COMPANIES are encouraged to focus on responsible business conduct (RBC) to boost performance and ensure business continuity as the country transitions to the new normal.
“As we are slowly recovering from the major disruptions brought about by the pandemic, this is a great opportunity for enterprises to assess their systems, their processes, their risks and vulnerabilities during the crisis, reinforce broken supply chains, and become more resilient,” Employers Confederation of the Philippines RBC senior adviser and consultant Nenette Fernando said in a webinar.
Fernando said all businesses, regardless of size, industry ownership structure or location, among others, are expected to behave responsibly or ethically in the areas where they operate.
“What does it mean to behave responsibly? In general, companies have done this on their own. Others would look at it as compliance to social and labor laws of the land or doing no harm to the environment and within the community,” she said.
Fernando said stock price and long-term value of the enterprises would also increase as investors put a premium on companies that address their environmental, social and governance issues, which are seen as markers for long-term performance and risk management.
“Equally important is that it allows the company to improve its image, its reputation, not only among its employees but equally important to the bigger market if it wants to expand in the long run,” Fernando emphasized.
She added that RBC is also a “powerful driver” to integrate a company’s sustainable development goals in the core business and management practices and to effectively implement it, she underscored the role of the government in adopting and enforcing relevant laws and policies that promote, enable and support such business conduct.