Search Results

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:

The Institute of Corporate Directors (ICD) successfully held its Fourth Invitational Golf Tournament at the Manila Golf and Country Club on November 22, 2024. With clear skies and calm winds, the event provided a perfect setting for an enjoyable day of golf, bringing together a group of engaged players in a spirit of friendly competition and camaraderie. Through the generosity of our sponsors, ICD raised enough funds which will be allocated to support ICD’s social responsibility initiatives and bolster its research and development efforts.  ICD extends its heartfelt gratitude to the 75 participants—comprising 12 ICD members and 63 esteemed guests—whose enthusiasm and active involvement were key to the tournament’s success. Players highlighted their appreciation not only for the camaraderie shared throughout the day but also for the thoughtful giveaways, exciting raffle prizes, and the trophies they proudly took home, all of which added to the event’s celebratory atmosphere. The success of the tournament owes much to the efforts of the Golf Committee, led by Committee Chair Atty. Pete Maniego, Jr. , and supported by committee members Mr. Charlie Gatmaitan, Mr. George Aliño, Mr. Dennis Montecillo, Mr. Rex Drilon II, and Mr. JJ Moreno. In addition, the event would not have been possible without the full support of the Programs, Events, and Business Development Department, Members Relations Department, and the whole ICD staff.  Mr. Marco Bautista, son of Ambassador Cesar Bautista, also graced the occasion, expressing his heartfelt gratitude for the invitation and the tribute to his father's legacy. The success of this tournament was made possible through the invaluable support of the following sponsors: The following are the tournament winners whose exceptional skills and sportsmanship made them stand out in this memorable event: Overall Champion:   ICD Member- Atty. Pete H. Maniego Jr. ICD Guest- ASec Santi Lim Low Gross Champion Mr. JP Montenegro Division A Champion- Mr. James Morris Ileto 1st- Mr. Eddie Feliciano 2nd- Mr. Yvo Galvez Division B Champion- Philip Ouano 1st- Joseph Fadullon 2nd-Dan Reyes Division C Champion- Nestor Liwanag 1st- Andrew Escaler 2nd- David Padin Special Awards  were also given for:  Hole #4 Longest Drive - Mr. Yvo Galvez (294 yards) Hole #10 Most Accurate Drive- Mr. Knud Hedeager (4 inches) Hole #6 Nearest to the Pin- Mr. JP Montenegro (3 ft and 6 inches) Most Durable Player- Atty. Rene Cabanilla  The top three winners were awarded Metro Retail Gift Certificates worth 1,000 pesos each. Meanwhile, Atty. Rene was awarded with 4 Dozen of Used Golf Balls.  Prizes were also awarded to the following raffle winners: Piligan raffle winners:  OJ Matias, Jet Yu, Rick Wilkerson, Bien Guevarra, and Wilbert Tan, walked away with 2,000 pesos in cash, adding an extra element of excitement to the event.   Sponsors who set up their booth at the event generously provided mugs, towels, and charming tokens as giveaways for the participants. To top off the experience, attendees were treated to delicious meals catered by the Manila Golf and Country Club. As the event wrapped up, w e look forward to greater participation, especially from our ICD members. We also welcome your suggestions on how we can enhance the experience and make the event even more enjoyable.

By: Ma. Aurora D. Geotina-Garcia, FICD Fellow Institute of Corporate Directors Who are next-gen leaders? As the global environment becomes more unpredictable and complex, a new type of leader, the next generation leader (NGL), has emerged during these times of adversity. The Queensland University of Technology describes them as leaders equipped with strategic thinking, the ability to lead change, build a culture of performance, and strengthen personal responsibility and accountability. Various studies highlight the following desirable qualities of an NGL: Adaptable and agile: Capable of adapting to constant disruption, focused on making a positive difference rather than being solely driven by results; a “master of change” who can negotiate outcomes in a climate of instability. Emotionally intelligent: Able to control and manage emotions while providing empathy to support and overcome workplace challenges. Collaborative: Understands and accepts that great work is achieved by working as a team. Authentic communicator: Listens more than they speak and encourages open and honest conversation to cultivate fresh perspectives and ideas. Prioritizes well-being: Practices self-care and prioritizes their physical, emotional, and mental well-being. Next-gen leaders: Reshaping the future of business As I wrote in my article in this column on Feb. 8, 2023, one of the flagship projects of SharePHIL is to elevate the investor relations (IR) profession, given its crucial role in strengthening and nurturing the communications of listed companies with their investors and stakeholders. As IR plays a vital role in the success and growth of a company, IR professionals also contribute to shaping the capital market. To launch this project, SharePHIL held an Investor Relations Forum on Aug. 27, 2024, where a select group of NGLs shared their views on how they are reshaping the future of business. As IR professionals are the key links between companies and stakeholders, it is critical for them to understand how current and future leaders are navigating and steering their organizations through challenges. Key themes that resonated during the Forum included: Sustainability All current and future generations are facing challenges associated with sustainability, whether it be extreme weather, supply chain and technology disruptions, sourcing difficulties, among others. For Dennis Zamora, president of Nickel Asia Corp. (NAC) and CEO of a mining company in a priority industry, he has aligned the company’s nickel business with the government’s policies of responsible mining and downstream nickel production. As a result, NAC has been recognized by local and regional award-giving bodies. Furthermore, as the transition to renewable energy sources becomes necessary, NAC has diversified into the renewable energy sector with the goal of installing 1 MW by 2028. On the other hand, Ana Aboitiz-Delgado, executive vice president and incoming CEO of Union Bank, focuses on addressing the needs of two key stakeholders: its customers and employees. As chief customer experience and digital channel officer, she led the digital transformation of Union Bank, growing the customer base through its mobile app and playing a key role in acquiring the local customer business of a global bank. With respect to employees, she emphasized the importance of work-life balance by respecting time off and limiting work calls outside office hours. Customer centricity Customer-focused strategies can affect nearly all aspects of business. As Pam Olivares-Vital, president and CEO of Ovialand, shared, the company’s commitment to serving customers’ aspirations for premium affordable housing is the cornerstone of their success, amidst stiff competition from bigger real estate players. With the tagline “One brand new home for every Filipino family,” Ovialand aims to provide the emerging middle class with the best home that their hard-earned money can buy. Their strategy focuses on delivering a premier real estate experience through their products, communities, and services. Francis Gotianun, first senior vice president of Filinvest Hospitality Corp., highlighted emerging trends in the hospitality industry, such as customers’ preference for higher-end properties and the growing demand for leisure activities. In response, the company aims to offer unique, personalized travel experiences and enhanced guest services through process improvements, technology use, better food offerings, and better people management – particularly given the current shortage of hospitality professionals. These initiatives have earned the company a trust rating of 93.74 percent, the highest in the Philippines, from TrustYou, a leading aggregator of customer feedback. Leadership Regarding their brand of leadership, Ana Delgado emphasized the importance of being human-centered, given the changing times and the stage of their business. Francis Gotianun echoed the need to lead with purpose to inspire and motivate employees, especially as the current generation of workers has more career choices and options. For Pam Vital, leading a real estate company requires sensitivity to shifts in customer attitudes, responding to the question of “What do I want?” rather than “What is given to you?” In light of increasing stakeholder demands, Dennis Zamora practices a transparent and open leadership style, recognizing the importance of keeping the public informed about the company’s activities. Is next generation leadership merely a slogan? I believe it’s more than a catchphrase – it is a foundation for better workplaces, relationships, and individual and collective well-being. Is it applicable only to a specific generation? DeEtta Jones and Associates, a woman-led training and strategy consulting firm, opines that an NGL doesn’t refer to any specific generation but to anyone with the interest and eagerness to increase his or her capacity to thrive in an environment of change, challenges and growth. NGLs challenge themselves to remain relevant, forward-thinking, and hungry to do better. Are you an extraordinary, inspirational next generation leader? The author, Ma. Aurora Geotina-Garcia, is chairperson of SharePHIL. She is also founding chairperson and president of the Philippine Women’s Economic Network (PhilWEN) and president of Mageo Consulting Inc., a corporate finance advisory services firm. Disclaimer: On October 26, 2024, “Lessons from next-gen leaders” 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:

Dr. Armand Cacacho, FICD Fellow Institute of Corporate Directors This article is based on my own entrepreneurial journey in the USA and is intended to provide some insights that could help the many micro, small and medium enterprises (MSMEs) in the Philippines. It is based on my decades of experience as an entrepreneur in the San Francisco Bay Area, California starting a company from zero and scaling it into a multi-million dollar revenue company. My interest in entrepreneurship began after I took a course in entrepreneurial management as part of my Master of Business Administration (MBA) program in Chicago in the early 1980s. Following graduation, I toyed with several ideas to start as a business but none of the initial ideas became a reality. I moved to the San Francisco Bay Area, California in 1984 after I was recruited to work at a construction management company here. It was the golden age of the technology industry in the San Francisco Bay Area/Silicon Valley with many technology companies starting and building their corporate headquarters and manufacturing facilities here. As a Civil Engineer with an MBA, I worked on many of these projects as part of the consulting team working for real estate developers and some of the biggest banks in the USA that financed these projects. After several years of working for the company, my entrepreneurial interest got me again into thinking of starting my own construction management company. To supplement my knowledge base gained from my MBA program and work experience, I read two books from two successful American entrepreneurs titled “What They Don’t Teach You at Harvard Business School” and “The Art of the Deal”. These two books provided me with additional knowledge on building “soft skills”, negotiations, and strategies. Feeling confident but no outside funding, I embarked on my first business, a construction management company, and bootstrapped it. At first, my fee was a few thousand dollars per contract. Then I started winning larger contracts with several hundred thousand dollars per contract and total annual revenue reaching a million dollars. Banks started calling me offering financing to grow even larger. With bank financing, my company started winning in the millions of dollars range per contract. I also started buying and selling real estate and co-founded a mortgage finance company in addition to founding or co-founding other businesses in the technology and healthcare space. While the other businesses had mediocre financial results, the others flourished. My successes led to me to being recruited to become an executive of a Fortune 200 multinational company in California. Lessons for MSMEs Prepare Get the necessary education, training and skills in your field of interest. You do not need to get a full MBA to obtain these core skills. Get educational training in accounting and finance, marketing, entrepreneurship, operations management, and information technology. Think Big Find ways and don’t be afraid to meet with executives and powerful people from big corporations. Otherwise, you will always be a small business. In my case, I took on leadership and chairmanship positions in business associations in California. I did a lot of public speaking in conferences and made presentations with executives from many large businesses including Fortune 500 corporations. Project power and knowledge of your own market area. This is how I became known in the construction industry in California and was eventually recruited as a joint venture partner of several Fortune 500 corporations in the engineering and construction industry. These large multinational corporations became repeat clients/partners of my construction management business for many years and lead to winning several awards in California for my business including a permanent bronze plaque on the wall of San Francisco International Airport for my role in helping build the airport to what it is today. Don’t Be Afraid to Tell Your Story In most Asian cultures, it is not often that business people tell the world of their successes. They are often apologetic if they sound like bragging about their achievements (in Tagalog: nagbubuhat nang sariling bangko ). If you, the entrepreneur/business person, do not tell the world of your successes, other people will not know what you do and are good at. Most customers and other business people will likely deal with successful entrepreneurs/business persons who have good products or services. Be Nice and Grateful to Other People In business, it pays to be always nice and grateful to other people. This has always been one of my greatest assets (my soft skills). It is not enough to have a great product or service. The entrepreneur/business person has to have a great personality. This can come handy when dealing with customers, employees, and other stakeholders. Some Final Thoughts Success for an entrepreneur is not guaranteed. You have to do several experimentation and iteration until you find the right product-market mix. Once you find the strategy that is repeatable, you’ll then face the challenge of scaling your business into a large enterprise. Successful entrepreneurs do fail at one point or another in their journey. Even large and established companies sometimes fail when they launch a new business or product. You should be able to take those lessons learned and use them in your next venture. About the Author Dr. Armand Cacacho, FICD is a Certified Board Director (NACD.DC) by the National Association of Corporate Directors USA and a Senior Accredited Board Director (SID-SrAD) by the Singapore Institute of Directors. In addition to his MBA, his postgraduate education includes Strategy and Innovation Specialty (Stanford Graduate School of Business), Global Management and Business (Stanford University), Renewable Energy Specialty Professional Certificate Program (Stanford School of Engineering), Certificates in Disruptive Innovation Strategy and Entrepreneurship (Harvard Business School), Machine Learning and Artificial Intelligence (DeepLearning.AI and John Hopkins University), and Exponential Technologies (Singularity University). He is a licensed Professional Engineer (PE) in the USA. Armand was recognized by the late President George H. W. Bush, Sr. for his leadership in the Asian American Pacific Islander (AAPI) community in the USA in 1992 and won awards from various industry and professional organizations in the USA. Armand is an Adjunct Professor at Asian Institute of Management and faculty member of the Institute of Corporate Directors Philippines. He has been serving as Mentor to Stanford graduate students since 2015 (on and off). He can be reached at armandcacacho@gmail.com or his LinkedIn https://www.linkedin.com/in/armand-cacacho-nacd-dc-a128a515/

By: Ma. Aurora D. Geotina-Garcia, FICD Fellow Institute of Corporate Directors For companies seeking individuals to appoint as members of their Board of Directors, a common source is the pool of CEOs approaching retirement. Many professionals, including entrepreneurs, often assume that “there is no life after retirement.” In reality, vast opportunities exist to leverage one’s skills and experiences in boardrooms. Are these roles equal or similar? Both roles involve leadership, strategy, analytical skills, and decision-making responsibilities, However, while they may appear similar, transitioning from the C suite to the B suite necessitates a significant mindset shift. This transition requires moving from a focus on operational concerns to adopting a broader oversight role, given the change in responsibilities. Here are some key differences: Operational vs Strategic:  A CEO is primarily concerned with executing the strategies for the organization outlined by the board, while the board must “think big” and monitor the overall progress and direction of the long-term strategy to ensure growth and sustainability. Day-to-day vs Comprehensive:  CEO decisions are “hands-on” and made to keep operations moving, whereas board decisions are broader and impact long-term progress. Individual vs Collective:  A CEO’s authority is individual and hierarchical, flowing from top down. In contrast, board decisions are collective, requiring each member to deliberate on issues and provide input that can integrate with others’ perspectives. Direction vs Guidance:  CEOs ensure alignment with the organization’s goals, while the board provides oversight, balancing the interest of management and its stakeholders, guiding management without directly leading the organization. HOW TO TRANSITION FROM CEO TO BOARD MEMBER? The journey from CEO to board member is not merely a change in title but a profound shift in role, responsibilities, and perspectives. How does one prepare to be a board member? Ernst & Young (EY), one of the world’s largest professional services organizations with over 400,000 people across 150 countries, has recognized the potential of its partners to become board members. To support this transition, they launched the “EY Journey to the Boardroom” program in partnership with Harvard Business Publishing. This program aims to equip EY partners with the necessary skills to prepare for and pursue corporate board positions while enhancing their existing client and advisory relationships. The course focuses on global and corporate issues within the context of today’s boards. Participants engage with EY experts, HBS faculty, and peers to complete individual and group assignments. As an Alumni Partner of SGV & Co., a member practice of EY Global, I had the privilege of participating as a resource person on several panels alongside EY alumni partners from other countries. A question frequently posed to the panel is, “What mindset shift is necessary when transitioning from EY Partner to board member?” My response to this question encompasses my five C’s below. Challenge.  Especially for non-executive and independent board members with limited involvement in day-to-day operations, it is good practice to challenge “elegantly and with respect” matters presented and discussed for decision-making. While it requires experience and preparation to ask difficult questions, this should not deter you from doing so, as it enhances board discussions and ensures that all aspects of the matter are considered. However, board members must also be open to being challenged on their positions and opinions, allowing others to share their views. Contribute.  Posing challenges in board discussions is only valuable if they are constructive and contribute potential solutions. Taking on a board role involves redefining one’s contribution to the organization, fostering a supportive environment for management, and championing a strategic rather than operational outlook. Remaining engaged without overstepping your bounds allows you to contribute effectively to the board discussions while respecting the boundaries of the CEO and executive team. Collaborate.  Board members act as checks and balances, ensuring the company remains accountable to shareholders and maintains a clear direction. To fulfill this role, you need to work with management and other board members towards achieving a common goal. Understanding the intricate dynamics of group decision-making and consensus-building is crucial, as intertwining your expertise with others enhances your ability to contribute effectively to discussions. Establishing strong relationships fosters a more harmonious and productive board. Communicate.  Effective communication is essential for the success of any board. Ideally, boards should promote transparency and accountability in their communication channels, define clear objectives, and encourage active listening and constructive dialogue. Leading communication expert Dianna Booher gives two tips to be a better communicator: 1. “Listen for what is not said in a conversation or document”; 2. “Listen discriminately and probe with questions to help draw conclusions about what you hear so you can make sound decisions.” Be Curious.  Walt Whitman, the American poet and essayist, advised us to “be curious, not judgmental.” PwC’s recent survey of over 1,000 CEOs indicates that “curiosity” and “open-mindedness,” or the “curiosity quotient,” are becoming increasingly critical leadership traits in challenging times and in managing complexity. Psychologist Diane Dreher notes that “curiosity is positively correlated with creativity, intelligence, problem-solving ability, autonomy, a sense of personal control, and a willingness to challenge the status quo,” all of which are foundational to a director’s role. Transitioning from the C Suite to the B Suite presents new personal challenges that require the development of knowledge and skills tailored to the new position. While this shift may seem daunting, it represents a tremendous opportunity for seasoned leaders to impart wisdom and guide a company from a fresh vantage point, ensuring its enduring success and integrity. The journey from the C suite to the B suite is not merely a change in title; it is a transformation in perspective and responsibility. Embracing this transition with the right mindset, coupled with the five C’s — Challenge, Contribute, Collaborate, Communicate, and be Curious — will equip you to navigate your new role effectively. By fostering a culture of open dialogue and mutual respect, you can enhance the board’s effectiveness and help steer the organization toward a sustainable future. 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. Ma. Aurora “Boots” D. Geotina-Garcia is a member of the MAP Diversity, Equity & Inclusion Committee. She is the founding chair of Philippine Women’s Economic Network or PhilWEN, and chair of the Governing Council of the Philippine Business Coalition for Women Empowerment or PBCWE. She is also president of Mageo Consulting, Inc., a corporate finance advisory firm. Disclaimer: On December 10, 2024, “The journey from the C suite to the B suite” 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: Aubrey Camille J. Perez Research and Content Coordinator Institute of Corporate Director The Institute of Corporate Directors (ICD) actively participated in the Malaysian Support for COP29 event, organized by Climate Governance Malaysia (CGM) and held from November 12 to 21 in conjunction with the Malaysia Pavilion at COP29 in Baku. The event brought together global experts to showcase collaborative efforts and strategies for addressing climate change. Representing ICD Philippines as panelists were Mr. Dennis Montecillo, FICD; Ms. Sarah Fairhurst, FICD; and Mr. Valentino Bagatsing, FICD. They contributed valuable insights during key discussions on critical topics such as energy transition, transition finance, and climate resilience. Boards’ Role in Energy Transition (November 13) The session opened with keynote speaker Sharath Martin, a member of the board of trustees of the Shift Project, who highlighted the crucial role of human rights in addressing climate change and energy transitions. Mr. Martin referenced the UN resolution of July 2022, which recognized the right to a clean, healthy, and sustainable environment. He urged businesses to align with the UN Guiding Principles for Business and Human Rights, particularly concerning greenhouse gas emissions in their operations and value chains. Mr. Martin introduced the concept of a "just transition," stressing that the shift to cleaner energy must not greatly harm vulnerable communities. He pointed out that groups such as children, the elderly, outdoor workers, women, and indigenous people are especially at risk from climate change, facing challenges like land displacement and increased exposure to extreme weather events and health risks. While the clean energy sector could create millions of jobs by 2050, Mr. Martin cautioned that workers in fossil fuel industries also face risks and encouraged businesses to consider the economic and social implications of this transition and engage in stakeholder consultations. Mr. Dennis Montecillo, FICD, reflected on his experiences serving on boards in various sectors, including real estate and healthcare, during the panel discussion. He noted that large companies are leading the way in committing to the energy transition, though some corporations hesitate due to perceived high costs. Mr. Montecillo emphasized that the "who pays" question is critical in this transition, with companies needing to take responsibility for the environmental impact of their actions. Mr. Montecillo suggested that sustainability should be embedded in a company’s mission and governance. He highlighted the need for boards to move beyond treating corporate social responsibility as a minor department, advocating for it to be a central part of the corporate strategy. He also stressed the importance of governments and the private sector working together, with clear and collaborative regulations to accelerate the clean energy transition. Boards’ Role in Transition Finance (November 18) The sixth day of the event started with keynote Mr. Dinagaran Chandra, head of ESG Investments at Permodalan Nasional Berhad (PNB), addressing the importance of institutional investors in driving sustainability. He outlined how Malaysia’s Voluntary Carbon Market plays a crucial role in funding decarbonization projects, such as reforestation and carbon capture. Mr. Chandra also discussed PNB's commitment to achieving net-zero emissions by 2050, along with its focus on reducing carbon intensity across its portfolio and its investments in green and transition assets. He stressed that high-integrity carbon markets are vital to ensuring that corporate sustainability efforts are both impactful and effective. Mr. Henry Soediarko, senior portfolio manager at the Climate Impact Asia Fund, is the second keynote for the session and he spoke on the investment opportunities emerging from the climate transition. He highlighted that sectors like renewable energy, green mobility, and energy efficiency are essential to reducing emissions and creating jobs. Mr. Soediarko also pointed out the growing importance of carbon markets in financing decarbonization projects. He emphasized that companies in the green sector, such as those in electric vehicle manufacturing, are already outperforming traditional industries, presenting strong opportunities for investment. Mr. Soediarko also discussed the role of the Climate Impact Asia Fund, which invests in leading companies across Asia-Pacific with a focus on decarbonization, ensuring a positive environmental impact while delivering strong returns. In the panel discussion, Ms. Sarah Fairhurst, FICD, shared insights from her experience in both the fossil fuel and renewable energy sectors. She discussed the complex decision-making process boards face when managing legacy assets like coal-fired power stations while transitioning to cleaner energy. Ms. Fairhurst noted that strategic planning is essential for boards to balance financial interests with environmental responsibility. She also highlighted the need for alignment between government policies, corporate strategies, and regulatory frameworks to eliminate barriers and accelerate the clean energy transition. In addition, Ms. Fairhurst discussed how institutional investors can leverage their influence to support green transitions and climate policies. She emphasized the importance of adopting a flexible approach, backing projects with transitional phases that contribute to long-term sustainability, noting that not every project will be fully green from the outset but can still play a significant role in reducing emissions over time. Board’s Role in Climate Resilience (November 20) Day 8 of the program featured a keynote by Ms. Narae Choi, senior urban specialist at the World Bank Malaysia, who highlighted the crucial role cities play in climate action. Ms. Choi explained that cities, contributing around 70% of global carbon emissions, are highly vulnerable to climate impacts. She emphasized the importance of both mitigation and adaptation strategies, stressing that cities must not only reduce carbon emissions but also build resilience to climate risks like flooding and heatwaves. Efficient planning, strong institutions, and innovative financing were identified as key enablers of climate action at the city level, ensuring that urban areas can transition towards sustainability. Mr. Valentino Bagatsing, FICD, is part of the discussion in the second panel. He shared insights on integrating climate resilience into corporate strategies. Bagatsing emphasized that climate risks should be viewed through a risk management lens, urging businesses to make informed decisions that prioritize resilience. He suggested incorporating climate resilience into Key Performance Indicators (KPIs), likening it to mandatory training such as anti-money laundering. According to Mr. Bagatsing, boards should take an active role in guiding their organizations’ efforts to mitigate climate risks, ensuring that climate considerations are embedded in all decision-making processes. Mr. Bagatsing further stressed the importance of innovation in addressing climate resilience. He suggested that businesses should embrace emerging technologies and practices to improve their adaptability to climate change. By integrating climate resilience into governance, companies can better manage risks and contribute to long-term sustainability. His call for a "carrot and stick" approach in governance was a key takeaway, urging both regulatory frameworks and multilateral interventions to accelerate climate action and resilience efforts. You can watch the full recordings of the online sessions featuring Mr. Dennis Montecillo (Day 2), Ms. Sarah Fairhurst (Day 6), and Mr. Valentino Bagatsing (Day 8) through this [link] .

The Institute of Corporate Directors (ICD) is proud to announce that Atty. Teodoro Kalaw IV , an independent director at the Gothong Southern Group of Companies, has become the first Filipino to be granted the prestigious Qualified Risk Director® (QRD®) designation by the DCRO Institute , the world’s leading authority on risk governance training and credentials. Atty. Kalaw holds a prominent leadership role within the ICD as corporate secretary, thought leadership chair, past trustee, and the Institute’s youngest Life Fellow. Amongst others, he was instrumental in launching the Institute’s Family Firm Governance, Sustainability Strategy & Reporting, and Masterclass programs. Atty. Kalaw is also president emeritus and past chair of the Philippine Institute of Arbitrators and serves as a law professor at Ateneo Law School. He is currently president of both the Fellowship of IP Counselors of the Philippines, Inc., the Philippine association of the International Federation of Intellectual Property Attorneys, and the Institute of Philippine Real Estate Appraisers, the Philippine member organization of the International Valuation Standards Council. Atty. Kalaw is a senior partner at Kalaw Prasad & Hofilena Law, where his practice focuses on corporate governance, intellectual property, realty transactions, commercial litigation, and public policy representation. Licensed in the Philippines, New York State, and the United States Supreme Court, he obtained Juris Doctor from Ateneo Law School and his Master of Laws from Harvard Law School. He also has an MBA jointly from Northwestern University’s Kellogg School of Management and the Hong Kong University of Science & Technology, an MPA from the National College of Public Administration and Governance of the University of the Philippines, and a Master of Studies in Sustainability Leadership from the University of Cambridge. Atty. Kalaw is also a Fellow of several international and national learned societies and holds numerous international qualifications, including being the first Filipino Chartered Arbitrator and Accredited Mediator of the Chartered Institute of Arbitrators. His other professional practices include being a Chartered Surveyor of the Royal Institution of Chartered Surveyors, a Project Management Professional of the Project Management Institute, and a Certified Compliance & Ethics Professional - International of the Society of Corporate Compliance & Ethics. He is also the first Filipino to obtain the Certificate in Risk Governance® from the DCRO Institute. David R. Koenig, QRD®, President and CEO of the DCRO Institute, expressed, "As we have recently launched a new partnership with ICD-Philippines, it is only fitting that the first person in the Philippines to receive permission to use our top credential, the Qualified Risk Director® designation, is someone who occupies a leadership role with the organization. We welcome him to this distinguished, global leadership group." The Qualified Risk Director® credential equips board members with the necessary expertise to navigate complex risk environments, focusing on positive governance of risk-taking®. This strategic insight enhances decision-making and organizational resilience, fostering a culture of informed, risk-aware decision-making. Qualified Risk Directors® are instrumental in addressing regulatory complexities, driving strategic initiatives, and maintaining public trust. ICD Chair Emeritus, Dr. Jesus P. Estanislao, commented, "I am happy to see that Teddy is the first product of our joint initiative with the DCRO Institute to advocate risk governance in the Philippine context. I am confident that he and other ICD Fellows who follow him will lead the way in enhancing corporate governance through this perspective that addresses what firms normally do not plan for." Atty. Kalaw expressed his gratitude, stating, "I am privileged to be granted this designation, which clearly signals how much more we are refocusing our thought leadership programs to integrate the concept of risk in all that we advocate. I look forward to more of our Fellows joining me in making the Directors and Chief Risk Officers Institute our genuine partner in building risk governance capability in the Philippine business sector." ICD Chairman, Atty. Pedro H. Maniego, Jr. added, "The Institute of Corporate Directors Philippines is proud to announce its partnership with the DCRO Institute, the global leader in risk governance education and credentialing. Through this partnership, ICD-Philippines members will have access to DCRO’s comprehensive training programs, robust peer communities, and prestigious designations at preferential rates." "DCRO’s world-class credentials—the Qualified Risk Director® designation, the Certificate in Risk Governance®, and the Certificate in Cyber Risk Governance®—are recognized as benchmarks of excellence. These globally recognized certifications will distinguish our members by equipping them with the highest level of knowledge and skills to navigate complex risk landscapes. They will be able to serve as risk directors, officers, and consultants not only in the Philippines but worldwide," he concluded. The fundamental Duty of Care for directors is to ensure that organizations take risks wisely in pursuit of their goals and ambitions. To earn the right to use the Qualified Risk Director® designation, candidates are assessed on their professional experience, expertise in risk governance, leadership, and educational qualifications. Those who meet these criteria demonstrate the proficiency necessary to navigate today’s complex business environment. About the DCRO Institute  – The DCRO Institute is the world's leading source of risk governance credentialing and peer communities. They are a 501(c)3 nonprofit peer collaboration among board members and C-Suite executives from around the world. The DCRO Institute is the home of the Qualified Risk Director® designation , the Certificate in Risk Governance ®, and the Certificate in Cyber Risk Governance ®. They work globally to bring risk expertise to the boardroom and C-suite by teaching the positive governance of risk-taking®. Graduates from their programs are leaders in boardrooms and C-suites in over sixty countries on six continents. DCRO’s goal, which is emblazoned on their logo, is to help organizations Innovate, Sustain, and Create Value. Visit www.DCROI.org  to learn more. For more information, please contact David R. Koenig at +1.612.286.1776 or by e-mail at david.koenig@dcroi.org . Visit DCRO on LinkedIn  and YouTube . About The Institute of Corporate Directors in the Philippines  – 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. It is the leading institution in the field of corporate governance in the Philippines, composed of over 500 professional directors practicing ethical governance, and is the officially designated Domestic Ranking Body for the ASEAN Corporate Governance Scorecard (ACGS).  For more information, please contact the ICD Team at +63 915 848 7558 or by email at communications@icd.ph . Visit www.icd.ph  to learn more.

By: Ma. Aurora Geotina-Garcia, FICD Fellow Institute of Corporate Directors The struggles faced by micro, small and medium enterprises (MSMEs) to bid and participate in government procurement opportunities are quite different from large enterprises, and the struggle is even more apparent for women micro, small and medium enterprises (WMSMEs). Recent studies show the potential of MSMEs to transform our economy and promote social equity, especially when women entrepreneurs are able to participate. This was the topic of my recent talk during the 2024 Procurement Summit on Oct. 21, organized by the Government Procurement Policy Board -Technical Support Office. With the theme “Leveraging Local MSMEs for Inclusive and Sustainable Procurement,” it was a good opportunity to show my support for this advocacy and share my insights on the current business environment and the potential impact of WMSMEs in advancing inclusive procurement and examples of good business practices. I also gave some recommendations for consideration of the private and public sectors. Current state of WMSMEs The impact of women entrepreneurs in the economy cannot be denied as they drive economic growth and contribute to achieving different sustainable development goals. Based on the 2018 data of Statista, a global data and business intelligence platform, on the leading industries in the MSME sector, around 88 percent of entrepreneurs in the Philippines engaged in retail or wholesale were women; and at least 40 percent were engaged in arts and culture, materials or manufacturing, food processing and agriculture. The government has the capacity to leverage its significant market reach to influence and shape how businesses create and process products and services to the public. It can, in turn, influence public demand and create opportunities for women, including consumer awareness, to achieve sustainable and inclusive procurement practices. This also means that our country can employ equitable and inclusive procurement policies to promote significant socioeconomic change for women and their businesses. Recommendations for the private and public sectors By including WMSMEs in government procurement, the government is assured that economic benefits are widely and justly distributed because research shows that women often invest a high proportion of their income to their family and community compared with their male counterparts, which leads to transformative improvement of the family’s well-being and enhancement of community development. For the private sector Set targets/goals on the percentage of total purchases to be sourced from WMSMEs. By actively seeking out and engaging with women entrepreneurs, companies will diversify their supply chains and will help break some deeply systemic barriers that hinder women from participating in procurement. Establish partnerships with organizations that support women entrepreneurs to identify suppliers and for ease of connections with WMSMEs. Integrate gender-responsive criteria in supplier selection and accreditation. When evaluating potential suppliers, companies can include criteria that assess the supplier’s commitment to gender-responsive policies to promote gender diversity in the workforce and any other initiatives that will promote women empowerment within their business. Integrating this criteria into the supplier selection process not only encourages suppliers to adopt more inclusive practices but also helps provide a competitive advantage to those who prioritize gender responsiveness. Adopt inclusive and gender-responsive procurement policies. Implementing supplier diversity is an effective strategy that explicitly seeks inclusion of women-owned and women-led businesses in the supply chain. Through this approach, we can strategically promote gender equality within the business by supporting potential women suppliers. For the public sector Strictly implement the provisions of Republic Act No. 9501, or the Magna Carta for MSMEs, which mandates government agencies to allocate 20 percent of all their procurement opportunities for goods and services to MSMEs. Though no specific targets have been set for WMSMEs that comprise about 56 percent of MSMEs, they will nonetheless benefit. Preferably, a specific target is set for WMSMEs. Incorporate gender-responsive criteria in bidding evaluation. As many WMSMEs are often small, they face challenges in competing with large companies for government contracts. To enable WMSMEs to participate, among the criteria that could be incorporated in the evaluation of bids from larger companies should be a commitment to source a percentage of their own purchases from WMSMEs, and the presence of policies that promote gender equality in their organizations. This approach could help level the playing field for smaller businesses and is aligned with the Magna Carta, enabling government spending to contribute to the economic empowerment of women. To further encourage WMSMEs to participate in public procurement, the government can provide support and resources to organize all women consortia, where WMSMEs can pool their resources and share their expertise. Utilize the gender and development (GAD) budget of all government agencies and instrumentalities for procurement from WMSMEs. Based on the approved national budget of P5.768 trillion, even if only 1 percent of the 5-percent GAD budget of approximately P57.68 billion is used for purchases from WMSMEs, can you imagine the impact that this will create to the woman, her family and her community? Link government incentives to gender-responsive procurement practices. Government agencies, such as the Department of Trade and Industry, which is responsible for MSME development, could include in their evaluation criteria for the grant of incentives a commitment to source from WMSMEs or to implement gender diversity initiatives. Government can thus encourage businesses to give priority to gender equality in their operations, amplifying the impact of government mechanisms. ‘When she bids, we benefit’ Taking a collective action to build a more equitable, inclusive society can transform our economy where women have equal opportunities to reach their full potential. The private and public sectors must work together to empower women so we can achieve inclusive procurement practices. When she bids, we benefit; ensuring participation of WMSMEs in procurement is not just a matter of economic necessity—it is a moral imperative. Gender-responsive procurement will not only benefit WMSMEs but also contribute to a more diverse and resilient economy, leading to greater social and economic prosperity for all. The author is a member of the Management Association of the Philippines Diversity, Equity & Inclusion Committee. She is founding chair of the Philippine Women’s Economic Network and chair of the Governing Council of the Philippine Business Coalition for Women Empowerment. She is the first female chair of the Bases Conversion & Development Authority. She is president of Mageo Consulting Inc. Feedback at map@map.org.ph and magg@mageo.net . Disclaimer: On November 18, 2024, “Inclusive procurement for women empowerment” was published. It was authored by Ma. Aurora Geotina-Garcia, a fellow of the Institute of Corporate Directors. You can read the original article through this link: