This article was first published in Universitas in the first quarter of 1997.
From the start, the Center for Research and Communication (CRC) has had a very personal relationship with its benefactors. Dr. Jesus P. Estanislao and Dr. Bernardo M. Villegas would hold periodic dinner meetings with friends and benefactors of the fledgling think tank to discuss that state of Philippine industry, and the role corporations have in its progress. These discussions brought forth analyses that contributed substantially to the growth of the country’s top companies.
Thinking it was the perfect venue to exchange and contribute idea, Drs. Estanislao and Villegas decided to formally set up an organization of CRC’s friends and benefactors. Thus, Friends of CRC (FOC) was born.
But beyond being a venue for ideas, FOC was formed for a more practical reason: a need for grants to help CRC grow. It is no secret that CRC owes much of its existence to donors who believed that the think tank has much to contribute to the country’s economic progress. In fact, in its early years, CRC subsisted on donations from companies and individuals. As its reputation in the business community grew, CRC did not have to rely that much on its vast network of friends. Companies themselves have come to rely on CRC economists and analysts for in-depth, incisive, and accurate readings of Philippine business.
The selling points
One of the privileges of the members of the newly established FOC was the periodic reports on the various industrial and financial sectors. Then, as it is now, these reports were written by CRC’s pool of topnotch analysts and researchers. Top executives of corporate FOCs were also invited to give talks on their respective industries. This setup gave members access to information and paved the way for regular interaction among FOCs. Eventually, these talks became part of CRC’s growing number of conferences, forums, and briefings. Aside from these, FOC members were also allowed free access to the CRC Data Center.
In 1982, FOC members became entitled to a subscription package of CRC publications as well as corporate briefings. Members were also given fee discounts on CRC’s other conferences and seminars. The original FOC publications were the Senior Staff Memos (now Staff Memos) and Economics and Society. The economic crisis in the 1980s prompted Dr. Villegas to spread awareness of the potential in agriculture and agriculture-related businesses. Thus, the Agribusiness Papers and Agribusiness Monitor were added to the package.
As FOC grew, the publications changed as well to better suit the needs of its members. The publications included the Staff Memos, Industry Monitor, and Food and Agribusiness Monitor. Not content with the services offered, FOC has improved its services and is being relaunched as the Business Economics Club.
Founded on friendship
The first companies to join the fledgling FOC included Ayala Corporation, Meralco, San Miguel Corporation, Victorias Milling, United Laboratories, Pilipinas Shell, Philippine Commercial International Bank, Bank of the Philippine Islands, Benguet Corporation, and Phinma—all leaders in their respective sectors. But it was not merely the promise of insightful analyses and studies for strategic planning that prompted these companies to join FOC. Rather, these companies shared similar philosophies on their role in the country’s development. Dr. Villegas noted that more than being leaders, these companies were “among the common-good oriented companies.”
Ambassador Ramon V. Del Rosario, Sr. (right), PHINMA Group Chairman, cuts the ribbon during the Phinma Seminar Room’s formal blessing on November 19, 1996. To his right are Phinma Chairman Oscar J. Hilado and UA&P President Dr. Jesus P. Estanislao.
This unique orientation toward the common good is what distinguishes FOC from similar consulting groups, and is one of the most important reasons for CRC’s success.
Javier J. Calero, Chairman of J. Walter Thompson Philippines, agrees. “It’s gratifying to see that this think tank, one of Asia’s first, has deeply ingrained principles with a strong bias toward Christianity. In today’s prevailing environment, clarity of purpose is an ever-important asset.”
Indeed FOC’s primary purpose is clear: not only economic analysis, but also a forum for companies to exchange insights on their respective industries.
“It is important,” Dr. Estanislao stresses, “to realize that the Friends of CRC is not a one-way street were we [UA&P economists] do all the talking. Friends [of CRC] intends to be a forum where these companies communicate with one another and eventually help one another do business.”
“The objective of the Friends of CRC is to make these companies realize that they can be a catalyst for change. These companies touch the lives of millions of Filipinos, oftentimes without consciously exercising any restraint on their actions. We want to make them more aware of the consequences of their actions, and bring a bit more heart to the profit-oriented organization of business.”
Kinks and wrinkles
Idealism notwithstanding, the FOC had to contend with all the mundane problems inherent to organizations everywhere. Foremost of these would be getting new members to beef up its roster. Despite CRC’s reputation, getting new members proved to be a hard task.
As in other industries, competition has reared its head. The FOC vies with other research institutions for the same corporate and individual pockets. The Pulse Group, for instance, provides free economic data to clients who subscribe to their research packages. New entrants into the research sector has also eaten up FOC’s target market. They could offer similar products and services at a smaller scale and at cheaper prices because of lower overhead costs.
All things being equal, though, the faster the output of data, the sharper the player’s edge in the industry. Clients will patronize research groups who can give them the latest data at the soonest time possible. By the same token, research groups that can come up with the latest findings at the shortest possible time would have an edge over the others. Thus, newspapers, which report on the state of the economy on a daily basis have a distinct advantage over monthly publications. Most of CRC’s publications, including those in the FOC package, are in-depth analyses which come out every month. It also cannot be denied that given the prodigious volume of data CRC analysts and economists wade through, CRC publications come out late. This problem still needs to be ironed out.
Despite this, CRC’s reputation has remained intact. Along with analysts from the National Economic and Development Authority and the Asian Development Bank, CRC people are often quoted in newspapers and television programs as credible sources of economic analyses and forecasts.
True to its purpose
Given CRC’s transformation into a university in 1995, where does FOC fit into the new scheme of things? The think tank’s change in status requires that the units within it change as well. The FOC has evolved into the Business Economics Club, which will hopefully address the problems of FOC as well as provide new products and services to its clients.
While it is too soon to tell how FOC will fare in its incarnation as the BEC, one thing is certain: Whatever its name—FOC or BEC—it will continue to be true to its purpose: to help UA&P become a stronger player in the business of ideas. #
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