“License to Operate in Myanmar: What Can International Brands and Investors Do to Mitigate the Reputational Risks?” Myanmar Textile Summit 2019 - 30 Oct 2019

3rd
Myanmar
Tex-le
Summit
2019

organized
by:

Myanmar
Garment
Manufacturing
Associa-on
&
ECV
Interna-onal

presenta-on
by:

Joseph
Falcone,
Independent
Consultant

Specializing
in
Sustainable
Supply
Chain
Research
&
Policy

“License
to
Operate
in
Myanmar
:

What
Can
Interna7onal
Brands
and
Investors
Do

to
Mi7gate
the
Reputa7onal
Risks?”

Yangon,
Myanmar

30
October
2019

1

“License to Operate in Myanmar: What Can International Brands and Investors Do to Mitigate the Reputational Risks ?”
30-Oct-19 Yangon, Myanmar Myanmar Textile Summit 2019

Welcome…Representa0ves…..
from

•  Government
of
the
Union
of
Myanmar

•  Myanmar
Garment
Manufacturers
Associa-on

•  Garment
Factories

•  Global
Retailers
&
Brands

•  Donor-‐funded
Garment
Sector
Programs

•  Unions
/
Researchers
/
Consultants
/
Advisors
/
others

2


3

The
presenta-on
follows

5

relevant

Ques-ons
and
Answers…

Q.
#1.
What
is
the
context
?

What
are

reputa-onal
risks
of
working
in
Myanmar
?

Q.
#2.
What
is
diversity
in
the
business

environment
all
about
?


Q.
#3.
Why
should
my
company
focus
on

diversity
in
the
workplace
in
Myanmar
?

Q.
#4.
What
are
the
risks
for
my
corpora-on
if

we
do
nothing
about
diversity
while
we

con-nue
to
operate
in
Myanmar
?

Q.
#5.
What
are
some
1st
steps
to
improve

diversity
in
the
workplace
in
Myanmar
?

4


•  The
very
real
threat
of
Everything
But

Arms
(EBA)
Program
of
trade
beneﬁts
-‐

duty-‐free
on
RMG
included
–
possibly

being
withdrawn
by
EU.

5

#1.
What
is
the
context
?
What
are
the

“reputa-onal
risks”
for
a
company
doing

business
in
Myanmar
?

#1.
What
is
the
context
?
What
are
the

“reputa-onal
risks”
for
a
company
doing

business
in
Myanmar
?

The
human
rights
situa-on
in
Myanmar……is
different
than
the

compe//on.

Different
from
situa-ons
other
RMG
producing
powerhouses:

China,
Bangladesh,
Vietnam.

Different
even
from
other
low-‐cost
compe-tors:

Cambodia,
Ethiopia.

6


#1.
What
is
the
context
…

of
“reputa-onal
risks”
for
a
company
doing

business
in
Myanmar
?

How
exactly
is
Myanmar
a
bit
diﬀerent….
from

others
in
the
RMG
Sector
?

7


Source:
hfps://www.pacemyanmar.org/wp-‐content/uploads/pdf/Pace_eng_book_new.pdf
8

Q.
#1.
What
is
the
context?
–
con-nued

Challenge
#1:
Ajtudes

lim, or if their boss had different political views. A majority of the respondents (81%) said they would be
comfortable having a Buddhist boss and only 8% of the respondents replied that they would be com-
fortable with a Muslim boss. Few people (15%) said they would be comfortable if their boss had different
political views from them (Figure 4).

Challenge
#2:
Women’s
well-‐being
&
empowerment

How
does
Myanmar
rank
on
the
Women,
Peace

and
Security
(WPS)
Index
?

Source:
hfps://giwps.georgetown.edu/the-‐index/

“A
measure
of
women’s
well-‐being
and
their

empowerment
in
homes,
communi7es
and

socie7es…”

9

Q.
#1.
What
is
the
context
?
-‐
con-nued


Q.
#2.
What
is
diversity
in
the
business

environment
all
about
?
-‐
con-nued

•  Improved
Diversity
and
Diversity
Apprecia0on

Programs
for
the
workplace
are
increasingly

more
urgent
in
today’s
global
business

environment.

10


•  Today’s
global
business
leaders
know
that

diversity
in
the
workplace
is
an
asset
for
both

businesses
and
their
employees,
in
its

capacity
to
foster
innova0on,
crea0vity
and

empathy
in
ways
that
homogeneous

environments
rarely
do.

11

Q.
#2.
What
is
diversity
in
the
business

environment
all
about
?
-‐
con-nued


What
is
Global
Best
Prac0ce
for
Diversity

Apprecia-on
in
the
workplace
?

•  What
does
the
challenge
look
like…
in

Myanmar
?

–  WPS
ranking

–  SLIDE
#8
chart

Source:
hfps://www.pacemyanmar.org/wp-‐content/uploads/pdf/Pace_eng_book_new.pdf

Chapter
3,
Page
18

12

Q.
#2.
What
is
diversity
in
the
business

environment
all
about
?
-‐
con-nued


•  In
this
era
of
globaliza-on,
diversity
in
the

business
environment
is
about
more
than

gender,
race
and
ethnicity.

•  Global
Best
Prac0ce
for
diversity
in
the

workplace
now
includes….
hiring
and

suppor-ng
employees
with
diverse
religious

and
poli0cal
beliefs,
educa-on,

socioeconomic
backgrounds,
sexual

orienta0on,
cultures
and
disabili0es.

13

Q.
#2.
What
is
diversity
in
the
business

environment
all
about
?

-‐
con-nued


•  The
case
for
establishing
a
truly
diverse

workforce,
at
all
organiza-onal
levels,

grows
more
compelling
each
year.

•  The
moral
argument
is
strong,
but
the

ﬁnancial
impact
for
a
company
with

diversity
-‐
as
proven
by
mul-ple
studies
–

makes
it
easy
to
act.

14

Q.
#2.
What
is
diversity
in
the
business

environment
all
about
?

-‐
con-nued


Q.
#3.
Why
should
my
company
focus
more
on

diversity
in
the
workplace
in
Myanmar
?

•  Many
brand
representa-ves
and
factory
owners
I
have

interacted
with,
who
invest
in
Myanmar,
have
voiced

concerns
about
Myanmar
human
rights
situa-on
and
it’s

impact
on
their
business….asking,
in
this
Context
of
2019

in
Myanmar:

“In
Myanmar….How
can
we
do
more
than
only

focus
on
Compliance
…
what
else
can
we
do
that

addresses
the
unique
human
rights
related

challenges
here
?”

15


Q.
#3.
Why
should
my
company
focus
more
on

diversity
in
the
workplace
in
Myanmar
?
-‐
con-nued

“In
addi7on
to
Compliance…what
else
can
we
do?”

•  Can
we….help
in
our
small
way
as
an
investor….help

Myanmar
building
a
na-on
with
tolerance
(diversity

apprecia-on),
equality,
respect
for
human
rights
and

diﬀerent
religions,
ethnicity,
intercultural
understanding,

peace?

•  Is
there
a
way
we
can
leverage
our
posi-on
as
a
foreign

investor
to
train
our
thousands
of
factor
workers
(and

managers)
to
start
to
understand
the
ideas
and

advantages
in
a
diverse
and
respecpul
workplace?

16


Q.
#3.
Why
should
my
company
focus
more
on

diversity
in
the
workplace
in
Myanmar
?
-‐
con-nued

17

“In
addi7on
to
Compliance…what
else
can
we
do?”

•  Can
our
company
help
our
employees
to
take
these

ajtudes
back
to
the
home,
the
neighbourhood
and
the

village…?

•  Then,
can
we
as
a
responsible
investor
in
Myanmar,
be
able

to
show
that
this
is
how
we
are
doing
business
in
Myanmar

…which
will
build
the
image
of
our
brand
and
help

strengthen
our
buiness
?

•  And
at
the
same
-me
have
answers
to
our
cri-cs
and
more

vocal,
ac-vist
shareholders
?

Q.
#3.
Why
should
my
company
focus
more
on

diversity
in
the
workplace
in
Myanmar
?

-‐
con-nued

•  Here
are
3
Reasons
-‐
from
Global
Best
Prac0ce

–
based
on
business
research
:

1. 
Business
performance

2. 
Women
in
the
workplace

3. 
Millennial
factor

18


Q.
#3.
Why
should
my
company
focus
more
on

diversity
in
the
workplace
in
Myanmar
?

-‐
con-nued

•  In
the
private
sector
we
want
to
all
do
well
and
be
the

best.
We
are
compe--ve
and
it’s
human
nature
to
want

to
compare.
The
most
common
ques-on
I
get
asked
is:

“How
are
we
doing

rela0ve
to
our
peers

in
other
countries
?
”

19


1st…here
is
a
nearby
examples

of
diversity
apprecia-on…
in
ac-on…in
ASEAN
:

1.
Singapore

Singapore
makes
a
great
case
study

for
diversity
apprecia-on.

20


Singapore
-‐
con-nued

•  Several
measures
have
served
Singapore
well

in
producing
a
well-‐integrated
populace
that

values
meritocracy
more
than
race
or
religion.

•  Singapore’s
ethnic
and
religious
diversity
has

proven
to
be
an
asset
to
the
country,
and
the

result
is
rela-ve
racial
harmony
–
something

the
world
would
do
well
to
learn
from.

21


Reason
1:
Business
performance

•  There
is
substan-al
research
to
show
that
diversity
brings

many
advantages
to
an
organiza-on:

-‐
Increased
proﬁtability
and
crea0vity,

-‐
Stronger
governance
and

-‐
BeYer
problem-‐solving
abili0es.

22


Reason
1:
Business
performance
-‐
con-nued

•  A
Boston
Consul0ng
Group
study
found
that

companies
with
more
diverse
management

teams
have
19%
higher
revenues
due
to

innova0on.

Source:

hfps://www.bcg.com/en-‐us/publica-ons/2018/how-‐diverse-‐leadership-‐teams-‐boost-‐innova-on.aspx

23


The
2018
Hays
Asia
Diversity
and
Inclusion
report

found
that:

1.
Improved
company
culture,

2.
Leadership
and

3.
Greater
innova0on

The
top
three
beneﬁts
of
diversity
iden-ﬁed
by

respondents.

Source:

hfps://www.hays.com.sg/DIreport/HAYS_1990337

24

1:
Business
performance
-‐
con-nued


Reason
2:

Women
in
the
workplace

•  Gender
equality
remains
a
major
issue
in
the

corporate
world.

Myanmar
is
no
diﬀerent.

•  Women
remain
signiﬁcantly
underrepresented

in
the
corporate
pipeline,
especially
at
the

management
and
senior
management
levels.

25


2.
Women
in
the
workplace
-‐
con-nued

A
survey
conducted
by
Pew
Research
Centre
lists
several

areas
where
women
are
stronger
in
key
areas
of
both

poli-cs
and
business.
Survey
respondents
noted
that

women
are:

•  34%
befer
at
working
out
compromises

•  34%
more
likely
to
be
honest
and
ethical

•  25%
more
likely
to
stand
up
for
their
beliefs

•  30%
more
likely
to
provide
fair
pay
and
beneﬁts

•  25%
befer
at
mentoring

Source:
hfps://www.pewsocialtrends.org/2015/01/14/women-‐and-‐leadership/

26


2.
Women
in
the
workplace
-‐
con-nued

•  McKinsey’s
2018
Delivering
Through
Diversity
report
found

corpora-ons
that
embrace
gender
diversity
on
their

execu-ve
teams
were
more
compe--ve
and
21%
more

likely
to
experience
above-‐average
proﬁtability.

•  They
also
had
a
27%
likelihood
of
outperforming
their
peers

on
longer-‐term
value
crea-on.

•  It
has
been
es-mated
that
closing
the
gender
gap
would

add
$28
trillion
to
the
value
of
the
global
economy
by
2025

–
a
26%
increase.

Source:

hfps://www.mckinsey.com/business-‐func-ons/organiza-on/our-‐insights/delivering-‐through-‐diversity

27


Reason
3:

Millennial
factor

•  By
the
year
2025,
75%
of
the
global
workforce

will
be
made
up
of
millennials…

•  This
group
has
a
unique
perspec-ve
on
diversity.

•  While
older
genera-ons
tend
to
view
diversity

through
the
lenses
of
race,
demographics,

equality
and
representa-on,
millennials
see

diversity
as
a
melding
of
varying
experiences,

diﬀerent
backgrounds
and
individual

perspec-ves.

28


3.
The
Millenial
factor
-‐
con-nued

•  The
2018
Deloife
Millennial
Survey
shows

that
74%
of
these
individuals
believe
their

organiza-on
is
more
innova-ve
when
it
has
a

culture
of
inclusion.

•  This
2018
survey
shows
that
47%
of

millennials
are
ac-vely
looking
for
diversity

and
inclusion
when
sizing
up
poten-al

employers.

Source:
hfps://www2.deloife.com/global/en/pages/about-‐deloife/ar-cles/millennialsurvey.html

29


Q.
#4.
What
are
the
risks
for
my
corpora-on

if
we
do
nothing
about
diversity
in
Myanmar
?

As
brands/suppliers
in
Myanmar,
you
in
this
room
have
a

par-cular
challenge
to
explain
-‐
against
background
of

Myanmar’s
reputa-on
on
human
rights,
EU
GSP
etc.

How
can
you
best
explain
why
producing
and
sourcing

from
here
is
a
posi-ve
contribu-on
to
the
concerns
that

the
outside
world
cares
about
–
tolerance
(diversity

apprecia-on),
equality,
respect
for
human
rights
and
diﬀerent

religions,
ethnicity,
intercultural
understanding,
peace….?

30


Q.
#4.
What
are
the
risks
for
my
corpora-on

if
we
do
nothing
about
diversity
in
Myanmar
?

History…is
on
the
side
of
doing
more
than
Compliance.

A
few
examples
from
the
last
500
years…

31


#5.
What
are
suggested
1st
steps
to
improve

diversity
in
the
workplace
in
Myanmar
?

A
sugges-on:
Create
and
fund
a
“Diversity
Apprecia-on

Program”
at
the
workplace.
Which
starts
with
these
1st

steps
:

1.  Ask
the
Right
Ques0ons

2.  Create
Clear
Diversity
Policies

3.  Require
Diversity
Apprecia-on
Training

4.  Create
Diversity
Targets
&
Measure
them

32


#5.
What
are
suggested
1st
steps
to
improve

diversity
in
the
workplace
in
Myanmar
?
-‐
con-nued

Ask
the
Right
Ques-ons.

Part
1
–
Gender

1.  Why
are
approx.
90%
of
the
workforce
women
in

Myanmar
Garments?

Does
this
mafer?

2.  How
many
of
the
top
managers
are
women?

3.  What
is
the
range
of
ages?

4.  Are
any
of
them
working
parents
(mothers)
returning
to

the
workforce?

5.  Are
workers
with
diﬀerent
sexual
orienta-ons
and

gender
iden--es
able
to
express
these
in
the
workplace?

33


#5.
What
are
suggested
1st
steps
to
improve

diversity
in
the
workplace
in
Myanmar
?
-‐
con-nued

The
Right
Ques-ons
-‐
Part
2
–
Ethnicity,
Religion,
Disability

1.  Where
are
our
workforce
from
in
Myanmar?

2.  Do
we
have
any
workers
from
ethnic
minori-es?

3.  Do
we
have
any
workers
from
minority
religions
(Muslim,

Chris-an,
other)?

4.  Do
we
have
any
workers
with
disabili-es
–
how
are
they

supported?

5.  What
languages
are
spoken
in
the
factory,
and
at
diﬀerent

levels
–
how
does
management
communicate
with
the

workers
?
34


#5.
What
are
suggested
1st
steps
to
improve

diversity
in
the
workplace
in
Myanmar
?
-‐
con-nued

Ask
the
Right
Ques-ons.

-‐
Part
3
-‐
Hiring,
Bullying,
Worker

Voice

1.  How
are
our
workers
recruited
at
diﬀerent
levels?
who

is
making
the
decisions?
What
biases
might
they
have?

2.  Is
there
bullying
and
harassment?

3.  Do
we
have
natural
leaders
in
the
workforce,
including

women
leaders?

How
are
they
being
supported
to

grow
and
support
the
aims
of
the
factory,
including
as

employee
and
trade
union
representa-ves?

35


#5.
What
are
suggested
1st
steps
to
improve

diversity
in
the
workplace
in
Myanmar
?
-‐
con-nued

This
is
the
way….through
pioneering
proper
Diversity

Management:

Asking
the
right
Qs,
followed
by
sincerely
done

Diversity
Policies
/
Trainings
/
Targets
&
Measurement.

•  Building
a
na-on
like
this.....a
na-on
with
tolerance
(diversity

apprecia-on),
equality,
respect
for
human
rights
and

diﬀerent
religions,
ethnicity,
intercultural
understanding,

peace….can
start
for
many
people
in
a
diverse
and
respecpul

workplace,
and
be
taken
back
to
the
home,
the

neighbourhood
and
the
village.

36


#5.
What
are
suggested
1st
steps
to
improve

diversity
in
the
workplace
in
Myanmar
?
-‐
con-nued

37

•  Being
able
to
show
that
this
is
how
you
are

doing
business
in
Myanmar
will
build
the

image
of
your
brand.

•  …
and
it
is
also
the
right
way
to
be
a
globally

aware
corporate
ci-zen
in
2019.


-‐
CONCLUSION
–

Thank
you
!

Now
we
shall

open
the
ﬂoor

for

Your
Ques0ons.

38


“License
to
Operate
in
Myanmar:
What
Can
Interna7onal

Brands
and
Investors
Do
to
Mi7gate
the
Reputa7onal
Risks
?”

Keep
in
touch:

Email:

JoeFalcone1969@gmail.com

WhatsApp
:

+95
92
6178
0487

WeChat:
+880
130
2269
1626

39


“License to Operate in Myanmar: What Can International Brands and Investors Do to Mitigate the Reputational Risks?” Myanmar Textile Summit 2019 - 30 Oct 2019

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“License to Operate in Myanmar: What Can International Brands and Investors Do to Mitigate the Reputational Risks?” Myanmar Textile Summit 2019 - 30 Oct 2019