THIRST FIRST

BOTTLING COMPANY
A Case analysis
Competition in the soft drinks industry is very intense that every means to improve a company’s
sales position are explored. Advertising and promotional efforts are heavily relied upon at the Thirst
First Bottling Company to drum up customer’s interest in the company’s products.
The company is engaged in the production and marketing of soft drinks. It operates plants,
warehouses, and sales offices throughout the Philippines. The company has been serving the
Philippine market for more than 50 years.
The manager in charge of advertising and promotion is Mr. Rolando Calanday, a graduate of a
marketing course in the College of the Immaculate Conception in Cabanatuan City. The
advertising and promotion unit coordinates with advertising firms in the design and production of
advertising materials like billboards, posters and streamers. The unit often produces t-shirts printed
with advertising messages, which are used as promotional items. The company spends more than
P20 million annually for the purpose.
Periodically, advertising and promotion unit sends the advertising and promotional materials to
managers of the various sales offices of the company. The managers, in turn, hand over the
materials to their respective sales teams for proper disposal. The drivers of the delivery trucks, with
the assistance of helpers are directed to install the billboards and streamers on appropriate places
and paste the posters in conspicuous corners of retail establishments.
At the beginning, the drivers appropriate for themselves a small portion of the advertising
and promotional materials. Some of the billboards are used as partitions in the houses of
the drivers. The posters are used to reinforce the walls. The t-shirts are not handed over to
customers but to family members and friends. The materials are clearly not used as
intended but nobody in the sales offices questions the practice or even cares to know.
One day, the general manager of the company, Mr. Marcelino de Vega, received a
letter from a concerned employee reporting about the unethical practice. Immediately,
the general manager called Mr. Calanday and inquired on how he was getting about
his responsibility of promoting the company’s products. Mr. Calanday’s reply did not
satisfy the general manager.
On the same day, Mr. Calanday received an order from the general manager to clear
up the problem regarding the unethical practice or he will be replaced as head of his
unit.
I. Statement of the Problem
• Promotional merchandise and billboard ads are used
globally to promote brands, products, and corporate
identity. They are also used as giveaways at events,
such as exhibitions and product launches. Thus, are
considered as company property. The general issue in
this case is the misuse of company property by personal
appropriation of promotional and advertising materials
for personal use.
 II. Case Facts
1. The manager in charge of advertising and promotion is Mr. Rolando Calanday
2. The advertising and promotion unit coordinates with advertising firms in the design
and production of advertising materials like billboards, posters and streamers.
3. The drivers of the delivery trucks, with the assistance of helpers are directed to install
the billboards and streamers on appropriate places and paste the posters in
conspicuous corners of retail establishments.
4. The drivers appropriate for themselves a small portion of the advertising and
promotional materials.
• billboards are used as partitions in the houses of the drivers.
• The posters are used to reinforce the walls.
• The t-shirts are not handed over to customers but to family members and friends.
5. Mr. Calanday is being held responsible for the unethical practice by the general
manager, Mr. Marcelino de Vega.
 ALTERNATIVE
COURSE OF ACTION
THIRST FIRST BOTTLING COMPANY
ACA 1. Suspension for all parties involved in the incident
depending on the gravity of their involvement.

Omnibus Rules Implementing the Labor Code

Book V, Rule XXIII, Sections 8 and 9

SEC. 8. Preventive suspension. - The employer may place the worker concerned under
preventive suspension if his continued employment poses a serious and imminent threat
to the life or property of the employer or of his co-workers.

SEC. 9. Period of suspension. - No preventive suspension shall last longer than thirty (30)
days. The employer shall thereafter reinstate the worker in his former or in a substantially
equivalent position or the employer may extend the period of suspension provided that
during the period of extension, he pays the wages and other benefits due to the worker.
In such case, the worker shall not be bound to reimburse the amount paid
ACA 2. Control the situation, have a monitored checklist of all
promotional items and advertising materials released and require
all drivers and helpers to have signatures from clients as proof of
items received
Management Principles and Practice
Bharathiar University
Steps in Control Process

Establishing Standards
The first step in the control process is to establish standards against which results can be
measured. The standards the managers desire to obtain in each key area should be
defined as far as possible in quantitative terms. Standards expressed in general terms
should be avoided. Standards need to be flexible in order to adapt to changing
conditions. The standard should emphasis the achievement of results more than the
conformity to rules and methods. If they do not do so, then people will start giving more
importance to rules and methods than to the final results.
ACA 1. Suspension for all parties involved in the incident
depending on the gravity of their involvement.

Omnibus Rules Implementing the Labor Code

Book V, Rule XXIII, Sections 8 and 9

SEC. 8. Preventive suspension. - The employer may place the worker concerned under
preventive suspension if his continued employment poses a serious and imminent threat
to the life or property of the employer or of his co-workers.

SEC. 9. Period of suspension. - No preventive suspension shall last longer than thirty (30)
days. The employer shall thereafter reinstate the worker in his former or in a substantially
equivalent position or the employer may extend the period of suspension provided that
during the period of extension, he pays the wages and other benefits due to the worker.
In such case, the worker shall not be bound to reimburse the amount paid
Measuring and Comparing actual Results against Standards
The second step in the control process is to measure the performance and compare it with the
predetermined standards. Measurement of performance can be done by personal observation,
by reports, charts and statements. If the control system is well organised, quick comparison of
these with the standard figure is quite possible. This will reveal variations.

Taking Corrective Action

After comparing the actual performance with the prescribed standards and finding the
deviations, the next step that should be taken by the manager is to correct these deviations.
Corrective action should be taken without wasting of time so that the normal position can be
restored quickly. The manager should also determine the correct cause for deviation

• The manager should try to influence environmental conditions and external situations in such a way as to
facilitate the achievement of goals.
• He should review with his subordinates the instructions given earlier so that he may be able to give clear,
complete and reasonable instructions in future.
• There are many external forces which cannot be adjusted by the manager. They have to be accepted as
the facts of the situation, and the executives should revise their plans in the light of these changing forces.
ACA 3. Refer to company policies and guidelines about misuse of company
resources then conduct an audit on the promotional merchandise and
advertising materials. If there are violations, persons involved shall receive a
written reprimand or termination of employment depending on the gravity of
monetary impact on the company.
Misuse of Company Resources
From careerparkway.com

Misuse of company resources is often included in a workplace code of conduct not only to
serve as a theft deterrent, but also to promote productivity and ethical conduct within the
workplace. This also can extend to the resources of clients and suppliers. Legal and ethical
codes of conduct should include guidelines outlining the appropriate and inappropriate use
of company or vendor and supplier related resources. This can prevent unethical behavior as
well as legal implications for the individuals and companies that employ them.
The ethical code of conduct for a company and their affiliates regarding company resources
should be outlined in the company policy. This could prevent misuse and abuse of company
resources and promote an ethical and productive work environment. Company guidelines
should reflect operating within the guidelines of the laws that are regulated by outside
agencies. The company should also conduct a training seminar on acceptable use of
company and affiliate resources.
Labor code of the Philippines
ART. 297
Termination by employer – An Employer may terminate an employment
for any of the following clauses:

1. Serious misconduct or wilful disobedience by the employee of the

lawful orders of his employer or representative in connection with his
work;
2. Gross and habitual neglect by the employee of his duties;
3. Fraud or wilful breach by the employee of the trust reposed in him
by his employer or duly authorized representative;
RECOMMENDATION
AND CONCLUSION
THIRST FIRST BOTTLING COMPANY
IV. Recommendation

ACA 3. Refer to company policies and guidelines about

misuse of company resources then conduct an audit on
the promotional merchandise and advertising materials.
If there are violations, persons involved shall receive a
reprimand or termination depending on the gravity of
monetary impact on the company.
In Roe v British Columbia Ferry Services Ltd., a British Columbia trial judge made too
many assumptions and not enough findings of fact when he decided that an
employee’s dishonest conduct was “trifling,” “relatively minor” and not sufficient to
justify termination
BC Ferry Services terminated Roe’s employment without notice for cause on March 1,
2012, after an internal investigation concluded that Roe had, on more than one
occasion, knowingly given complimentary food and beverage vouchers (worth about
$200) to his daughter’s sports teams without prior authorization, contrary to the
employer’s policy.
The policy required prior authorization by a regional manager and later by the
marketing department. There was also a company Code of Business Conduct and
Ethics, and Roe clearly acted contrary to this code.
The investigator’s report found that termination for cause was appropriate because Roe
was in a position of authority and he had done this more than once, even though he
knew his actions were wrong and understood the purpose of the vouchers. Since he
stole from the company, he breached the employer’s trust.
According to the employer, Roe’s misconduct was “dishonest,” given that he knowingly
misappropriated company property, to his own financial and reputational benefit. The
employer argued that his dishonest actions irrevocably breached the requirements of
good faith and trust that formed the basis of their employment relationship.

The trial judge declined to deal with the parties’ differing stories of Roe’s misconduct.
Rather, the trial judge assumed for the purposes of analysis that the employer was “able
to prove its allegations of a knowing breach of company policy and misuse of company
property,” and that “the defendant’s version is true.” Despite his assumption, the judge
found that Roe’s actions bordered on “trifling”; the extent of Roe’s gain—in money and
prestige—was very slight and Roe took “no steps to deceive or cover his tracks.” In the
view of the trial judge, Roe’s conduct could not, objectively speak, amount to just cause
warranting a summary dismissal.
New Trial For Manager Terminated Over Misuse of Company Property
by Yosie Saint-Cyr & Christina Catenacci
V. Conclusion
Drivers appropriating promotional merchandise and advertisement
materials for personal use is considered as a misconduct. This practice is
unethical because the merchandise and the materials are company
property and funded by the company. However, there is also gross
negligence on the managers and sales team’s side because they do not
have a clear accounting or audit of what has been received, consumed
and unconsumed in terms of ad materials versus actual promo
implemented. The management must clarify and document what are
the key roles and responsibilities of each personnel when it comes to
these materials from the managers up to the drivers/helpers and that
necessary sanctions or penalties must be posted so that all parties will be
governed by the policies.