T.R.A.F.F.I.C.

“Sophia, his most famous humanoid creation, is the only robot in the world that has actually been granted a citizenship by a country, Saudi Arabia.

T.R.A.F.F.I.C.!!! No folks, I don’t mean the variety that elevates your stress levels sky high while in your car in the middle of EDSA because other standstill cars have practically converted that highway into a parking lot. Am referring to a conference, CGCON 2020, that the Institute of Corporate Directors (ICD), in partnership with the country’s first motorcycle-hailing app platform Angkas, is organizing to instill Transparency, Responsibility, Accountability, Fairness, Foresight, Innovation, Culture, or T.R.A.F.F.I.C. for short, as a business mindset for companies in order to achieve sustainability.

These are a lot of buzz words. So, for the benefit of those who are not too familiar with all these, allow me to briefly explain.

First off, ICD is a non-profit organization established to professionalize corporate directorships in the country by raising the level of corporate governance policy and practice to world class standards. Sustainability, on the other hand, in the context of today’s high-pitched alarm bells for the world’s ecological survival and the desire to maintain for tomorrow how we live today, essentially is for publicly listed corporations– in other words the big boys of the corporate world– to take the long view and not just be focused on the next quarter’s earnings.

There are three pillars to the quest for sustainability which are centered on economic development, environmental protection and social development concerns. These pillars are interconnected with each other. Very simply, economic development for the upliftment of society cannot be blindly pursued without regard to the impact on the environment and its effects on the community.

Some examples to illustrate what I mean. A mining company in pursuit of higher profits cannot mindlessly quarry the minerals of the earth with total disregard to the environmental impact of its operations and the risks such as flooding that may be inflicted on the neighboring villages. Or for a more succinct and appropriate example, of what good to a city and the people is a brand new highway when it is perennially choked to a standstill with pollutant belching vehicles?

And how does good corporate governance, the mantra of ICD, come in to all these? Well, it’s the big boys, the corporates, who can make sustainability a reality. And aha!, it is of course the board of directors who govern these corporations who need to be reminded of their responsibility to ensure sustainability. Then you might wonder why would the corporates be so philanthropic? Easy, the reality is, the boards do not have much choice because our enlightened government corporate watchdog, meaning the Securities and Exchange Commission, has now made public reporting of the corporates’ compliance with best practice sustainability programs mandatory.

Ok, let’s go back to CGCON 2020. This conference will focus on essentially the impact of the Fourth Industrial Revolution (FIRe) and the Internet of Things (IoT) on corporate governance. Again some clarifications on the concepts for the uninitiated, like yours truly.

FIRe is a concept introduced by Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, that propounds the view that the world is on the verge of exploding with technological breakthroughs that will change how we humans live. The IoT on the other hand is the manifestation of FIRe. Let me quote a technical definition of IoT, “… a system of interrelated computing devices, mechanical and digital machines… with the ability to transfer data without requiring human-to-human or human-to-computer interaction.” Actually, we are already living in the world of IoT.

To understand this more clearly, here are some examples. Who still bothers to watch TV or go to the movie theaters when we have a 24/7 ability to watch, at our own convenience, streamed movies on Netflix customized to our interests? Or if you have Fitbit, you know that it will actually help you track a host of things about your health, like how many steps you took or your heartbeat when you are at rest or how many hours of sleep you average. And how about Waze which helps us maneuver our cars adroitly through the jam-packed streets of Metro Manila?

Now what impact does this have on corporate governance? A lot. Data privacy for one thing. How will a board tackle this issue? Artificial intelligence, for another. How will the board handle the impact on the possible displacement of its employees? Or a hot-button topic, cybersecurity. How will the board manage the attendant data breach risks? These are just examples of what are expected to be covered during the CGCON 2020. But what really makes the conference even more interesting is that ICD has invited Dr. David Hanson to be one of its keynote speakers. Dr. Hanson, for those not familiar with his reputation, is a renowned roboticist who created human-looking robots who have realistic facial expressions which mimic human emotions. Sophia, his most famous humanoid creation, is the only robot in the world that has actually been granted a citizenship by a country, Saudi Arabia. He has also predicted that in the future, humanoids will actually be able to feel the same emotions of human beings, wow!

Finally, why did ICD partner with Angkas for CGCON 2020? Let me end this article by quoting ICD president Fred Pascual, as to why Angkas and why Dr. Hanson as a keynote speaker,

“ Given the worsening traffic… Angkas is an immediate solution… a company that utilizes technology… has changed the way Filipinos think about inclusive mobility… AI (artificial intelligence) has a big potential to impact business processes… we have asked Dr. Hanson to share with us on the challenges posed by AI… how AI might change the dynamics of the board and the exercise of governance… how ethical considerations could affect decisions to adopt AI-driven changes.”

Wow! I am really looking forward to this exciting conference. Join us!