Extraordinary Endeavors in Turbulent Times: Asian Innovation, Inclusion, and Impact during COVID-19

ASIA BUSINESS COUNCIL HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY Ayala Corp (Philippines) Extraordinary Endeavors in Turbulent Times Ayala Corp (Philippines) Recommitting to a Broad Stakeholder EcosystemDuring the Pandemic By Winnie Peng, Pauline Yeung, and Colleen Howe The following case study is based on interviews with Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala on July 29, 2020, and with Fred Ayala, CEO of AC Education; Maripi Jalandoni, Strategic Communications Advisor for Ayala Corp.; and Guillermo Luz, Chief Resilience Officer of the Philippine Disaster Resilience Foundation, on August 28, 2020. “We have always recognized the need to support nation- building, but during an unprecedented crisis like COVID-19, the desire to help becomes even more urgent and compelling,” said Jaime Augusto Zobel de Ayala (JAZA), 1 Chairman and CEO of leading Philippine conglomerate the Ayala Corp., recalling the day in April 2020 when he agreed to join a government-led task force to fight the COVID-19 pandemic. 2 By the end of the year, Ayala’s COVID-19 response would evolve into a ₱12.7 billion ($264 million) aid package to help the wider community even as the company’s own revenues fell. 3 Philippine society was severely challenged by the public health crisis and the resulting economic downturn. By April, there was already unrest over food shortages in Metro Manila and the pandemic was becoming a social and humanitarian disaster. While major corporations in the Philippines have traditionally supported the government response to crisis situations, the scale and magnitude of the pandemic meant that it was exceptionally challenging to meet the needs of the community with finite resources. The Ayala group prioritized its response to first ensure that its employees could work safely, through wage continuance, early bonus release, as well as work safety protocols. Work- from-home arrangements helped guarantee business continuity in core functions. The group then assisted its business ecosystem of partners, suppliers, customers, and agencies, many of which were small and medium enterprises. Finally, Ayala mobilized its wider network, not just the private sector but also religious organizations and civil society at large, to channel resources to and support the Asia Business Council Ayala Corp Region Philippines Year of Founding 1834 Headquarters Makati City Type of Company Listed Company, Family-Controlled Business Number of Employees 56,000 Total Revenues in 2019 ₱264.91 billion (US$5.49 billion) Major Businesses Real Estate, Banking, Telecommunications, Water, Energy, Electronics, Healthcare, Industrial Manufacturing, Automotive, Education COVID-19 Initiatives in a Nutshell Support for Employees and Business Eco-System: Wage Continuance, Construction of Dedicated Treatment Facilities for Employees, Rental Condonation in Malls, Fee Waivers, Deferred Bill Payment Support For Community: Emergency Relief for 2.8 million Families/14 million Individuals, Construction of COVID-19 Testing, Treatment and Isolation Facilities, Donation of PPE