BoI, UNDP to study inclusive business plans
THE Board of Investments ( BoI) has partnered with the United Nations Development Programme ( UNDP) to conduct a survey analyzing the inclusiveness in the private sector’s business operations.
In a statement, BoI said that both agencies entered into a memorandum of understanding for the baseline survey which was developed by the UNDP Istanbul International Center for Private Sector in Development (IICPSD).
Dr. Ceferino S. Rodolfo, who recently served as Trade Undersecretary and whose retention in the position is not yet confirmed, cited the importance of the planned study, known as Business + Philippines, in light of the department’s goal of promoting inclusive business models.
“Inclusive Business (IB) models allow companies to engage poor and low- income communities as partners, customers, suppliers, and employees in their supply chains. In our experience, these models result in spreading the benefits of growth to the poor and we aim to promote them among BoI registered firms,” he said in a statement.
BoI said it held a core team meeting on Aug. 8, with representatives from UNDP IICPSD, UNDP Philippines, Philippine Business for Social Progress, and the Office of Senator Paolo Benigno A. Aquino IV to flesh out the details of the planned survey.
Inclusive business models aim to alleviate poverty by including members of the lower socioeconomic classes into the value chain.
BoI cited a number of successful models in the Philippines, such as Kennemer Foods International, Inc. whose Cacao Growership Program saw small-holder farmers experience a seven-fold increase in annual income from P25,000 to P175,000 as they supplied cacao beans to the company.
It also noted the work of Manila Water Company, Inc., whose sustainability program called Tubig Para Sa Barangay ( Water for the Poor) lowered the cost of clean potable water for low-income residents in Manila from P150 to P7.
“Recognizing the power of IBs in achieving inclusive growth, the BoI is now promoting these models and encouraging more companies to adopt IB models or develop IB solutions,” the statement read, adding that BoI is considering to have industry incentive systems prioritizing companies that have integrated the IB model into their businesses. —