Thursday, February 4, 2010

Part 2 Million Dollar Baby


It’s Just a Mission Statement

(or in Nestle’s own words, “ a Code of Ethics”)

Part 2 Million Dollar Baby

Dicky Fox in Jerry Maguire: “The key to this business is personal relationships.”

Indeed. Not only were Nestle Area Sales Manager Elisa Lupena and FDI 2 Operations Manager Mark de Vega screwing each other illicitly but they were also screwing the distributor.

De Vega couldn’t begin to tell top from bottom let alone where his duties to his company started and where his obligations to his FUBU ended.

In a text message sent by Lupena to De Vega, she said: “Baby which one do you like better, me on top or you on top.”

The illicit affair between aggravated the growing financial problems of FDI 2. The distributor, claimed over PhP 11 million from Nestle to cover its increasing debt, unpaid wages, 13th month pay, and separation benefits for around 80 employees who were laid off in Christmastime of 2007. The Swiss multinational ignored the request for help at first then dilly-dallied. It was one black Christmas for the distributor.

By the end of January 2008, Nestle gave FDI 2 owners a call. The check for PhP 11 million was ready for pick up.

What had happened was the wife of de Vega, a respected lawyer, found even more damning evidence of her philandering husband’s activities – a printed copy of an ultrasound test.

The ultrasound showed a fetus. De Vega and Lupena were going to have a baby. De Vega’s Atty. wife sent a letter of complaint to Nestle and they had to act posthaste because they had one huge mess on their hands. Hell hath no fury like a woman scorned. And a legal eagle too!

In her letter January 31, 2008, she wrote:

“This sexual relationship may be personal in nature but the fact of the matter is that it occurred at a time when Ms. Lupena was the Area Sales Manager directly in-charge of the account of FDI which was then being operated by my husband as its Operations Manager/President. The very nature of this relationship strongly indicates that a violation of the conflict of interest clause, under Nestle’s Corporate Business Principles and/or Code of Conduct, may have likely occurred. Given certain documentary and testimonial information I have gathered substantiating the nature and extent of this relationship, it is reasonably easy and logical to conclude that Ms. Lupena may have given accommodations, extended favors and concessions beyond the scope of her authority and functions, as well as made misrepresentations or covered up for the actual state of the sales operations of FDI 2 by virtue of the said relationship.”

Within two days, the check was ready.

They only moved when another aggrieved party spoke out.

Being a huge corporation, they are used to using their battery of liars, er, lawyers to fend off distributors. Usually they bully them.

But against FDI 2, they found a pitbull who wouldn’t let go.

Nestle, in their Code of Conduct states: “Nestle personnel will maintain the highest standards of integrity and professional competence in all business relationships (bullshit we say). Sanctions will be applied in the event of misconduct or abuse of corporate standards (even more bullshit here).”

Incidentally, rumor has it that Lupena is now employed at another milk company located somewhere in Makati that competes with Nestle under the name which abbreviates her given names of Maria Elisa.

Was she given an honorable discharge? If so, in exchange for what ? What the fuck happened here? And why the change of names?

In the movie Jerry Maguire, Marcy Tidwell, played by Regina King, asks Tom Cruise’s Maguire character when they are shown a lousy contract for Rod Tidwell: What do you stand for?”

Let us jump to actress Kelly Preston who plays Maguire’s erstwhile girlfriend who yells at the start of the movie, “Don’t stop fucking me!!!”

Wednesday, February 3, 2010

Part I Sleeping with the Enemy



It’s Just a Mission Statement

(or in Nestle’s own words, “ a Code of Ethics”)


Part I Sleeping with the Enemy

In the movie Jerry Maguire, actor Tom Cruise who plays the main character of the super sports agent suddenly develops a conscience with regards to the representation business of sports athletes.

Little did he know that his manifesto for more ethical business dealings would backfire on him as he is fired from the company he helped turn into a industry giant.

As his world turns upside down, Maguire in a fit of depression mutters, “It was just a mission statement.”

What is a mission statement?

It is supposed to be a formal purpose or direction of a company that is highlighted by its core values. And based on that there is the code of conduct by which all company actions and undertakings will be guided by.

And that bring us to Nestle Philippines Inc.

The Swiss-based company has products that are deemed an indispensible part of people’s everyday lives. In order to get their products and services across, they rely on a chain of distributors who are assigned certain areas of operations to supply and sell their wares.

The distributors aren’t Nestle employees. However, they report to Area Sales Managers (who are employed by Nestle) who take care of the needs of their distributors.

In this particular instance, the ASM – Elisa Lupena -- took care more than just her company’s needs.

In our journalistic quest for interesting business stories to report for a local broadsheet, we came across some public documents regarding the methodical destruction of a distributor by a bullying multinational that thinks it can get away with anything it wants. And much of the damage done to the distributor is due to collusion and an illicit and sexual relationship between an ASM and the distributor’s own President/Operations Manager.

But that’s jumping the story right into bed and this is supposed to be a wholesome story.

Somehow it is never wholesome even if it involves Nestle Philippines Inc.

FDI 2 entered into a distributorship agreement with Nestle in 2003 to sell and distribute the corporation’s production in a pre-agreed area. The multinational promised support in terms of marketing and promotions in the area. The relationship, the business was so successful that Nestle awarded FDI 2 as its Metro Manila Distributor of the Year for 2005 and 2006. That’s two years running and if ever, is a clear illustration that they were doing their jobs and complying with agreements.

However, unknown to the owners of FDI 2, one reason for their success was that Nestle’s Area Sales Manager Elisa Lupena was exerting undue pressure on its distributor to meet increasing sales targets. That meant that FDI 2 would have to buy more products from Nestle to sell. Whether this makes money or not is not Nestle’s concern. The bottom line for them is to hit their sales targets.

Lupena was able to accomplish this also through an illicit affair with FDI 2’s Operations Manager/President Mark de Vega. Although she was not an employee of FDI 2, she went overstepped her bounds by threatening the distributor’s employees with their businesses’ termination from Nestle if they did not meet sales targets. FDI 2 was forced to put in more money to save the business but were still not knowledgeable about the true problem.

This was only discovered by accident in 2007 when de Vega borrowed a mobile phone from a FDI 2’s owner and switched SIM cards. However, when de Vega returned the phone, he left some messages in the phone’s sent box.

The text messages hit the owner like a ton of bricks. And it gave some clarity into their sudden massive deficits and losses incurred in meeting the demands of Nestle.

The owners of FDI 2 brought this situation to the attention of Nestle that in turn callously brushed aside the affair as “the personal affair of two consenting adults” while disregarding the obvious conflict of interest. Furthermore, Lupena went about her duties for two more months before anything was done.

If a company hears of rumors that one of its employees was doing something wrong, isn’t it only natural that they will investigate?

And in complete and utter disregard for their client – FDI 2 – Nestle demanded that FDI resign. FDI didn’t resign, and was subsequently terminated. As part of the turnover, nestle demanded that FDI return inventory that they had already been paid for, as part of their “processes;” anyway, they would pay for it in cash immediately. And with veiled threats made against the continued existence of FDI 2’s brother company as a distributor, it was forced to agree to return PhP 11,070,773.00 representing the inventory taken back by Nestle.

Doesn’t this strike you as odd? You buy Nestle products and technically they already belong to the distributor not the company. Yet they took it back.

Our conclusion here is, Lupena’s bullying tactics are known by Nestle’s top people. You know? Nothing goes down with out their knowledge.

Again another scene in Jerry Maguire comes to mind…

“Show me the money!”

That’s the bottom line of all of this. We want your money and to the hell with your business.