Human Nature: Doing good and doing well
At the 60th annual conference of the People Management Association of the Philippines (PMAP) in Cebu City last October, participants became aware of Human Nature’s People First Approach to Compensation and Benefits Planning. Human Nature, is a 15-year old social enterprise established by Gawad Kalinga to demonstrate the application of the principles of faith-inspired organization.
Human Nature adopted the World Economic Forum’s 2022 Good Work Framework that is anchored upon five principles, namely: “1) promote fairness on wages and technology; 2) provide flexibility and protection; 3) deliver on health and well-being; 4) drive diversity, equity and inclusion; and 5) foster employability and learning culture.”
It offers “the Philippines’ pioneer brand of effective, safe and affordable, genuinely natural hair and skin care products,” as well as personal and home care products, guaranteeing that each product is “at least 95 percent natural, and has no harmful chemicals linked to health risks.” Presently, it has 24 branches in the country. Human Nature also sells and distributes its products in the United States. Its business model is direct selling, modern retail, online sales and international sales. Founded in November 2008, it has 632 employees.
Human Nature’s unique value proposition is its unfailing commitment to three bottom lines: Pro-philippines, pro-poor, and proenvironment. Support for farmers and communities provides the wellsprings for showing the best of the Philippines to the world. Being propoor is concretized by paying living wages, adopting a no-firing policy, and committing a substantial share of sales to uplift the poor. Preserving The Planet practices include plastic bottle free formulations, upsizing options and refilling stations.
The program to rescue employees from debilitating and oppressive debts began in 2012, along with the Save Up and Life Skills program, as well as the no firing policy. The home improvement program began in 2015. In 2016, Human Nature initiated a policy enabling its people to donate up to eight hours of volunteer time within company time, along with a wedding benefit package. In 2017, working hours were shortened as part of a new child benefit for both mothers and fathers. In 2018, education and medical assistance benefits were enhanced.
The centerpiece of its peoplecentric policy is its singular commitment to paying a living wage, instead of simply complying with the government’s minimum wage policy. This is complemented by no contractualization and no work on Sunday policies, and prompt provision of emergency and calamity relief assistance.
Consider that in January 2023, as reported by Ibon Foundation, countrywide inflation soared to 8.7 percent, the highest in 14 years. Here’s Ibon’s eyeball analysis: “The minimum wage is highest in the National Capital Region (NCR) but the ₱570 here has fallen to only 49.1 percent of the NCR family living wage of ₱1,161, as of January 2023. The Bangsamoro Autonomous Region of Muslim Mindanao (BARMM) has the lowest minimum wage at ₱341 and this is only 17.5 percent of the BARMM family living wage of ₱1,944. The real value of these minimum wages have continued to fall and are down to ₱482 for the NCR and ₱285 for BARMM, measured at 2018 prices.”
Persistently high inflation cuts into the already-constrained purchasing power of minimum wage earners, pushing many to turn to borrow from usurious money lenders. Human Nature has sought to curb the practice of pawning ATM cards resorted to by cash-strapped employees. In fact, it provides a Freedom from Debt no-interest loan to enable an employees to pay off high-interest earning debts. Its HR department assists in communication with lenders and handles debt payment, to ease the pressure on burdened employees so they could focus better on doing their jobs well. Financial stewardship seminars are also offered in the company’s various Life Skills groups. The Human Nature eschews the view adopted by many employers that raising minimum wage levels invariably leads to higher inflation. Out of 31 wage hikes implemented by the government since 1986, “15 wage hikes were followed by slower inflation” six months hence, according to Ibon, thereby debunking the claim that “wage hikes automatically lead to higher inflation.”
This is consistent with Human Nature’s Mission statement: “Being faithful stewards of our God-given talents and natural resources, we will give the best of ourselves to urgently and sustainably build a global company which will showcase the best of the Philippines and uplift all our people, especially the poor, through providing affordable, quality, and natural products.”
The concept of stewardship provides the anchor for the company’s values, namely, emanate other basic values: Faith in action, love for neighbor, fullness of life, and integrity: “His master replied, “Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share in your master’s happiness.” (Matthew 25:21).
To witness these pathfinding initiatives is truly gratifying to one like yours truly whose early career was devoted to people management. As I disclosed in my book DIWA: Spirit-led Organization in the Philippines (PMAP, 2017): “When one assumes a high-profile position in a professional association, one may find oneself acting against one’s own cherished beliefs.”
When I served as president of the People Management Association of the Philippines (PMAP), I was constrained to inform a congressional hearing the stand of the organization opposing the grant of a minimum wage hike. Having acquired more experience and upon further reflection, I have realized that a more progressive stance could have been amplified in favor of the “least, last and lost” who are struggling in the bottom of the pyramid.
Almost four decades hence, it is providential that there are progressive organizations like Human Nature – Gawad Kalinga’s pioneering social enterprise – that provide proof positive that doing good and doing well could be achieved simultaneously.
The centerpiece of Human Nature’s people-centric policy is its singular commitment to paying a living wage, instead of simply complying with the government’s minimum wage policy.