By Digoy Fernandez
Corporate social responsibility (CSR), as many of its modern adherents agree, is not just about setting aside a certain amount each year to be dispensed with as a gift-giving exercise. The genre has embraced almost all aspects of a corporate entity and its various publics. Today, I will dwell on the tribe many corporations have viewed with a bit of trepidation, the growing ranks of senior citizens. And all because of mandatory discounts or freebies that either national or local regulations allow for this hallowed group that has seen its prime passing by.
My friend and colleague in this paper, Mon Farolan — who is also an alumnus of the Asian Institute of Management, aside from his storied history in both the military and the diplomatic worlds — has long dwelt on one particular aspect of the law: the 20 percent discount given to senior citizens for medicines and for restaurant purchases.
The 20 percent discount is applied more in the breach than in the spirit of the law. Many establishments, including one particular pet peeve of former ambassador Mon, impose artificial rules and ceilings that do not appear in the law. Here are just a few examples of how establishments go around the rule:
• A well known drug distribution outfit used to refuse to apply the discount when credit cards were used. Fortunately, the crusading effort of Mon Farolan set that straight.
• Some stores apply the 20 percent discount based on their own in-house formula. For example, if Mr A, a senior, eats with 3 family members, not seniors, one restaurant divides the discount amount by 4. Another restaurant gives only 10 percent and hopes you will not act like an eagle eye accountant. Very few apply the 20 percent directly to the amount pertaining to the food eaten by Mr A. On the other hand, not a few cashiers submit to the hassle of applying discounts in a way that will force them to compute and apply the 20 percent discount across the board. While this is good for guys like Mr A, it beggars the bottom line of said establishments.
• One establishment takes the cake when faced with an inquiry about the senior citizen discount. The wise old lady behind the counter asks for the booklet, which is not usually required for restaurant purchases, and says she will then give a 5 percent discount. If one is not properly insulted by the first request, the offer of only 5 percent makes one resolve not to ever darken the said establishment again. But to prevent this smart aleck proprietress from a victory, I am considering reporting her to the mayor of her town that has taken establishments violating the senior citizens law to task.
One day, my wife and I went to watch that wonderful movie based on the musical “Mamma Mia” here. I betray my age and my preference for music, especially that of ABBA, as we saw a fair sprinkling of senior citizens present. This was courtesy of a city ordinance that mandates free entrance for them to movie theaters. A few of these venerable old men were even snoring away, enjoying the ambience of an air-conditioned place where they could rest and catch a few winks. My heart always goes out to these older citizens because I often picture myself in their shoes in just so many years.
Senior citizens belong to a generation that has already made its mark in society and contributed to its growth or ascendancy. Their progeny now carry the torch, but our seniors deserve whatever break we can give them especially in these years when their earning power is drastically reduced, making them rely on pitiful pensions.
9 Feedbacks on "Dwelling on senior discount and corporate bottom lines"
Marvin Wong
What is the correct way of computing for the 20% discount for senior citizens? The article doesn’t tell us how.
Marvin Wong
Who is paying for the 20% discount? the establishments or the government?
Becky
I am a witness to the unfair practices of some establishments on the senior citizen discount. Both my parents are senior citizens and I get into fights just so establishments honor the 20% discoun, especially with purchase of medicines. Mercury Drug, for one, imposes a lot bureaucracy. Diffrent policy here in the city, another policy in the province. Is there a government agency or an organization where I can air my grievances? Does Mon Farolan represent any organization?
Tony Te
The government made a law that required businesses to extend a 20% discount on the elderly. Clearly, the government wants to enjoy political goodwill at the expense of private enterprises. 20% is a fifth of the total consumed/bought by senior citizens. IF you are a business owner, you have no choice but to put a high mark-up on your prices to accommodate the discount and still make a profit–after all, that is what you are in business for. Therefore, drugstores and restaurants have to price their items higher for everyone since you cannot have two prices for any single item. Now, who is paying for the discounts?
I am so much for giving the senior citizens some breaks. But the government should realize that 20% of the gross amount is simply too high a price to pay for the goodwill enjoyed by the people in office.
jmajf
The discount should be on the food taken or eaten by the senior citizen. Theoretically, this can be charged to operating expenses. Former Amb Farolan opines that it can probably be recovered from the government, but good luck. It is like trying to recover anything from the BIR once you pay it. You have to file a report, wait forever, and get hassled on the way to recovery.
Subas Herrero
One big drug chain, oh OK,it’s Mercury, gives a 20% discount then promptly applies 12% VAT to the bill giving us only a net 8% discount. I know VAT is law but it should not be applied to medicines!
Ver Chiu
The 20% is no longer 20 but just a pittance, a mere 8% due to the 12% VAT imposition. And yes, different establishments have different ways of computing the discount for senior citizens that unless one is an accountant, the pitiful SC will always be on the losing end.
The law should be amended exempting the SCs from the VAT .
jmajf
Every city or municipality is supposed to have a unit that handles senior citizens’ affairs. I suggest you check up on the unit where you live or where you purchased a particular good or service. By filing a complaint, as Farolan and some others did, the violators were brought to bear.
You know, esp around election time, mayors like to get “pogi points” and usually attend to this group of constituents, the seniors, who make up roughly 12% of the population. That’s a lot of votes
mark
“Senior citizens belong to a generation that has already made its mark in society and contributed to its growth or ascendancy.”
Tell me, what makes you say that they were not already properly rewarded for their contributions to society while they were young? Were they not paid wages for their work? Were the shops that sold them goods not given them an already competitive price?
Business today is so competitive that profit margins are very small. It is highly unusual to run a business with margins of upwards of 20%. Unless it is very risky which drives down the amount of people willing to enter such a business. Most businesses like restaurants have margins of 10-15% if they are really good.
And because they have cut their profits to the bone, the consumer (young or old) already gets the most value anyone can willingly supply.
So I repeat: what makes you say the senior citizens were not already properly rewarded while they were young?
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