Packaging firm counts blessing

Such support is especially important now, as Advance Packaging, a leading producer of polyethylene plastic for exporters in the electronics, electrical and semiconductor sectors, struggles with a 50-per-cent drop in orders.

"We are so tired. The company continues to grow, but we weren't prepared for this kind of economic situation. We just built a new plant and bought new machinery," Prapoth said.

But the company owner said he has received a psychological boost from the understanding demonstrated by employees and customers, who have shown they are willing to help him and the firm weather the economic downturn.

Prapoth has cut many operating costs, such as electricity bills, overtime hours and working days, in the hope that the moves will partly compensate for the firm's falling income.

He has also shortened the production process and improved inventory management to ensure Advance Packaging is does not face an interest burden due to excess inventory.

Employees have shown understanding and cooperation about the cost-reduction policy because, thanks to good governance practices, they have been kept constantly informed about the company's situation, including the recent plunge in orders, Prapoth said. "We are in constant communication with employees so they understand the situation the company is facing," he said.

Some workers have expressed a willingness to apply for a voluntary early-retirement programme - if one should be introduced - saying they have no debts and face only small expenses.

"Employees have expressed empathy and understanding to help us solve the problems. Without their cooperation, the company would be in even bigger trouble," Prapoth said.

Customers, too, appreciate the situation the company is in and have not put additional pressure on it, he said.

Prapoth said the company is currently producing to order in a bid to reduce inventory. Motivating these steps was Prapoth's long-cherished belief in transparency and fairness for all. These same beliefs encouraged him to join his fellow university students in the protests of October 1976. As a result of his stand, he was forced to flee Bangkok and hide in the jungle for five years. He eventually returned to the city, however, realising that the uncompromising politics he had pursued as a student would not solve all society's problems.

Prapoth admitted that it was difficult to ensure justice for all. He decided instead to create his "dream society" by founding a company. He vowed to show empathy to employees, customers, society and the environment, treating all as if they were members of his own family. This philosophy has earned the company numerous awards, including the Puey Ungphakorn Institute's Good Governance Award.