Welcome

to Major Step

I would like to invite business owners or top decision-makers to join Major Step. It is a beautiful organization. It is a gift you can give to yourself. It will enrich your soul and bring you more happiness. You will contribute to make our world a better place. A world of brotherhood.

Oscar P. Chan

WHAT IS MAJOR STEP?

It is a movement of business organisations who are happy and committed to follow what is embedded in our mission statement.

MISSION STATEMENT:

God our Father has two missions:

1.  To help us be saved and thus earn the gift of life in eternity.

2.  To change our world for the better, where there is justice, love and peace, by way of non-violence.

The mission of MAJOR STEP is to contribute to that two missions of God our Father by way of two major programs for each member company:


1.  Weekly spiritual program in the workplace for all employees during working hours.

2. Profit sharing to all employees based on Rerum Novarum principle.

 

Note: Rerum Novarum is a social writing of Pope Leo XIII IN 1891.

WHAT GOOD WILL THIS MOVEMENT BRING?

  1. It is a major step in bringing people back to God.
  2. It is a major step in changing our world for the better where there is justice, love and peace, by way of non-violence.
  3. It will contribute to poverty reduction.
  4. It is less hard to manage the employees.
  5. It will enrich the soul and bring more happiness to the business owners or top decision-makers.

Note:

Although the company will be sharing profits to employees, based on my experienced, the company will still have good profits left. Although I don’t have a proof, I believe it is possible that for the long term companies can in fact have more profits. This is because of the effect of synergy.

Synergy is the interaction or creative cooperation of two or more factors to produce a combined effect greater than the sum of their separate effects.

WHO CAN JOIN?

All business organisations who have employees.

WHAT SORT OF ACTIVITIES DO YOU HAVE?

We have a regular meeting every Thursday afternoon at 1:30 pm via Zoom.

HOW MANY MEMBERS ARE ALLOWED TO JOIN PER ORGANIZATION?

Maximum of 3, the owner, plus 2 key officers.

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Background & History

When I was student between the years 1960 and 1972, I read and heard about the problem of poverty in our country, the Philippines. In 1980 when on my 7th year of employment, I experienced spiritual conversion, so that in 1982 I decided to go into business. All along I thought that maybe I can contribute to the problem of poverty, as well as contribute to establishing God’s kingdom of justice, love and peace, by sharing profits. So from 1982 to 1987, I was sharing profits to our employees based on each individual performance and level of responsibility. But I have no idea as to how much percentage to share. I just followed what I felt was the right amount. In 1987, I came across this writing, “Each needs the other: capital cannot do without employees, nor employees without capital.” I reflected on this principle and decided to develop an internal accounting system based on this principle, “Each needs the other: capital cannot do without employees, nor employees without capital.”

 

Also, from around the year 1983 or 1984, we started to have a weekly spiritual program inside the company. Initially we had it on late Saturday afternoon and after office hours. One day, I attended a spiritual talk and the speaker said that “if God is really important to you, you will give your prayer meeting schedule a priority.” I realised that on Saturday afternoon, people were already tired and eager to go home. So by around early 1990’s we have it on Mondays, first hour in the morning and inside working hours. Since that time until today, we usually give our spiritual programs a priority in scheduling.

 

Unconsciously, I have always assume that as far as employees are concerned, profit sharing is what is most important to them. One day, sometime 2015, during our prayer leaders’ meeting, one of our old-timers, Rey Esteban, said,” Sir, the reason why I have stayed this long with the company is not because of our profit sharing; it is because of our studying the Word of God.” And this was seconded by two other old-timers, “yes, with me also.” I reflected on this and realised how wrong I was, that over the years and passage of time, in people’s hearts, the spiritual wealth gained through regular weekly prayer meetings surpassed the importance of profit sharing.

The Internal Accounting System:

1.  Rerum Novarum is a social writing of Pope Leo XIII in 1891.

2.  Before computing for the profits to be shared, the partnership of capital and employees must first be satisfied for its maintenance needs:

  • Employees — Regular salary or wages to maintain the health and well being of the employee and his family.
  • Capital — Inflation Maintenance Allowance (IMA) to maintain its value due to inflation. To get IMA, multiply Capital or owners equity by the average inflation rate for the year.

3.  After deducting all the expenses, salaries, and IMA from the revenues, we arrived at the net profit. Basing it on the Principle, “Each needs the other: Capital cannot do without Employees, nor Employees without Capital,” I believe a 50/50 sharing is implied, thus we allocate 50% share for the employees. But this 50% share already includes all the expenses that has been spent or enjoyed for the general benefit of the employees, such as the company’s contribution to the social security system, retirement benefits, medical health benefits, company outings, Christmas party, etc. But if it is not of general benefits, such as the salesmen’s incentive program, they are not part of the 50% share. This would mean also that unlike in conventional accounting, all these expenses for the general benefits of the employees, will not be included anymore as part of the operational expenses.

4.  The difference between the compensation, both salary and profit share, of the highest and lowest-ranking employee should be guided by the Spirit of Justice and Love.

5.  If the business owner also works with the company, he or she is also entitled to a monthly salary and to participates in the employees profit sharing as an employee.

6.   In terms of formula: 

  • Sales – {Expenses – (salaries + general benefits to employees)} = Gross Profit
  • Gross profit – (Salaries + Inflation maintenance allowance for capital) = Net Profit for sharing
  • Net profit for sharing x 50% = Employees Share
  • Employees’ share – General benefits already spent or enjoyed by the employees = Net Cash for distribution to Employees

7.  There are two basis for the individual employee profit share:

  • Level of responsibility
  • Performance