Managing and addressing overdue payments: An action research in a personal care company

• Main Author: Ampil, Maria Carla Margarita F.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Social responsibility of business; Industrial management; Payment; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5031
• Institution: De La Salle University

SPH Corporation is a Filipino-owned company that manufactures and sells personal care products in several categories. The company has been identified as a major local player in the Philippine Personal Care Industry due to the competitive price points of its products. Corporations that are as successful as SPH must recognize the importance of Corporate Social Responsibility or the moral obligation of corporations to their stakeholders (Mc Shane and Von Glinow). According to an article written by Kleyn, Abratt, Chipp & Goldman (2012), out of all of the stakeholders groups, minimal attention has been paid to suppliers and that this is surprising given the dependencies that organizations have on suppliers for their contribution to the overall performance of an organization. It is the responsibility of companies as big as SPH Corporation to ensure the correct and on time payment of their suppliers as failure to do so may result to strained company-supplier relationship and a ruined company reputation. Currently, the company is unable to ensure on-time payment of its suppliers with 24% of invoices being tagged as overdue. This action research was able to identify the reasons behind the overdue payments which were: the lack of a monitoring and filing system and internal process inefficiency. Collaboration was done through group discussions, one-on-one interviews, meetings and casual conversations in each of the four phases of the Action Research Cycle. Due to confidentiality reasons, the real name of the company is undisclosed.