The Board of Investments (BOI) is drafting a program that will grant incentives to companies that will adopt inclusive business models in their respective operations, Senator Bam Aquino said on Monday.
“The BOI launched its intention to make ‘inclusive business’ a part of its criteria (in granting) incentives. (The agency) hasn’t come out with the guidelines yet but we are hoping it can do it soon. Once the guidelines that will allow businesses to avail themselves of incentives for working with poor communities are out, can you imagine how much value and the type of value we can unlock?” Aquino said at the Makati Business Club general membership meeting Monday.
By engaging in inclusive business models, huge companies will have to work with poor communities and they will be rewarded with incentives for helping the country achieve its inclusive growth goal.
“As far as I know, Nestle has already applied for this with their work with coffee farmers. Jollibee has not yet applied but I can’t imagine why it wouldn’t. Phinma has been working with PBSP (Philippine Business for Social Progress) to develop such types of (inclusive business) work,” Aquino said.
The lawmaker stressed the necessity of engaging in inclusive business models to address the gap between high economic growth and rising unemployment, underemployment and poverty rates.
The BOI earlier said it was looking at granting non-fiscal incentives for companies that would engage in inclusive business models.
Trade Undersecretary Adrian S. Cristobal Jr. said the additional perks being considered were more on the trade facilitation aspect of doing business. The agency is still studying the other potential perks that may be provided down the line.
For now, the BOI is preparing the groundwork for the Asian Development Bank’s proposed $250-million job creation loan, which will build on the proposed inclusive business accreditation of the trade agency. The said loan may be open to industries or companies whose core activities will help address the problems of the poor and low income people through job creation, better incomes and the offering of affordable and relevant services to improve their living standards.