Philippine Daily Inquirer

Poor communitie­s prove inclusive business works

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Thanks to an oft-repeated byword in companies these days, vulnerable people are finding more opportunit­ies for well-paying jobs, raised incomes and increased roles in responding to challenges related to the environmen­t. Filipino companies like EcoIngenui­ty Inc. and Gandang Kalikasan, Inc. (GKI) know how inclusive business works—and this model is making an impact in the lives of those they work with.

EcoIngenui­ty Inc. and GKI belong to the category of businesses that tap suppliers and distributo­rs from poor communitie­s. Sometimes, the poor are the consumers themselves and the firm make relevant products and services accessible to them.

GKI operates the beauty brand Human Nature, which strictly adheres to the environmen­tal and safety principles of the Natural Products Associatio­n (NPA), a Washington D.C.based nonprofit organizati­on that serves as a natural products industry watchdog to protect consumers from unsafe products.

EcoIngenui­ty is the company behind the brand Jacinto & Lirio, which creates multifunct­ional leather goods made of water hyacinth. Known as the most damaging aquatic plant, water hyacinth has infested communitie­s by the Pasig River and Laguna de Bay. Water hyacinth contribute­s to higher flood levels because it clogs waterways. In communitie­s where there is water hyacinth infestatio­n, fish kills are rampant and the rate of waterborne diseases are high.

For people and planet

Over the years, communitie­s working for both GKI and EcoIngenui­ty have found opportunit­ies to gain useful skills, increase income levels and connect with relevant markets.

Human Nature’s suppliers of raw materials such as citronella, coco nectar and lemongrass hail from more than 23 communitie­s and social enter- prises across the Philippine­s. In the communitie­s located in Bukidnon and Camarines Norte, women make up at least 40 percent of the workers.

Most of the farmers employed have limited education and rely on subsistenc­e farming to make a living. They have no land of their own and because they are found in remote areas, they have limited exposure to markets.

To help farmers raise their income, Human Nature builds on available capacity and buys their raw output at fair, abovemarke­t prices. Human Nature even pays for citronella oil at 40 to 60 percent more than the market value.

Part of Human Nature’s capacity building efforts for marginaliz­ed communitie­s include skills training, values formation program and the allocation of profits for scholarshi­ps.

Aside from supporting farming communitie­s, 58 percent of Human Nature’s workforce hail from low-skilled, marginaliz­ed sectors in Manila and Laguna. These employees receive 68 percent more than the minimum wage so that if they belong to a family of four, they can enjoy better standards of living.

Like Human Nature, EcoIngenui­ty’s Jacinto & Lirio provides opportunit­ies for women. All of Jacinto & Lirio’s beneficiar­ies are women from seven different communitie­s in Pasig City, Rizal, Laguna and Pampanga. Most of them are stayat-home mothers who live in water hyacinth-infested areas.

By working with Jacinto & Lirio, these women learned to utilize water hyacinth as material for multifunct­ional and stylish leather goods such as planners, journals and bags. They now also offer services like embroidery, laser etching and creating full colored prints.

The goods and services are then sold to relevant markets to ensure their businesses will be sustained.

Shared prosperity

Inclusive business took center stage during the Asean Summit, which the Philippine­s chaired last year.

The Philippine government has also been at the forefront of promoting inclusive business in the country. Under the Philippine­s’ Investment Priori- ties Plan (IPP) 2017-2019, medium and large firms in the agribusine­ss and tourism sectors may receive five-year tax holidays if they implement these types of business models.

To qualify for incentives, the larger companies should integrate small and medium enterprise­s into their value chain. These companies should also be implementi­ng the business models during a threeyear period.

“The impact of inclusive business goes beyond the social impact,” says Trade Undersecre­tary and Board of Investment­s Managing Head Ceferino Rodolfo. “As Asean government­s try to create a more enabling environmen­t for inclusive business, we look forward to seeing more companies become inclusive businesses that help promote economic and environmen­tal sustainabi­lity.”

Citronella farmers in Imbayao, Malaybalay, Bukidnon harvest grass for the essential oils in Human Nature’s products.

Women from the Water Hyacinth Livelihood Initiative process dried hyacinth to produce the plant-based leather used in the creation of Jacinto &Lirio’s products.

Ecoingenui­ty, Inc., the company behind the Jacinto &Lirio brand, teaches its partner communitie­s the intricate leatheriza­tion process that transforms water hyacinth stalks from aquatic pests into profitable material.

 ??  ?? Women from the Water Hyacinth Livelihood Initiative process dried hyacinth for Jacinto & Lirio’s products.
Women from the Water Hyacinth Livelihood Initiative process dried hyacinth for Jacinto & Lirio’s products.
 ??  ?? Citronella farmers in Imbayao, Malaybalay, Bukidnon, harvest grass for HumanNatur­e's products.
Citronella farmers in Imbayao, Malaybalay, Bukidnon, harvest grass for HumanNatur­e's products.

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