Analysis of Ayala Corporation sustainability report 2008

Ramores, Kaith Marjorie T. BSA51 AYALA CORPORATION’S SUSTAINABILITY REPORT (2008): A REVIEW I. Brief Company Overview Ayala Corporation is one of the oldest and most respected business groups in the Philippines with a diversified business portfolio that includes real estate development, banking and financial services, telecommunications, water distribution infrastructure, electronics manufacturing services, automotive dealership, overseas real estate investments, business process outsourcing, renewable energy and power. Founded in 1834, Ayala has built a pioneering legacy in various industries and to this day maintains leadership in key sectors of the Philippine economy. Through its strategic investments, Ayala realizes its mission to ensure long-term profitability, increase shareholder value, provide employment, participate in the national development agenda and enhance the lives of Filipinos through its innovative products and services. Ayala has leveraged its portfolio of assets, brand equity, and competitive advantages to enhance its position of leadership in key lines of business:         

Ayala Land (PSE:ALI) Bank of the Philippine Islands (PSE:BPI) Globe Telecom (PSE:GLO) Manila Water (PSE:MWC) Integrated Micro-Electronics (PSE:IMI) Ayala Automotive Holdings Corporation LiveIt Investments AG Holdings AC Energy Holdings.

Driven by its brand promise to "Pioneer the Future" and guided by a new generation of managers, Ayala is transforming itself into an organization that empowers individuals, cultivates thought leadership, and rewards initiative. It is also committed to a development agenda that sees entrepreneurship as the engine for progress to a better future. (ayala.com.ph) II. SWOT Analysis Strengths One of the company’s biggest strengths is its name. Being established and able to run the business for more than a century, the company had built strong customer and stakeholder relationships that enable them to easily put up their plans in achieving their corporate objectives. The number of subsidiaries under the company is also strength,

since it emphasizes the range of control the company has over businesses in the industry. Weaknesses The services/products offered by Ayala Corporation targets customers mostly from Class A only and some from Class B. Opportunities Because its subsidiaries offer a wide range of products and/or services, Ayala Corp can easily find ways to reach out to more stakeholders and obtain a bigger market share. To be able to cater the needs of many customers from different areas of the corporate world may mean faster growth and progress for the company. Threats Since Ayala Corp is not the only leading business in its industry, its competitors may find ways to compete with the products/services the company offers its customers. The risk of overreliance on the current system may be a cause for possible reduction in market share. III. Summary of Analysis/ Highlights of Sustainability Report Economic Performance Overall, Ayala Corporation has shown excellent performance on its financial aspect, thus enabling contributions to its investments, to shareholders, to governing bodies, and to charity works. It aims to further improve its economic performance to better support its stakeholders and provide social and environmental benefits in the long run. Social Performance Ayala Corporation focused on helping improve the social performance of the society in three major perspectives: education, entrepreneurship, and personality growth. Through its subsidiaries, it has implemented various programs to cater the need for quality education among the youth (CENTEX, Text2Teach, GILAS, etc), the poverty among unskilled Filipinos through introduction of entrepreneurial programs (KPSB, BPInoy, etc) and the development and growth of its current and potential employees through management and skill training and leadership programs. Environmental Performance The company has been exerting efforts on helping to protect the environment. They have implemented programs and policies for energy conservation, monitoring of carbon footprints, solid waste management, biodiversity conservation, and development and innovation of green products. IV. Recommendation The Ayala Corporation showed immense performance of implementation of good governance and corporate social responsibility. I suggest that they find ways on innovating their products to something that will not just be environment-friendly but can also be bought at a reasonable and affordable price. In this way, they will be able to cater the needs of the people belonging to Classes C and below even from the start of their operations. Also, I recommend that they strive to accomplish all requirements of the sustainability reporting provided in the GRI.