PCIC CORPORATE GOVERNANCE SCORECARD

(CY 2015)




QUESTION

YES

NO

LINK


I. Stakeholder Relationships (15%)
1. Does the GOCC disclose a policy that:
a. Stipulates the existence and scope of its effort to address customer’s welfare? check 1. Performance Commitment
2. Part 7, Sec 5.1.1 and Part 7.1 Sec. 2 of the Manual Corporate Governance
b. Elaborates its efforts to interact with the communities in which they operate? check 1. CSR Statement
2. Part 7, Sec 5.1.2 and Part 7.1 Sec. 4 of the Manual Corporate Governance
c. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? check 1. CSR Statement
2. Part 7, Sec. 3.2 and Part 7.1 Sec. 5 of the Manual Corporate Governance
2. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?
a. Customer health and safety check 1. See Page 42 of PCIC 2015 Annual Report
Corporate Social Responsibilities Activities, Feeding Program and Health Consciousness Activities
2. CSR Statement
b. Interaction with the communities check See Page 14-23 of PCIC Annual Report 2015
B. Interaction with Communities
c. Environmentally-friendly value chain check See Page 42 of PCIC 2015 Annual Report
Corporate Social Responsibilities Activities, Tree planting Activities
3. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section check See Page 41-42 of PCIC Annual Report 2015
Corporate Social Responsibility Activities
4. Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights.
a. Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders (e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights? check 1. See Page 53-57 of PCIC Annual Report 2015
Head Office and Regional Office’s Directory
2. Citizen’s Charter (Feedback, Complaints, and Redress Mechanisms)
5. Performance-enhancing mechanisms for employee participation should be permitted to develop.
a. Does the GOCC explicitly mention the health, safety, and welfare policy for its employees? check See Page 26 of PCIC Annual Report 2015
Character Enrichment Seminars
1. See Transparency Seal, Data on Health, Safety and Welfare of Employees
b. Does the GOCC publish data relating to health, safety, and welfare of its employees? check 1. See Page 26 of PCIC Annual Report 2015
Character Enrichment Seminars
2. See Transparency Seal, Data on Health, Safety and Welfare of Employees
c. Does the GOCC have training and development programmes for its employees? check See Page 24-26 of PCIC Annual Report 2015
Training and Development(Capability Building Seminar and Character Enrichment Seminars)
d. Does the GOCC publish data on training and development programs for its employees? check See Page 24-26 of PCIC Annual Report 2015
Training and Development(Capability Building Seminar and Character Enrichment Seminars)
6. Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.
a. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior? check 1. See Page 49-50 of PCIC Annual Report 2015
Whistleblowing Policyand
2. Grievance Procedure
b. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? check 1. See Page 49-50 of PCIC Annual Report 2015
Whistleblowing Polic
2. Grievance Procedure


II. Disclosure and Transparency (35%)
7. Quality of Annual Report Does the GOCC’s Annual Report disclose the following items:
a. Corporate objectives check See Page 2 of PCIC Annual Report 2015
Corporate Objectives
b. Financial performance indicators check See Page 34-40 of PCIC Annual Report 2015
Financial Statement and Notes to Financial Statement
c. Non-financial performance indicators check 1. See Page 1 of the PCIC Annual Report 2015 – Message from the President

2. See Page 5 of PCIC Annual Report 2015 – Highlights of Operation

3. See Page 29-30 of PCIC Annual Report 2015
Customer Satisfaction Survey

4. SeePage 31-33
of PCIC Annual Report 2015
PCIC Extension Office

d. Details of whistle-blowing policy check See Page 49 of PCIC Annual Report 2015
Whistleblowing Policy
e. Biographical details (at least age,qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners check See Page 43-46 of PCIC Annual Report 2015
Board of Directors
f. Training and/or continuing education programme attended by each director/commissioner check See Page 43-46 of PCIC Annual Report 2015
Board of Directors
8. Are the Annual Reports downloadable from the GOCC’s website? check Transparency Seal Section 2
9. Corporate Governance Confirmation Statement
Does the Annual Report contain a statement confirming the company’s full compliance with the code of corporate governance and where there is non-compliance, identify and explain reasons for each issue? check See Page 51 of PCIC Annual Report 2015
Statement on PCIC’s Full Compliance with the Code of Corporate Governance
10. Timely filling/release of annual/financial reports.
a. Are the audited annual financial report/statement released within 60 days upon receipt from COA check See In Compliance with Sec. 43 of GCG MC 2012-07 Sec. 43.3.a
Audited Annual Financial Report (Date Received: June 9,2016) (Posted: June 27, 2016)
b. Is the annual report released within 90 days from release of audited financial report? check See Transparency Seal
PCIC Annual Report 2015 (Posted: Sept. 1, 2016)
c. Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or relevant officers of the company? check See In Compliance with Sec. 43 of GCG MC 2012-07, 43.3.a
Statement of Management’s Responsibility for Financial Statements


III. Responsibilities of the Board (50%)
11. Corporate Vision/Mission
a. Has the Board of Directors reviewed the vision and mission/strategy in the last financial year? check See Page 4 of PCIC Annual Report 2015
Review and Monitoring
b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy? check See Page 4 of PCIC Annual Report 2015
Review and Monitoring
12. Did the GOCC achieve 90% in the PES? check See GOCC Performance Evaluation System in the GCG Website
13. Code of ethics or conduct
a. Are the details of the code of ethics or conduct disclosed? check See In Compliance with Sec. 43 of GCG MC 2012-07 Sec. 43.4.d

Code of Ethics

b. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? check See In Compliance with Sec. 43 of GCG MC 2012-07 Sec. 43.4.d

Code of Ethics

c. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? check See In Compliance with Sec. 43 of GCG MC 2012-07 Sec. 43.4.d

Code of Ethics

14. Does the Board appoint a Nomination and Compensation/Remuneration Committee? check The Governance Committee covers the functions of the Nomination and Compensation/Remuneration Committee.
Refer to the responsibilities of the Governance Committee.
15. Did the Nomination and Compensation/Remuneration Committee meet at least twice during the year? check Attendance record of Directors in Board and Committee meetings 2015
16. If yes, is the report of the Nomination and Compensation/Remuneration Committee publicly disclosed? check Summary of Accomplishment(2015)
17. Does the Board appoint an Audit Committee? check Information on Board Committees and their Activities
18. If yes, is the report of the Audit Committee publicly disclosed? check Summary of Accomplishment(2015)
19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? check See Page 43 of PCIC Annual Report 2015- Director Dioscoro A. Granada (Resume)
20. Did the Audit Committee meet at least four times during the year? check Attendance record of Directors in Board and Committee meetings 2015
21. Does the Board appoint a Risk Management Committee? check Information on Board Committees and their Activities
22. If yes, is the report on Risk Management Committee publicly disclosed? check Summary of Accomplishment(2015)
23. Does at least one member on Risk Management Committee have a background in finance and investments? check See Page 43-44 of PCIC Annual Report 2015 – Director Dioscoro A. Granada (Resume)
and Director Gilda E. Pico
24. Board meetings and attendance
a. Are the Board of Directors meetings scheduled at the beginning of the year(end of Q1) check Board Policies
b. Does the Board of Directors meet at least monthly? check Attendance record of Directors in Board and Committee meetings 2015
c. Did the Board of Directors meet on at least 75% on their scheduled meetings? check Board Policies
d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? check See Board Attendance
e. Did the Board of Directors meet separately at least once during the year without the President/CEO present? check Without the presence of President Jovy C. Bernabe, the PCIC Board of Directors met on Dec. 17, 2015 to discuss the PCIC’s accomplishments for the concluding year (2015) and targets for the succeeding year (2016).
25. Access to information
a. Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting? check Board Policies
b. Is the Board Secretary trained in legal, accountancy or company secretarial practices? check Board Policies
26. Internal Audit
a. Does the company have a separate internal audit function? check See PCIC Organizational Chart
b. Does the appointment and removal of the internal auditor require the approval of the Audit Committee? check Information on Board Committees and their Activities
27. Risk Oversight check
a. Does the company disclose the internal control procedures/risk management systems it has in place? check See Page 47-48 of PCIC Annual Report 2015 – Statement on Risk Management and Internal Control
b. Does the Annual Report disclose that the Board of Directors/Commissioners has overseen a review of the company’s materials controls (including operational,financial and compliance controls) and risk management systems? check See Page 47-48 of PCIC Annual Report 2015 – Statement on Risk Management and Internal Control
c. Does the company disclose how key risks are managed? check See Page 47-48 of PCIC Annual Report 2015 – Statement on Risk Management and Internal Control
d. Does the Annual Report contain a statement from the Board of Directors or Audit Committee commenting on the adequacy of the GOCC’s internal controls/risk management systems? check See Page 47-48 of PCIC Annual Report 2015
Statement on Risk Management and Internal Control
28. Board Chairman
Do different person assume the roles of Chairman and CEO? check The Chairman of the Board is Mr. Dioscoro A. Granada while the President is Atty. Jovy C. Bernabe.
29. Board of Directors Development
a. Does the GOCC have orientation programmes for new Directors? check 1. See Board Policies
2. See Manual of Corporate Governance Part 1. Sec. 3.5 Statement of Policy and Administrative Provision
b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes? check 1. Manual on Corporate Governance
Part 3.1 of PCIC’s Manual on Corporate Governance mandates the Governance Committee to encourage Directors to attend on-going or continuous professional education programs. Attendance of the Directors to orientations, seminars, workshops, other educational programs recommended by PCIC and/or the Governance Committee serves as service to the Corporation.
2. Board Policies
c. Did all Appointive Directors attend at least 1 training for the calendar year? check See Page 43-46 of PCIC Annual Report 2015
Board of Directors
30. BOD Appraisal
a. Is an annual performance assessment conducted of the Board of Directors? check 1. The Board of Directors conducted its annual performance assessment for 2015 from March 8, 2016 to April 8, 2016 through the Performance Evaluation for Directors System (GCG MC No. 2014-03) developed by the GCG. Directors are made to answer the self-appraisal form and peer-appraisal form through the iped.gcg.gov.ph which increases the level of confidentiality of Director Performance Review results.

2. It is also mandated under Part 3 Section 9 of the Manual on Corporate Governance

b. Does the GOCC disclose the process followed in conducting the Board assessment? check Yes, the process is disclosed in GCG MC 2014-03, as indicated below:
Directors are made to answer the self-appraisal form and peer-appraisal form through the iped.gcg.gov.ph which increases the level of confidentiality of Director Performance Review results.
c. Does the GOCC disclose the criteria used in the Board assessment? check Yes the criteria are enumerated in GCG MC 2014-03 as indicated below:

Criteria
BOD Attendance – 15%
Performance Evaluation System Rating – 60%
Directors’ Performance Review Rating – 25%


Appraisal
31. Committee Appraisal
Is an annual performance assessment conducted of the Board of Directors Committees? check The Board of Directors’ Committees are appraised based on Self and Peer Assessment as contained in the Performance Evaluation for Directors, where they are rated based on their knowledge and personal development, preparedness and participation, teamwork and communication, and conduct/behavior. They are also being assessed based on their attendance to Committee Meetings, which are also the requirement for the grant of Performance-Based Incentive (PBI) for Directors.


BONUS


STAKEHOLDER RELATIONSHIPS
1. Does the GOCC practice Global Reporting Index (GRI) on its annual reports? check


Disclosure and Transparency
Quality of Annual Report
1. Are the audited annual financial report/statement released within 30 days upon receipt from COA? check See In Compliance with Sec. 43 of GCG MC 2012-07, Sec 43.3.a
Audited Annual Financial Report

(Date Received: June 9, 2016)(Posted: June 27, 2016)


PENALTY Responsibilities of the Board
1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs? check None
2. Is there non-compliance with Good Governance Conditions? check None