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PHL CFOs face gaps in key decision-making role — SGV

PHILIPPINE COMPANIES risk missing growth opportunities as many chief financial officers (CFOs) do not lead key investment and value-creation decisions, according to the latest EY Global DNA of the CFO survey. While 55% of Philippine CFO respondents believe they should be involved in value creation, only 23% actually lead key investment decisions, while 35% lead […]

Context & Analysis

The survey points to a broader tension in Philippine corporate governance: the finance function is still often treated as the company’s control tower, not its growth engine. In many local firms, especially family-controlled businesses and mid-sized listed companies, the CFO inherits a mandate centered on cash management, regulatory filings, tax compliance, audit readiness, and cost discipline. That work is essential, but it does not automatically translate into sharper capital allocation, faster entry into new markets, or better returns on investment.

The stakes are high because Philippine companies are competing in an environment where growth cannot come from scale alone. Cost pressures, wage dynamics, digital disruption, supply-chain expectations, and rising investor scrutiny all demand that boards make harder choices about where to allocate scarce capital. If finance leaders are kept out of those decisions, companies may underinvest in automation, customer experience, product innovation, or resilience measures. Over time, that can show up as slower productivity gains, weaker margins, or missed opportunities in sectors where execution speed matters most, from logistics and manufacturing to retail, fintech, and business services.

For consumers and employees, the effect is indirect but real. Firms that allocate capital poorly tend to lag on wages, service quality, innovation, and price competitiveness. Firms that use finance as a strategic partner can reinvest into operations, talent, and technology more effectively, which supports better jobs and more resilient supply chains.

The next watch items are boardroom changes rather than headlines. Look for Philippine companies that explicitly position the CFO in strategy, risk, and investment committees; that invest in data analytics, scenario planning, and business-intelligence tools; and that prepare finance talent for commercial leadership. Listed firms may feel pressure from institutional investors to show clearer capital-allocation discipline. In a market still building deeper corporate governance habits, the CFO’s seat at the decision table is becoming one of the clearest signals of whether a company is ready for higher growth.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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