BOI: Develop CSR programs to inclusive business models

Turning corporate social responsibility (CSR) programs into inclusive business models?

That is the idea the Board of Investments wants businesses to adopt as it presses on the need to spur sustainable development.

Inclusive business is one of the priority sectors identified in BOI's 2017-2019 Investment Priorities Plan (IPP).

“CSR has been a traditional response by the private sector to the plight of the poor. By switching from CSR to inclusive business, entrepreneurs can help the poor in a way that generates both business growth and creates social impact,” said BOI managing head Ceferino Rodolfo.

The BOI reiterated the private sector has an essential role in ending all forms of poverty.

While CSR programs tend to be an add-on activity without the intent of generating profit, inclusive business models help companies create a more sustainable way of helping communities: by building on their capacities as suppliers and business partners, which give them stable sources of livelihood.

“The Philippines’ economy has seen strong and steady growth over the past years, but there are around 22 million Filipinos continue to live in poverty. There is a great opportunity for businesses to tap into this market by addressing their needs or providing livelihood opportunities for them,” Rodolfo added.

Citing the results of Business+, a joint study with the United Nations Development Programme’s (UNDP) Istanbul International Center for Private Sector in Development (IICPSD), the BOI highlights that companies can create their inclusive business models regardless of size.

The micro, small, and medium enterprises (MSMEs), which make up 99.57 percent of Philippine establishments, have the greater flexibility to adopt inclusive business models. On the other hand, inclusive business models in large companies can take advantage of their reach to deliver a wider scale of impact.

A conducive regulatory environment is essential for inclusive business models to flourish.

The BOI has already introduced incentives for companies who implement their own inclusive businesses.

Under the IPP, medium and large enterprises in tourism and agribusiness that incorporate micro and small enterprises in their value chain may receive five-year income tax holidays.

While the government is only giving out incentives to inclusive business in the tourism and agribusiness sectors, replicable models exist in other industries such as health, finance and energy.

S. Lorenciana