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Why you don’t trust your Kennel club

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I guess you know I’m a TED follower. So here is Rachel Botsman and why we’ve stopped trusting institutions.

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PCCI and Globalization.

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“…SECRECY: CORRUPTIONS ALLY” Earl Warren

Again, I’ve sat down several times in front of my laptop, my fingers, sliding, gliding, hovering over the keys of my laptop as I thought how to get this article off the ground. Sometimes stirring a mug of Java, aerating a glass of wine, doodling on some Clairefontaine as I wondered why do we spend so much as compared to when I was a greenhorn Director in 1990.

Remembering my basic economics, the economic books I have read and lectures I’ve attended and giving everyone the benefit of the doubt, I believe it boils down to the effects of Globalization. Globalization has resulted in economic change in the form of trade liberalization. During the Presidency of Reagan with Volcker at the helm of the Fed in the 80’s, America managed to stave of the flu that usually spreads as a cold to everyone else, while Volcker would decrease inflation. APEC was formed in 1989, then GATT transformed into the WTO in 1995, add a new democratic leadership in the persona of Corazon Aquino and the country’s economic improvement would rise, albeit not as fast as our neighbors but a rise faster than the closing years of the dictatorship non the less. Clinton, referred to the context of Globalization in a State of the Nation as “…the revolution that is tearing down barriers and building new networks among nations and individuals, and economies and cultures.”

GDP Per Capita of the country has had a constant rise (of course trickle down to the poorest of the poor is another issue). For 2014, Barclays Research Quarterly predicted that the 270 Billion USD Southeast Asia economy will grow 7% with the Philippines growing 6.5%, all for the rest of 2014. Because of this, a burgeoning middle class has been emerging. A family, after a car and house, ownership of a pet dog isn’t far away. The BPO sector has brought about a youth capable of saving to buy a pure bred dog of their own. I see a lot of the youth taking their dogs for a walk, buying pet products, registering their dogs, bringing them to the pet spa. Pet related businesses are abound.

Pet shops, pet supplies are all over the Metro that even the mighty Shoemart has thrown itself into the fray with Pet Express. I remember speaking to someone who mentioned that there are more registered brands of dog food with the DTI than infant formula! Of course one of the biggest beneficiary of all this means an increase in registration for PCCI. The other kennel club has decided to focus on registration than shows, because registration is where the income is. Registration is so lucrative that word of plans for a third kennel club is in the brainstorming phase. Yes their is a decrease in registration but the growth that it is coming from is still healthy. This is a worldwide trend that some say is an on and off thing and that now that the US economy is improving we should see this trend at least staved if not improve.

The next effect of Globalization that could probably add to our increase in expenses would be in technology. The 90’s started it all as technology was readily available to the public. I remember my first Piltel mobile phone in 91, my first desk top with dial up internet access in 95 and my first Globe SMS mobile phone in 96 (interestingly Globe signal back then was Subic North and Tagaytay South). Indeed technology would interconnect the whole globe that now we can actually see the person we speak to through our phones. Cost of air travel has gone down and expected to go down further with the decreasing trend of oil prices. Technology and economic gains of the country would make transport accessible to everyone.

In the 90’s your club automatically gave it’s FCI proxy to Japan. Being a young greenhorn director, I asked why, it was explained to me that we couldn’t afford the cost that it will entail to actively participate in FCI politics, we after all did not have the same financial pocket depth and size of JKC. Today, we may still not have the same pocket depth and size as JKC but we do have enough to participate and the technology to keep in touch and interact with the rest of our Asia and the Pacific FCI neighbors and beyond. Technology changes have made it easy to communicate with anyone around the globe. Nowadays a kennel club that refuses to get involve or chooses to isolate itself will easily get left along the wayside.

Increase in registration will mean an increase in work requiring an increase in manpower. An increase in manpower will mean salaries. Gone are the days when Directors were expected to shell out for gasoline, meals when entertaining a Judge, and snacks when having a Committee meeting. I still remember back then, as a greenhorn director, Mario Magsaysay asked during a board meeting-“Why who is reimbursing gas?” I was just an Intern back then busy as a Show Committee Chairman, picking up judges at the airport to hotel, hotel to show site, show site to lunch, around the Metro sight seeing, yup that was a lot of fuel expenses. The Intern still working his way towards being a doctor and lowest in the board of directors totem pole, quietly crumpled the receipts that he had in his pocket after Mario spoke the word. I learned back then, that being a Director was “for love of the sport” and not about what you can get out of it financially, the way it is today. Mario has since then been a mentor and good friend. He always manages to give me a boost at the right moment when I need it this past year. We recently had dinner which was a welcome respite. Those were them days, right and wrong was clear as black and white. A mistake no matter how small and you would be removed as an officer. Expenses were always prudent, no over staying directors much more presidents.

My apologies for digressing, obviously writing from the heart. To get back, now everything is charged to the company which is how it should be in a professionally run corporation. Now, company outings are a given to promote a healthy corporate environment. Health care plan is provided for the staff, which is a must-Mens Sana En Corpore Sano. Cost of running a show has increased as well. The Circuit Show is an annual dog show that costs the club an arm, a leg and a torso. Cost of a meeting has also increased depending where it is held and what is served. Executive travel is another cause of expenses. The cost of everything has all gone up. All of which I believe can somehow be attributed someway to Globalization. Unfortunately, all of this cannot be avoided.

Yes, I am trying to sell the idea to you dear members that YOUR CLUB HAS NO CHOICE BUT TO SPEND. I agree that the officers of the club have to maintain a standard reasonably at par with the rest of the world. I have mentioned in a previous post that directors have to have some perks, nothing outrageous, and definitely not scandalous. However, some cost cutting has to be done and transparency is the key issue. Since I do believe that we need to spend, as long as expenditures are prudent and reasonable and shown to the membership, and we do not spend more than what we earn, then there shouldn’t be a problem for the membership to accept these expenses. What do I propose? Basic corporate financial governance is all that is needed.

1. A coherent set of accounting procedures and standards that all funds spent had
the appropriate authority.

2. That all transactions were recorded accurately.

3. A complete audit trail.

4. Transparency

5. An effective audit

6. An approved system/procedure of expenditures

7. Internal controls. A policy to protect the organization from either intentional or
unintentional misuse of fund.

8. Transparency, oh I’ve mentioned that already, I keep on repeating the same mistake. 🙂

The Pope just left the country, maybe his visit and blessings somehow touched a nerve.

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