Business Sector Response to UN Human Development Report
Delivered by Rafael C. Lopa, Executive Director, PBSP
The Philippine Launch and Press Conference of the 2014 Human Development Report
Crowne Plaza, Ortigas, Quezon City
August 20, 2014
Highlighting the vulnerability of recorded gains in human development all over the world definitely hits home here in the Philippines.
In a few months, we will mark the anniversary of three major disasters that hit our country in 2013. These are the man-made disasters of the Zamboanga siege, the earthquake in Bohol, and of course, Typhoon Yolanda or Haiyan. All of these happened as the country was still in the process of bouncing back from the devastation brought about by Typhoon Pablo in Davao Oriental and Compostela Valley in 2012, Typhoon Sendong in Cagayan de Oro City and Iligan City in 2011, and Ondoy in 2009.
And the common sight of damaged infrastructure, displaced families, disrupted schools and health delivery services, and the more tragic loss of lives have truly led the country to the shared conclusion that climate change has evolved into the “New Normal” that we can no longer ignore.
And when these natural calamities are aggravated by the man-made ones, caused by violent conflicts borne out of intolerant political, ideological or criminal motives, a similar scenario of human misery and vulnerability unfolds. Hence, bouncing back to normalcy becomes a very steep uphill climb.
Business Response
Each time these disasters hit our country, companies have responded proactively by providing emergency relief and early recovery initiatives which include the provision of relief goods for evacuees, transition living and learning spaces, health facilities, medicines and services, and livelihood projects. These are all made possible through the allocation of funds from their philanthropic budget which they annually earmark.
We have also seen companies who provide access to some of their assets which are critical in the delivery of such services (i.e. trucking, planes, choppers, shipping, and logistics services).
But we are all aware that emergency relief and transitory measures can only go so far. Our ability to bounce back faster and better can only happen if we are actually able to put in place more institutionalized mitigating measures that can cushion the adverse impact of any calamity that comes our way.
Towards this end we therefore ask ourselves what more can companies do to make our country more resilient? Through its 100 Resilient Cities advocacy, The Rockefeller Foundation defines resiliency as…
“the capacity of individuals, communities, institutions, businesses and systems within a city to survive, adapt, and grow no matter what kinds of chronic stresses and acute shocks they experience .”
Simply put, resilience enables people to bounce back stronger after tough times, and live better in good times…
Building resiliency, therefore, demands that companies go beyond their philanthropic giving, and actually find ways and means to harness their core business strategies in finding the appropriate solutions to the problems at hand.
This imperative is, in fact, already in the mind of many CEOs here in the Philippines.
To be sure, companies are already putting together business continuity plans in anticipation of any disaster that may strike. While on face value, it may appear self-serving, the importance of business continuity not only protects the financial bottom-line but also the jobs of many people that are at risk if companies are unable to bounce back and continue doing business. Business continuity also takes into consideration the ability of companies to revive their supply chains which again touch many lives along the way.
Beyond the ability of businesses to bounce back to secure jobs and the delivery of their basic goods and services that are needed daily by our people, we also see companies looking at investments in major infrastructure projects that already factor the “New Normal” scenario. (The BGC story and the need to study our electrical, telecom transmission and distribution channels).
Recently, the business sector has also been invited by the government to bid for PPP (public-private partnership) projects that serve as disaster mitigation measures. Among these are the expansion of the Angat Dam in Bulacan to ensure appropriate water supply in times of possible drought; the Laguna Lakeshore Expressway Dike which is envisioned to provide a high standard highway-cum-dike to reduce traffic congestion and mitigate flooding in the west coastline communities along the Laguna lake, which stretches from Bicutan, Taguig in Metro Manila up to Calamba and Los Banos in Laguna.
But aside from these direct investments in mitigation measures, I believe companies must aggressively innovate towards more inclusive business models that will ensure that majority of our people who remain most vulnerable due to poverty truly benefit from the economic growth of our country. Our friends in ADB define Inclusive Business as a core business activity that incorporates the poor within the company‘s value chain as suppliers, consumers, distributors and/or employees in such a way that it creates shared value.
In the end, the role of companies in addressing the vulnerability issues of many of our countrymen has to be really in the core of their business strategy.
Again, there are already initiatives underway that look into developing these models. To date, we in PBSP are engaged in three agri-business companies in Mindanao that integrate their supply chains with small farmers.
PBSP has also worked closely with Phinma for socialized housing.
Through grants, PBSP has tied up with insurance companies and HMOs in developing a health insurance system for the base of the pyramid to complement their PhilHealth benefits.
In the coming year, we are looking into how companies can directly interface with the public high schools in the development of Grade 11 and Grade 12 curriculum, and the voc-tech (vocational/technical) schools that could match the companies’ manpower needs to the training of the senior high school students for proper job matching.
Clearly, the most important role of the business sector in building more resilient societies is through their investments.
But as we all know, investment decisions are made in the context of more enabling environments which therefore underscore the importance of effective multi-stakeholder engagements. These include national and local governments, NGOs and POs, etc. We need to find better ways of engaging each other in a more proactive and deliberate manner to create these enabling environments by finding and playing our unique roles in making this happen.
Sustaining the gains of human development amid the threats of man-made and natural disasters is indeed the challenge in moving forward. Of course, we all know that this is easier said than done.
But really, we have no choice.
In my four years at Philippine Business for Social Progress, I have met several people who have struck me as much as, if not more than the work that we’ve been doing in the organization has touched their lives.
One of them was Dino Gaviola, a Grade 5 student who lost his school and home during Typhoon Sendong.
For several months, Dino neither had a secure roof over his head nor the sanctuary of a classroom to help him forget the trauma caused by the super typhoon.
Two years later (last July 2014), I attended the groundbreaking ceremonies of the construction of the two-storey, four classroom building in Iligan where Dino was assigned by the principal to deliver a few words of gratitude.
After reciting the first sentence of his prepared speech, he just broke down and could no longer continue.
As I saw the fear in his eyes, I could feel the horror that has not escaped him. And as I quietly sat beside him, I asked myself how many more Dinos are there in Cagayan de Oro, in Iligan, in Davao Oriental, in Compostella Valley, in Zamboanga, in Bohol, and in the Yolanda-devastated communities who continue to live with the trauma of their experience, and are reminded of the horrors again when another typhoon approaches?
We really have no choice.
We must embrace the complexity of this challenge and harness our collective genius in finding and establishing more lasting solutions