Merits of ‘inclusive business’ cited

INCLUSIVE growth can be achieved if economic expansion is kept at the same pace in the next 10 years. However, the private sector can push this faster if it practices “inclusive business,” a government official said.

“We see inclusive growth happening especially if economic growth continues its pace at 6% to 7% over the next 10 years. But it can be faster if there are businesses that seek to hit all sectors of society,” said Socioeconomic Planning Secretary Arsenio M. Balisacan during a forum organized by the Philippine Business for Social Progress in Makati City yesterday.

Firms are encouraged to practice “inclusive business” or business practices that take into account the needs of all the sectors — from the A to the E market.

Businessmen said “inclusive business” will work because it expands the market base and even cut costs through partnerships with some sectors like agriculture.

“It is best for businesses to see reason in going towards a more inclusive model. There is already the right policy environment and encouragement from the government but it should be part and parcel of businesses and not just a donation mentality,” said Philippine Long Distance Telephone Co. (PLDT) Chairman Manuel V. Pangilinan.

He added that when PLDT began to move from a legacy landline business to one based on mobile phones and broadband, it had to rethink its pricing model and consequently became a more inclusive business because it expanded its markets.

Stakeholders however have to work together to achieve good results, said Nestle Philippines, Inc. President and Chief Executive John Martin Miller.

He cited Nestle’s partnership with the Agriculture department in developing programs for coffee farmers, who are tapped for the company’s coffee supply.

Asian Social Enterprise Incubator Executive Director Markus Dietrich pointed out how inclusive business is still in its nascent stages in the country.

“It is still something that is new and there are still challenges. There is a need to set up financing for businesses,” said Mr. Dietrich.

He added the government should think about providing financing to businesses.

Trade Secretary Gregory L. Domingo for his part said the government is ready to help businesses willing to become more inclusive and has in fact come up with policies that set high priority to sectors like agriculture that bring development to rural areas. — Emilia Narni J. David, Businessworld