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(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/

Recognizing the reality that trying to control climate change will require massive financial resources. “In the context of today’s headlines regarding climate change and the consequent nightmare scenarios resulting from global warming, sustainability essentially translates to the planet earth’s ability to sustain human life as we know it today, and tomorrow. Why is this a hot-button issue for the world?” Read more at: https://tribune.net.ph/index.php/2019/10/30/sustainability-today-tomorrow/

High levels of economic disparities are present around the globe, and the health and trajectory of local economies differ greatly from place to place. With the age of automation, this can affect countries in vastly different ways. Automation is a global phenomenon and has an undeniable effect across a range of industries. CEOs and companies around the globe are advised to learn more about these technological changes and how it can affect a range of investment decisions and their companies. Taking into consideration beyond the shareholder value and setting long-term goals/value creation. Especially, with such high levels of economic disparity at play, long term implications on talent pools, operations, investments and customers are highly dependent on the actions companies and local economies take next. Read full article: https://www.mckinsey.com/featured-insights/future-of-work/automation-and-economic-disparity-a-new-challenge-for-ceos?cid=other-eml-alt-mip-mck&hlkid=d2f432fb294448b4881fbb6a22854ce5&hctky=9897597&hdpid=8b350fd2-cdd1-44e1-ba6a-f89fcd379d4b

Organizations are starting to recognize the importance of cyber security in their business practices. A number of organizations have reported experiencing cyber attacks. Cyber attacks leave companies, their documents, and systems, vulnerable. Executive boards aren’t the only ones recognizing the pressing matter of cyber security. Many shareholders, customers, and media have recognized the importance of good cyber security and use it as a basis for determining their level of confidence. Cyber Security and in general, technology bring in a new set of opportunities and risks for companies. It is surprising to see that many companies have yet to flesh-out or even start cyber security initiatives. These companies must recognize this as a pressing matter that must be discussed in line with Environment, Social, and Corporate Governance. Read full article: https://www.business2community.com/cybersecurity/cyber-security-a-matter-of-good-corporate-governance-good-ethics-and-quite-simply-good-business-02200227

Due to the job market expanding and increase in competitiveness of prospective employees, unemployment is seeing record lows over the past few years. Companies are finding it hard to compensate employees, making it difficult to keep them loyal to the company or attract them in the first place. Survey (2019 Global Human Capital Trends) shows that only about 33% of companies felt ready to address this situation. In the past, compensation and rewards revolved around one thing: money. People look for jobs to get money so the simple solution would be to give them more. This was true back then, however, more employees are looking for more than a big paycheck. Surveys show that a major factor in job satisfaction isn’t money, but instead is the value they perceive and the appreciation they feel from the management. Value translates to the nature of the work and the opportunities they can get from it. They want to feel that they can learn from their job, secure promotions in the company, and have an impact beyond their workspace. Appreciation on the other hand, would stem from management’s attitude towards their employees. Simply put, an extra zero in their paychecks does not feel gratifying for today’s employees and would not be an adequate reward. Companies need to adapt to the changing environment and find creative ways to reward employees to keep their loyalty and attract prospective employees, they need to distinguish themselves from those who simply offer a decent commission, and emphasize benefits they provide which tell employees and prospects: “this is why you should work for us, this is what we can give you.” As cash rewards aren’t memorable enough and money feels mundane. It’s more memorable and exciting for employees to get non-cash rewards and be able to talk about it with co-workers. These could be anything from extra vacation days, monthly membership to a local gym, or a new phone. Sometimes, a simple thank you from the management is all they need to feel distinguished and recognized. It motivates them and studies show that it leads to increased work proficiency. A handwritten personalized note that comes with the paycheck alone can go a long way in making employees feel more appreciated. Human Resources should be at the forefront of developing new ways of compensation. They must be a channel for communication between employees and management so that they know what reward would be valuable and what management can actually give. They should be knowledgeable on all legal parameters around giving proper compensation and provide fair metrics to measure work performance. Benefits need to be equitable for them to be effective. Money is no longer the main driving force of employees. It is important that they feel appreciated in the workplace and that the work they do has actual value. Companies need to adapt so that they can continue to attract high value employees and keep a coherent and talented team. Read Full Article https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2019/rewards-employees-want-most.html

The 21st century has brought on many changes in the corporate world. It is easy to see the advent of technology affecting the work and board space, as seen in the new ways of compiling documents, taking minutes, or simply having a video conference. However, more important than the surface level technologies is the rise of new business strategies and governance strategies that encourage innovation. In the past, ‘Corporate Governance’ was a centralized and hierarchical structure. The company focused on their internals and looked at external matters as stuff ‘outside’ of company affairs. Priority was given to the main shareholders of the company. Orders and the direction of the company came from the top down. This limits innovation and communication with stakeholders. The paper advocates a ‘platform’ based company structure and for a board to adopt ‘platform’ governance instead of corporate governance. A company that operates under a platform connects groups of people, information, and its stakeholders more effectively. If traditional company is hierarchical and operates from the top-down, a platform-based company operates on a flat structure where the input of all stakeholders are valued. Stakeholders aren’t just limited to employees or managerial staff. Platforms connect a wide web of producers, consumers, manufacturers, and distributors, to one another. All of them are stakeholders which would have varying levels of access to the company. Read Full Article https://link.springer.com/article/10.1007/s40804-019-00137-z