Republic of the Philippines

DEPARTMENT OF EDUCATION
Region VII, Central Visayas
DIVISION OF CEBU PROVINCE
TAYUD NATIONAL HIGH SCHOOL
Tayud, Consolacion, Cebu
S.Y. 2018-2019

Case Study No. 2:

A Case Study of
Rags2Riches
Submitted by:

Kent Anthony L. Gestopa

Feuna Mae A. Garciano
XII-RUBY

Submitted to:

Ms. Marites Melendres

Teacher
Case Problem Analysis:
In 2009, the Rag2Riches Project won the Business in Development Global
Competition. Rags2Riches evolved out of the efforts of the Simbahang Lingkod
ng Bayan, a Jesuit social apostolate organization. From the very start, those who
conceptualized the Rags2Riches Project wanted to help women in Payatas (one
of the biggest dumpsites in the Philippines) to earn more and live more dignified
lives. The women would weave scraps into multi-colored doormats, rags, and
rugs that would be used in Filipino homes. Rags2Riches entered the competition
to be able to direct the women of Payatas to the market who could buy their
wares. Its products were mainly made from upcycled cloths and discarded scraps
from factories.

When the business was growing big, the proprietors considered

expanding globally and building Rags2Riches as a brand featuring renowned
designers. For example, through the ideas of a famous fashion designer, these
rugs and rags could be developed into bags and accesories. The initial venture
had become a huge success; 2010, Rags2Riches' capital grew by almost 400
percent.

The Rags2Riches team ensured that its products were 100 percent
consistent with their values. All the materials were upcycled and thus, "eco-
friendly" (e.g., organic materials that did not use harmful dyes or chemicals).
Also, expansion resulted in engaging the other nearby communities. Clearly, the
women- and other communities as well- had become empowered and enriched.

Essentially, this social business enterprise sought to improve the

livelihood outcomes of the poor. Apart from ensuring attainment of the 3P's -
people, planet, and profits- Rags2Riches sought to exert a positive influence on
the market, on the communities it works with, and eventually on the world. This
case highlights the good effects that can be achieved by the mere desire to serve
people and communities.

Guide Instruction:

1. What is the main vision and mission of Rags2Riches? What they seek to
achieve?
2. What method did the business employ in order to help poverty alleviation?
3. Is it possible for a business enterprise to fulfill a social function (such as
help reduce poverty) and at the same time earning profit? Explain your
answer based on the business model of Rags2Riches.
4. Do you know any of the other enterprise in the Philippines that has
achieved what Rags2Riches has achieved, i.e., serve a social function
 and at the same time, make money? If so, describe that nature of
operations of that enterprise.

I. INTRODUCTION

Rags2Riches (R2R) is a fashion and design house empowering

community artisans. They make things that matter and weave joy into
every story. In a world where fashion and design are often seen as
excess, R2R is proof that style and sustainability can coexist. They
partner with local artisans across the Philippines to create eco-ethical
fashion and home accessories out of upcycled, overstock cloth and
indigenous fabrics.

II. BACKGROUND

Rags2Riches (R2R) believes in some ethical principles. For they

want to help those artistic people that needs livelihood. They don’t just
love seeing transformation, they love being a big part of it! R2R is a life
and livelihood partner for empowered and dignified artisans as they
strive to weave better futures for their families and communities.

And this is also why they started Things That Matter, a joyful
marketplace that creates positive impact and inspires an intentional
lifestyle.

They have years of experience in building an end-to-end inclusive

enterprise, learning along the way, making a lot of mistakes, and
pushing forward anyway. So they thought, why not create a platform
that will allow us to share what they have and what they have learned
to other like-hearted brands?

III. PROPOSED SOLUTIONS AND ALTERNATIVES

Under this section are the solutions for the inquiries with regards to
the significant background of Rags2Riches.

 Rags2riches' mission and vision are to give each woman

living in a wicked to have an opportunity to earn more and
live in a dignified kind of life. It aims to make rugs, doormats,
 and rags, out of upcycled cloths and discarded scraps from
factories. All materials used were eco-friendly and did not
involve any chemicals and organic materials that are harmful
to the health of every individual. Aside from that, this social
business enterprise seeking to improve the livelihood
outcomes of the poor and exert a positive influence in the
market.

 Rags2riches is a project which aims to alleviate poverty

through weaving. From the very start, it encourages every
woman to be part of such a project, in order for them to live
in a dignified life like what other people had. When
rags2riches expand globally, the weaving of rugs, rugs,
doormats, etc. evolved into weaving different accessories
and bags, which makes their capital grow up to 400 percent.
Their expansion resulted in engaging other women to be part
of such a project, and every woman who became part of it
had become empowered and enriched.

 Yes, it was indeed possible. Rags2riches was the living

evidence that a business enterprise could gain profit despite
fulfilling a social function. As we all know, humanity is the
foundation of each and every business. For example, the
rags2riches, they did not consider uneducated woman as a
hinder to their business but, they made them as an
instrument to make their business popular and successful. In
exchange, poor women made their lives meaningful and
lived in a dignified kind of life. Poor people were likely to be
hardworking more than those who pursued higher education,
therefore, through the hard work of these people,
rugs2riches expanded internationally and become more
successful worldwide.

 Gawad Kalinga,' translated in English means to 'give care,'

is a Philippine-based movement that aims to end poverty by
first restoring the dignity of the poor. GK began with a simple
desire to give care and leave no one behind, and our
mission is to end poverty for 5 million families by 2024. They
do this by employing an integrated and holistic approach to
 empowerment with values-formation and leadership
development at its core.

The GK Model or Roadmap to End Poverty begins

with dignity restoration and continues on to include
community empowerment, access to mainstream
opportunities and basic services, and eventually to character
building and good citizenship. They do this not only by
working closely with the poor as they journey out of poverty
but by creating a bigger platform whereby we could attract
more volunteers and partners from all sectors of society,
thereby helping more people.

Gawad Kalinga did not go for a project mentality with

a timeline for entry and exit. Instead, we went for a nation-
building movement strategy with a 21-year development
timeline. Their idea was to create an open platform for
massive volunteerism and heroism, where measures are
both quantitative and qualitative, with a clear end-goal of
helping end poverty in our country by 2024. They know that
our goal is a giant one, but our commitment to its success is,
too.

IV. CONCLUSION

Thus, in growing a business it is not all about having great profits

but also applying the sense of humanity and compassion to the people
that are under the poverty line. Likewise, when you give a single piece
on a person, the heavens itself will pay you ten folds more.