Transformative change for inclusive growth

We live in highly interesting and challenging times. On one hand, we have global economies still trying to recover from a downturn that started back in 2008 with the global financial crisis. Concerns around the economies of the eurozone as well as the US continue to be front and center in many perception surveys conducted by various agencies around the world.

This has prompted a label that we now live in a “VUCA world”—volatile, uncertain, complex and ambiguous.

On the other hand, against this backdrop, the Philippines is today one of the few bright spots in the global economy. Our relatively young and growing workforce, the increasing demand for talent to drive the business process outsourcing and hospitality sectors and the rapid urbanization of major population districts around the country within a milieu of greater trust in government have fueled an economic renaissance in some of our major cities. These, however, are still few and far between as these benefits have not really taken root in a broader base of the populace.

Unfortunately, our aspirations for true sustainable economic growth and prosperity will remain elusive unless we address many long-entrenched problems that have remained unattended, especially those that continue to threaten the sustainability of our environment, perpetuate the vicious cycle of poverty, and weaken governance in public and private institutions.

It is for this reason that the MAP CEO International Conference Committee has selected the theme: “Transformative Change: The Imperative of Inclusive Growth.” Businesses today are increasingly expected to take a broader and more expansive role in society. The private sector is regarded, now more than ever, as having an implicit social contract to help address development and social issues.

Private enterprise cannot operate in a vacuum and it is in their practical and strategic interest to ensure the prosperity and development of the markets it serves. Building trust and relevance is the new imperative.

Corporate social responsibility (CSR) programs have been the response of private enterprise. However, while these programs are important, they have natural limitations with funding, human resource, and infrastructure constraints that impede these programs from reaching the scale and impact necessary to deliver more permanent and lasting solutions to the serious problems we have at hand. Making a transformative change requires resources well beyond what is available now from nongovernment institutions, international aid or charities.

It is in this context that we believe the pursuit of inclusive growth is the key. It is where private businesses become the agents to have a positive, lasting impact on social development issues. But for businesses to engage “beyond CSR,” it is critical to have a more imaginative, viable model that takes off from a platform where social issues are integrated into and are made central, rather than adjacent, to business strategy. This is increasingly becoming an imperative proposition as the private sector seeks to build a larger measure of trust with the communities and constituents it serves. It is all about “creating shared value,” as referred to by Michael Porter in a recent article in the Harvard Business Review.

Better commercial solutions to meet the needs of all sectors, especially those of low-income customers, have the potential of creating social and economic value for their households and communities.

We are excited to bring to the 10th Management Association of the Philippines International CEO Conference 2012 an impressive panel of speakers and moderators who will give us insights into what has been done and what can be done so that we, in turn, can figure out what we can do to help generate truly inclusive growth in our country.

We invite you to come and join in the more in-depth discussion of Transformative Change: The Imperative of Inclusive Growth at the MAP Conference to be held on September 11, from 8 a.m. to 5:30 p.m., at the Rizal Ballroom of the Makati Shangri-La.

The sessions will feature presentations such as Building Bridges for Transformation through Education; Capitalizing on Imperative Change: A Top Priority of Business Leaders; Tourism: Building the Momentum for Inclusive Growth; Branding Value and Valuing the Brand; Transformative Change: The Courage to Lead, The Courage to be Led; and Innovation as a Catalyst for Transformation and Inclusive Growth. The keynote speaker will be Dr. Jesus Estanislao, chair of the Institute for Solidarity in Asia and the Institute of Corporate Directors.

For reservations or inquiries, please visit www.mapceoconference.ph or contact the MAP Secretariat via 7511149 to 52, [email protected] or [email protected].

(The author is chairman of the MAP CEO Conference Committee and managing director of Ayala Corp. Feedback at [email protected]. For previous articles, visit map.org.ph.)