The Philippines is a country of hospitable people who have preserved Asian values while adopting
modern, progressive influences of Western technology. The government of the Philippines (GOP) is open
to fresh solutions to the country's environmental problems. Escalation of stricter penalties for
noncompliance to environmental laws and regulations imposed by the GOP are fast becoming incentives
for companies operating in the Philippines to actively search for cost-effective environmental solutions
and new technologies. The country would also like to improve its system of education in the areas of
science and technology (Filipino children rank among the lowest in the world in mathematics).
Business management, marketing, advertising and public relations (PR) practices, while attentive to
Philippine culture, morals and traditions, are basically Western. The language of business is English.
A high percentage of corporate executives in Manufacturing, Finance, Marketing, etc. have postgraduate
degrees, most of them from the United States.
Generally, prices of goods and services in the Philippines are determined by free market forces, with the
exception of fuel (which was targeted for full deregulation on or before March 1997) and basic public
utilities such as transport, water and electricity. The current administration continues to "privatize"
public sector-controlled firms in many industries and services.1
It is the free enterprise system, liberalized and deregulated, and the democratic institutions that together
provide the major underpinnings of doing business in the country, of which, the communications media
(the media) plays a central role. For foreigners planning to invest in the Philippines, the media gives this
assurance: corruption and inefficiency will be unmasked and tried before the bar of public opinion. The
media gives the public access equal to anyone's, whether it is through advertising material, publicity, or
a letter to the editor. The communications media are intent on making a profit, however in a free society
such as the Philippines, they are also self-appointed guardians of the public welfare. That is why Filipino
consumers are quick to complain to the media about poor product quality or poor service from
manufacturers and service providers.
Some of the most fervent users of the media are activist groups and non-government organizations
(NGOs). They seldom use ads (some of them are funded, for any number of "causes") but they are
expert availers of media opportunities. The media are fascinated by them. Major Philippine businesses
have significant clout with the media, which they earned during the Marcos regime and have nurtured
most skillfully ever since. The media can be ruthless in mounting opposition to any foreign industry or
enterprise that they feel aggrieve them.
Radio and television are the country's national media. The availability of inexpensive, mass-produced
transistor radios and the growth of radio stations throughout the country have made radio the unrivaled
mode of communications in the Philippines. It is the least expensive way to reach the rural population.
Almost two-thirds of all families have one or more radios.
While television has grown rapidly in the last decade (approximately 7.6 million households own a
television set), it is concentrated mostly in Manila and other urban centers. Many of the news and
entertainment programs are telecast nationwide (and even to the U.S. and other countries) via satellite,
however, the high cost of television sets and the absence of television stations in many parts of the
country make television viewing a "remote" possibility in rural areas.
Print media are also concentrated in the National Capital Region (Metro Manila). The major newspapers
have very low circulation figures in the rest of the country. Total circulation of all newspapers and
magazines is below one million and compares poorly to total population. However, two or three years
ago, a regional publication (based in Cebu Province) began buying up small newspapers in other regions
and is now developing a network of regional dailies.
B. Legal System
Overview
