REVAMPING THE PHILIPPINES TOWARDS EXEMPLARY CORPORATE GOVERNANCE

by: Micaela Segui, CSSWB

Corporate Governance Analyst

Institute of Corporate Directors

The 3rd Corporate Governance Roundtable Discussion for Publicly Listed Companies, titled "Elevating the Philippines Corporate Governance Standard," was a collaborative effort between the Securities and Exchange Commission (SEC), Good Governance Advocates and Practitioners of the Philippines (GGAPP), and the Institute of Corporate Directors Philippines (ICD). Held from 1:00 PM to 5:00 PM last Wednesday, March 6, 2024, via Zoom, the event drew over 160 participants and aimed to significantly enhance the corporate governance standards of publicly listed companies in the Philippines.

The event brought together Philippine Publicly Listed Companies' Compliance Officers, Corporate Governance Advocates, and Board members, signaling a proactive stance and synergy in boosting the nation's corporate governance standards.

Mr. Reginald Tiu, President of GGAPP and Chairman of CG Standards Committee of ICD, moderated the event, playing a crucial role in its organization. To enrich the discussion, top-performing and most improved companies over the last years of the ACGS Assessment were

invited as panelists. These included Atty. Jocelyn Villar-Altamira (Vice President and Head of Manila Electric Company's Corporate Governance and Compliance Office), Ms. Maria Virginia Tolentino-Uy (SAVP, GRC of SM Investments Corporation), and Atty. Jon Edmarc Castillo (Chief Compliance Officer of Monde Nissin Corporation).

The panelists shared insights into their corporate governance journeys, highlighting the role of corporate governance champions, stringent policy-making efforts, and collaborative regulatory interactions. They emphasized that there is no one-size-fits-all approach to corporate governance and that it requires a concerted effort across all levels of an organization. Additionally, they stressed the importance of adopting sustainable development policies and practices, aligning with the UN Sustainable Development Goals and Global Reporting Index (GRI), and other sustainability reporting frameworks.

During the 3rd Corporate Governance Roundtable Discussion for Publicly Listed Companies, Mr. Roberto Bascon, Jr., (Director of Research and Development of Institute of Corporate Directors), highlighted a slight decrease in the 2023 ACGS Assessment industry average, mainly due to the lack of ASM-related documentation. He emphasized the need for PLCs to increase efforts in disclosure, transparency, and board responsibility. Mr. Bascon also discussed the role of website optimization in advancing corporate governance, noting its potential to increase stakeholder engagement and accountability. He underscored the importance of continuous improvement in corporate governance practices, suggesting that addressing ACGS Assessment findings and optimizing websites can enhance PLCs' standards and drive positive change in the industry.

Attendees praised the discussion for its insightful content and its potential to drive positive change in corporate governance practices. Many highlighted how the event provided valuable insights into improving disclosures and raising the bar for good corporate governance in the country. The discussion concluded with a challenge to all corporate governance practitioners and companies to adopt more stringent and holistic policies and strategies to improve corporate governance across the board. This call to action underscored the importance of continuous improvement and innovation in corporate governance practices to ensure the long-term success and sustainability of Philippine businesses.