2GO GROUP, INC.

: A CORPORATE
SOCIAL RESPONSIBILITY
CASE STUDY

A Case Study
Presented to the Faculty of the Graduate School
Polytechnic University of the Philippines
Sta. Mesa, Manila

In Partial Fulfillment of the Requirements for the

Degree
Master in Business Administration

By

BONITE, ANNE CHARMAINE A.

OCAMPO, IRA KLIEN
MACUTAY, MAC
MAGNO, RASHELL

MAY 19, 2019

NAME OF COMPANY: 2GO GROUP, INC.

COMPANY PROFILE

History

2GO Group, Inc. (2GO) was formed and organized in May 26, 1949 under the corporate name
William Lines, Inc. On December 21, 1995, William Lines, Inc., Carlos A. Gothong Lines, Inc.
and Aboitiz Shipping Corporation consolidated their resources and expertise and marked the
birth of William, Gothong & Aboitiz, Inc. (WG&A). Then on February 4, 2004, WG&A changed
its corporate name to Aboitiz Transport System Corporation as a result of the buyout made by
Aboitiz Equity Ventures, Inc. of the Chiongbian and Gothong holdings in WG&A in 2002. The
Securities and Exchange Commission approved a subsequent change of the corporate name
to the present one on March 09, 2012.

2GO is an integrated transport solutions provider. The Company adopted the brand “2GO” as
its flagship brand for its three core business units, namely, 2GO Freight, which handles
commercial and personal shipping needs; 2GO Travel, which integrates passenger ships and
fast ferries through land and sea multimodal transport linkages; and 2GO Supply Chain, which
handles logistics, distribution, warehousing, and inventory management. The Company is
engaged in the movement of people for passage business (2GO Travel) and cargo business
(2GO Freight).

As of December 31, 2016, 2GO and its subsidiaries have a total fleet of 26 operating vessels,
of which 19 are company-owned ships. Presently, 2GO has four direct subsidiaries and one
affiliate, namely, 2GO Express, Inc., The Supercat Fast Ferry Corporation, 2GO Rush
Delivery, Inc., NN-ATS Logistics Management & Holdings Co., Inc., Special Container and
Value Added Services, Inc., and MCC Transport Philippines, Inc.

Source: from SEC Form 17-A (2016) (http://edge.pse.com.ph/companyInformation/form.do?

cmpy_id=29) Organizational Profile and Structure

ABOUT COMPANY
The 2GO name embodies a proud legacy of leadership and service built on 149 years of
shipping and logistics experience. Today our unique work ethic remains unchanged. We have
pioneered many innovations in the industry, including the merging of the heritage Negros
Navigation and ATS under the 2GO brand.
Today, 2GO Group Inc. is the largest, premier logistics provider in the Philippines. The group
owns and operates successful brands such as 2GO Travel, 2GO Freight, 2GO Express, and
2GO Logistics, offering an array of logistics and travel services.
The group maintains joint venture partnerships with renowned global supply chain companies
such as Hapag Lloyd and Hansa Mayer from Germany and the Kerry Logistics Group from
Hong Kong.
The group maintains the largest and widest logistics infrastructure across the Philippines with
seamless links to over 150 countries.
Market Shares: Freight – 27%, Passage – 90%
Key Operating Assets:
Shipping: 26 Passenger & Freighter Vessels, 22 Port of Calls, 18,135 Containers
Logistics: 2,014 Company-owned and subcontracted trucks, 599 Riders, 1,800 Branch
Network, 67 Warehouses, 60,000 Pallet Positions, 164,000 SQM
 2GO Group Incorporated

Current 2GO Logo, 2013

Industry Transport and Logistics Services

Founded Aboitiz

Incorporation Date May 26, 1949

Headquarters 8th Floor Tower 1 Double Dragon Plaza,

Macapagal Blvd. corner EDSA Extension,
Pasay City 1302, Philippines

Key people Dennis A. Uy (Chairman)

Frederic C. Dy Buncio (President & CEO)
Elmer B. Serrano (Corporate Secretary)

Revenue $330M

Number of 1,005
employees

Website
http://www.2go.com.ph

VISION 2020
To be the best and biggest company in the transport and supply chain industry
providing memorable travel experiences, moving products and catalyzing business growth
in domestic and international markets.

MISSION STATEMENT
Our business is to create memorable, fun filled and safe travel for passengers and provide
total supply chain solutions and excellent services to clients building on our 180 years of
existence.
We delight our customers with innovative and technology driven services while customizing to
their needs and ensuring seamless operations.
We connect the Philippines 7,100 islands to Asia and the world, catalyzing business growth,
promoting tourism and partnering in nation building.
We offer employees a rewarding working environment while delivering value to our
shareholders
CORE VALUES
Corporate Governance- Commits to corporate values and accepted ethical and moral rules
and norms that apply inside and outside the organization.
Integrity and Transparency- Doing the right things for the right reasons. Treating people fairly
and with respect.
Teamwork- The ability to work in unison to achieve a common goal.
Our People- Our people are the central movers of the organization.
Innovation- Process by which new ideas for continuous improvement and breakthroughs
toward organizational effectiveness and efficiency are promoted and institutionalized.
Excellence- A talent or quality which is unusually good and surpasses ordinary standards. It is
also aimed for standard of performance.

TOP MANAGEMENT STRUCTURE

Board of Directors

Position Name

Chairman Dennis A. Uy

Vice Chairman and Independent Director Francis C. Chua

Director Frederic C. DyBuncio

Director Ma. Concepcion F. de Claro

Director Elmer B. Serrano

Director Chryss Alfonsus V. Damuy

Lead Independent Director Joseph C. Tan

Independent Director Laurito E. Serrano

Amb. Raul Ch. Rabe

Independent Director

Management Officers

Position Name

President/Chief Executive Officer Frederic C. DyBuncio

Chief Financial Officer and Treasurer William Charles Howell

Corporate Secretary and Corporate Information Elmer B. Serrano

Officer

Assistant Corporate Secretary Mia M. Ormita

Assistant Corporate Information Officer Gino Paulo O. Uy

Chief Operating Officer of Shipping Mark Matthew F. Parco

Chief Operating Officer of 2GO Logistics, Inc., a Ricardo B. Aguas, Jr.

subsidiary of 2GO

President of Scanasia Overseas Inc., a Jose S. Ejercito

subsidiary of 2GO
PRODUCTS AND SERVICES
Collectively, the group’s services include:
 International shipping
 International freight forwarding
 Customs clearance
 Domestic shipping: Freight and Travel
 Warehousing
 Land Transport
 Express
BRAND AND CORPORATE STRUCTURE
Our Branding and Corporate structure is illustrated in an overview below:

Source: https://www.2go.com.ph/GROUP/About/company-profile.asp

MARKET CAPITALIZATION
CORPORATE ISSUE
Incident: MV St. Thomas Aquinas
On August 16, 2013, at 9 pm as it approached Cebu City's harbor, the MV St. Thomas
Aquinas, formerly SuperFerry collided with the cargo ship Sulpicio Express Siete of Sulpicio
Lines and sank in 100 feet deep off Talisay, Cebu. The ship was carrying 831 people—715
passengers and 116 crewmembers. 629 people were rescued immediately and as of August
17, 2013, 31 bodies have been recovered leaving 172 unaccounted for The Sulpicio Express
Siete with 36 crew members on board did not sink and returned safely to port. It had a large
hole in its bow above the water line, clearly visible in news photos.
Sources: See photo at http://www.wakanatsu.com/philippine/photo/sf2.html
De Jesus, Julliane (17 August 2013). "40 dead, 172 missing as two ships collide". Philippine
Daily Inquirer (Agence France-Presse), Retrieved 17 August 2013

M/V Saint Thomas Aquinas

Long term implications
Oil and fuel were leaked from the shipwreck. The ferry was carrying 120,000 litres (31,701 US
gal) of bunker fuel, 20,000 litres (5,283 US gal) of diesel fuel, and 20,000 litres (5,283 US gal)
of lube oil. M/V St. Thomas Aquinas 1 has spread with the North-East direction of tide and
current, affecting about 3 kilometers area spreading with the North-East direction from the
collision site and reaching the Cordova town and some parts of the cities of Cebu, Talisay and
Lapu-Lapu.
A state of calamity was declared in the entire province of Cebu. 2Go has taken different steps
to limit the damage, including deploying tugboats with spill-containment equipment in the area
and consulting from oil spill experts. However, local fishing was already affected as the spilled
petroleum contaminated the local beaches and mangrove swamps, totally damaged Cebu's
ecosystem and economy.
Sources: https://www.cebucity.gov.ph/news-details/2213-combating-oil-spill
Senados, Greggy Jiggs P. (13 August 2013) “COMBATING OIL SPILL””. Cebu City PIO

Actions/Ways Done to Mitigate the Risks

Calvin Roselloso, 2Go Group Visayas supervisor, said that the measures were patterned after
the recommendations of experts from the International Tanker Owners Pollution Federation
(ITOPF) and the London Offshore Consultants (LOC) who arrived in Cebu after the Aug. 16,
2013 tragedy in Lauis Ledge in Talisay City, Cebu to help the authorities assess the situation.
Roselloso said that the ITOPF and LOC representatives came to Cebu to share their expertise
and advice during various meetings/consultations on the most appropriate oil-spill response
that should be adopted.
2Go also had dialogues with the Provincial Disaster Risk Reduction Management Council,
Philippine Coast Guard (PCG) and the local government units concerned since the accident
happened. 2GO has also contracted Malayan Towage and Salvage Corp. and Nippon Salvage
Ltd. to remove the oil from the sunken vessel.
The company claimed it has also extended full cooperation in the PCG’s efforts to clean-up the
waters contaminated by oil leaks from the mv St. Thomas Aquinas, particularly in the town of
Cordova. 2GO has also contracted Genetron International Marketing Inc., a waste
management/disposal company, and has engaged professionals and trained personnel,
including expert on mangroves, for the clean-up.
Sources: https://www.sunstar.com.ph/article/361321/Business/Ways-to-mitigate-oil-spill-done-
2Go
EOB, (August 15, 2014) Ways to mitigate oil spill done”, SunStar Philippines
The Department of Environment and Natural Resources (DENR) in Region 7 ordered
Philippine Span Asia Carrier Corp.(PSACC) and 2GO Group Inc. to pay P41.7 million for the
damage caused by the oil spill. DENR Secretary Mario Montejo said the oil spill destroyed
aquatic resources worth P35.7 million, and some 328 hectares of newly planted mangroves
worth about P6 million.The DENR-7 gave the two shipping companies until November 15,
2013 to pay the fine of P41,704,600.
Sources: https://news.abs-cbn.com/nation/regions/10/08/13/denr-imposes-p41-m-fine-over-
cebu-oil-spill
Aiza Layage, Oct 08 2013, DENR imposes P41-M fine over Cebu oil spill, ABS-CBN News
Cebu
CORPORATE SOCIAL RESPONSIBILITY
CSR PROGRAMS ON PEOPLE…

2GO’s Corporate Social Responsibility (CSR) initiatives continue to thrive because

of the organization’s allegiance to fulfill this responsibility for the sake of the
community it serves in particular and the entire country in general.
The management’s unwavering support to CSR initiatives, including a heightened
employee volunteerism, are characteristics of every CSR design and initiatives.
The efforts were made clearer on the tactical and operational implementation
through the Happy People Model launched by the Group’s Human Resources (HR)
providing guidance on how every task and program must be hinged in the following
elements:

Happy Body
Happy Brain
Happy Relax
Happy Soul
Happy Pocket
Happy Society
Happy Family

Most of the CSR activities are still mainly focused on social advocacy, education and
environment protection and rehabilitation. The strong partnership between the Labor
Management Council and the Group’s HR would always be the framework of programs
which would have to do with areas affecting these priority programs.

The Company continues to recognize the importance of education for a better society. Our
commitment to support the Department of Education in its Brigada Eskwela program is
displayed through the participation of our employees in the following activities:
• Donation of new furniture sets and
fire hydrants to Canduman National High School, Central Visayas
• Provision of school supplies to Villakananga Elementary School students in Butuan
City. This is a tie-up with PNP CARAGA Region 13.
• Continued support to the Company’s adopted orphanage, Children’s Joy Foundation,
an NGO which supports neglected and abandoned children.
In the company’s pursuit of its mission to become more responsible corporate citizens, 2GO’s
yearly blood-letting activities were participated in by our employees from different offices and
sites in support of the various programs of the Philippine Red Cross and the Philippine
Children’s Medical Center (PCMC) Pediatric Center. The Company also allowed employees to
attend the Standard First Aid & Basic Life Support training which aims to educate and train
them about responding to first aid treatment and emergency life support in cases of natural
calamities or accidents not only in the work place, but also in their communities. This training
was put to test during one emergency situation which happened in one of our Supercat
vessels.
Using the social media, the passengers commended and thanked the crew and officers of the
vessel who, despite suffering from minor injuries, remained calm, helped and ensured the
safety first of all its passengers. It was like a drama in real life with a nurse crew performing a
“TRIAGE” and prioritizing the injured. The rapid response of our Cebu Crisis Management
Committee was emergency response efficiency in action. We had outreach and feeding
programs in Calapan City where we provided the elderly people
housed at the Aruga-Kapatid Foundation and in Batad Iloilo City where we participated in the
city government’s Great Outdoor Camp Outreach Mission.
The demonstrated commitment by the company makes each employee proud to work for 2GO.
Employees have demonstrated increasing willingness and consciousness through their
participation in different CSR activities, not as a work obligation but a demonstration of their
sincere desire to help and contribute to the society where they belong. 2GO continues to fulfill
its responsibility in providing its employees work-life balance and more opportunities for
community engagement.

CSR PROGRAMS ON PLANET…

In support of the government’s initiatives on environment protection, the Company has

embarked on the following activities:

• Training on Pollution Control. This is not mere compliance to Occupational Safety &
Health provisions,
but ensuring a
safe work environment
for all its employees.

 Sea Grass Conservation. This is a tie up with Tuason Development Foundation, Inc. (TDFI)
which aims to replenish sea grass meadows in Philippine waters.
 Mangrove Rehabilitation Program. This is in partnership with General Santos’ City
Environment & Natural Resources Office.

• Mangrove Planting. These continuing programs aims to serve as a buffer zone in coast
lines against typhoons and tidal waves and help control pollution by serving as a pollution sink,
thereby buffering the impact of silt and other pollutants from the terrestrial area. They are also
a good habitat for marine and wild animals, breeding ground for fish and crustaceans and
nesting and breeding place for birds. This is in partnership with the city government of
Zamboanga City.

• Tree Planting in Batad, Iloilo City

• Tree Planting in Opol, Misamis Oriental. This is in coordination with the Department of
Environment & Natural Resources.

Source:

https://www.2go.com.ph/IR/CSR.pdf
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