LAST week the Swedish Institute, a public agency promoting interest and confidence in Sweden around the world, visited Manila for the first time. The primary goal of their visit was to talk about sustainable business practices in the Philippines and to encourage our Filipino executives to take part in the 2016 Swedish Institute Management Programme-Asia. The Philippines has been chosen as one of the six countries in Asia along with China, India, Indonesia, Thailand and Vietnam to be given representation in the management program that highlights strategies on finding innovative ways to integrate social, environmental and ethical considerations in business and politics.
It is no coincidence why these countries were chosen to participate in the program—Asia is the future of the world. China and India each have more than a billion people, while Indonesia, Thailand, Vietnam and the Philippines belong to one of the most dynamic economic regions in the world. Asia is, and will remain, the center of strategic economic activities. But as this development unfolds, we need to ensure that our growth equates to becoming more sustainable.
Sustainable development
AS investment firm Robecoscam reported in 2013, Sweden is the most sustainable country in the world due to advanced development of renewable-energy sources and low carbon emissions, and best practices in labor, education and institutional governance framework. In 2014 it became the sixth country in the world to adopt a national action plan in accordance with the UN Guiding Principles on Business and Human Rights. Hence, our Filipino executives can benefit from these experiences and replicate best practices applicable to the Philippines.
Many organizations and private firms put emphasis on sustainability to drive business goals; meeting incumbent needs without jeopardizing the future generation. Good governance, structural reforms, profits, business expansion, human capital investment and environmental protection are concepts that can go together boosting growth and inclusiveness. It is good for business, the government and people.
Having a sustainable business increases competitiveness, promotes brand excellence and creates investment opportunities. When we visited the Integrated Microelectronics Inc. (IMI) facility in Laguna, we witnessed firsthand the embodiment of profitable business with social and environmental responsibility. IMI calls it 3Ps: Making money (profit), investing on its employees (people), and committing to sustainable environmental practices such as reducing waste and conserving energy (planet). They have embarked on a sustainability program from top management down the line, including their products and services. The result is a 13-percent increase in IMI revenue from $745 million in 2013 to $845.5 million in 2014, and more relevant and well-respected products worldwide. It was particularly impressive to see how continuous people development and putting a hefty premium on social and environmental responsibility led to being able to innovate cutting-edge solutions in an intensely competitive global marketplace.
What do we gather from their experience? Its growing big and getting more involved with environmental cause yet yielding more business opportunities. It shows human ingenuity in harmony with nature, nurturing communities and enriching people’s lives.
Inclusive growth
Sustainability promotes inclusiveness. It generates higher revenues, improved preparedness toward natural disasters, and a deeply embedded concept of growth. Such realizations have been recognized by our government, as exemplified by instituting a good governance framework. Nevertheless, continued structural reforms are needed for growth to be sustainable and inclusive.
The approach needs to be trilateral: system, people and environment. A good system enables trade and vibrant business activities. It creates jobs that empower people, which, in turn, preserve nature.
These factors support one another. It is a win-win solution, but it has to start with the right systems in place.
For example, despite 6-percent to 7-percent GDP growth rate of the Philippines, 25.6 percent of the population is still considered poor. This is simply because growth has not trickled down to the poorest communities.
The current system needs to be improved so that substantial foreign investments will flow to the country. It is foreign direct investment that creates employment, and a more conducive business environment means bigger opportunity.
It is only then that we can uplift the conditions of our people—just look at the case of China, South Korea, and perhaps, Singapore. When systems work, people are empowered and sufficient resources are allocated for environmental protection. It has to be structurally embedded for it to be sustainable.
Just like how corporations benefit from business sustainability, the government too can create more value from it. Say for instance in tourism, a green environment does not only attract tourist arrivals but also stimulates employment and generate revenues. If good governance initiatives are sustained, corruption is minimized if not totally eliminated.
If sustainable strategies are implemented within the bureaucracy then business facilitation and government performance are enhanced.
If people engagement schemes are integrated, government workers will be motivated and more productive because their needs are responded and individual contributions are recognized. In other words, there are endless possibilities when sustainable practices are deeply entrenched at the core of every operation.
Finally, the attitude must be forward-looking whether in business or politics. Sustainability and inclusive growth are what we need —as a country, and as people. We either perish or survive. But when sustainability and inclusivity are integrated in our daily lives, we will always see the brighter side.
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Kent Marjun Primor serves as the market research and communications specialist at the Nordic Business Council of the Philippines. For comments and inquiries, please direct it to kent.primor@nbcp.com.ph. For more information about the Swedish Institute Management Programme-Asia, go to www.si.se/simpasia.
1 comment
Diversifying business through implementing comprehensive sustainability measures will not only help the single business but it will do good for all in a whole. All small and big business now have understand that with small changes they can achieve their goals faster without affecting the environment with the help of sustainable practices. Food and drink industry having a large engagement in terms of business and thus they are thinking in the right direction.