SMC has a list of material issues to their stakeholders which falls under three categories namely 1)

Environmental, 2) Social, and 3) Governance/Economic (ESG). Accordingly, one of the high priority
material issues for SMC is their employee engagement, training and development.

EMPLOYEE TRAINING AND DEVELOPMENT

TRAINING PROGRAMS

Consistent with its belief that its employees are its most valuable resource and its key competitive
advantage, SMC is committed to (1) providing its employees with programs for their professional and
personal growth; and (2) promoting a culture of open communication, teamwork, continuous
improvement and learning.

To be able to do this, the Company has programs geared towards learning and education namely:
 1. Education Program – whereby monetary assistance is given to regular employees who wish to
pursue further studies for their career growth. Monetary assistance covers payment for tuition
fees and subsidy of the cost of books;
2. Professional Board Examination Incentive - wherein financial assistance equivalent to 1-month
basic pay is given to an employee who passes a licensure examination administered by the
Professional Regulation Commission. This is provided that SMC considers the exam to be a
requirement for the employee’s field of specialization or in technical fields, considered as
relevant to its operations and to the employee’s career path; and
3. Training programs – wherein these are classified into formal and informal trainings.
a. Formal training includes corporate training programs, functional/technical school program,
and e-learning.
b. Informal training, on the other hand, includes on-the-job training, developmental/special
assignments, job rotation/transfer, coaching and mentoring.

The realities and demands of the post-pandemic world led the transition of SMC to a hybrid model for
instructor-led training and workshops. This approach combines face-to-face sessions with virtual training
setups using platforms like Linkedin Learning and Udemy.

Learning in groups also increased as sessions on the platform were conducted in larger forums to create
a sense of community among employees in our plants and sales facilities. Onboarding and learning
conversations were available using online collaboration tools such as Microsoft Teams and Zoom.

San Miguel School of Brewing

Created in 1975, San Miguel School of Brewing is the primary in-house institute of San Miguel Brewery
Inc. (SMB) for the development of its future brew masters, quality assurance professionals, technical
specialists, and brewery engineers.

The school offers various programs spanning all levels of professional brewing technical training, starting
from the basic brewing course for newly hired personnel to the advanced brewing course necessary to
qualify the most senior of its technical personnel known as “brew masters”.

Today, it is an accredited provider of Continuing Professional Development (CPD) by the Professional

Regulation Commission (PRC). As an example, the “Fundamentals of Brewing Course” is an accredited
program for disciplines like Chemical Engineering, Chemistry, Mechanical Engineering, and Electrical
Engineering.

Leadership and Management Development Program (LMDP)

LMDP is an intensive 13-module program run by the Ateneo Graduate School of Business. It covers
subjects available in a regular MBA program. The program brings together middle managers of midsize
and large companies, higher-level managers of small companies, managers of non-profit organizations,
and entrepreneurs who want to sharpen their management and leadership skills.

Petron Dealer Management Course (DMC)

For those wanting to be a dealer of Petron service stations, once they pass the screening process, they
will be endorsed for enrollment in a 4-week Petron Dealer Management Course (DMC) to gain a deeper
understanding of the business and a more comprehensive training.

The DMC will be conducted at “Petron Sales Academy” located at 2161 Jesus Corner, Palumpong St.,
Pandacan, Manila. However, even after the dealer graduates from the course, Petron will continue to
guide them in running their service station. On their first few days of business, they are to expect that
Petron will visit and hold hands-on training with them and their personnel to ensure their station’s
seamless operations.
 PERFORMANCE REVIEWS

Performance reviews serve as a crucial tool for advancing the attainment of business objectives and
strategic initiatives. At the beginning of each year, goals are set in collaboration with the employee, and
their performance is objectively evaluated at year's end based on the accomplishment of these
objectives.

To facilitate the performance review process, SMC piloted the use of SAP Success Factors, a cloudbased
platform. This will ensure more streamlined and transparent goal setting and appraisal processes.

Throughout the performance management process, SMC prioritizes open communication and
constructive feedback between employees and managers to cultivate an environment of accountability
and ongoing enhancement.

EMPLOYEE ENGAGEMENT
VOLUNTEER WORK

To commemorate its 125th anniversary, San Miguel Corporation (SMC) launched its volunteer program
under the brand “Team Malasakit” back in 2015.

With an extensive menu of volunteer activities, “Team Malasakit” has managed to recruit an active and
committed corps of over 1,000 employees.
For the last quarter of 2022, “Team Malasakit” held some very special activities:

Blood Drives

In August, together with the Philippine Red Cross, they ran simultaneous blood drives across various
SMC facilities in Metro Manila, Cavite, Laguna, Cebu, and Davao. Over 550 selfless SMC employees
joined this life-saving activity.

Coastal Cleanup

In September, they celebrated International Coastal Cleanup Day with over 1,200 SMC employees
turning out in 15 different locations to collect 14,500 KGs of trash. This might represent a tiny dent in
tackling the huge problem of plastic pollution, but they are still mighty proud of their volunteer’s efforts.

Animal Rescue

“Team Malasakit” volunteers also joined to support the Animal Kingdom Foundation (AKF) in Capas,
Tarlac. AKF has rescued over 53 dogs and 17 cats that are abandoned in Taliptip, Bulacan, the site of
SMC’s future airport. The animals have adapted well to their new home, fed and cared for with the
support of the Nutrichunks brand of SMC.
Backyard Bukid

Launched in 2021, “Backyard Bukid” is an urban farming project that aims to tackle food security and
generate additional income among the head office support staff of SMC. Specifically, this includes the
maintenance, repair and security staffs that are taught to farm various crops on a plot of land assigned
by SMC for the project. This helps ensure that these support staffs not only have access to nutritious,
naturally-grown food, but are also given an opportunity to make extra money by selling their produce to
other employees. As of 2022, the program has 17 members who planted around 15 kinds of crops
including ampalaya, camote, eggplant, okra, bokchoy, kangkong, okra, siling labuyo, among others. The
“Backyard Bukid” team also harvested over 400 kilos of produce with members earning 4,000 each over
three harvests.

By the end of 2022, “Team Malasakit” had 346 volunteers clocking in more than
1,350 volunteer hours.
Going back to the list of material issues to the stakeholders of SMC, a moderate priority material issue to
them on the other hand is their diversity and inclusion.

EMPLOYEE DIVERSITY AND INCLUSION

DIVERSITY, EQUITY AND INCLUSION POLICY

SMC is dedicated to fostering a welcoming and positive working environment committed to respect,
embrace and accept differences in its workforce. It hereby adapts a “Diversity, Equity and Inclusion (DEI)
Policy” to expressly and consciously advocate for an inclusive organization representative of all sectors
of the society.

The DEI Policy shall apply to all employees at all levels of SMC and its subsidiaries, regardless of
employment status.

1. Diversity: the mixed and balanced representation of employees in the organization, such as but
not limited to age, gender, ethnicity, education, marital or parental status, socioeconomic
status, and religion, among others.
2. Equity: a workplace where every employee must be given equal access to opportunities with fair
and impartial treatment, and this applies to:
 Recruitment, hiring and selection;
 Compensation and benefits;
 Assessment and performance reviews;
 Discipline;
 Training and learning development;
 Succession and talent management;
 Termination;
 Feedback and grievance mechanisms and remediation
 3. Inclusion: promotes a sense of belongingness amongst employees by involving them equally in
the decision-making process, to ensure that each of them feels valued and therefore will add
value in the long run for SMC and its stakeholders.

An example of the implementation of the DEI Policy of SMC is Engr. Larraine Doon-Daep. She is a Magna
Cum Laude graduate of Bachelor of Science in Chemical Engineering from the University of the
Philippines-Diliman last 2013. She was a beneficiary of the Petron Engineering Scholarship Program that
started way back 2007.

Since then, 301 engineering students have become Petron scholars, with 293 graduating and 197
passing their licensure exams. Over 70% of these graduates have been employed by Petron, with 84
graduates currently working for the company.

This includes Engr. Larraine Doon-Daep who is now working as a Process Engineer at Petron Bataan
Refinery up to this day.

TOTAL QUALITY MANAGEMENT PRINCIPLE

EMPLOYEE INVOLVEMENT

Total Quality Management (TQM) emphasizes the involvement of all employees in quality improvement
processes. This includes empowering employees to contribute ideas, identify problems, and participate
in the decision-making process related to quality enhancement. Therefore, SMC’s focus on employee
engagement, training and development as well as employee diversity and inclusion, aligns with the
principle of employee involvement.

When employees feel valued, empowered, and equipped with the necessary skills, they are more likely
to actively engage in TQM initiatives, leading to improved quality outcomes and organizational
performance.
 REFERENCES
https://www.sanmiguel.com.ph/files/reports/
San_Miguel_Corporation_2022_Sustainability_Report.pdf

https://www.ginebrasanmiguel.com/wp-content/uploads/2022/11/210602-Web-GSMI-2020-
Annual-Report_compressed.pdf

https://cpdas.prc.gov.ph/public/nameOfProvider.aspx?id=8%2bmoUn%2b09F%2f%2bofhugNzqgQ
%3d%3d

https://cce.ateneo.edu/sites/default/files/brochures/58th%20Leadership%2BManagement
%20Development%20Programs_Nov2022%20%285%29.pdf

https://www.petron.com/be-a-petron-partner/

https://worldwewant.ph/stories/san-miguel-foundation-impact-report-2022

https://www.sanmiguel.com.ph/storage/files/reports/SMC-SEC%20FORM%2017-A
%20(04.25.2022)%20Part%203-FINAL.pdf

https://www.sanmiguel.com.ph/storage/files/reports/SMC_Diversity_Policy_Final.pdf

https://www.facebook.com/photo.php?
fbid=686325786852428&id=100064250396985&set=a.636190001866007

https://www.petron.com/news/petron-engineering-scholarship-program-engineering-a-better-
future-for-the-filipino-youth/
 EMPLOYEE ENGAGEMENT

Now that I have discussed employee training, let us proceed with employee engagement. One way that
SMC creates an engaged workforce is through volunteer programs. An example of this is “Backyard
Bukid”.

VOLUNTEER PROGRAMS

BACKYARD BUKID

READ: Launched back in March 2021, “Backyard Bukid” is a 1,000 sqm., volunteer-led urban farming
project located at the Head Office Complex of SMC in Ortigas Center. It aims to tackle food security and
generate additional income among its head office support staff.

Specifically, this includes the maintenance, repair and security staffs of SMC that are taught to farm
various crops on a plot of idle land assigned for the project. This helps ensure that these support staffs
not only have access to nutritious, naturally-grown food, but are also given an opportunity to make
extra money by selling their produce to other employees.

READ: Volunteers in this project were put through a 1-month agri-entrepreneurship training and
mentorship program with the School for Experiential and Entrepreneurial Development (SEED)
Philippines. They learn about organic vegetable production, soil management, and pest and disease
management.

Today, participants visit their plot of land 2x a day, 6 times a week. For each visit, there is an assigned
team leader while the others are assigned to sow seeds, water the plants, apply organic fertilizer, and
remove weeds. Once the vegetables are ready for harvest, each participant also contributes to the
selling process.

READ: As of 2022, the program has 17 members who planted around 15 kinds of crops including
ampalaya, camote, eggplant, okra, bokchoy, kangkong, okra, siling labuyo, among others. The “Backyard
Bukid” team has also harvested over 400 kilos of produce with members earning about 4,000 each over
three harvests.