Philippines trails regional peers in UNCTAD’s Inclusive Growth Index

The Philippines was among the laggards in the East and Southeast Asian region after it scored 34.3 out of 100 in the latest edition of the Inclusive Growth Index (IGI), released by the United Nations Conference on Trade and Development (UNCTAD). Using 2023 data, the index assesses an economy’s well-being and inclusivity through its gross domestic product (GDP) with other data on living conditions, equality, and environmental sustainability.

Source: Business World

Sari-sari stores become hubs for women empowerment

Sari-sari stores are becoming hubs for cultivating psychological, social and economic empowerment among Filipina entrepreneurs, according to a study by startup Packworks in collaboration with the Philippine Institute for Development Studies (PIDS).

Findings of the PIDS- published study entitled “Gender, Microentrepreneurship, Human Flourishing: Exploring the Experiences of Women Sari-sari Store Owners toward Inclusive Growth” showed that sari-sari stores are not just a primary source of daily essentials but have also become a vital source of empowerment among women entrepreneurs.

“The results of the study suggest that women, through their ownership of sari-sari stores, are able to achieve individual well-being while also extending it to their own communities,” the study said.

“Thus, this study offered a nuanced perspective on the significance of sari-sari stores, not only to the economic development of communities, but the individual and social well-being of its women owners,” it added.

The study highlighted that women sari-sari store owners take pride in being considered entrepreneurs and business owners, which provides them a sense of independence, confidence, and fulfillment from managing their micro-retail businesses.

In addition, participants in the study also expressed that managing and operating sari-sari stores gives them a deeper sense of purpose and meaning in their lives.

“I can buy things for myself, my kid and my family now. I am not just a housewife anymore,” one participant in the study said. “Because of my store, I am now busy with other things apart from taking care of my family. I feel more fulfilled.”

The PIDS-published study also demonstrates that women store owners achieve social empowerment by earning higher social status. This is notably observed in their customers addressing them with terms of respect like ‘ma’am’ or ‘boss,’ a cultural marker of their elevated position within the community.

Moreover, women sari-sari store owners who exhibited characteristics of a transformational leader or qualities such as strong empathy, care, and collaboration with the community reported high levels of well-being, empowerment, optimism, and resilience.

“By becoming more independent and confident, women store owners were able to take on important roles within their communities,” Packworks said.

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Source: Philstar

The need for gender equality in corporate boards

Since March is Women's Month, it's timely to talk about gender equality and women representation in corporate boards.

Gender equality is one of the sustainability goals of the United Nations. Ending all discrimination against women is not only a basic human right, but a necessary foundation for a peaceful, prosperous and sustainable world. It is proven that empowering women helps economic growth and development (United Nations Development Program, Goal 5, available at https://www.undp.org/sustainable-development-goals/gender-equality).

There is also a push for general equality or diversity in corporate boards. Under the Revised Corporation Code, the board of directors shall exercise the corporate powers, conduct all business and control all properties of the corporation.

The Organization for Economic Cooperation and Development has recognized that the ability of the board to ensure strategic guidance of the company depends, in part, on its composition, which should include directors with the right mix of background and competencies. There is research that suggests that gender diversity on boards has positive spillover effects on board dynamics and governance

In a diversity tracker or study conducted by Egon Zehnder in 2024, it was reported that 96 percent of corporate boards have a least one woman director, and on average, women accounted for 34.9 percent of new board appointments in 2024. The study found that despite more women joining boards globally, setbacks in new board appointments and slower advancement to leadership roles highlight the need for more intentional board succession planning (The Progress of Board Diversity: Slow Advancement Amid Waves of Change, available at https://www.egonzehnder.com/global-board-diversity-tracker).

A study conducted by the Philippine Women's Economic Network showed that women comprise only 17 percent of directors in Philippine publicly listed companies or PLCs.

Gender parity

According to the World Economic Forum, gender parity in the workforce can be advanced through both formal measures like quotas and policies, as well as through informal factors such as professional networks.

Norway, Spain, France and Iceland have laws requiring that women comprise at least 40 percent of boards in publicly listed companies. Six countries require between 20 and 35 percent, and four countries — India, Israel, Korea and Malaysia — require "at least one" female director. Malaysia is the first Southeast Asian country to impose a one-female director quota.

It is still debatable if a quota will be good for the Philippines, which has historically been in the top 10 of the World Economic Forum Global Gender Gap Report until 2018. But we slid to No. 25 in 2024, dropping nine slots from its 16th place 2023 ranking. (It was said the slide was due to losses in economic parity and a reduction in the share of women ministers).

Other than quota, LinkedIn data suggests that gender gaps in online professional networks lead to men typically having larger networks and stronger networks than women. Stronger networks are associated with increased probability of career progression and receive more recruiter outreach.

However, one silver lining is that women have more "weak" ties, which have been linked to better career outcomes (Global Gender Gap Report 2024, Insight Report, June 2024, available at https://www.weforum.org/publications/global-gender-gap-report-2024/digest/).

It is thus important that women corporate directors be in strong networks worldwide, including the Philippines.

Here at home, NextGen Organization of Women Corporate Director (NOWCD) is pushing for more women directors in Philippine PLCs and boards. NOWCD is an organization of women directors in the boards of highly esteemed and reputable publicly listed companies or companies vested with public interest. It is the Philippine affiliate of Women Corporate Directors, the world's largest community of women corporate board of directors.

From its inception in 2021, NOWCD has made its mission to develop highly qualified women directors to become drivers of visionary and effective boards. Its goal is to help increase the representation of women in leadership positions of public and private company boards in the Philippines. The organization believes that diversity is key to bringing about balance and success to the future of any corporation.

The Institute of Corporate Directors provides directors with multifaceted learning forums to advance their governance knowledge and build the necessary skills to enhance their contributions in the boardroom.

Source: Business World