Institute for Solidarity in Asia (ISA)Atty. Alex Lacson, Institute for Solidarity in Asia (ISA) president and chief executive officer, invited good governance advocates to support the organization’s initiative to roll out its Performance Governance System (PGS) to more local government units (LGUs) and national government agencies (NGAs).
Speaking before members of the Institute of Corporate Directors on August 11, Lacson said the country’s growth would trickle down to its 52 million poor if the PGS were in place to institutionalize transparency and accountability for leaders.
“The PGS strengthens public institutions by making them effective and inclusive. Despite the economy growing continuously for the last six years, weak governance in LGUs is among the factors that keep the country’s poor, poor. About 12 million Filipinos are without jobs,” Lacson said.
Lacson said leaders must get rid of the kanya-kanya (individualistic) mentality in order for more people to benefit from economic growth. A study by Credit Suisse Global Wealth Watch in 2014 found that the richest 1% of Filipinos owns and controls almost 50% of the country’s wealth and resources.
“The combined wealth of the six wealthiest families was more than our country’s national budget for 2014. Sixty percent of our country’s GDP (gross domestic product) in the past 10 years benefited largely the companies of the richest 1%,” he said, citing articles written by economist Cielito Habito, former director-general of the National Economic Development Authority.
Lacson challenged corporations to consider what is done in France, where the compensation of the highest paid executive is not more than 10 times the compensation of the lowest paid employee.
“In Germany, the highest salary paid out by corporations is not more than 20 times the salary of the lowest paid employee,” he said, giving it as an example of how to make economic or corporate success more inclusive.
In the last 11 years, ISA has helped 52 LGUs and 56 NGAs establish the PGS and measure impact to relevant stakeholders.
For a cost of P600,000 to P800,000 a year for three years, a corporation can adopt an LGU where ISA will institute the PGS toward sustainable, inclusive growth. ISA also offers “employees values enrichment” courses which cover personal governance, family governance, work/business governance and good citizenship. Visit isacenter. org for more information. (Story/Photos by: Carla P. Sison)