Millennials are the ‘missing voice in the boardroom,’ says expert
By Krista A.M. Montealegre,
National Correspondent
THE next generation of leaders in some of the country’s biggest conglomerates are taking corporate governance seriously, as businesses take on unconventional threats in the digital age.
During the fourth Securities Exchange Commission-Philippine Stock Exchange Corporate Governance Forum in Pasay City on Wednesday, De La Salle University Prof. Benito L. Teehankee said millennials are the “missing voice in the boardroom” that will help businesses understand a generation reshaping consumer preferences and disrupting business models.
Apart from this, a millennial perspective can help companies become more transparent and accountable, adopt an inclusive business model and implement sustainable and environment-friendly practices, Mr. Teehankee said.
“The idea of governance and transparency is more innate in millennials than anyone else because of the natural access to flow of information,” said Mariana Zobel-Aboitiz, general manager of Ayala Malls The 30th and eldest daughter of Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala.
Being with the country’s oldest conglomerate, Ms. Zobel-Aboitiz said she is aware of how corporate governance has played a critical role in “driving consistency and continuity in what we do and our values.”
“Our President and Chief Operating Officer Fernando Zobel de Ayala said it best that earning the Filipinos’ trust has been central to the success of the company for so many years. These internal and external checks that are driven by prioritizing corporate governance has allowed us to build our relationship with the Filipino consumer,” she said.
Danel C. Aboitiz, president of Aboitiz Power Corp.’s oil business unit and son of businessman Endika Aboitiz, stressed the importance of operating with a social license and cooperating with stakeholders because of the growing interdependence between companies and societies.
Poverty alleviation and addressing inequality will be the greatest challenge of millennials, Solar Philippines President Leandro L. Leviste said, noting that the Internet has increased this generation’s awareness of pressing global issues.
Hans T. Sy, Jr., vice-president of SM Engineering, Design and Development, said millennials have adapted to two decades of technological advancements, citing how he was taught to write a letter, use a telephone, send e-mails and use instant messaging applications like Viber.
“We are fully capable of handling all these potential uncertainties and challenges because God knows we were dealt these uncertainties and challenges growing up,” Mr. Sy, grandson of tycoon Henry Sy, Sr., said.
CYBERSECURITY
Corporate boardrooms are urged to embrace a proactive role in establishing a cybersecurity policy against a backdrop of a rapidly evolving risk landscape for businesses.
Federal Bureau of Investigation Supervisory Special Agent Joshua T. Farlow estimated the global cost of cybercrime will “get remarkably worse” to anywhere between $3 trillion and $6 trillion by 2021.
“It’s not a question if your systems can be hacked or not. It’s a question of what will you do when the attack happens,” said Jonathan Gerard A. Gurango, independent director at Xurpas, Inc.
For Isabel Pastor, head of enforcement and cooperation at the International Organization of Securities Commissions (IOSCO) — the agency that develops and promotes standards for securities regulation — a weak domestic financial system is a systemic threat to both domestic and global stability.
Ms. Pastor said the Philippines is among the 28 non-signatories to the Multilateral Memorandum of Understanding Concerning Constitution and Cooperation and the Exchange of Information (MMOU), which facilitates the integration of securities markets.
The SEC is pushing for the amendment of the Securities Regulation Code (SRC) to gain access to every document or record in investigations relating to securities, among others.
“This information, we might get through the Anti-Money Laundering Council, but under IOSCO, this power should be a power possessed by the securities regulator. The layering is not acceptable to IOSCO,” SEC Commissioner Emilio B. Aquino said.
SEC Chairperson Teresita J. Herbosa said the agency has received the approval of IOSCO on the compliance of the proposed SRC amendments to MMOU requirements, and the bill has gained support from Congress.
Industry stakeholders backed the amendment of the six-decade-old Bank Secrecy Law, which negatively promotes the Philippines as a haven for money laundering and tax evasion.
“We really look for market stability and transparency, and the improvement in the Bank Secrecy Law is a step towards greater financial market stability,” First Metro Asset Management, Inc. President Augusto M. Cosio, Jr.
