Gov’t mulls over perks for firms adopting inclusive business policies
The Board of Investments (BOI) is aggressively promoting the adoption of an inclusive business model among Philippine companies by integrating this same concept in government policies.
The inclusive business strategy, which encourages registered enterprises to adopt a model that provides low-income segment of the society with decent work opportunities within the company’s supply or value chain, has been included in the BOI’s 2014-2016 Investment Priorities Plan.
More specifically, inclusive businesses are those that engage the poor and low-income communities as partners, customers, suppliers, and employees in their operations not out of charity, but because it makes good business sense. The integration of these communities into global value chains improves quality of lives and makes for better business with diversified supply and distribution systems.
To help boost the adoption of such models, the BOI is currently holding discussions on setting up an accreditation system. An accredited company practicing an inclusive business strategy may be able to secure certain incentives from the government.
Next week, the BOI will be holding a forum entitled “Mainstreaming IB in Government Policies” to get the insights and recommendations of stakeholders and the public regarding the inclusion of this type of strategy in public policy. The said forum will bring together representatives from the industry, other government agencies, and the regional offices that have direct link with host communities.
Such insights and recommendations are important in crafting policies that will further enable local industries and sectors to be globally competitive while ensuring they can strike a balance between being profitable and taking into account social good by involving the host communities in their value chains.
Inclusive business models help address different challenges in developing countries such as the Philippines, where poverty remains a problem. In the Asia-Pacific region, more than 700 million people live below the $1.25 per day poverty line, a group collectively called the base of the pyramid. Inclusive business models transform the base of the pyramid into a new market for goods and services, as well as a resource pool of talent, skilled labor, and entrepreneurs. This relationship strengthens value chains and ensures the sustainability of businesses and their host communities. Amy R. Remo
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