EMPLOYEE ENGAGEMENT, TRAINING AND DEVELOPMENT

Explanation:

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 ENGAGEMENT, TRAINING AND DEVELOPMENT

This pertains to the continued efforts of SMC to boost the performance of their employees by using an
array of educational methods and programs:

1. In-House Programs
2. Advanced Learning Courses
3. Volunteer Work
4. Performance Reviews

Explanation:

For over a century, SMC has built a legacy of creating world-class products that are recognized globally.
To achieve this, the company recognizes that its employees are its most valuable asset, and investing in
them is key to excellence, innovation, and quality. That is why SMC prioritizes the development of their
employees through the following ways: 1) In-house schools, 2) Advanced courses, and 3) Volunteer
Programs.

IN-HOUSE PROGRAMS

San Miguel School of Brewing

One such in-house school is the San Miguel School of Brewing, which has been the primary institute for
developing future brew masters, quality assurance professionals, technical specialists, and brewery
engineers since its creation in 1975.

Today, it is an accredited provider for Continuing Professional Development (CPD) of the Professional
Regulation Commission (PRC) Councils of Chemical Engineering, Chemistry, Mechanical Engineering, and
Electrical Engineering.

Explanation: (**not an actual school but a training program by subsidiary San Miguel Brewery Inc**)

This means that employees not only gain the knowledge and skills needed to advance their careers but
can also obtain necessary CPD credits to maintain their licenses.

To promote technical manpower development, the Company runs the San Miguel School of Brewing,
which 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 for senior
technical personnel. Courses offered at the school include those highly-advanced classes necessary to
qualify the most senior of its technical personnel known as brew masters. Each of the approximately 40
brew masters has extensive advanced coursework from both in-house and international institutions and
over ten years of on-the-job-training experience with the Company.

Consistent with its belief that its employees are its most valuable resource and its key competitive
advantage, the Company 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 one
month basic pay is given to an employee who passes a government board examination
administered by the Professional Regulation Board that the Company considers 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 of the Company 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.

Formal trainings are facilitated by the Company’s Human Resources and Technical Schools and some
external training providers. For this purpose, the Company is guided by the following curriculum:
  Work Support Programs, which are focused on general development, personal excellence,
communication, creativity, innovation, and productivity, and customer orientation. These
Programs are designed to develop employees’ skills, help them perform effectively in their roles,
and to foster team effectiveness and personal mastery;
 Technical Exposure Programs, that are designed to equip employees with understanding of the
role/function of other units;
 Technical / Functional Schools, which are learning facilities organized and administered by a
functional unit that provide technical knowledge to employees that are based on its school’s
curriculum. The Programs offered are designed to maintain and develop core skills required in
specific functions of the business; and
 Leadership and Management Programs, that are designed to equip the Company’s supervisors
and managers with leadership skills

ADVANCED LEARNING COURSES

In addition to the in-house schools, there are also advanced learning programs where these employees
can further hone their skills. These are the following:

1. Management Development Program (MDP), run by Corporate HR;

2. Leadership and Management Development Program (LMDP), run by the Ateneo Graduate
School of Business;
3. Executive Management Development Program (EMDP), run by the Asian Institute of
Management; and
4. ExecOnline, run by globally recognized institutions such as the Columbia School of Business and
the University of California Berkeley.
For 2022, the programs produced 120 capstone projects related to SMC’s sustainability programs such
as plant-based butter, and bio-coal from spent grains (residue of mats after brewing beer) as a source of
energy for plant facilities.

Explanation:

 The MDP, which is geared toward high-potential supervisors and team leaders across SMC, has
148 graduates since 2017.
 LMDP has a total of 23 batches since 2016,
 EMDP produced 3 batches since 2018, and
 ExecOnline with 1 batch since 2019
 For a total of 660 graduates who have completed the more advanced courses.

These programs not only provide leadership development and continuous learning opportunities for
SMC’s employees but it also led to producing capstone projects that promotes themes related to
sustainability and innovation.

SMC – Ancilla Management Development Program - This is an 18-day, once-a-week, structured

development program designed to provide the Company’s identified high potential staff and supervisors
learning opportunities to sharpen their leadership, organization, communication, decision-making and
problem-solving skills, as well as other work support skills to prepare them for higher responsibilities in
the organization;

SMC – Ateneo Leadership and Management Development Program - This program aims to harness
leadership and management potential, help transform managers into effective organizational change
leaders and valuable members of the whole enterprise. The customized courses enrich cross-functional
expertise and builds general management perspective, providing young leaders the critical skills for
success; and

AIM Executive Management Development Program -This program is tailored for executives and leaders
who are constantly managing change to lead, inspire, and transform a hyper-connected workforce. The
program primes the participating executive for self-awareness, personal mastery and transformation
leadership in today’s business context. The building block approach and progression of learning themes,
modules and topics deliberately become more complex, as the participant engages co-participants,
faculty, peers and colleagues as learning partners; and

VOLUNTEER WORK

https://worldwewant.ph/stories/how-san-miguel-engages-employees-through-volunteerism

Aside from leadership and work-related competencies, SMC also conducts employee volunteer
programs to help cultivate an engage workforce. These include:

1. Volunteerism In Action Program by Petron;

2. Visitation to Saguitlang Pupils by NCC; and
 3. Various employee-initiated programs in provincial locations

Explanation:

An example of this is SMC’s partnership with Metropolitan Waterworks and Sewerage System (MWSS)
to launch an Annual Million Tree Planting Challenge to replenish the forest cover of 126 hectares of the
Angat Dam Watershed within 3 years. Under this challenge, SMC’s employees have planted 6,400 trees
(including 3,200 Narra and Guyabano tree varieties) over 14 hectares at the Angat Dam Watershed since
2019.

PERFORMANCE REVIEWS

Performance reviews are an important mechanism to drive the achievement of business goals and
strategic initiatives. Given agreed goals at the start of the year, the employee’s performance is rated
objectively based on the achievement of these goals by year-end. Also included in the review is an
assessment of the employee’s strengths and areas for development, as well as developmental plans.

Explanation:

For officers, middle managers, and non-unionized rank and file employees, the performance rating
becomes the basis for salary increases in the following year.

For unionized employees, salary increases are governed by their CBAs; nevertheless, some of them still
undergo performance reviews.

EMPLOYEE INVOLVEMENT PRINCIPLE

SMC’s emphasis on employee engagement, training, and development aligns closely with the principle
of "Employee Involvement" in TQM.

"Employee Involvement" recognizes that employees are the backbone of an organization and that their
involvement, commitment, and empowerment are crucial for achieving quality objectives and driving
organizational success.

Explanation:

Therefore, by actively involving employees in decision-making processes, providing opportunities for

training and development, and empowering them to contribute to quality improvement efforts, SMC
demonstrates its commitment to leveraging the skills, knowledge, and capabilities of its workforce to
drive continuous improvement and enhance organizational performance.
 DIVERSITY AND INCLUSION

Explanation:

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.

DIVERSITY AND INCLUSION

In SMC’s Human Resources Manual, Section 9 on Recruitment and Hiring, it is stated, “All applicants are
considered regardless of gender, civil status, religion, or physical ability, provided that the minimum
education requirement and competencies required by the position are fulfilled.”
  Republic Act No. 6725, which protects against the discrimination of women with respect to the
terms and conditions of their employment.
 Anti-Discrimination Act of 2017, which protects employees from discrimination in all operations.
 Safe Spaces Act (Republic Act No. 11313), which aims to protect individuals against sexual
harassment.

Explanation:

This means that SMC is indeed an equal opportunity employer that hires based on the personal skills,
knowledge, and capabilities of each candidate. In their hiring process, they do not consider age, gender,
religion, ethnic affiliations as bases for prospective employment.

For instance, Petron’s Bataan Refinery gives members of Aeta communities the opportunity to be
employed at this facility through an apprenticeship program.

Explanation:

A number of members of these communities have successfully finished the training program and have
been gainfully employed. This is because at all facilities and offices nationwide, SMC prioritizes local
hiring.

SMC fully recognizes the critical role that engagement, learning, and development play in unleashing the
full potential of their employees. That is why they are dedicated to equipping their team members with
the essential competencies and skills necessary for success in their roles. By prioritizing their growth,
SMC aims to boost productivity and cultivate a robust talent pipeline for future leadership positions.

TRAINING HOURS BY JOB CATEGORY

2023
Total Hours Ave. Hours / Head
Officer 3,937 16
Middle Manager 54,551 35
Rank and File 1,264,778 28
 SCRATCH

San Miguel Foods University

San Miguel Foods University, on the other hand, offers more than 100 courses in various fields such as
feed milling, poultry and meats live and processing operations, flour milling and applications technology,
and basic quality assurance, among others.

Explanation: (**not an actual school but education initiatives by subsidiary San Miguel Pure Foods
Company Inc**))

This in-house school not only allows employees to obtain the necessary knowledge and skills to perform
their jobs well and expand their career opportunities, but also offers those in technical professions, such
as chemists, chemical, electrical, and mechanical engineers, veterinarians, and food technologists, an
opportunity to obtain the required CPD credits from the PRC to keep their licenses.

Alcohol and Liquor Technology Institute

Ginebra San Miguel Inc. (GSMI) has also established 6 in-house schools that cover a range of disciplines,
such as manufacturing, sales, logistics, human resources, and liquor making. One of these schools is the
Alcohol and Liquor Technology Institute, which focuses on developing alcohol sensory experts and
honing employee skills in alcohol making.

Explanation:

In 2022, GSMI offered a total of 35 courses with a combined 196 CPD credits. This initiative not only
boosts employee morale and skill sets but also raises the bar for the industry as a whole.

Ming Dalusung (top left), now a Senior Executive at SMC’s Corporate Treasury, is an active member of
Team Malasakit

For as long as she can remember, Ming Dalusung has always loved to volunteer. Growing up in
Pampanga, there was never a shortage of outreach activities at school, and early on, Ming learned
volunteered in the Aeta communities. She was a student when Mt. Pinatubo erupted in 1991 she would
visit the displaced families in the community centers that sprouted throughout the province. Ming’s
daughter Maggie, now 13 years old sometimes volunteers with her.

The Petron Engineering Scholarship Program.

In 2007, the Petron Engineering Scholarship Program was established by PBR in collaboration with
Bataan Peninsula State University (BPSU), the top engineering school in Bataan. It aimed to give
deserving students the chance to complete their engineering studies and groom promising engineering
students for employment by the Refinery, in the process developing a pool of young, world-class
engineers.

Petron provides full support to its engineering scholars throughout their scholarship, including financial
assistance for tuition fees, monthly living allowances, and board exam assistance for each graduate. In
addition to financial support, scholars can gain practical experience through on-the-job training at PBR,
which familiarizes them with the company’s culture and operations. This experience also deepens their
understanding of the oil industry, particularly the downstream petroleum business, as they receive
mentorship from Petron’s seasoned engineers.

The Petron Engineering Scholarship Program initially supported nine (9) students pursuing bachelor’s
degrees in mechanical and electrical engineering. Since then, 301 engineering students have become
Petron scholars, with 293 graduating and 197 passing their licensure exams. Over 70% of these
graduates, or 206 individuals, have been employed by Petron, with 84 graduates currently working for
the company.
While the Company has no formal hiring policy for ethnic minority groups, SMC actively supports the
programs of their subsidiaries for their respective communities.

For instance, Petron’s Bataan Refinery gives members of Aeta communities the opportunity to be
employed at this facility through an apprenticeship program. A number of members of these
communities have successfully finished the training program and have been gainfully employed. This has
inspired other members of the indigenous group to apply for similar apprenticeships.

Accordingly, SMC actively promotes diversity and inclusion in the workplace by:

1. Enforcing laws like “Republic Act No. 6725” to prevent discrimination against women and
ensuring equal employment terms and conditions;
2. Adhering to the Anti-Discrimination Act of 2017 to safeguard employees from workplace
discrimination; and
3. Abiding by the Safe Spaces Act (RA 11313) underlines our zero-tolerance policy towards sexual
harassment, ensuring a respectful, valued, and secure workplace for all employees.

In SMC’s Human Resources Manual, Section 9 on Recruitment and Hiring, it is stated, “All applicants are
considered regardless of gender, civil status, religion, or physical ability, provided that the minimum
education requirement and competencies required by the position are fulfilled.”

This means that SMC is indeed an equal opportunity employer that hires based on the personal skills,
knowledge, and capabilities of each candidate. In their hiring process, they do not consider gender,
religion, ethnic affiliations as bases for prospective employment.