Filipino small and medium-sized enterprises (SMEs), particularly in health-focused sectors, can gain a significant edge in international trade by adopting robust ethics and compliance programs, according to new research by the Asia-Pacific Economic Cooperation (APEC).
The study, Deepening the Value of Business Ethics for APEC SMEs, analyzed 17 SMEs across nine APEC economies, highlighting that businesses with well-developed ethics programs are better positioned to unlock new markets, strengthen partnerships, and drive sustainable growth.
Key components of ethical maturity identified in the study include providing comprehensive employee training from the start of employment, establishing clear conflict-of-interest policies, conducting rigorous due diligence of business partners, and consistently complying with local laws, regulations, and customs procedures.
“These practices are not just about compliance—they are strategic tools that build trust, reputation, and competitiveness,” the study said.
For Filipino entrepreneurs, adopting these standards can bring concrete benefits: improved access to partnerships and procurement opportunities, reduced exposure to corrupt practices, and smoother regulatory approvals. By positioning themselves as ethical and reliable players, SMEs can become preferred partners in resilient supply chains, both locally and abroad.
The research also emphasizes the role of multinational corporations (MNCs) and industry associations in supporting SMEs. MNCs can promote high ethical standards and offer guidance to SMEs on implementing effective ethics programs, while industry associations provide codes of conduct that reduce costs, streamline ethical practices, and accelerate maturity.
“By upholding and adhering to high ethical standards, SMEs can contribute to resilient supply chains, expand cross-border trade, and improve overall economic performance,” the study noted. Previous findings from the APEC Business Ethics Initiative also showed that SMEs with strong ethics maturity experienced lower staff turnover, higher wages, and enhanced business sustainability.
For Filipino entrepreneurs, these insights highlight a clear path: investing in ethics is not just a moral choice—it is a practical strategy for growth, competitiveness, and long-term success in the regional and global market.