Business with a social function

While most property developers brag about the poshness of their projects, it’s rare to find a company that puts value of their real estate products on the basis of their social impact. In his holiday message before the brokers and agents during the company’s Christmas party, Cebu Landmasters, Inc. (CLI) president and CEO, Jose “Joe” Soberano III, underscored the social function of real estate development towards enabling people, especially those at the lower social strata, to be able to find and afford their own home.

Joe’s vision is akin to Lance Gokongwei of Cebu Pacific who dreams of seeing every Juan dela Cruz fly. And out of that vision, Cebu Pacific made a bold step in the airline business by coming up with a low-cost airfare which never before done by our flag carrier, Philippine Airlines. Cebu Pacific was able to prove that the idea works and still make a profit and that flying need not be expensive for the ordinary Filipino.  That one bold move prompted the local carriers to follow suit and I think that the local airline industry owes it Cebu Pacific for leading that step for them.

With the focus of most developers on those who can afford, Joe feels that they should actively take part in national transformation by factoring also those who have less in life. “In real estate, we need to cater to a broad spectrum of the economy, after all we only have one economy.”  CLI’s goal is to be able to deliver high value real estate products without straining the budgets of buyers. Midori Plains is a living testament that it is possible to own and afford a home with amenities at par with high-end subdivisions. Another on the way for CLI,  is an 8-building mid-rise residential condo to built at Salinas in Lahug. The project will imbue an urban and chic ambience at midrange prices, however, with a pricing scheme that’s easy on the pocket.

It can be done. Businesses can actually serve a wide market when they adjust the prices of their products or services according to the purchasing power of its markets. They just need to be extra creative on the part of pricing. The model has already been proven – the next step is to try it. To be a little more aggressive and willing to make short term sacrifices to achieve their long term goals.

***

The 7.1 third quarter growth rate for country is heartwarming to note. The Philippine economy moved the fastest in Southeast Asia in from a year earlier, coming just a little behind China’s growth and surpassing projections. “This was possible due to sustained confidence in the leadership of President Aquino and his administration, which has consistently equated good governance with good economics,” presidential spokesman Edwin Lacierda said yesterday, referring to the record growth.

We have been growing since even and this has something to do not really entirely from leadership alone but also of course, by the confidence of local and foreign investors in the country.  If you recall, even during the time of President Gloria Arroyo, despite the corrupt allegations against her administration, the economy was already upbeat. The country has a natural driving force that makes it attractive to BPOs. This natural driving force, competitive labor and language proficiency, are contributing factors that lured foreign direct investments to put their money here. Leadership is just only a secondary factor.

While it is good to have BPOs around, I do think we need to help pick up those industries that are completely Filipino. The export sector, which used to be the economic driver for the country, is already losing steam. I remember the amount of jobs this industry had provided during its heydays.  The way things are going now, jobs have become scarce in this part of the economy. And the sad thing about it is that, the government has yet to provide a more concrete program for the export industry for it to recover.  May be it’s about time to revisit the Export Development Act and see what’s needed to be done to save or if not add more jobs in this sector.

Send emails to [email protected]