Search Results

One late afternoon, we decided to play a “social experiment.” We gathered the employees of ICD & ISA present who were 28 years or younger, the twenty-somethings. Twenty employees, about 10 from each group, gathered in the Training Room. We asked them to react to a purposely intriguing statement by writing up an email response of at least 50 words, but no more than 100 words. The only requirement – that they be as honest as possible. The statement they were to react to is as follows: “This generation is a generation of entitled, job switching, directionless cry-babies.” As they read what was written on the white board, you could feel the energy levels rise in the room. Their eyes widened in disbelief of what they had just read, as they all tried to maintain polite and respectful smiles. It was a statement they had all personally encountered in some shape or form in the past. Mumblings and whispers were heard as some started to nudge and kick one another from under the table. When we dismissed them from the room, 12 out of the 20 who were present responded. Their responses were nothing short of amazing: “This generation has learned to choose and make wise decisions for upholding their morals and beliefs, considering their mental and emotional state.” “Millennials are dealing with the Great Recession by delaying expensive adulthood markers and looking for side hustles. Baby Boomers had a good economic start after World War II but are now facing challenges funding their retirements.” “We wish to be more financially independent or we seek a better return of our parents’ investment in our years of study. Our actions may not be motivated by selfish interests but by reasons greater than ourselves and should therefore be seen in that light.” “We complain and cry but it just shows that we care, not just for ourselves but for others who are affected by the same circumstances we’re in (cos we want to see some changes) As a result, we are indirectly providing solutions to some of the most common issues today, which tends to urge the older generation to listen, understand and help us act towards those concerns.” “Our generation as people who are mindful of their rights, multi-talented, like to think twice or more before being sure and know how to express what they feel.” “The market has become competitive and we are just trying to stand out or be remembered. A lot of factors affect our decisions which therefore limits our choices. We tend to weigh the pros and cons of the options available to us in order to get the best possible outcome from it.” “We know what are goals are and we don't settle for a job that harms our mental health. We thrive in environments that will nurture and help us grow into our fullest potential. More on the salary, we look at the company culture and how the management cares for its employees. The most important thing for us is being valued and appreciated despite being young and maybe at the lowest rank of the company hierarchy.” “We refuse to settle in our jobs, lifestyle, relationships etc. because now, more than ever, we are well aware of our liberty and freedom to choose whatever path to take in our lives. We are not afraid to exercise this right and to draw the line especially when people try to dictate how we should live our own lives.” “We have zero tolerance on injustice. If this is what it means to be a crybaby then I would gladly be called as one as I’d rather be noisy and make people uncomfortable than remain tight-lipped and endure the consequences of an unjust system.” “Being able to take complete ownership of our decisions and actions shouldn’t be mistaken as entitlement. Rather, it should be seen as an act of bravery because we, gen z, #Takenoshit.” “This generation is the fruit and labor of the Boomers and Gen X, however, the foremost critics are likewise coming from the older generation. Its critics overlooked the reality they are encountering; in which, this generation is the outcome of their parenting and guidance during the childhood and teenage development years. We cannot blame this generation but, parenting must be evaluated and prioritized nowadays.” “It only knows what they want and would not settle for things that do not stimulate growth, critical thinking and change.” “This generation is becoming more flexible in terms of learning outside-the-box, and socially inclusive considering how social media platforms bring ease in connecting each others' ideas. As a result, people in this generation are free of learning new things in their own control. If they are not happy with the process, they tend to leave.” “Generation Z and Millennials are entering and taking over a big percentage of today's workforce. This is creating changes in the workplace because their set of qualities and how they behave differ from the expectations of the generations before them.” Reading through these responses, I smile. These are just a few responses of the generation that now composes perhaps 80% of our organization, perhaps, 60% of the entire workforce and the market we now serve! The responses are consistent. Similar. Related. When pushed and taunted – they push back. They remind me of someone some years back, some decades ago. Defiant. Proud. Determined. Searching. We were once twentysomething! We, too, didn’t we want to change the world our parents left us with? What are they really telling us? Maybe we should let them finish the work we were not able to complete? Reading through these responses, one more time, I smile.

A speech by Jesus P. Estanislao, Ph.D. Introduction Each day reminds us that we are living in a world very much different from that into which we were born. We now have Airbnb, the largest provider of hotel rooms, which owns no real estate; Uber and Grab, the biggest providers of taxi services, without any car fleet; Alibaba and Amazon, the largest retailers, without any inventory; and Facebook, reputedly the biggest media provider, without producing any content. And so the list goes on, bringing much bewilderment to people my age, and perhaps even to those who may be much younger. We are told, we are in the midst of the 4th industrial revolution. It features, among many others, robotics, artificial intelligence, designer babies, longevity which can soon make the age 80 as the new normal, bitcoin and other digital platforms, which threaten to render obsolete most of what we had been used to. The first industrial revolution with its railroads and steam engines may have been mainly mechanical. The second, with electricity and assembly lines may have brought about Charlie Chaplin and mass production. The third may have been more “digital”---with the semiconductor, computers and the internet of things, with which some of us are still trying to grapple. But now, even as we are catching our breath trying to catch up with the consequences of the third industrial revolution, we are told that we have entered the 4th industrial revolution. It features drones, artificial intelligence, machine learning, and several smart connected machines that are re-shaping “what we do, how we do things, how we organize ourselves, and even who we are”. If I sound out of my depth in providing even in broad-brush terms the basic features of the 4th industrial revolution, truth to tell, it is because I feel inadequate. However, Klaus Schwab*—-of the World Economic Forum—-who wrote the book on the 4th industrial revolution (or simply FIRe thanks to Rex Drilon’s creativity), has done us all a favor by suggesting “ways forward” in meeting its manifold and complex demands. It is these demands I suggest we focus on. Basic Demands of the 4th Industrial Revolution First, an observation: FIRe tends to “individuate” us even more: it can cut us off from much personal inter-action with the people immediately around us and with our local community. We have more means to cater to our many individual demands, desires, and dreams with ease, speed, and variety. We can choose the networks that cater to our preferences, regardless of boundaries imposed by space, time, blood relationships, civic ties, and other traditional bonds. All this empowers us and makes us—-as individuals—-the key assets (or liabilities) of the new age that is already upon us. Thus, the most basic demands of FIRe are upon individuals, and there are four aspects that individuals need to take very good care of: · Our mind, for contextual intelligence. To understand the emerging mega-trends and connect the dots, we need to plug into diverse, inclusive networks, to form holistic perspectives that need to be integrated for sustainable change. Whew! This means: no thinking in silos; not having fixed views about the future; no artificial boundaries; and the absolute need to forge effective partnerships through multi-sector and multi-stakeholder engagement. In other words: be a fox (agile, flexible, adaptive and integrating); and never a hedgehog (defensive, enclosed, immobile, anti-septic). · Our heart, for emotional intelligence. To create an environment for the generation of ideas and fresh initiatives, we need to be self-controlled and self-propelled, with wide open empathy and great social skills. Foster collaboration and team work within a flat organization with a thin hierarchy! · Our soul, for inspired intelligence. To satisfy the search for meaning in life and work, we need to share a sense of destiny: raise the level of collective, moral consciousness; work together for a shared dream; build trust; and get others to join hands, hearts, and minds in advancing the common interest, instead of limiting themselves to the pursuit of only individual and sub-group, tribal, feudal objectives. · Our body for physical intelligence. To care for our personal health and well-being, we need to keep fit and stay calm under pressure. Sleep, exercise, nutrition, and good nerves are critical to our ability to address simultaneous and complex challenges. A world under FIRe is a world under continuous disruption. The change it is bringing in its wake is unprecedented in terms of its “scale, scope, and speed”. The individual who cares not enough about continuously honing up intelligence in mind, heart, soul and body would soon be marginalized and left behind. Thus, the imperative for continuing personal development: not just education, but formation; not just getting a degree, but life-long learning in all facets of life: from the physical, cultural, and professional; out to the social, financial, and environmental, and finally up to the spiritual. The four consequent demands upon individuals under FIRe relate to a fundamental characteristic embedded in the DNA of every person: this cannot be altered by even the most sophisticated scientific advances of any industrial revolution, past and future. It refers to our fundamental need for inter-personal relationship: for inter-action, mutual trust, friendship, and love, upon which we build our social, economic, and political systems, which shape the culture we live in and then bequeath to the next generations after ours. These four demands of FIRe due to our fundamental need to inter-act and inter-relate with others at home, at work, with friends, and with others in the wider world about us relate to how well we all contribute to the effectiveness and efficiency of: · The internal value chain we have at home and at work. That value chain is made up of small groups of individuals, within a family or within a team at work. The call is for bringing various hearts, minds, and hands together to work in close collaboration and friendship, in order to deliver transformative outcomes and shape a brighter future together…with each other! Shared responsibility is inclusive and participatory. It is carried out with a deep sense of duty, mutual support, and a commitment to continuously innovate and get things done more efficiently and effectively. It has no room for compartmentalized thinking and for narrow, un-systemic framing of accomplishment and success. It makes for happy homes and high-performance teams within competitive enterprises and institutions. · The external value chain in a region or in a sector calls for conversation, cooperation, and collaboration. It reminds enterprises and institutions that it has key---multiple---stakeholders, with whom they need to work closely to ensure that connections are seamless and that the chain, of which they are a part, is without any kinks, flaws, and gaps. This entails giving everyone a voice, a role, and a responsibility for contributing to the competitiveness and further development of either the area or region, and of the industry or sector that the chain encompasses. · The wider community that may be much bigger than the administrative regions we now have---and indeed, the nation as a whole---calls for a “whole area” or a “whole nation” approach to seizing the opportunities that open, competitive markets put on offer. Indeed, wide, open markets should not be feared; they need to be nurtured as the most effective drivers of wealth creation, of job generation, and of growth promotion. However, great care must be taken to ensure that values and ethics are at the heart of individual and collective behavior and of the systems—economic, social, political—they nourish. · The human family that shares the same planet earth: the common challenges we face from climate change, free navigation through the high seas, free movement not only of goods and services but also of capital and labor. These demand fairly shared responses, born out of a deep sense of solidarity for all men and women. Indeed, all persons must be regarded not only with tolerance and respect, but also with compassion and the regard we owe them as brothers and sisters under a God who is our common father. FIRe makes four basic demands upon us as individuals, and other four consequent demands as persons who absolutely need to inter-relate with others at home, in teams at work, and through enterprises and institutions with the much wider world around us. How may we answer and meet these demands? Ten Governance Essentials under FIRe The answer is shaped by ten governance essential points. They are: 1. The challenges are systemic; so must our responses be. FIRe presents us with a package of challenges, and it brings about disruption and radical change. It demands transformation: and this is delivered by a package, headlined by governance, which is the other face of anti-corruption, intimately linked to anti-poverty. In addition, governance is closely tied up with productivity, which paves the sure path towards over-all development itself. Thus, the governance nexus or system! 2. Enterprises and institutions matter. They are the instruments by which persons get organized and come together to work for shared purposes. Core values shape the mission they carry out, and the vision they seek to realize. They then choose strategic priorities, which have to be brought down to concrete initiatives, subject to measures and targets of performance that must be delivered. 3. For transformative outcomes to be delivered, governance has to be sustained and cascaded down to individuals. Under FIRe, individuals need to become the ultimate governance assets by meeting the four basic demands of taking good care of mind, heart, soul, and body. 4. Individuals commit to continuing personal improvement and to life-long learning. They are made to push themselves to the frontiers of their potentials and to the full use of their talents, by taking advantage of the opportunities opened ever wider for them, thereby enhancing their personal dignity. 5. All facets of life and work are integrated. They are made to support and reinforce each other. Personal governance has to be comprehensive and all-encompassing such that following ethical norms, consistency between ideals professed and actions taken would enable individuals to become persons of integrity. 6. Fairness and friendship mark out personal inter-action with others. Individuals give meaning to their life by sharing responsibility for pursuing a mission and realizing a dream through a culture of trust, cooperation, collaboration and “communion” with others. Down with silos and compartments! 7. The family is the basic unit for solidarity. Homes need to be oases of peace, joy, and of mutual support in building and shaping a better, more accomplished future for everyone. 8. The work team is the basic unit for subsidiarity. It harmonizes work of individuals so they contribute positively to team performance. It calls for initiative, creativity, agility, and flexibility in responding to challenges presented to the team, as it works responsibly with other teams to secure an effective and efficient internal value chain within an enterprise or institution. 9. As an island of good governance, the enterprise or institution builds bridges. It connects with its multiple stakeholders. It works closely with other links in its external value chain, which thereby is made to function more seamlessly, more competitively, without flaws and gaps in its process of delivering a service or in getting a product to market. 10. We are a family, sharing a common home, under the providence of a common Father. The “commons” and the wider progress for all prevail over individual benefit and the narrower interest of a few. Local communities, sectors, regions, and nation deepen and broaden our responsibility. Thus, voice, participation, and shared duty need to be provided to individuals, enterprises, and institutions so all can meaningfully and substantively contribute to the common tasks of facing up to the multiple dynamically changing challenges hurled before us as citizens, and as members of one human family on planet earth. Why These Essentials Matter In an age of disruption and of radical change, it matters a great deal if we can hang on to a few essentials, by which we can survive, more than simply keep pace, and even thrive. We had been given the most precious gift that can be given to any nation: our faith. We just have to hang on to it, nourish it and allow it to nurture us through. In addition, put within our reach these past two decades is a second precious gift: a package, headlined by governance, which delivers transformation, competitiveness, and over-all development. We now have more than a few islands of good governance. We need to scale up. We need to multiply these islands so we become an archipelago of good governance. Should we do so in the next two decades we can then realize our Dream Philippines! Manila, December 2019 *Klaus Schwab, 2016. The Fourth Industrial Revolution. New York: Currency, Penguin Random House. All ideas and references associated with the 4IR are directly owed to Klaus Schwab, World Economic Forum.

From the Chairman Emeritus of ICD, Jesus P. Estanslao. There are many ways of reading the 2019 SONA of President Duterte. To contribute to our need for deeper national reflection on the substantive homework we need to do in order to build our DREAM PH, I am sharing with you this Note I composed after reading the text of SONA 2019. It is an attempt to focus our discussion on national priorities, using the Governance-Competitiveness-Development framework I have adopted. You may have other ways of reading SONA 2019. Please share them with the ICD community so we can start a substantive conversation on strategic priorities for our beloved country. Introduction 1. The State of the Nation Address (SONA) is set to be delivered on the 4th Monday of July of each year. President Duterte dutifully delivered his fourth SONA on July 22, 2019 before a joint session of Congress and other dignitaries from the Executive and Judicial branches of our government. The diplomatic corps was also in attendance. 2. Given the importance of the SONA, there is need for further reflection and possibly deeper understanding of what the President actually said. Beyond the usual attention on who were actually in the Batasang Pambansa, who accompanied them, what they and their companions wore, and what messages a few of the attendants at the SONA were trying to deliver by the outfit they wore, there is need to connect the dots of the many statements included in the SONA so as to decipher the “state of the nation” as portrayed and reported by the President himself. 3. In this regard, a broad governance framework can be of great use. After all, this is the CEO of our country---the President----delivering a report on the state of our national, public affairs. The SONA is a report to our people from the strategic heights of the Presidency: it necessarily re-articulates a commitment to a few core values; it puts forward a dream and aspiration for our people, indeed a vision of what we shall try to realize in the few years ahead; and it specifies a number of strategic priorities that we absolutely need to pursue as we go about the task of trying to realize that vision. In the process of rendering such a “report”, the President necessarily has to mention a number of accomplishments that have already been made in the immediate past. Under this light, a governance framework is particularly useful to connect the dots and to relate several of the statements in the SONA so as to present the true state of our nation, as the President sees it. Re-articulation of a Core Value and Putting Forward a Vision 4. The President used the occasion of the SONA to remind everyone of a core value we need to adhere to, in words and in deeds, on solemn occasions and in the course of everyday life and work. That core value is “maka-bayan”, the love of country we all should have, so it gets reflected in our life and work, 24/7, in all sectors and at all levels, and on the part of every Filipino, no matter how high or how low the station we occupy in society and the community. The President made a stirring call for love of country, and for rising above narrow personal interests. Below is what he said: “It is a sad commentary that we cannot distinguish our need from our greed, our principles from our prejudices, the real from the fake, and the truth from a lie. The reason is: (for) many of us, what matters above all is the “self”. It is selfishness at its worst (since it has) no purposes other than personal aggrandizement”. “To borrow the language of F. Sionil Jose, we have not risen above and beyond parochial interests. Our warped loyalty to family, friends and tribal kin continue to exact a heavy toll on our programs designed to uplift the poor and reassure our investors---both local and foreign---and the business sector in this country”. 5. Love of country that gets us to rise above self and away from the claws of selfishness is the one core value that the President re-articulated and strongly emphasized in his 2019 SONA. He then follows it up with putting forward a grand dream and a more concrete vision that he wants to see realized within the short time horizon that is left of his Administration. His grand dream: “I dream of glowing days ahead for every Filipino. I dream of a Philippines better than the one I grew up with”. His more concrete vision: “Our goal for the next three years is clear: a comfortable life for everybody, (for) all Filipinos.” “A better Philippines” than the Philippines of the 1940s into which the President and his generation were born is an all-encompassing broad ideal. But the President then added that in the next three years, i.e. by 2022, he and his Administration will be working very hard to deliver “a comfortable life for everybody”. In putting forward such a goal for the next three years, the vision that he is committed to realize, the President makes a solemn pledge and a deep resolve, signifying how seriously committed he is to delivering such an outcome. The pledge he made is as follows: “Though we cannot change the past, we will not squander the future. I will push harder in the pursuit of programs that we have started, but always within the parameters of the law. I will not merely coast along or while away my time during the remaining years of my administration. I will not stop until I reach the finish line. Then and only then shall I call it a day”. Anti-Corruption as the First Strategic Priority 6. Having made such a solemn pledge to deliver an outcome, as specified in the Vision (a comfortable life for all Filipinos) he put forward, the President comes down to brass tacks. He wastes no time and minces no words. Corruption is the very first dragon that must be slayed. It keeps spewing its fire that enables the illegal drug problem to fester and inflict damage on society. This is what the President said: “After 3 years in office, we have not solved all the problems we wished to face. “The illegal drug problem persists. Corruption continues and emasculates the courage we need to sustain our moral recovery initiatives”. “I am aware that we still have a long way to go in our fight against (this) social menace…..” The drug problem will not be crushed unless we continue to eliminate corruption that allows this social monster to survive”. 7. The President calls attention to the deeper malaise in society, and it is corruption that lies at the root of the illegal drug problem. He is straightforward in declaring corruption as the enemy no. 1 that has brought about so many of our social and national ills. “I have identified the enemy, who dumped us into this quagmire we are in. I have met the enemy face to face, and sadly, that enemy is “us”: we are our own tormentors; we are our own demons; we are rapacious predators preying on the helpless, the weak and the voiceless. We find corruption everywhere in government, with every malefactor watching his cohort’s back in blatant disregard of his oath when he assumed pubic office. No amount of euphemism can trivialize or normalize betrayal of public trust or any other criminal offense. It is an injury laced with insult: it is both a national embarrassment and a national shame”. 8. Having pinpointed the main stain that has brought about an utterly dark spot on our social fabric, the President issues a call for purification, a process of self-cleansing that would bring about a spiritual renewal and final release from the evil clutches of corruption. He states: “Catharsis is what we---individually and collectively---need to have today. Self-purgation, followed by the resolve to do what is right and proper, is good for the nation’s health”. “Corruption exasperates. It frustrates. It is also exasperating that there are times when I think that perhaps it is blood that we need (in order) to cleanse and rinse away the dirt and the muck that stick to the flesh like leaches”. The reference to blood and to the imperative of individual and collective resolve to get back on the road of what is “right and proper”, can be taken to mean a spiritual renewal. He does not say so outright, but he makes an allusion to it. Good Governance as a Second Strategic Priority 9. Anti-corruption is one side of the same coin that has another side, that of good governance. Indeed, the pathway to over-all national self-renewal and development starts with anti-corruption as the first important milestone. It is immediately followed by the other milestone, that of good governance. Good governance demands reforms, radical changes in the way institutions operate and deliver results. Thus, as they cleanse themselves up and reduce corrupt practices, they then should function better and are able to deliver positively helpful results. The President makes allusions to this by saying very clearly and giving a very concrete example, the Bureau of Customs: “Institutions that are the stewards of our resources and agents of development have long been a major source of public frustration”. (However), drastic reforms within these agencies have yielded positive results. Our GOCCs have started to shape up. (Our) Bureau of Customs, though corrupt-ridden, managed to collect PHP585 billion in 2018. Imagine how much more could have been collected had the BOC been clean and less corrupt”. 10. The reform that good governance demands would require a shift in mind set: from slow, inefficient delivery of public services to much faster and simpler processes, which enable them to render those public services much more efficiently and in a service-oriented manner. This is the very loud call to action, to “positive and prioritized action” that the President issued to government agencies, both national and local. The call: “We in government talk too much, act too little, and (act) too slow. I implore those who occupy positions of power and authority to let your deeds and accomplishments do the talking. Lead by example. Words ring hollow when not followed by positive and prioritized action”. “…much has to be done in ensuring our responsiveness to the people’s needs. Based on complaints received by the Contact Center ng Bayan in my office, the LTO, SSS, BIR, LRA and PAGIBIG are the top five agencies that need to drastically improve their service.” “…my directive to the government and (its) instrumentalities, including the LGUs and government corporations: ‘Simplify’!. Indeed, simplify and make your services responsive to (the people). (Be) client-friendly.” 11. In undertaking the reforms that good governance demands, it is indeed essential to have a change in mind set towards a “client-friendly”, caring, efficient, and fast rendering of public services. This has to be accompanied by a “strong political will” and therefore by a deep resolve to enforce laws and regulations with courage and determination. He cites the example of the clean-up of Boracay. He then enjoins government officials to “enforce our laws and protect our environment”. The President said: “Equipped with political will, the government ordered the closure of Boracay Island for six months to prevent its further deterioration. We cleaned (up) and rehabilitated the island, and I allowed it to heal naturally. I am proud to say that it has been restored close to its original pristine state.” “Boracay is just the beginning….On January 27, 2019, we officially started the Manila Bay rehabilitation. Though we have a long way to go, we are encouraged by the test results of the waters near Padre Faura. We will relocate informal settlers along the waterways, and shut down establishments that continue to pollute and poison our waters.” “I am giving due notice to the LGUs and other stakeholders…of tourist destinations…to take extra steps in the enforcement of our laws and the protection of our environment”. 12. As important as the protection of our natural resource is, at least equal importance needs to be given to our human resource. People are the nation’s greatest assets. They have to be educated and provided with the opportunities by which they learn, equip themselves, and develop themselves personally. In this regard, the President touted the accomplishment of his Administration in providing education to millions of our young people in both formal and informal programs of instruction and learning. “I am proud to say that this year more Filipino learners are receiving basic education, with over 27 million enrollees from Kinder to Senior High School…..”More than 823,000 out-of-school youth and adult learners were able to access non-formal education through the Alternative Learning System”. 13. “Learning and personal growth” is a basic governance perspective that needs to be complemented by the process perspective: this enables our people to function, work, earn a living, and become economically productive. All this will have to be served by the provision of peace and security all throughout our islands. On this priority area, the President had this to say: “…Developmental gains will not be felt by our people in the countryside if we cannot maintain law and order. Peace and security! We need to enforce the law”. “After almost two decades of peace negotiation, the Bangsamoro Organic Law was finally passed and ratified. It is my hope that the Bangsamoro Transition will fast-track the establishment of (a) regional government that will secure a comfortable life for our Muslim brothers and sisters, and for all indigenous communities in the Bangsamoro Regions.” 14. Beyond the provision of peace and order, the development process perspective demands that our archipelago with its many islands should be better connected and communicated with each other through a nation-wide grid of roads, ports, and harbors that enable economic hubs---particularly those outside Metro Manila---to be linked and connected with its many pokes.In this way, our national economy can be made to function, grow and develop as one closely integrated system. The President had this to say on this point: “Through the “build, build, build” program, economic hubs are emerging outside Metro Manila. This will swiftly gain ground. We are hard at work in the inter-connection of our islands and cities by air, land, and sea.” 15. To help economic enterprises, particularly those in most need of help---i.e. the micro, small and medium enterprises (MSMEs)---take advantage of the newer and bigger opportunities being provided by the infrastructure for transport and communication being put in place, nation-wide, active support will have to be provided. In the past few years, the President is happy to report positive development in this regard: “Almost 86,000 micro, small and medium enterprises (or MSMEs) have received over PHP3 billion worth of loans since 2017”. The President then urged Congress to pass the “comprehensive tax reform package” (that) will energize our MSMEs and encourage them to expand their business and hopefully generate 1.4 million jobs in the coming years. The MSMEs hold the promise of raising the lot of Filipinos”. The President then pins his hopes on MSMEs that will be vital to “the dispersion of economic and business activities to Visayas and Mindanao. (This) is not just a campaign promise. It is an economic imperative and a key to our country’s sustainable and equitable development. We will encourage investments that would develop the rural areas, and Metro Manila, and other mega urban areas”. 16. Closely tied up with the process perspective of governance is the perspective with focus on the constituency that must benefit from services rendered or opportunities expanded. In his 2019 SONA, the President focused on a number of specific constituencies. The first constituency: those who need to obtain clearances and permits, generally from the LGUs, which in various instances impose the requirement of obtaining the Mayor’s approval. The President gave this directive: “I am directing the DILG (Secretary Ano of the local government department) to see to it that this (one-hour clearance and issuance of permits, unless there is need of an ocular inspection) is honored. (Indeed), all clearances, (and) permits emanating from the office of the Mayor and therefore in need also of the approval of the Mayor “must be out at the very least within three days” The second constituency: those in Metropolitan areas that suffer from traffic congestion and from loss of time due to being enmeshed in intolerably messy and chaotic traffic jams. This directive from the President: “I reiterate my directive to the MMDA and all concerned local officials in Metro Manila, and all other cities, to undertake immediate action to ensure the speedy and smooth flow of vehicular traffic. Reclaim all public roads that are being used for private ends.” The third constituency: small farmers and fisher folk, and of particular interest, the coconut farmers. Again, the President: “We shall continue to invest in the countryside through agricultural programs that will increase the productivity and income of our small farmers and fisher folk. We shall continue the full implementation of the Rice Tariffication Law, including the Rice Competitiveness Enhancement Fund. This will safeguard the livelihood of small farmers through the provision of modern farm equipment and machineries, seed and credit and extension services.” “I once again urge both Houses of Congress to pass a more responsive version of the bill establishing the Coconut Farmers’ Trust Fund to ensure the accelerated utilization of coco levy funds for the well-being and empowerment of the coconut farmers”. 17. On the fourth governance perspective of the macro-economy and finance, the President made a pitch for two specific items: passage of Package 2 of the Comprehensive Tax Reform Program; and the development of alternative energy sources to lessen the economy’s dependence on coal. This is what he said with respect to these two issues: On Package 2 of the Comprehensive Tax Reform Program: “We have pursued tax reforms to fund our poverty reduction program. I implore Congress to immediately pass Package 2 of the Comprehensive Tax Reform Program, or the TRABAHO Bill, which shall gradually reduce the income---corporate income---tax, and rationalize as well as improve fiscal incentives.” On alternative energy sources: “We recognize the urgent need to ensure the sustainability and availability of resources and the development of alternative (sources of energy)”. We shall fast-track the development of renewable energy sources and reduce dependence on the traditional energy sources such as coal.” 18. On the broader governance perspective, which covers internal security and external geo-political relations, the President was overly candid about the realities we have to contend with. On internal security, the President stated: “Sustaining our gains entails a national security posture capable of defending the country from external and internal security threats.” We expect support for legislative initiatives aimed at strengthening defense-related systems such as the proposed National Defense Act, the Unified Military and Uniformed Personnel Separation, Retirement and Pension Bill, and the revival of the mandatory ROTC in Grades 11 and 12”. On external relations, with specific reference to the West Philippine Sea issue with China, he stated the following: “The West Philippine Sea is ours. The national honor and territorial integrity shall not (be compromised). There (are) no ifs and buts. It is ours. We have been acting along that legal truth and line. But we have to temper (this) with the times and the realities that we face today”. After making such a forthright assertion of our claims on what had been internationally adjudicated as “ours”, he appeals for realism and prudence. Such an appeal comes out of a fundamental idea of avoidance of conflict that can only devastate us. He said: “On the matter of the West Philippine Sea: the avoidance of conflict compels us to perform a delicate balancing act. A shooting war (brings) grief and multiplies misery. War leaves widows and orphans in its wake. I am not ready or inclined to accept the occurrence of more destruction, (to have) more widows and orphans (as a result of) war breaking out, even on a limited scale….Our national pride and territorial integrity are at stake! But we need to obtain “more and better results in a peaceful way, in the privacy of a conference room, and not by a squabble in public”. He articulated his call for a principled stand mixed with prudent realism in this manner: “There are those who say that we should stand up and stop those who fish in our economic zone. Of course, we will do (this) in due time”. (But) if I send the marines to drive away the Chinese fishermen, I guarantee you, not one of them will come home alive”. 19. The last and most important governance perspective is that which refers to the over-all socio-economic impact of everything that had been said and done. On this score, the President is direct with his two-fold message: so much has been done; and yet so much has yet to be accomplished. On the first, about what has been done: “Poverty incidence fell from 27.6 percent in the first half of 2015 to 21 percent in the first half of 2018.” Then, on the second point, which he feels very strongly about: “(However), the most important number is the six million Filipinos (whom) we (still) need to pull out from poverty. Kindly help me on this.” The Pathway to National Development 20. Using a governance framework, it is possible to pull together the major statements the President made in his SONA 2019 into a cohesive and meaningful story line. In fact, it outlines a clear pathway to our long-term development as a people, the building up of our Dream Philippines. And that story line is as follows: a) Corruption is the multi-headed hydra that has sucked away so much of the positive lifeblood for our people’s genuine progress. It has spawned the illegal drug program and so much other malaise that has held us down. Indeed, corruption is public enemy number one; moreover, it is systemic, and involves all of us, who are wrapped up with selfishness and lack of concern for the common good of our country. Anti-corruption has to be the first milestone of our pathway towards national development. b) Corruption is one (negative) side of the same coin, of which good governance is the positive side. It is therefore absolutely necessary that instead of waging only the anti-corruption war, we should be simultaneously and constructively engaged in a good governance program that leads to transformation and brings about game-changing strategically important outcomes. Good governance has to be the complementary initial milestone in our national development pathway. c) Good governance, however, is very demanding. It demands a change not only in mind set but also in the exercise of political will. It asks for deep, radical reforms. It asks for serious self-cleansing and therefore for genuine transformation that involves sweat, blood and tears. It asks for a service-orientation that involves speedy, efficient, effective, and client-friendly delivery of services through a fundamental overhaul and transformation of the delivery system. Transformation, then, has to be the next immediate milestone on that pathway. d) Transformation necessarily leaves in its wake this one essential outcome (among the other positive outcomes it delivers), and it is: productivity and competitiveness. Economic agents, in particular the micro, small and medium enterprises (MSMEs) need to be multiplied; their access to technology, finance, and systems of inter-connection and communication need to be provided and facilitated. Mutual support mechanisms need to be put in place such that clusters of such enterprises can positively tap into the opportunities that competitive markets provide. For such clusters to be fully and positively operative, a system of hubs and spokes that connect the peripheries with a set of central regional hubs will have to be promoted as an alternative to---and as a complement of---Metro Manila. Competitiveness then, especially at the reginal level, and through an economically meaningful clustering of immediately adjacent regions, has to be the next immediate milestone of our national development pathway. e) Competitiveness and ever-rising levels of productivity, in each of the regions of the country, facilitated and promoted by solidarity and greater collaboration between neighboring regions outside of Metro Manila would highlight this fundamental feature of development: it is essentially built from the ground up. Brick by brick, the structure of national development is built up: Individuals---selfless, competent, tech-savvy, and ever mindful of the common good---aim to become the ultimate governance assets of the enterprises they work in and of the nation as a whole. Working teams in various enterprises both in the private and public sectors---oriented to render the internal value chain of which they are an integral part efficient and effective---aim to become the ultimate performance delivery units of economically viable and competitive as well as socially responsible enterprises. Finally, enterprises in various areas and regions, in different industries and sectors---through their collaborative outreach towards their external stakeholders for the purpose of making their external value chain operationally frictionless and smooth---thereby aim to become the ultimate development agents of the economy and society. Under this light, development is the final milestone of the pathway, marked by anti-corruption, good governance, transformation, and (regional) competitiveness. 21. Beyond the usual concerns of who came to the SONA, who came with whom, who designed which outfit, how many ovations erupted during the President’s delivery of his address, there is a basic underlying message that can be woven together from the many statements the President included in his SONA 2019. Framing the President’s various statements against an over-all governance structure, the substantive message indicated in #20 above comes through clearly. Moreover, the true state of the nation is revealed: we have reduced poverty incidence reasonably and respectably; but the challenge we face is still considerable, indeed. Manila, July 29, 2019

Q2 Distinguished Corporate Governance Speaker Series (DCGSS) Philippine firms today are filled with a myriad of challenges. A new digital age and the prevalence of society-wide corruption threaten to stifle business growth and make some industries obsolete. However, rather than focusing on the hurdles, firms could also realign their thinking and see them as opportunities. On the 28th of June 2019, the speakers of ICD’s Distinguished Corporate Governance Speaker Series (DCGSS) presented to a large audience of board directors about two topics which are not only relevant but also staring everyone right in the face. Mr. Donald Lim, CEO of Dentsu Aegis Network Philippines, focused on the arrival of the new digital age while Prof. Robert Klitgaard of Claremont Graduate University addressed the problem of corruption and how the private sector is directly involved in solving the crisis. Mr. Lim left a strong impression on every attendee of the DCGSS. Passionate, excited, and well-informed, he introduced the concept of the digital age and what it means to everyone in corporate governance. It was made very clear that the new digital age is not coming but is already here and has been for some time. Whether companies are ready or not, the world is not the same as it was two decades ago. Business practices that have been developed and mastered by many are outdated. Mr. Lim’s lecture focused on the following main points: · Every company now needs to constantly innovate. · There is no stability, only ‘permanent white water.’ · Everyone is going digital. Smartphones, tablets, laptops, and the apps in them are now all possible ways of doing business. · New ways of doing businesses are not only just available but also are making old ones obsolete. Talking about the future was a huge wakeup call for everyone in the DCGSS. But, rather than being intimidated, there was an atmosphere of excitement and interest from everyone. After a session about the future, board directors were given another wakeup call – not about social media networks or robotics companies, but something closer to home: corruption. Prof. Robert Klitgaard stressed the importance of battling corruption in the Philippines. Citing examples from his experiences and studies in different countries from Sudan to Colombia, he states that how we approach the problem of corruption is just as important as directly battling it. A common perception is that attitude leads to behavior and that corruption is ingrained in culture. Prof. Klitgaard challenges this perception, prompting everyone in attendance to rethink on how to address the issue. He proposes the following solution: rather than focusing on changing attitude and culture, we should instead focus on changing behavior. It is difficult to reform culture and attitude as these factors have been ingrained in society for centuries. Instead, it would be a lot easier to change specific behavioral patterns as this would translate to a change in attitude. Simply put: enforce good ethics and a culture of good ethics would eventually follow. Finally, it is of prime importance that we start dealing with corruption in order to entice investors, both local and foreign, to the Philippines. Key Takeaway A Change in Behavior --------> Reform in Culture and Attitude Firms have faced all kinds of challenges in the past. It is whether these firms can overcome the hurdles they encounter that will determine if they will prosper. Even with the oncoming new age of digital information and the lingering remnants of corrupt practices in our culture, the idea of facing these issues is not necessarily new to many of the board members in attendance of DCGSS. In the end, boards retain their responsibility of addressing and recognizing the opportunities presented by these challenges for their respective companies.

2019 ACGS Golden Arrow Recognition Night On the 11th of June 2019, the Institute of Corporate Directors (ICD) held its 1st Golden Arrow Recognition Night to honor the top performing Philippine companies based on the ASEAN Corporate Governance Scorecard (ACGS) results in 2018. Starting this year 2019, the companies’ level of compliance with the ASEAN corporate governance principles is symbolized by golden arrows, with five golden arrows representing the highest level of corporate governance (CG) performance. The ACGS is an assessment tool used in six participating ASEAN countries – Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, in order to improve the CG standards and practices of publicly-listed companies (PLCs). It also promotes well-governed ASEAN PLCs as an investment asset class. Hon. Emilio B. Aquino, Chairman of the Securities and Exchange Commission (SEC) and Hon. George S. Ongkeko, Jr., Deputy Commissioner of the Insurance Commission (IC) graced the event. They respectively reminded companies that were being recognized that the ACGS recognition should be treated as the end-product of a company’s good governance practices, rather than a facade. Hon. Ongkeko added that while the insurance industry has a long way to go to catch up with the other industries, the improvements made in the past four years have been commendable. Hon. Aquino, on the other hand, highlighted that corporate governance should not be an interference in a company’s day-to-day activities, but rather as a compliment to their effort in taking care of the company entrusted to them. It was indeed, without a doubt that both gentlemen appreciated the significant improvements shown by the PLCs and the insurance industry as to how far they have come in terms of improving their ACGS results. In 2018, 48 out of 247 PLCs (constituting about 19%) scored 80 points and above in the ACGS compared to a mere 6 PLCs scoring 80 points and above in 2013. Out of the highest possible score of 130, a company was able to achieve a score of 114.8 points in 2018, while the average score was 62.3 points. Looking deeper into the details, while most of the PLCs improved in all four sections of the ACGS, it was noted that there was a decline in terms of the section for Equitable Treatment of Shareholders in 2018. The possible reasons included the need for companies to publish a policy on the review and approval of material related-party transactions (RPT), have an independent party to validate counting of the votes during the annual shareholders meeting, and disclose transactions in company shares by any directors and other key officers. For the insurance industry, out of the highest possible score of 128, a company was able to achieve a score of 105.2 points in 2018. The average score was 41.3 points. Again, looking deeper into the details, the industry seemed to be doing very well in terms of the section for Equitable Treatment of Shareholders, but special attention should be given to the section for Disclosure and Transparency. The assessment also highlighted the shortcoming of many companies to provide the Notice and Minutes of the recent meetings, and the need to disclose RPTs. In addition, most of the companies in the insurance industry also did not seem to explain their Board’s role in the oversight of key areas such as strategy, internal control, and risk management systems. Beyond these scores, the importance of corporate governance cannot be overemphasized. At its most basic form, Shleifer and Vishny (1997) refers corporate governance as “the ways suppliers of finance to corporations assure themselves of getting return on their investment,” while Megginson and Netter (2001) defines it as a nation’s “set of laws, institutions, practices and regulations that determine how limited liability companies will be run and in whose interest.” Simply put, a good corporate governance system supports the continual process of mobilizing scarce resources such as capital or talents to their most promising uses. Therefore, a country’s corporate governance system has a huge effect that would define the expectations and willingness for global investors or even talents to make investments in its local companies. It is from such importance that the ICD was henceforth established to be the leading organization dedicated to the professionalism of Philippine corporate directorship as well as to raise the level of the country’s corporate governance policy. Congratulations to the winners of the 1st Golden Arrow Recognition and we hope you will continue to serve as an inspiration for others to follow. Read More: See ASEAN Corporate Governance Scorecard Philippine Results 2018 References: • Shleifer and Vishny (1997), “A Survery of Corporate Governance,” Journal of Finance, Vol. 52, No. 2, PP 737-783. • Megginson and Netter (2001), “From state to market: a survey of empirical studies on privatization,” Journal of Economic Literature, Vol. 39, PP 321–89.

Regulatory updates BANGKO SENTRAL NG PILIPINAS · Circular No. 1078, Series of 2020 Subject: Guidelines on Correspondent Banking Relationships http://www.bsp.gov.ph/downloads/regulations/attachments/2020/c1078.pdf · Circular No.CL-2020-014 Subject: Amendments to Certain Provisions of the 2018 Implementing Rules and Regulations (IRR) of Republic act No. 9160, as Amended, Issued as Anti-Money Laundering Council (AMLC) Regulatory Issuance A, B and C No. 1, Series of 2020 http://www.bsp.gov.ph/downloads/regulations/attachments/2020/cl014.pdf · Memorandum No. M-2020-005 Subject: Supervisory Assessment Framework http://www.bsp.gov.ph/downloads/regulations/attachments/2020/m005.pdf INSURANCE COMMISSION · Circular No. 2020-01 Subject: Revised Guidelines on the Issuance of Certifications under R.A. No. 9184 and the Adoption and Certification System (IC e-ACS) for the Implementation Thereof https://www.insurance.gov.ph/wp-content/uploads/2020/01/CL2020_01.pdf · Circular No. 2020-03 Subject: Guideline for the Monitoring of the Performance of the Microinsurance Providers in Accordance with Circular Letter No. 2016-63 https://www.insurance.gov.ph/wp-content/uploads/2020/02/CL-No.-2020-03_Guidelines-for-the-Monitoring-of-the-Performance-of-the-Microinsurance-Providers-in-Accordance-with-Circular-Letter-No.-2016-63_MICROINSURANCE.pdf · Circular No. 2020-07 Subject: Revised Annual Statement Template https://www.insurance.gov.ph/wp-content/uploads/2020/03/CL2020_07.pdf · Circular No. 2020-08 Subject: Insurance Commission Anti-Money Laundering and Counter-Terrorism Financing Risk Rating System for Insurance Commission Regulated Entities https://www.insurance.gov.ph/wp-content/uploads/2020/03/CL2020_08.pdf SECURITIES AND EXCHANGE COMMISSION · Memorandum Circular No. 1, Series of 2020 Subject: Revised Implementing Rules and Regulations of Republic Act No. 9856, Otherwise Known as the Real Estate Investment Trust (REIT) Act of 2009 http://www.sec.gov.ph/wp-content/uploads/2020/01/2020MCNo01-1.pdf · Memorandum Circular No. 3, Series of 2020 Subject: Notice of Regular Meetings of the Stockholders/Members http://www.sec.gov.ph/wp-content/uploads/2020/02/2020MCNo03.pdf · Memorandum Circular No. 5, Series of 2020 Extension of Filing of the 2019 Annual Reports including the Applicable Quarterly Reports for year 2020 and 2019 Audited Financial Statements (AFS) http://www.sec.gov.ph/wp-content/uploads/2020/03/2020MCNo05.pdf · Memorandum Circular No. 6, Series of 2020 Guidelines on the Attendance and Participation of Directors, Trustees, Stockholders, Members, and other Persons of Corporations in Regular and Special Meetings through Teleconferencing, Video Conferencing and other Remote or Electronic Means of Communication http://www.sec.gov.ph/wp-content/uploads/2020/03/2020MCNo06.pdf

Lookbook: Glimpse of 2019 Annual Membership Meeting 19 June 2019 See full album ACGS Golden Arrow Recognition Night 11 June 2019 See full album Q1 Faculty Summit 30 January 2019 See full album Q2 Faculty Summit 31 July 2019 See full album ICD's Quarterly Distinguished Corporate Governance Speaker Series (DCGSS) Q1 DCGSS 21 February 2019 See full album Q2 DCGSS 28 June 2019 See full album Q3 DCGSS 8 August 2019 See full album Q4 DCGSS 19 November 2019 See full album Board Diversity Forum: Does it Work? 5 February 2019 See full album Afternoon Tea with Aspiring Women Directors 11 September 2019 See full album Nuances of Government Procurement 7 November 2019 See full album Joint Forum on the Revised Corporation Code 26 March 2019 See full album Crisis Response for Cyber Incidents - Risks, Governance and Engaging the Experts 5 February 2019 See full album 1st ICD Invitational Golf Tournament in Honor of Amb. Cesar Bautista 27 November 2019 See full album Corporate Governance Conference (CGCON) Sub-Events Founder's Night with Fintech Philippines 30 August 2019 See full album 2020 CGCON Media Launch 4 December 2019 See full album

(30 March 2020) The first months of 2020 have been very exhausting, to say the least. We experienced a volcanic eruption, and are still not out of the woods with the threat of COVID-19. While our vision for the future remains hazy, I remain optimistic that for the rest of the year, we will hear many stories anchored on the tagline “20-20 vision.” For me, this is more than just a catchy phrase, but a call to sharpen our focus on the persistent gaps and glaring problems in society. Coincidentally, March is also Women’s Month, which is why I think it is only appropriate to discuss issues that I have observed affect women the most. As business leaders, we have the responsibility to understand, come up and implement the best solutions to address these gaps to empower our women and the workplace of the future. Persistent gender gap Year after year, the Philippines ranks high (always in the top 10) in the World Economic Forum Global Gender Gap Report. The latest report puts us in 16th place, a big slip from last year’s 8th spot. I had to step back and reflect on it: Are we moving backwards or is it because we have become complacent? Truth be told, when speaking to executives about pursuing gender equality in business, more often than not, the response is a defense: “We have so many women executives! We are doing well in terms of gender equality.” Time and time again, we ask, “How much of that was by design and how much was a coincidence?” Perhaps some companies believe that this is not something to invest in, or that there is a, forgive me for the term, “sexier” advocacy to pursue. But this I tell you: Investing in gender-friendly policies and projects and ultimately pursuing gender equality in the workplace is not just a good thing to have. It’s not just the right thing to do, but it’s the smart thing to do for business in the long run. You will eventually realize that your short-term costs will be outweighed by the long-term benefits. Generational gap Next up: “Okay, boomer.” Ever heard of this? It is apparently a catch-all dismissal phrase directed toward older people by the younger generation, and it has become synonymous with an “intergenerational warfare.” If you observe social media closely, there is a recurring generational conflict between the Baby Boomers—that’s mostly us, and millennials and Generation Z. “Boomers” are often accused of lecturing to the younger ones about work ethic and about working harder and complaining less. On the other hand, millennials often accuse Boomers of being self-absorbed and out of touch. Anecdotally and statistically speaking, the younger generations are not as bad as we paint them to be. In fact, they are more socially aware and technologically savvy than we are. This is quite a bitter pill for us to swallow: we need to accept that society is changing, culture is changing, and the world itself is almost unrecognizable compared to when we were younger. Rather than create a new conflict, let’s leverage on this age diversity and other forms of diversity in the workplace. Instead of taking the easy route by creating homogeneous groups, say of the same age, gender, etc., let’s aim for diversity and inclusion so that we do not lose the opportunity to learn from the different experiences and backgrounds of others. Such differences stimulate productive discussions, which could result in new and creative solutions. I believe this is something we all aspire to achieve. Let’s choose to keep an open mind and to listen rather than judge each other because of preexisting beliefs and practices we have grown accustomed to. Confidence gap More often than not, when a woman is asked or tasked with something outside of her comfort zone, the automatic response is “Why me?”—a question full of self-doubt and insecurity. I often wonder why because existing local data show that girls actually do better in school. Despite higher academic marks, it seems that women are less confident in the work setting. In fact, according to the joint study conducted by the Philippine Business Coalition for Women Empowerment (PBCWE) and the Makati Business Club (MBC), some 95.1 percent of 103 female respondents expressed confidence in their skills, education and leadership potential, but they rated their suitability for leadership roles lower when asked to consider a “career upgrade” (88.4 percent) or immediate elevation to a top role (70.4 percent). Here in the Philippines, “self-promotion” seems to be a pervasive part of a person’s career path. It also seems that those who “promote themselves” often have better chances of being hired, being promoted, getting a raise, and thriving in their careers. Thus talented women who second-guess themselves are deprived of a successful career, while also depriving the company of the opportunity of benefiting from the full potential of their female employees. What can we do as business leaders? We can remedy this situation by adopting policies and practices at work that can encourage both women to transition to higher roles, while allowing both to balance family and work, providing mentors and role models, offering opportunities for women to network, and customizing career development plans of high-potential employees. A 2020 challenge I see this year’s Management Association of the Philippines theme as a challenge to our leadership to create a competitive workforce. Leadership—with not just a gender lens, but a diversity and inclusion lens, will definitely give you a clearer view of what needs to be done. This will eventually attract the best talent, and in turn, give your business the competitive edge. We can still do a lot for the rest of 2020, and there is no better time to start but now. This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines, or MAP. The author is chair of the Philippine Women’s Economic Network, cochair of the Philippine Business Coalition for Women Empowerment and member of the MAP diversity and inclusion committee. Feedback at map@map.org.ph. For previous articles, please visit map.org.ph. Read more: https://business.inquirer.net/293674/2020-vision-with-a-diversity-lens#ixzz6I7wwZF6o

FOR IMMEDIATE PRESS RELEASE Postponement of 2020 CGCON: How T.R.A.F.F.I.C. Creates Sustainable Businesses Due to the public health concerns brought by the Corona Virus Disease 2019 (COVID – 19) outbreak, we are deferring the 2020 CGCON: How T.R.A.F.F.I.C. Creates Sustainable Businesses to the latter part of the year, assuming that the situation has abated. We hope for your kind understanding. Rest assured that we will pursue the event given the excellent agenda and line up of speakers of CGCON, anchored on the unique values of T.R.A.F.F.I.C. (transparency, responsibility, accountability, fairness, foresight, innovation, culture) in the fourth industrial revolution. We will give updates on the status of the conference as soon as possible. We hope that you will continue your support for good governance. ### For inquiries or concerns, please contact: Jaszha Blanche Tricia B. Estrada Business Researcher Institute of Corporate Directors jestrada@icd.ph (+632) 8884 1494 loc. 109

Jensen and Meckling’s (1976) study on Agency theory is still used today in analyzing the relationships between shareholders, management, and debt holders. Agency theory highlights the relationship between principals and agents. Principals and agents are described as having their own separate interests, but still have to work together with the agent being given a task by their respective principals. The Principal must therefore invest in a structure that overlooks the work being done by the agent so that it is in line with the principals. Agency costs is the sum of monitoring costs, bond costs, and residual loss, which overall negatively impacts the efficiency and trust between stakeholders. Blockchain eliminates the problem of Agency theory. It greatly reduces agency costs by allocating the monitoring of agents to decentralized artificial intelligence. Principals are able to look at all the transactions being done by agents or the system itself, and can report irregularities or discrepancies. Overall, blockchain offers a technological solution to a long-lasting problem in corporate governance. It promotes transparency and trust between principal and agent creating a harmonious relationship between the two. Read full article: https://kaal.io/dynamic-regulation/blockchain-solutions-for-agency-problems-in-corporate-governance/

One of the issues that is brought up in the corporate world is a lack of diversity amongst both employees and higher-ups such as board of directors. However, according to Rebekah Bastian of Forbes, 2020 is looking like positive year for diversity in the corporate world. She argues that because we learn more complex systems, identities, needs and feedback in the workplace, the corporate world will need to adjust to the new mindsets by bringing in more diversity. She explains that there are five predictions. Those predictions being respectful politics, mental health, priority with culture, middle management and opt-in learning. Read for full article: https://www.forbes.com/sites/rebekahbastian/2020/01/03/five-predictions-for-corporate-diversity-work-in-2020/#28e226496ce7

FOR IMMEDIATE PRESS RELEASE (Note: 2020 CGCON has been postponed due to the public health concerns brought by the Corona Virus Disease 2019 (COVID – 19) outbreak. We are deferring the 2020 CGCON to the latter part of the year, assuming that the situation has abated. Click here to see the full press release of the postponement.) Creating Sustainable Businesses through T.R.A.F.F.I.C. MAKATI CITY, December 04, 2019 – The Institute of Corporate Directors (ICD), with Angkas as co-presenter, is holding its annual Corporate Governance Conference (CGCON) on the 26th of March 2020 with the theme – “How T.R.A.F.F.I.C. Creates Sustainable Businesses”. The conference introduces T.R.A.F.F.I.C., short for Transparency, Responsibility, Accountability, Fairness, Foresight, Innovation, Culture, as a business mindset for companies in achieving sustainability. The conference will feature notable thought leaders that will create a dialogue to break the unconscious bias between emerging technology companies & disruptors, and the practice of good corporate governance. One of the keynote speakers for the conference is Dr. David Hanson, a renowned American roboticist, Founder and Chief Executive Officer of Hong Kong-based company - Hanson Robotics, and creator of most popular humanoid Sophia. With the emerging technological innovations brought by the Fourth Industrial Revolution (FIRe), the conference aims to imbibe T.R.A.F.F.I.C. as a mindset for businesses in order to succeed in long-term value creation for the benefit of all stakeholders. The conference expects an audience consisting of board chairs and directors, CEOs, CFOs, compliance officers, senior executives and managers, policy makers and regulators, institutional investors, and academics. “The era of FIRe calls for agile governance. The corporation must develop the ability to respond to rapid technological changes. The objective is not just to survive but to achieve sustained prosperity through long-term value creation for the benefit of its shareholders as well as other stakeholders and society as a whole. Successful governance by a future-prof board of directors under FIRe must be guided by the principles of transparency, responsibility, accountability, fairness, foresight, innovation, and culture – i.e., T.R.A.F.F.I.C.”- Alfredo E. Pascual, President, Institute of Corporate Directors The CGCON 2020 was officially launched at Discovery Primea, Makati City on the 04th of December 2019. The Institute of Corporate Directors (ICD) is a non-stock, not-for-profit organization dedicated to the professionalization of Philippine corporate directorship by raising the level of corporate governance policy and practice to world-class standards. The institute was established in 1999 in the aftermath of the Asian financial crisis. Today, ICD is recognized as a national and regional resource for advocacy of good corporate governance and training of board directors. It is a member of the Global Network of Directors Institute (GNDI). It is accredited with the Securities and Exchange Commission, Bangko Sentral ng Pilipinas, Governance Commission for Government Owned and Controlled Corporations, Insurance Commission, Career Executive Service Board, and the Civil Service Commission. Moreover, it has established relations with key foreign institutions involved in corporate governance, such as, the Organisation for Economic Co-operation and Development (OECD), the Asian Development Bank, the International Finance Corporation and the ASEAN Capital Markets Forum. Angkas is the first on-demand motorcycle-hailing mobile app platform in the Philippines that matches professional, safe and accountable bikers with users. Given the worsening traffic in major urban areas in the country, Filipinos require more and better transport options, whether to transport themselves, or to have items delivered. Angkas is an immediate solution to the worsening congestion in the country, giving commuters a safe, viable, and affordable way to beat the traffic. Today, Angkas has over 3 million downloads and has onboarded 27,000 biker-partners to serve Metro Manila and Metro Cebu. Their consistent 99.997% safety record is due to their rigorous vetting and training process, only passing about 30% of all applicants. As a company that utilizes technology at the heart of their services, Angkas has changed the way Filipinos think about inclusive mobility. Angkas is a co-presenter in CGCON 2020, serving as an example for good governance in the Fourth Industrial Revolution. ### To know more about the conference, please contact: Anna Beatrice G. Bague Institute of Corporate Directors abague@icd.ph | 8884 1494 loc. 109 OTHER ARTICLE LINKs (Note: 2020 CGCON has been postponed due to the public health concerns brought by the Corona Virus Disease 2019 (COVID – 19) outbreak. We are deferring the 2020 CGCON to the latter part of the year, assuming that the situation has abated. Click here to see the full press release of the postponement.) Last 4 December 2019, the Institute of Corporate Directors (ICD) with its co-presenter Angkas, officially launched the 2020 CGCON: How T.R.A.F.F.I.C. Creates Sustainable Businesses. Here is a summary of the media releases related to the 2020 CGCON Press Launch: 1) Angkas to Discuss Good Governance Link: https://www.dotdailydose.net/2019/12/04/angkas-to-discuss-good-governance-for-startups/ 2) Angkas to Discuss Good Governance for Startups at Corporate Governance Conference 2020 Link: http://www.adobotech.net/angkas-at-corporate-governance-conference-2020/?fbclid=IwAR364l0cY9Z8g5PnG3FARz6ccCgC1G1G0R5UDeiZiu6Td65S0E-uaSsEc5M 3) App- Based Morotcycle Taci Angkas to discuss Good Governance for Startups Link: https://motoring.techpatrl.com/angkas-traffic-forum/ 4)Manila Bulletin – Angkas to discuss good governance for startups https://technology.mb.com.ph/2019/12/05/angkas-to-discuss-good-governance-for-startups/ 5) Angkas Is Part Of The 2020 Corporate Governance Conference Together With Dr. David Hanson And Sophia Link: http://itsmegracee.blogspot.com/2019/12/angkas-is-part-of-2020-corporate.html?m=1 6) Tech Innovator app-based motorcycle taxi Angkas to discuss Good Governance for Start Ups Link: http://enjoyingwonderfulworld.blogspot.com/2019/12/tech-innovator-app-based-motorcycle.html?m=1 7) Angkas Meets Sophia the Robot at Corporate Governance Conference 2020 Link: http://www.whereiseduy.com/angkas-meets-sophia-the-robot-at-cgcon/ 8) Tech Innovator Angkas discussed good Governance for Startups Links: http://www.elifestylemanila.com/tech-innovator-angkas-discussed-good-governance-for-startups/