

 Evenly divisible by a thousand (Ex. ₱1,000, ₱2,000, ₱5,000)

 No upfront deductions (Ex. If the loan is ₱5,000, then this

exact amount is released.)

 The initial loan ranges from ₱6,000 to ₱10,000 depending on the

borrower’s business or capacity to repay

 Cost-Plus is 15% (for six months)

 Payments are made weekly (₱50 for every thousand pesos borrowed

by the client). There are 23 equal weekly payment (EWP) made for

each cycle of six months.

 Capital Build-Up (CBU)

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 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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 CBU is an alternative micro savings service for clients designed

to promote the idea of poor families saving for the future in

order to meet family emergencies and other needs

 Withdrawable at any time

 Client can deposit an amount of ₱50 or more during the weekly

collection meeting at her doorstep

 Client earns rebates at 7% per annum

 All excess savings are refundable on the same day a client

leaves the program

 Locked-in Capital Build-Up (LCBU)

 LCBU is fixed and mandatory, and serves as a monitoring tool of

a client's performance and a basis for determining a client’s

loan renewal and any increase in loan amount

 Client deposits ₱10 a week

 Non-withdrawable although it is 100% refundable

 Once the accumulated deposit amount reaches ₱2,400, 50% or

₱1,200 shall be transferred to the client's CBU account where

she can withdraw it

 Refundable on the day a client wishes to leave the program

YEARS IN OPERATION:

ASA Philippines is a non-profit, non-stock corporation specializing in

microfinance. The first branch that the foundation started with was in

Camarin, Caloocan in August 2004, and as of today the foundation has

already expanded its operations nationwide. The foundation caters to

more than 2 million clients who are called by ASA as Micro

Entrepreneurs.

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 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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NUMBER OF EMPLOYEES:

AS OF OCTOBER 2022 ASA PHILIPPINES FOUNDATION HAS A TOTAL

NUMBER OF EMPLOYEES OF 11,334 ALL OVER THE PHILIPPINES.

What is social responsibility practices of the business/organization

in terms of

Economic:
From a narrow financial services perspective, microfinance refers
to the provision of uncollateralized small loans, small savings
(capital build-ups) and micro insurance products and services to
the poor whose needs are not being served by traditional banks and
insurance companies.
From a broader social development and poverty alleviation perspec-
tive, microfinance is a tool that provides financial services to
the poor by which self-employment is generated and family income is
increased in order to improve the quality of life of this marginal-
ized sector.
Microfinance is therefore not simply about providing financial ser-
vices; it is also about helping to improve the quality of life of
target communities. It has two bottom lines: one is financial and
the other is social. Thus, the objectives of the microfinance pro-
gram of ASA Philippines Foundation are:
Legal:
Asa Philippines Foundation is committed to (Truth and Transparency in
Lending) or RA 3765

Ethical:

1. To ensure cheaper credit access to poor communities through an

appropriate and innovative alternative financing system;
2. To provide financial support to poor communities for them to
produce goods and services;

3. To establish the right of women at all levels to participate in

income-earning activities and to facilitate their involvement in
participatory decision-making processes;

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 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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4. To increase household CBU (savings) and income and to create op-

portunities for self-employment, thereby reducing poverty and
establishing equality between men and women in society;

5. To eliminate informal moneylenders who charge exorbitant inter-

est rates;

6. To create pressure on the microfinance market to reduce interest

rates in order to make loans more affordable to poor clients;

7. To reduce dependence on charity and grants at all levels; and

8. To contribute to the socio-economic development of urban and ru-

ral poor communities through providing financial support and
services to the clients’ initiated income generating projects,
resulting in the improvement of their quality of life and en-
abling them to achieve social equity.

Philanthropic:

ASA Philippines’ emphasis on cost-cutting enabled it to set aside

funds for CCS activities from the very beginning. In its first year of
operations, ASA Philippines decided to help out some clients by
providing death benefits to 7 of them. It was neither a corporate
brand-building exercise nor a product marketing strategy. The
intention was just to serve the clients. It came as a surprise then
when this informal CCS activity resulted in more business for the
Foundation. Since then, the Foundation has formally adopted CCS as a
core strategy and integrated various CCS activities into its business
planning and operations. As the Foundation becomes more profitable,
CCS initiatives are expanded and/or refined to cater to the needs of
the marginalized poor communities. A corporate culture of employees
helping out these poor communities is actively encouraged. CCS
activities are viewed by the employees as a service to clients rather
than additional work.

. Scholarship grant . Feeding program

. Hospitalization . Disaster and relief assistance

. Tree plant activities . Rehabilitation loans

. Burial . Business training program for client

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 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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. Medical mission . Rebates to Pwd, Pregnant women,

Senior Citizen client.

What are the problems encountered by the business along

practice of its social responsibility?
The most common problem that business in countered during pandemic are
the delinquency, bad debts, bankruptcy in that problem Asa Philippines
Foundation creates a Malasakit Program in which all of their clients
can avail a zero interest financing to subsidize their business.

What are the suggestions of the participants to improve

its social responsibility practices?

Asa Philippines Foundation must continue what they’re started

because kind of institution is a big help to our SMEs to bring
economic grow must specially now a day that we started in new normal.

Research Methodology:

I interview one of the personel of Asa Philippines Foundation to

gather data on how their business runs and how they became a one

micro- finance institution in the country and what their bench mark in

able to sustain their business during the Covid-19 Pandemic.

Results and Discussion:

I see that stablishing this kind of business you must not only for

looked profitable interest but also on how will affect your business

in the society and to the economic growth by proving job, generate

income to the Small and Mid-size Enterprise by providing low interest

rate in financing in that they can add income to their family so that

they can send their children in school for the better future.

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 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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Summary of Findings:

I found out that growth of the country’s economic runs not only to big

businesses but also to the help of SME’s that has a big part in the

economic growth by wholesaling and retailing of goods.

Conclusion:

Base on the findings I conclude that if the government give more

subsidy to the SME’s and creates a government programs and trainings

to teach SME’s how they able to re gain their business by not only

depending to NGO’s I think the recovery of our economic is much faster

by help of SME’s

Recommendations:

The private sector such as commercial bank, government agencies must

give an exemption or lowering the taxes for kind of institution that

helps our SME’s and also by giving to big amount of financing with low

interest and long term amortization in loan to this kind of financial

companies.

School of Business, Accountancy and Hospitality Management

 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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REFERENCES

Republic Act 3765 (Truth and Transparency in Lending)

Republic Act No. 9160 - Anti-Money Laundering Council

Security and Exchange Commission

Bureau of Internal Revenue

Bank Central ng Pilipinas

Questionnaire on survey:

Where your business originated?

Who is founder/ President?

How many years ‘does the company runs?

What is the mission and vision of company?

What are the services you offered to your client?

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 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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Curriculum Vitae:

ARJAY MAG-UYON

LUPLUPA TINGLAYAN, KALINGA

Wizzeerrj1105@gmail.com

09353488670

Objective:
Pursuing opportunity which will allow me to grow professionally.

EDUCATIONAL BACKGROUND:

College: Information Technology Graduate NCII

Tasashyass College Camarin Caloocan

PROFESSIONAL EXPERIENCE:

School of Business, Accountancy and Hospitality Management

 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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Branch manager asa philippines foundation 2017 to present

Supervisor Gm bank of luzon (2016-2017).

Area administrator asa philippines foundation inc.

(2014-2015)

CURRICULUM VITAE

APPENDICES

1. Your sample survey questionnaire

2. Your individual resume’

School of Business, Accountancy and Hospitality Management

 St. Paul University Philippines Tuguegarao City, Cagayan 3500
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Please append your sample questionnaire

School of Business, Accountancy and Hospitality Management