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

ASIA BUSINESS COUNCIL HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY 1 1 Ayala Corp (Philippines) Extraordinary Endeavors in Turbulent Times broader community. The combined efforts acted as a force multiplier in alleviating the unprecedented crisis. The Ayala group’s roots as a family business are said to have influenced the company’s sense of social responsibility. Founded as a trading house by Basque entrepreneurs in the 1830s, the family had an interest in philanthropy from the beginning, with early generations engaged in poverty relief and the establishment of an arts academy in Manila. 4 After World War II, the company supported the reconstruction of Manila through its Hacienda Makati development and ultimately evolved into one of the country’s major real estate firms. When the current generation of leadership took over in the 1990s, it expanded beyond the core businesses of real estate and banking into the public utility business, to provide basic services at a time when access to water and telecommunications infrastructure were lacking. 5 More recently, Ayala has started investing in the healthcare, energy, industrial manufacturing, and education sectors. “The group’s mission is to help solve large national social problems by developing sustainable solutions that can scale,” said Fred Ayala, who leads the group’s education initiatives and is not related to the Zobel de Ayalas. The COVID-19 pandemic offers a lens to examine how a publicly listed, family- controlled business with a social mission can mobilize a broad stakeholder ecosystem to address a society-wide crisis. Philippine Disaster Resilience Foundation Based in a region prone to natural disasters, Ayala Corp. had transferable experience from the past when it had also acted to support the community. In 2009, the group participated in the creation of what is now known as the Philippine Disaster Resilience Foundation (PDRF), a consortium of some of the largest private-sector corporations and NGOs that would, in the words of JAZA, act as a “support mechanism for our partnership with government” in times of crisis. In 2013, Typhoon Haiyan, or Yolanda as it is known in the Philippines, became one of the worst disasters in Philippine history, leaving over 6,000 dead and nearly 30,000 injured. 6 Ayala supported the recovery through PDRF as well as the group’s aviation unit, which spearheaded an initiative to send telecommunications equipment and relief goods to the affected regions. 7 Ayala was among the first of a group of large companies that committed to assist the recovery in Yolanda-affected areas. But a passive-reactive response to such tragedies did not appear to be enough. PDRF leadership decided to shift the organization’s focus from disaster response to preparedness and resilience. “We realized we couldn’t keep being reactive. We But a passive-reactive response to such tragedies did not appear to be enough. PDRF leadership decided to shift the organization’s focus from disaster response to preparedness and resilience. “We realized we couldn’t keep being reactive. We needed to be more proactive.”