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By: Aubrey Camille J. Perez Research and Content Coordinator Institute of Corporate Directors We are delighted to recognize the recent appointments of our ICD members to key directorships in various organizations from December 2024 to January 2025. Mr. Roberto T. Bascon, AICD  Appointed as an Independent Director at Tonik Digital Bank Mr. Roberto T. Bascon Jr. is a prominent figure in corporate governance and sustainability, with more than a decade of experience driving improved governance standards and organizational change in ASEAN. As head of Sustainability and Governance Services of Reyes Tacandong & Co., he works with organizations to design strategies aligning governance frameworks and sustainability initiatives with long-term goals. He is also a Certified Trainer of Global Reporting Initiative and a member of the Good Governance Advocates & Practitioners of the Philippines.  Mr. Frank D. Numann, FICD  Appointed as Client Director for Prime Energy at Pecten Mr. Frank D. Numann is a skilled expert in finance, internal audit, ethics, and compliance. He has a Bachelor of Business Administration degree from the Nijenrode Institute for Management and a Master of Business Administration degree from Delft University, both learning institutes are in the Netherlands. During his over 30 years of service, Mr. Numann has held a senior leadership position in various global companies, such as Chief Financial Officer for Shell Philippines, Chief Internal Audit Executive for Sakhalin Energy Inc. in Russia, and Vice President of Ethics and Compliance for Shell International. Ms. Maria Victoria C. Españo, FICD Appointed as Independent Director at Maybank Philippines, Inc. Former Punongbayan & Araullo Chairperson and CEO, Ms. Maria Victoria C. Españo, has a strong background in corporate governance and accounting. Passionate about advancing gender equality in business, she has earned numerous awards throughout her career, including the Accountancy Centenary Award of Excellence from the Philippine Professional Regulation Commission. Ms. Españo has also further honed her leadership skills through training at both the University of Oxford and Harvard University, Mr. Jose Ramon V. Villatuya, FICD Appointed as Independent Director at 3H Sto. Domingo Waterworks, Inc. The Managing Director and President of Rural Bank of Luisiana Inc., Mr. Jose Ramon V. Villatuya, offers more than 20 years of experience in strategic finance, audit, and risk management. Aside from this, he is currently serving as an Independent Director for Perla Insurance. With a solid background in business analytics and compliance, Mr. Villatuya has been instrumental in formulating financial models, risk assessments, and governance policy formation in different organizations. He is also a Certified Financial Risk Manager and a member of the Management Association of the Philippines. Mr. Domingo C. Go, FICD Appointed as Independent Director and Chairman of the Audit Committee of Mitsubishi Motors Finance Philippines, Inc. Mr. Domingo C. Go is presently the Lead Independent Director of Alliance Select Foods International, Inc. He has been instrumental in negotiating and overseeing joint ventures and equity investments due to his substantial experience in direct investments, project management, and investment banking. Mr. Go is also a member of various associations, including the Philippine Federation of Japan Alumni and FINEX. He has held various management roles, such as Chair of the Audit Committee of Toyota Manila Bay Corporation and Executive Committee of Northpine Land, Inc. Mr. Dominador T. Gregorio III, GICD Appointed as Independent Director of Cebuana Lhuillier Rural Bank Mr. Dominador T. Gregorio III, the Senior Managing Director at FTI Consulting Philippines Inc., has proven expertise in being a corporate finance advisor. Having a solid background in banking and financial advisory services, he specializes in M&A, transaction advisory, restructuring, and project finance. His expertise spans a variety of industries, including financial services, real estate, manufacturing, infrastructure, and renewable energy. Over the years, Mr. Gregorio has held key senior roles at distinguished companies such as Deloitte, Ernst & Young, SGV & Co., and Citicorp Real Estate Inc. We congratulate each of them on this significant achievement and wish them continued success in their new roles. Their dedication to upholding ICD's advocacy of good corporate governance will certainly result in a positive impact to both their organizations and the society.

By: Dr. Carlos P. Gatmaitan, FICD Fellow Institute of Corporate Directors Long before the terms “governance” and “sustainability” became buzzwords in the corporate world, strategic governance practices were implemented effectively by leaders such as Singapore’s founder and prime minister, Lee Kuan Yew. Pragmatic, forward-thinking leadership served as an exemplary model for countries aiming for sustainable economies. In transforming a small, resource-scarce island nation into a global economic powerhouse, Lee Kwan Yew’s leadership was anchored in three key priorities that continue to define Singapore’s success. In a recent interview, former United Kingdom Prime Minister Tony Blair expressed these priorities as: Singaporeans should speak English Get the best human capital worldwide No tolerance policy on corruption So simple yet so brilliant and successful as Singapore is the most sustainable and well-governed country in the world, being ranked 2nd in per capita GDP at around $85,000 (Philippines is 124th at $4,400). What is astounding is that Singapore exceeded the Philippine economy way back in the late 1970s, barely a decade after gaining its independence. Singapore’s growth anchored on Mr. Yew’s principles stood the test of time despite having less than 6 million Singaporeans today. Let’s dig deeper at these three priorities: 1. Singaporeans should speak English — COMMUNICATION Understanding the importance of effective communication in unifying a diverse population, Lee Kuan Yew mandated that English be the primary language in Singapore. This decision was not aimed at erasing cultural identities but rather at providing a common platform for communication. The Philippines is blessed (and lucky) that we are the second largest English-speaking country in the world. Reality is we are losing so much ground as the entire world has caught up. Our answer would be to elevate our country’s communication skills in the digital world through accessibility, advanced interfaces, internet speed and applications. Communication in the new world goes far beyond the dialects but rather the medium of the processes involved in relaying information. 2. Attracting and developing the best talent — HUMAN CAPITAL Lee Kuan Yew recognized that the world’s most valuable resource is its people. His government implemented policies to attract the brightest minds from around the world and invested heavily in education to develop local talent. The emphasis on meritocracy, with the terms Diversity, Equity and Inclusion being given the attention before the acronym became famous today. The Philippines population ranks 13th in the world at 107 million. Except for business process outsourcing, our top industries in manufacturing, real estate and tourism remain plagued with average performance when compared to our ASEAN neighbors. Through our human capital, our company needs to continuously develop Information technology, E-commerce, logistics, mining and other necessary industries such as food, agriculture, education and skills development. 3. Anti-corruption: Zero tolerance for corruption A hallmark of Lee Kuan Yew’s governance was his unwavering stance against corruption. Recognizing that corruption could undermine economic progress and public trust, he introduced strict anti-corruption policies, ensuring that government officials operated with integrity and accountability. The Corrupt Practices Investigation Bureau was given extensive powers to investigate and prosecute corruption cases, sending a clear message that unethical behavior would not be tolerated. If there was one thing the previous administration did right, it was the creation of the Philippine Anti-Corruption Commission — a great idea but ultimately the absolute worst of the worst in terms of implementation. BBM has since abolished the PACC but has no answer so far to the corruption problem that exists from top to bottom and left to right in our government — plain and simple. What is the answer to the Philippine corruption problem? We call on no less than BBM, the Senate and the House to give a strategic governance plan to exterminate corruption. If Lee Kwan Yew and Singapore did this over 50 years ago, can we give it a relentless try? Of course! We are the Philippines and love our country dearly. Disclaimer: On January 26, 2025, “Strategic governance and sustainability: A direct correlation with success beyond the corporate world” was published. It was authored by Dr. Carlos P. Gatmaitan, a fellow of the Institute of Corporate Directors. You can read the original article through this link:

By: Senen L. Matoto, FICD Fellow Institute of Corporate Directors Today I give way again, not to the usual second, or even third generation, heiresses of established family business conglomerates, or political dynasties, or outstanding women professionals from various fields such as lawyering, accounting, or C-Suite executives, but perhaps typical of other, far more numerous, successful, but less known, women in power who have gotten to where they are today by dint of sheer hard work, dogged determination and entrepreneurial savvy, such as Rosemarie “Ut” Rafael who shares with us her views of Women Empowerment. Women empowerment By Rosemarie “Ut” Rafael My personal journey in women empowerment started when I became the President of Women Business council Philippines 3 years ago, intersecting the realms of empowerment, community sustainability, economic strategies and digital literacy. We closely work with the Department of Trade and Industry and mirror their goals for the MSME sector. To set the stage, let us begin with some statistics. According to various global reports, when women are empowered, i.e., supported, encouraged, raising status and allowed to make their own decisions, they re-invest up to 90 percent of their income into their families and communities. Empowered women can contribute significantly to a community’s well-being and prosperity. When women have access to economic opportunities and digital literacy, the positive effects ripple throughout their communities, fostering sustainable growth. Women empowerment is not merely a catchphrase; it is a fundamental concept that gives women the tools and opportunities to make decisions and shape their destinies. Empowered women are more likely to participate in community development, advocate for social change, and nurture the future generation. Their influence is pivotal for community sustainability. This is why economic empowerment is a cornerstone of women’s empowerment. By enabling women to become financially self-reliant, we empower them to take control of their lives and contribute to the welfare of their communities. This empowerment can take many forms, from entrepreneurship to access to credit to vocational training. These strategies enable women to take control of their financial well-being. For example, Women led businesses are known to re-invest significant earnings back into their communities, creating a multiplier effect. Let me share a success story on collaborative efforts: Anna, a single mother from a rural community we have supported at Airspeed, attended vocational training online and started her own food business. Not only did she improve her family ’s financial situation but also employed other women from her community boosting the local economy. Support of different organizations, public and private, can build a sustainable project. Another example of which is the Pangasinan LGU (local government unit) which partnered with 10 constituents for a year by mentoring, coaching and supplying resources and tools. A roadmap that brought them to Manila Fame (where world class products are showcased) after 40 years of not being able to do it. Another example is the trade fair we organized where the weaver was discouraged from coming to Manila due to repairs needed on their house after an earthquake. We encouraged this weaver to come and provide support that enabled more than USD 4000 in sales in 3 days! There are countless success stories of women who have thrived economically and in turn positively impacted their communities through partnerships and collaboration. There really is a need for a growth mindset of building confidence and courage to move forward. Of course, challenges persist, including gender discrimination, limited access to resources and societal norms. To address such, the Women Business Council Philippines collaborates with different institutions mainly DTI to reach out to these sectors outside Metro Manila through digital transformation webinars, upskilling of people, access to finance and markets. My company Airspeed has also set up an SME program called PINASPEED, created to help in the logistics, marketplace and access to finance through BDO, SB Corporation and China Bank Savings. Our company’s motto “Making It Happen” says it all for what we are trying to do. Women empowerment is not merely a catchphrase; it is a fundamental concept that gives women the tools and opportunities to make decisions and shape their destinies. Let us not forget that when we empower women, we empower communities, nations and the world. It is a collective effort, and we must ensure that every woman has the chance to unleash her full potential and sustain her community. Building businesses so we can be sustainable and scalable, building communities so we can be engaging, and building lives which is the most important of all. Until next week… OBF! For comments, email bing_matoto@yahoo.com . Disclaimer: On February 4, 2025, “Women in power (2)” was published. It was authored by Senen L. Matoto, a fellow of the Institute of Corporate Directors. You can read the original article through this link:

By: Aubrey Camille J. Perez Research and Content Coordinator Institute of Corporate Directors On January 30, 2025, the Global AI Council Philippines hosted the State of the Nation in AI (SONAI) 2025 at the GSIS Theater. It brought together stakeholders from different industries to discuss the future of AI in the country. The event supported the mission of uniting existing AI organizations with the assistance of the Global AI Council with the help of private and public sector partners. Ms. Catherine Denise Jalandoni, GICD, Executive Director of the Institute of Corporate Directors (ICD) and the Global AI Council Philippines, was present at the event. Dr. Donald Lim, FICD, Mr. Michael Calma, FICD, Ms. Imelda Tiongson, FICD, Atty. Mark Gorriceta, MICD (moderator) and Mr. Henry Aguda, FICD (moderator), contributed to the panel discussions. Segment 1: Navigating the AI Frontier: A Government Agency Viewpoint The first segment featured AI developments in the Philippines from the viewpoints of government agencies. Department of Information and Communications Technology (DICT) Secretary Ivan John Uy highlighted President Marcos Jr.'s "Bagong Pilipinas" vision, focusing on AI's potential for economic growth, public service efficiency, and digital resilience, with the National Broadband Program ensuring universal connectivity across the Philippines. The second keynote speech was delivered by Department of Science and Technology (DOST) Secretary Renato Solidum Jr., who revealed DOST’s ambition for the Philippines' AI industry, along with a projection of a 12% GDP increase ($92 billion) by 2030. Dr. Donald Lim, FICD, and President of the Global AI Council Philippines, delivered the welcome remarks and was part of the panel for this session. Atty. Mark Gorriceta, MICD, and the Corporate Secretary of the Global AI Council Philippines, moderated the panel discussion. Segment 2: Frontier AI The Director of Digital Technology at the Asian Development Bank (ADB), Mr. Antonio Zaballos, presented a roadmap for digital transformation in the Asia-Pacific, with an emphasis on ADB's focus on creating an inclusive, resilient, and sustainable AI ecosystem. He introduced the "Beetle hub" concept and urged the Philippines to boost regional connectivity and become a data powerhouse to align with its digitalization goals. Mr. Zaballos highlighted ADB's new digital sector that is focused on three pillars: digital infrastructure, policy frameworks and skills training, and cybersecurity. He also stressed the importance of balancing AI supply and demand using targeted policies and a thriving startup ecosystem in the Philippines to promote growth. Segment 3: AI: Driving Change in Key Industries Mr. Unni Pillai, Head of Technology at Amazon Web Services Philippines, discussed the rapid evolution of AI and predicted that 2025 would mark the transition of generative AI into production due to the widespread adoption of ChatGPT. He outlined four key AI innovation areas (experiences, productivity, insights, and creativity) and introduced concepts such as Retrieval Augmented Generation (RAG) and model distillation for specialization. Mr. Pillai emphasized the importance of starting with small projects to focus on skill development and data governance. Also, he said that areas like customer service needed seamless customer experiences, omnichannel personalization, and AI applications. Mr. Michael Calma, FICD, Country Manager of ADVANCE.AI , is one of the panelists for this segment. Segment 4: Empowering Consumer in the AI Era The growing impact of AI in everyday life was talked about by Ms. Sara Venturina, Chief Data Officer of GCash, who showcased how GCash uses AI to drive financial inclusion through features like the G score system and personalized user experiences. She discussed the challenges of AI adoption in the Philippines, including the skills gap and potential job displacement, while emphasizing GCash's upskilling efforts and ethical AI practices, such as bias checks and governance frameworks. Ms. Venturina concluded by stressing the importance of public-private partnerships in advancing AI adoption and ensuring responsible innovation for consumer empowerment. The panel includes ICD fellows and trustees, with Mr. Henry Aguda, FICD, who moderated the discussion, and Ms. Imelda Tiongson, FICD, who joined as one of the panelists. Segment 5: Future Forward: Building a Fair and Inclusive Society With AI Mr. Brian Poe Llamanzares, Global AI Council Philippines’ Chairman, shared a vision for the nation's AI future that emphasizes the importance of fostering thoughtful conversations on AI's opportunities and challenges. He introduced a report on AI's impact, highlighting its role in enhancing accessibility and efficiency across sectors, and advocated for research and development (R&D) investment to support the Philippines' AI growth. Mr. Llamanzares urged the country to leverage AI for rapid innovation by drawing a parallel to the Philippines' success in the BPO industry and positioning the state as a key player in the global AI ecosystem. Overall, SONAI 2025 served as an important platform for sharing exciting developments in the state of AI in the country. The event emphasized the role of AI in making services more accessible across both the public and private sectors. It pointed out the need for collaboration, innovation, and responsible AI adoption to promote inclusive growth and technological progress. Additionally, it highlighted the importance of AI governance across various institutions to ensure that AI is used fairly, responsibly, and ethically in fostering developments for the advancement of the country.

By: Ramon B. Segismundo, FICD Fellow Institute of Corporate Directors Likas-kaya is the Filipino translation of “sustainability,” defined as a realization that our ability to prosper now and in the future requires increased attention to economic and social progress and to conserving Earth’s life support systems. (Pamela Matson, Pursuing Sustainability: A Guide to the Science and Practice, Princeton University Press, 2016) “Likas-Kaya para sa Kaunlaran,” on the other hand, is sustainable development, an outcome of sustained sustainability efforts that meet the needs, not only of the current generation, but also of future generations to come. SUSTAINABILITY LEADERSHIP CERTIFICATE COURSE When the De La Salle University (DLSU) School of LifeLong Learning (SOLL) and the Management Association of the Philippines (MAP), through its Committee on Shared Prosperity, organized the Sustainability Leadership Certificate Course held on Aug. 22-23 at the DLSU Andrew L. Tan Data Science Institute in Bonifacio Global City, little did we know that we would be igniting a spark that would drive a broad and deep awareness of sustainability — in all its different dimensions of planetary, human and self-in the Philippine business community. A total of 29 participants from 22 different companies, including Monde-Nissin, San Miguel Yamamura Packaging, Aboitiz-Lima Land, and other organizations, graced the event. The Certificate Course covered the following topics based on the sustainability track in my recent fellowship at Stanford University: 1. Sustainability Leadership:  A sustainability leader is defined by the University of Cambridge as “someone who inspires and supports actions towards a better world.” Yet, this writer believes that definitions of sustainability in the literature adopt a western lens. For a developing country, sustainability needs to be reframed to have a greater focus on the social, economic, and governance dimensions. 2. Pursuing Sustainability: Pursuing sustainability is no mean feat. Socio-environmental systems, in which opportunities for sustainable development reside, are complex. Such a realization will provide sustainability leaders the multiple levers that will catalyze “inclusive well-being” (its constituents being material needs, health and education, opportunity, community and security). As they say in Filipino, Walang iwanan (No one gets left behind). 3. Planetary Sustainability:  This is the conventional space of sustainability and is also referred to as environmental sustainability. It has six dimensions (Bill Barnett, Leading Sustainability by Design, Stanford University, Spring Term, 2023-2024): a.  Climate; b. Energy; c. Population; d. Sustenance — Food and Water, Waste, and Plastics; e. Integrated Earth System — Biodiversity and Extinction, and Oceans; and, f. Heritage — Preservation and conservation, indigenous peoples, and conflict and displacement. 4. Human Sustainability:  This is about rethinking our role as humans and leaders in this ever-changing world and developing a mindset that creates strong relationships to forge better societies, communities, organizations, and teams. Driving human sustainability involves understanding what drives members of your teams and communities. In addition to mere economics as a motivator, sustainability leaders align individual purpose with collective purpose, ensure mastery through continuing growth and development, and embed autonomy through empowerment and delegation. 5. Self-Sustainability: This is personal and inward sustainability that involves deep reflection on what really matters to each of us, what motivates and inspires us individually and what creates a calm mind, healthy body, and a purposeful life. It involves formulating and implementing strategies to redesign our personal lives in the areas of nutrition, exercise, emotional and mental health, and sleep. In the pursuit of longevity and wellness, this marks a shift from remedial medicine to preventive medicine. ‘LIKAS-KAYA’ LIVE CASES While the topics above served as sustainability leadership theories, the certificate course was equally rich in practice with four guest speakers contributing their perspectives. Pandayan Bookshop Managing Director Gerardo “Jun” V. Cabochan, Jr. shared how human and self-sustainability are embedded as part of the Pandayan DNA through its “Diwa-Kapwa” organizational model. Through Jun’s People First policy, three outcomes are achieved in this model: personal growth, productivity, and progress of every Panday. Dr. Benito Teehankee, chair of the MAP Shared Prosperity Committee, advocated the MAP- and DLSU-endorsed Covenant for Shared Prosperity that spells out a company’s pledge to do right by its various stakeholders — the employees, customers, suppliers, communities, the environment, and shareholders. This Covenant is in support of the aspiration of the Constitution for “a rising standard of living, and an improved quality of life for all Filipinos.” Integrating environmental and human sustainability, CleanTech Global Renewables, Inc. President Salvador “Aboy” Castro presented an overview of his company’s renewal energy business alongside CleanTech Foundation’s dedication to building and empowering communities through a host of various social programs. Focusing on planetary sustainability in supply chain, procurement, and logistics, Charlie Villasenor discussed developing sustainable supply chains and the advantages they bring.  He also covered how to build a compelling business case and deal with the corresponding challenges. ‘LIKAS-KAYA’ IN ACTION A major feature of the Certificate Course is the setting up of a Sustainability Leadership community to be dubbed Philippines “Likas-Kaya” Leaders. This was kickstarted during the two days with each participant identifying their top-of-the-mind sustainability challenge and, working with their course teams, developing sustainability solutions they could bring back to their respective workplaces and contexts. Post-course, I reflected on the following Sustainability Leadership pathways that every Philippine leader should seriously consider: 1.  All of us must view ourselves as “sustainability leaders” with a broad definition of sustainability — economic, social, environmental, governance, etc. It must be embedded in every leader’s role, most specially the CEO. 2.  A tri-sectoral leadership mindset and perspective to address “wicked” sustainability challenges needs to be adopted, considering the complex milieus with various institutions and actors at play that may help or hinder a lasting solution. 3. Incorporate frameworks, such as the United Nation’s Sustainability Development Goals (SDGs), the Covenant for Shared Prosperity, and the “Diwa-Kapwa” advocacy, that encourage and inspire organizations to be People First and Spirit-Led in our sustainability actions and efforts. 4. Large-scale and radical sustainability initiatives are marathons, not sprints. Therefore, it is critical that we promote inclusivity by involving all generations and having a multi-disciplinary approach in our approaches and mental models. 5.  As with sustainability initiatives and all change efforts, we must be transformational. We may have to be aware and steer clear of the Goldilocks principle — choosing the middle ground always for fear of “rocking the boat” — and always do our best to push strong and hard for positive change. At the same time, we all know that transformation is hard and that is why sometimes, we may have to start with baby steps. 6.  It starts in our own backyards — our organizations, our families and homes — these are fertile areas to practice sustainability, whether it be human, self, economic, environmental, social, etc. Let the “Likas-Kaya” community flourish! Dr. Ramon “Mon” B. Segismundo is a member of the MAP Shared Prosperity Committee. He is a 2023-2024 fellow of Stanford University Distinguished Careers Institute. He holds a Doctorate in Business Administration from Singapore Management University. He is the CEO of Singapore-based OneHRX. map@map.org.ph rbsegismundo@onehrx.com Disclaimer: On October 22, 2024, “Igniting the ‘Likas-Kaya’ spark” was published. It was authored by Ramon B. Segismundo, a fellow of the Institute of Corporate Directors. You can read the original article through this link:

By: Senen L. Matoto, FICD Fellow Institute of Corporate Directors Ever since Eve asked Adam to bite the apple, humanity’s face changed forever. No question, the advent of women in power is here to stay and in the Philippines, not only have women made historical inroads in government, our Filipinas are also very much palpable in our business community. A prime example is multi-awarded entrepreneur Rosemarie “Ut” Rafael, a bubbly, energetic, dynamo who has dabbled successfully in so many businesses and advocacies, even in fields you would not normally expect from the fairer sex. She is presently the chairperson and founding president of Airspeed, an end-to-end logistics solutions and express courier company offering multimodal solutions that combine air, sea freight and land transportation that has grown over the past 35 years to be one of the largest in the industry. Airspeed has offices and facilities in Luzon, Visayas and Mindanao from the NCR, Pampanga, Carmona, Batangas, Mamburao to Naga, Palawan to Cebu, Bacolod and to Davao, Cagayan de Oro and General Santos. A testimonial to Ut’s secret formula for entrepreneurial success, can be discerned from these comments of her best friend, another entrepreneurial power woman, Ida Manalo Joseph of the Ralph’s Wine and Spirits Group. “Ut is like the bamboo that spends years developing its roots before growing rapidly. Her success in leadership required a significant investment of time and effort… consistently developing her skills, building relationships and refining strategies to achieve long term success… adaptable and flexible … focused on nurturing her team and creating an environment that supports growth and development.” The Women Business Council Philippines led by Council Chairperson Ut, in cooperation with the Philippine Embassy, recently sent for the first time ever, a trade mission to Phnom Penh Cambodia to explore opportunities and exchanges of interest in various industries. I would like to share Ut’s account, in her own words, of the historic visit of an all women delegation. The Historic Trade Mission to Cambodia By Rosemarie “Ut” Rafael The trade mission started as an idea between the Philippine Embassy and Women Business Council Philippines which has culminated successfully with opportunities and exchanges of interest in several key areas such as aviation, rice industry, automotive, tourism, healthcare, retail and logistics. The Council was established in 1997 through the endorsement of then President Fidel Ramos and then Trade Secretary Ernesto Ordoñez. It was formed to provide a platform to hear about women’s issues in business and to discuss possible policies that could be endorsed to government bodies to help women in general through business focused solutions. As an advocacy group composed of the country’s top women business leaders and entrepreneurs, WBCO is an active force in seeking to promote women-led and women-owned enterprises by assisting in giving access to funds, access to markets and digital training. Recently, a courtesy visit to Samdech Border thipadei Hun Manet, Prime Minister of the Kingdom of Cambodia sealed the Council’s interest to work with Cambodia in many ways including the collaboration with Cambodian women entrepreneurs, particularly areas of vocational upskilling, sharing of best practices and capacity building. The Prime Minister emphasized that business forums would help bridge businesspersons or potential investors from both countries which can create more businesses and more jobs. The Prime Minister also highlighted that in Cambodia, Women‘s roles in the business sector have made remarkable progress and the country’s socio economic development can only advance with the participation of multiple sectors to ensure and foster the drive of national economic growth. The Worldbridge group and Chip Mong group also hosted the Philippine Women Business council to explore investment opportunities. These meetings served as a valuable starting point to explore synergies and leverage collective strengths to drive business growth and empower women entrepreneurs in both markets. During the business forum, legal experts emphasized the importance of understanding Cambodia’s legal framework for successful operations. Cambodia generally has an open and pro business environment. A testimonial to Ut’s secret formula for entrepreneurial success, can be discerned from these comments of her best friend, another entrepreneurial power woman, Ida Manalo Joseph. A courtesy call was also made to the President of National Assembly H. E. Khuon Sudary and the Minister of Commerce H.E. Cham Nimble, Minister of Women’s affairs H.E. Kantha Phavi where the roles of both Cambodia and Philippines women entrepreneurs were acknowledged in growing the business in all sectors represented. This trade mission was a first of its kind in Cambodia organized by the Philippine Embassy of the Kingdom of Cambodia led by Ambassador Flerida Ann Camille Mayo and the Women Business Council Philippines delegation headed by Chairperson Ut Rafael. Until next week… OBF! For comments, email bing_matoto@yahoo.com . Disclaimer: On January 28, 2025, “Women in power” was published. It was authored by Senen L. Matoto, a fellow of the Institute of Corporate Directors. You can read the original article through this link:

By: Aubrey Camille J. Perez Research and Content Coordinator Institute of Corporate Directors From left to right: Carlos Del Rosario, Board Services Assistant Manager, Institute of Corporate Directors Thea Angelie Angara, Corporate Governance Advocacy Team Lead, Institute of Corporate Directors Kenneth Vicarl Lagera, Research and Development Assistant Manager, Institute of Corporate Directors Catherine Denise Jalandoni, Executive Director, Institute of Corporate Directors Atty. Rogelio V. Quevedo, Commissioner, Securities and Exchange Commission Atty. Rachel Gumtang-Remalante, Director of the Corporate Governance and Finance Department, Securities and Exchange Commission Atty. Joseph Anthony Siapno Perez, Chief of Staff, Office of the Commissioners Atty. Morgan Christian M. Acol, Deputy Chief of Staff, Office of Commissioner Quevedo The Institute of Corporate Directors (ICD) paid a courtesy visit to the Securities and Exchange Commission (SEC) on January 22, 2025 at the SEC Headquarters in Makati. The visit highlighted the importance of director training in advancing corporate governance in the Philippines.  The ICD delegation was led by Executive Director Catherine Jalandoni. Joining her were Board Consultancy Assistant Manager, Mr. Carlos Del Rosario; Corporate Governance Advocacy Team Lead, Ms. Thea Angara; and Research and Development Assistant Manager, Mr. Kenneth Vicarl Lagera. The SEC Corporate Governance and Finance Department (CGFD) was led by its supervising commissioner, Commissioner Atty. Rogelio Quevedo; CGFD Director, Atty. Rachel Gumtang-Remalante; Comm. Quevedo’s Chief of Staff, Atty. Joseph Perez; and Deputy Chief of Staff Atty. Morgan Christan Acol. Both the ICD and SEC engage in educational efforts aimed at promoting good governance practices. They are committed to equipping leaders, including directors and executives, as well as organizations, with the knowledge and resources necessary to enhance leadership, ensure regulatory compliance, and strengthen business relationships within the sector. During the meeting, discussions on potential collaborations between the ICD and SEC were brought up. The focus was on fostering a continued partnership between the two parties to advance good corporate governance. These discussions will provide a chance to explore new ideas, share updates on regulatory changes, and ensure shared objectives to strengthen the partnership between ICD and SEC CGFD, with the goal of championing effective corporate governance practices.

By: Ernesto O. Cordero, PhD, MICD Member Institute of Corporate Directors A FREQUENTLY discussed issue in corporate governance that remains unaddressed is board appointments. Even though the election of the board heads and members is responsible for driving a firm to success or failure, the mechanics of their election and their selection processes are often devoid of any transparency, diversity and accountability. These appointments are placed in this context by cronyism, power politics and tokenism, leading to a low exploration of alternative and diverse ideas. In addressing the issues of transparency, diversity and accountability in elections, these reforms are critical for the firm's success and restoration of the public's faith in corporations. Cronyism and board entrenchment: an obstacle The appointment of boards of directors is plagued by cronyism. The members of boards of directors continue to be selected on a patronage basis and for political grounds instead of being competent or well-qualified. It also jeopardizes the independence of boards by undermining their ability to supervise and make decisions from a neutral standpoint. The range of consequences due to cronyism is extensive, as it leads to a company being inefficiently managed and, at the same time, protects the firms from being able to create new value for their stakeholders (Mallin, 2018). Adding to the problem is the issue of "board entrenchment," wherein long-serving board members consolidate power over time, creating an insular and self-serving governance culture. These entrenched directors, often deeply embedded in the company's corporate culture, may prioritize executive interests over broader stakeholder concerns, from employees and customers to the communities affected by the company's operations. As Adams and Ferreira (2007) highlight, this concentration of power creates a governance dilemma where the primary purpose of corporate oversight — ensuring accountability and transparency is significantly compromised. Periodic evaluations and term limits for board members are critical to addressing board entrenchment. Regularly refreshing board composition can bring new perspectives and ideas, reducing the risks of stagnation and groupthink. Yet, such measures remain uncommon in many companies, where resistance to change is deeply entrenched. Diversity: A missed opportunity Diversity in corporate boards is another pressing issue that remains under-addressed. Despite growing awareness of the benefits of diverse perspectives, many boards still lack meaningful representation of women, racial minorities and professionals from varied backgrounds. This lack of diversity perpetuates homogeneity in decision-making, which can lead to groupthink and blind spots in strategic planning. As Terjesen, Sealy and Singh (2009) emphasize, diverse boards are more likely to generate innovative solutions, enhance decision-making and improve overall governance. The push for diversity is not merely a matter of fairness but a business imperative. Studies have consistently shown that companies with diverse boards outperform their peers, particularly in risk management, financial performance and stakeholder engagement. A more inclusive boardroom fosters a richer exchange of ideas, leading to more balanced and well-rounded decisions. However, without deliberate efforts to recruit and retain diverse talent, these benefits remain out of reach for many organizations. The problem with 'celebrity directors' Another controversial aspect of corporate board appointments is the rise of "celebrity directors." These individuals, chosen for their fame or public image rather than their qualifications, often lack the knowledge and expertise to navigate complex corporate challenges. While such appointments may temporarily boost a company's profile, they can undermine board effectiveness and credibility in the long run. Corporate boards should prioritize competence and experience over visibility, ensuring that every member contributes to informed and responsible decision-making. The path forward: Targeted reforms A series of targeted reforms is urgently needed to address the issues plaguing corporate board appointments. First and foremost, transparency in the nomination process must be prioritized. Companies should publicly disclose the criteria and procedures used to select board members, providing stakeholders with greater confidence in the integrity of the process. Organizations can reduce cronyism and enhance trust among investors and the broader public by demystifying board appointments. Diversity quotas or targets represent another crucial step toward reform. While controversial, these measures have proven effective in improving representation in countries where they have been implemented. For instance, Norway's mandate for 40 percent female representation on boards has significantly increased gender diversity and inspired similar initiatives worldwide. Quotas may not be a permanent solution, but they are necessary to address entrenched biases and systemic barriers. Independence is equally critical in improving board effectiveness. Mandating term limits and periodic evaluations for board members can help prevent entrenchment and encourage fresh perspectives. These measures ensure that boards remain dynamic and responsive to evolving business challenges, fostering a culture of accountability and continuous improvement. Cultivating a governance culture While structural reforms are essential, they must be accompanied by a cultural shift in how corporate boards view their roles and responsibilities. Board members must embrace fiduciary duties to shareholders and all stakeholders, including employees, customers and society. This broader perspective aligns with the growing emphasis on environmental, social and governance (ESG) principles, reshaping the corporate landscape. Training and development programs for board members can play a vital role in this cultural shift. Companies can build competent and forward-thinking boards by equipping directors with the knowledge and skills to navigate complex governance challenges. Programs focusing on ESG, digital transformation, and stakeholder engagement are particularly valuable in preparing boards for the future. A call to action The issues surrounding corporate board appointments are too significant to ignore. Cronyism, lack of diversity and entrenched power dynamics undermine the foundations of effective corporate governance, putting companies and their stakeholders at risk. Addressing these challenges requires bold and decisive action, from implementing structural reforms to fostering a culture of accountability and inclusion. As businesses face increasing scrutiny from regulators, investors, and the public, the time for change is now. By prioritizing transparency, diversity, and independence, corporate boards can become more effective stewards of their organizations, driving innovation, ethical decision-making, and sustainable growth. The elephant in the boardroom can no longer be ignored; it is time to confront it head-on and create a governance framework that genuinely serves the interests of all stakeholders. Ernesto O. Cordero, PhD in business administration, Hon. D. Litt. post-doctorate research scholar, Saint Paul University-Ottawa/ University of Ottawa, Ontario, Canada. Disclaimer: On January 16, 2025, “The governance elephant: Cronyism, diversity and accountability at stake” was published. It was authored by Dr. Ernesto O. Cordero, a member of the Institute of Corporate Directors. You can read the original article through this link:

By: Aubrey Camille J. Perez Research and Content Coordinator Institute of Corporate Directors The Philippine government has recently signed into law important reforms aimed at modernizing the tax system, improving property valuation, and creating a more attractive environment for businesses and investors. RA 12001, RA 11976, RA 12023, and RA 12066, all passed in 2024, represent significant changes that will impact local government units (LGUs), businesses, and taxpayers. RA 12001 (Real Property Valuation and Assessment Reform Act) Enacted on June 13, 2024, RA 12001 standardizes real property valuation in the Philippines. The law mandates that property valuations be based on market value to promote fairness and uniformity across LGUs. One of the main goals is to increase local government revenues, improve transparency in real estate transactions, and foster technology in property tax systems. The Bureau of Local Government Finance (BLGF), under the Department of Finance (DOF), plays a central role in implementing RA 12001. It develops and maintains the Philippine Valuation Standards (PVS), guiding LGUs in preparing their Schedule of Market Values (SMVs). LGUs must conduct public consultations before submitting their SMVs for approval, which take effect after certification by the Secretary of Finance and publication. A notable provision of the law is a two-year real property tax amnesty for delinquent property owners, allowing them to settle unpaid taxes without penalties. LGUs will also receive subsidies to fund the updating of SMVs and ensure tax compliance across regions. Before RA 12001, the Local Government Code of 1991 (RA 7160) granted LGUs autonomy to set their own property valuations, leading to inconsistent assessments across regions. This lack of uniformity resulted in unequal tax burdens for property owners, depending on the location of their properties. RA 12001 standardizes the process, ensuring uniformity and establishing a single valuation standard for all LGU assessors. RA 11976 (Ease of Paying Taxes Act) RA 11976, signed into law on January 5, 2024, simplifies tax compliance and modernizes tax administration. It directs the Bureau of Internal Revenue (BIR) to implement a digitalization roadmap that reduces the need for face-to-face transactions, improving overall efficiency. The law introduces special concessions for micro and small businesses, such as a simplified two-page Income Tax Return, reduced penalties for late filing, and a 50% reduction in compromise penalties. RA 11976 also enhances digital systems for filing returns and payments, encouraging online transactions. VAT-registered individuals must issue VAT invoices for all sales, barters, exchanges, or leases of goods and services. Additionally, all individuals subject to internal revenue tax must issue registered sale or commercial invoices for transactions of ₱500 or more. VAT refund claims are streamlined into low, medium, and high-risk categories, and the BIR must process refund claims within 180 days. Before RA 11976, the National Internal Revenue Code of 1997 (RA 8424) aimed to promote economic growth but left the tax system complex, particularly for small businesses. Taxpayers were required to fill out numerous forms and file returns manually at Revenue District Offices (RDOs), leading to inefficiencies. This process was time-consuming, often resulting in delays and frustration. RA 11976 streamlines this by enhancing digital systems, allowing taxpayers to file returns and make payments electronically, significantly reducing the need for in-person visits. RA 12023 (Value-Added Tax on Digital Services Act) Enacted on October 2, 2024, RA 12023 expands the scope of VAT to cover digital services provided by both resident and nonresident digital service providers in the Philippines. Digital services like online platforms, cloud services, and digital goods, which were previously exempt from VAT, are now subject to a 12% VAT. Under this law, digital service providers, whether or not they have a physical presence in the Philippines, are required to assess, collect, and remit VAT on services consumed in the country. Nonresident providers must register for VAT and remit the tax directly to the BIR. Certain digital services are exempt from VAT, including educational services provided by accredited institutions and services related to the financial sector. Additionally, 5% of the incremental VAT revenues generated from digital services will go to developing the creative industries for five years. Before RA 12023, the Philippine tax system did not cover digital services, particularly those provided by foreign companies. Local digital service providers were subject to VAT, but foreign companies without a physical presence in the country were largely exempt. This created a significant tax gap, as local companies were taxed, while foreign companies were not. RA 12023 addresses this gap by taxing digital services provided by both local and foreign providers, leveling the playing field. RA 12066 (CREATE MORE Act) RA 12066, signed into law on November 11, 2024, reforms the Philippines' tax incentives system, making it more competitive and transparent. The law allows registered business enterprises (RBEs) to choose between two incentives: the 5% Special Corporate Income Tax (SCIT) or the Enhanced Deductions Regime (EDR). Tax incentives are extended from a maximum of 10 years to up to 17 or 27 years, with additional incentives for labor-intensive projects. Registered export enterprises (REEs) and high-value domestic market enterprises (DMEs) with significant investments can enjoy additional benefits. REEs can choose from three incentive options: an Income Tax Holiday (ITH) followed by SCIT or EDR,  SCIT that replaces all national and local taxes, or EDR. RA 12066 also reduces the corporate income tax (CIT) rate from 25% to 20%, benefiting RBEs, and increases deductions for the manufacturing sector. It introduces a 20-working-day decision timeframe for tax incentive applications to streamline the process and reduce bureaucratic delays. RBEs can also implement flexible work arrangements without losing tax incentives. Before the CREATE Act, the tax incentives system under the National Internal Revenue Code of 1997 (RA 8424) was complex and less adaptable. Tax incentives had shorter benefit periods and higher tax rates. RA 12066 addresses these issues by offering longer, more flexible incentives, helping businesses plan for the long term and promoting investment in the country.

By: Senen L. Matoto, FICD Fellow Institute of Corporate Directors With each start of a new year, it is always a good idea to set goals for personal development to aim for, more so for business executives. Undoubtedly, artificial intelligence (AI) has moved front and center in any conversation among C-suite executives on what will most impact their organizations in the future. But my guess is that beyond the generalities of what AI is capable of, there is only a small percentage of C-suite executives who are intimate with the specifics of AI mainly because there is a dearth of convenient and simplified ways to study AI. Well, despair no more. A good friend and a fellow member in the Rotary Club of Makati, Roger Collantes, founder and CEO of Asian Institute of Digital Transformation, could very well provide the solution. Roger is considered a visionary leader with over 30 years’ experience in educational innovation, organizational transformation, and digital integration servicing numerous organizations across Asia. He will spearhead RCM’s AI Academy initiative in Rotary year 2025-2026 under President-elect Eddie Galvez. The write-up below is a sampling of how Roger can provide a simplified, easy to understand treatise on AI. Ride the AI Wave in 2025! (By Roger Collantes) Are you ready for the AI revolution? Technology is shifting dramatically. AI isn’t just a trend; it’s a cornerstone of our business strategies. For senior executives, understanding AI is crucial. At the Asian Institute of Digital Transformation, we’ve championed inclusive AI education since the Covid-19 pandemic. Let’s explore the three types of AI and how quantum computing will shape our future. The Challenge Navigating the complex world of AI can feel overwhelming. Many leaders struggle to keep up with advancements and to understand their implications. The Solution Here’s a clear path forward: demystify AI by understanding its three main types: 1. Predictive AI: The Weather Forecaster Think of a weather forecast guiding your picnic plans. Predictive AI analyzes historical data to forecast future events. Netflix uses it to recommend shows based on your viewing habits, helping you make informed choices. Turn to page 10 Harnessing predictive AI allows you to anticipate customer needs and stay ahead of the competition. Harnessing predictive AI allows you to anticipate customer needs and stay ahead of the competition. 2. Generative AI: The Creative Partner Imagine a talented artist creating masterpieces. Generative AI produces new content from existing data, like ChatGPT crafting articles and marketing copy. This technology can streamline processes, enhance creativity, and unlock new growth avenues. 3. Agentic AI: The Autonomous Assistant Picture a personal assistant who anticipates your needs. Agentic AI makes decisions and manages tasks autonomously, freeing you to focus on strategic initiatives. This can revolutionize operations, enhancing productivity and driving results. Be Technologically Human Remember, technology should enhance our humanity, not replace it. Aim to be technologically human — leveraging AI while maintaining core values and connections. Driven by Passion, Not Fear It’s natural to fear AI’s impact on jobs and industries. Instead, be driven by passion. AI is a tool for empowerment, augmenting your capabilities and those of your team. Disrupt Yourself Before You’re Disrupted Proactively seek innovation opportunities. Embrace lifelong learning and encourage your teams to explore new technologies. This positions your organization as a leader. The Quantum Leap Ahead Recent advancements in quantum computing, like Google’s Willow and NVIDIA’s H100, are set to accelerate AI applications. Imagine switching from a bicycle to a high-speed train; quantum chips process complex data at dizzying speeds. This technology is a call to action for transformation now. Your Journey Begins Now As leaders, you have the power to guide your organizations into the future of AI. Embrace these technologies and foster a culture of innovation. By understanding AI’s impact, you can navigate change confidently. Let’s create a future where technology and humanity coexist harmoniously. Together, we can shape a world where passion drives progress. It’s never too late to upgrade yourself — stop procrastinating and act now! Until next week… OBF! For comments, email bing_matoto@yahoo.com . Disclaimer: On January 7, 2025, “AI resolutions for 2025” was published. It was authored by Senen L. Matoto, a fellow of the Institute of Corporate Directors. You can read the original article through this link

By: Ma. Aurora D. Geotina-Garcia, FICD Fellow Institute of Corporate Directors How to manage finances and where to access capital, which are critical for sustainability, are questions often asked by business owners and leaders. In an earlier article featured in a MAP column, entitled “The Journey of MSMEs: Are we there yet?,” I cited limited financing and accessibility to affordable and reasonable sources of funds as one of the challenges faced by micro, small, and medium enterprises (MSMEs). This was the topic I spoke about on Oct. 29 at the Management Association of the Philippines (MAP) – Philippine Trade Training Center (PTTC) MSME Business Clinic with the theme, “Stronger MSMEs for a Sustainable Future Building Collaborative Ecosystems,” organized by the Department of Trade and Industry-PTTC and the MAP. FINANCIAL MANAGEMENT FOR MSMES Financial management is basically about controlling the flow of money in and out of an organization. Some key components of financial management that MSMEs as well as larger businesses should focus on are: • Budgeting.  This includes allocating resources efficiently and monitoring financial performance against set targets. Given that funding sources are limited, it is important that you use these with good judgment and common sense. • Cash flow management.  Understanding and tracking cash inflows and outflows is essential to avoid a liquidity crisis; thus, you need to maintain a reasonable amount of “working capital” to meet the day-to-day operating requirements of your business. • Record keeping.  Maintaining accurate and systematic financial records, which can be facilitated by digital tools, is fundamental for decision-making and compliance with tax regulations. • Financial analysis.  Regularly interpreting, analyzing, summarizing, and reporting data in financial statements can help you identify trends, measure profitability, and assess the financial health of the business. SOURCES OF CAPITAL FOR MSMES Fund requirements of MSMEs, whether for loans and capital/equity, can be provided by various sources: • Personal savings.  The easiest and most accessible source, especially when starting a business; using your own money also makes leaving a business easier if things do not work out. • Friends and relatives.  A common source for aspiring entrepreneurs of startup businesses as they are frequently more ready to invest than formal lenders. While these can work well, often these arrangements are informal and based purely on trust and verbal assurances. • Partnership.  Where two or more individuals, yourself and friends and/or relatives, share ownership, with each partner contributing money, property, labor, or skill and in return, each partner shares in the profits and losses of the business. The documentation of the terms of the partnership in a legal document is recommended. • Venture capital.  Venture capital funds, which generally come from investors, investment banks, and financial institutions, are aimed at startups and early-stage companies with high growth potential and a proven track record. These sources provide substantial funding in exchange for equity and often take an active role in guiding and scaling the business. • Private equity.  Private equity, typically sourced from large institutional investors, pension funds, sovereign funds, endowment funds, and high net worth individuals, are invested in more mature private companies, for expansion, restructuring and transformation. •  Government grants and subsidies.  Government financial institutions, such as the Small Business Corp. (SB Corp.) and the Development Bank of the Philippines (DBP) offer financial assistance to promote entrepreneurship and business growth, to support SMEs and startups usually through debt financing and, in some instances, equity. Other government agencies offer grants and subsidies to promote specific industries, for innovation, and development. PRACTICAL TIPS FOR SUSTAINABILITY Regardless of the stage of development of the business, there are basic financial management practices which are critical for sustainability: •  Create a budget  to plan and control your finances as this helps you track income and expenses, ensuring that the business operates within its means. Further, regular review of the budget can help identify where costs can be reduced and investments made to support growth. •  Manage your cash flows.  With the budget as your guide, you should track incoming revenues and outgoing expenses. It is good business practice to maintain a certain amount of cash or working capital at all times to cover for the lag in the timing of collections and disbursements. You may also maintain an emergency fund in the case of unforeseen financial challenges, such as an economic downturn. •  Separate personal and business funds.  Open separate bank accounts and credit cards for business operations. Segregation simplifies accounting and helps track business performance separately. Don’t use business funds to support your personal and non-business activities. You may consider giving yourself a fair salary as an officer/manager of the business to support your personal expenses. •  Maintain a good business credit score , which means paying your bills on time, managing debt responsibly, and avoiding over-extending credit. Having a track record of being a responsible borrower will be an advantage when seeking external sources of funds. •  Invest in growth.  Set aside funds for growth opportunities to invest in technology, expansion of product and service lines, and entering into new markets. •  Keep your accounting books and records up to date  to help track the income and expenses of the business, minimize errors, and support decision-making. •  Review, monitor and analyze your financial performance  so you can get insights on how to make better business decisions, detect any anomalies, and adapt your business plans to the ever-changing environment. Sound financial management, supported by the right funding sources, is key to ensuring the sustainability and growth of MSMEs. While challenges persist, government and non-government initiatives can pave the way for a stronger MSME sector. By understanding and committing to sound financial practices, MSMEs will continue to thrive and contribute to economic development.  May we all aspire for businesses that are resilient against market challenges and adept at seizing opportunities; thereby ensuring a meaningful contribution to sustainable economic growth. Ma. Aurora “Boots” D. Geotina-Garcia is a member of the MAP Diversity, Equity, and Inclusion Committee. She is the founding chair of the Philippine Women’s Economic Network (PhilWEN) and chair of the Governing Council of the Philippine Business Coalition for Women Empowerment (PBCWE). She is the first female chair of the Bases Conversion and Development Authority (BCDA). She is president of Mageo Consulting, Inc., a company providing corporate finance advisory services. Disclaimer: On December 31, 2024, “Capital access and financial management for sustainable MSMEs” was published. It was authored by Ma. Aurora D. Geotina-Garcia, a fellow of the Institute of Corporate Directors. You can read the original article through this link:

By: Dr. Alfredo E. Pascual, FICD Fellow Institute of Corporate Directors In a dynamic and rapidly evolving environment, leadership transcends traditional paradigms. It requires adaptability, foresight and a deep understanding of the unique challenges and opportunities shaping our country’s socioeconomic landscape. As the Philippines navigates the crossroads of technological innovation, environmental sustainability, workforce transformation and geopolitical shifts, leaders must guide their organizations and communities toward a resilient and prosperous future. Technological advancements: Embracing innovation The Philippines has emerged as one of the most dynamic economies in East Asia and the Pacific. With a growth rate of 6 percent in the first half of this year, it is among the top performers in the region. Rapid technological advancements, reshaping industries and creating new growth pathways underpin this robust economic performance. The integration of artificial intelligence, blockchain and digital platforms has revolutionized sectors, such as finance, health care, education, transport and logistics, offering unprecedented opportunities for innovation and efficiency. However, the swift pace of technological change also presents challenges, particularly in terms of workforce readiness and digital infrastructure sufficiency. Leaders must invest in upskilling initiatives to enable employees to survive and thrive in a digital economy. Moreover, fostering a culture of continuous learning and adaptability is essential to navigate the complexities of technological transformation. Sustainability and climate responsibility: A national imperative The Philippines is acutely vulnerable to the impacts of climate change. Frequent typhoons, rising sea levels and environmental degradation pose significant threats to communities and economic stability. Recognizing this, the government and the private sector must increasingly prioritize sustainability initiatives to mitigate environmental risks and promote resilience. Leaders are now tasked with integrating sustainable practices into their organizational strategies, aligning business objectives with environmental stewardship. Such action involves adopting renewable energy sources, implementing eco-friendly supply chain Leaders are now tasked with integrating sustainable practices into their organizational strategies, aligning business objectives with environmental stewardship. Such action involves adopting renewable energy sources, implementing eco-friendly supply chain practices, and engaging in corporate social responsibility programs that address environmental concerns. By championing sustainability, leaders contribute to preserving natural resources and enhancing their organizations’ reputations and long-term viability. Workforce evolution: Navigating demographic shifts The Philippine workforce is undergoing a significant transformation, driven by its youthful demographics. With 28 percent of the population aged 10 to 24, our country enjoys a considerable labor market advantage. This demographic profile offers both opportunities and challenges, compelling leaders to unlock the potential of a young and rapidly evolving workforce. The rise of remote work, the gig economy and the integration of multigenerational teams necessitate reevaluating traditional management approaches. Leaders must cultivate inclusive environments that value diverse perspectives and foster collaboration across generational divides. Adopting flexible work arrangements, promoting work-life balance and investing in employee well-being are critical strategies for recruiting and keeping top talents. Geopolitical and economic uncertainty: Strategic navigation The Philippines’ strategic location in Southeast Asia is at the center of complex geopolitical dynamics, particularly concerning territorial disputes in the South China Sea. The government’s efforts to balance relations with major powers, including the United States and China, require astute leadership to navigate diplomatic intricacies while safeguarding our national interests. Economic uncertainties, such as global trade tensions and fluctuating commodity prices, further underscore the need for resilient and adaptable leadership. Leaders must develop robust risk management frameworks, diversify markets and foster innovation to mitigate external shocks and sustain economic growth. Mental health and well-being: A leadership priority The pressures of modern work, exacerbated by the COVID-19 pandemic, have brought mental health and well-being to the forefront of organizational priorities. Leaders in the Philippines are increasingly recognizing the importance of creating supportive work environments that prioritize employee well-being. Implementing mental health programs, providing access to counseling services and promoting a culture of openness and support are essential steps in addressing this critical issue. By prioritizing mental health, leaders enhance employee satisfaction and productivity and contribute to their organizations’ overall resilience and sustainability. New approaches to leadership: Embracing agility and inclusivity To address these multifaceted challenges effectively, Philippine leaders are adopting new approaches that emphasize agility, inclusivity and purpose-driven strategies. Agile leadership:  In an environment marked by rapid change, agile leadership enables organizations to adapt swiftly to emerging trends and challenges. This approach involves iterative decision-making, encouraging a continuous improvement culture and giving teams the freedom to innovate. Inclusive leadership:  Embracing diversity and fostering inclusivity are vital for driving innovation and organizational success. Leaders must actively seek diverse perspectives, promote equitable opportunities and create environments where all employees feel valued and empowered. Stakeholder capitalism:  Beyond shareholder-centric models, stakeholder capitalism considers the needs and interests of all stakeholders, including employees, customers, communities and the environment. This holistic approach aligns business success with societal well-being. Servant leadership: By prioritizing the needs of others and focusing on the growth and well-being of employees and communities, servant leaders build trust and foster a sense of purpose within their organizations. Redefining success: A holistic perspective In the contemporary Philippine context, success is redefined to encompass financial performance, social impact, environmental sustainability and human development. Purpose-driven leadership:  Organizations with a clear mission that aligns with societal values are better positioned to inspire loyalty and drive long-term success. Purpose-driven leaders articulate a vision that resonates with employees and stakeholders, fostering a shared commitment to meaningful goals. Sustainable growth:  True success entails achieving economic growth that is environmentally sustainable and socially inclusive. Leaders must balance short-term gains with long-term objectives, ensuring that their organizations contribute positively to society and the planet. Employee engagement and well-being:  Leaders must recognize that employees are the organization’s backbone and must invest in their development, well-being and engagement. They must also provide growth opportunities, promote work-life balance and establish an inclusive and encouraging work environment. Reputation and trust: In an era of transparency and accountability, an organization’s reputation is critical. Leaders must uphold ethical standards, demonstrate integrity and build stakeholder trust to sustain long-term success. A call to action: Shaping the future As the Philippines continues to navigate the complexities of the modern era, leaders across sectors are called upon to embrace transformative approaches that align with the nation’s unique challenges and opportunities. By fostering innovation, championing sustainability, prioritizing employee well-being and navigating geopolitical dynamics with strategic insight, leaders can drive progress that benefits their organizations and society. The journey ahead requires a commitment to continuous learning, adaptability and a steadfast dedication to creating value that transcends traditional metrics of success. By leading with purpose, empathy and integrity, Philippine leaders have the opportunity to shape a future that is resilient, inclusive and prosperous for all. The author is former president of the Management Association of the Philippines and former secretary of the Department of Trade and Industry. Feedback at map@map.org.ph and aepascual@gmail.com . Disclaimer: On December 16, 2024, “Leadership in the age of transformation: Navigating the Philippine socioeconomic terrain” was published. It was authored by Dr. Alfredo E. Pascual, a fellow of the Institute of Corporate Directors. You can read the original article: