PCIC Corporate Governance Scorecard  2019

PCIC CORPORATE GOVERNANCE SCORECARD CY 2018

QUESTION

LINK

1. Does the GOCC disclose a policy that:
a. Stipulates the existence and scope of its effort to address customer’s welfare?

Yes
1. CSR Statement
2. Performance Commitment
3. 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?

Yes
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?

Yes
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

Yes
1. See Page 35-37 of PCIC 2018 Annual Report
Corporate Social Responsibility Activities, Outreach Programs
2. CSR Statement

b. Interaction with the communities

Yes
1. See Page 13-22 of PCIC Annual Report 2018
B. Interaction with Communities
2. See Page 35-37 of PCIC 2018 Annual Report
Corporate Social Responsibility Activities

c. Environmentally-friendly value chain

Yes
See Page 35-37 of PCIC 2018 Annual Report
Corporate Social Responsibility Activities, Tree Planting and Environment Care Activities

3. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section?

Yes
See Page 35-37 of PCIC 2018 Annual Report
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?

Yes
1. Citizen’s Charter (Feedback, Complaints, and Redress Mechanisms)
2. See Page 53-54 of the 2018 PCIC Annual Report
PCIC Whistleblowing Policy
3. See Page 58-65 of PCIC Annual Report 2018
Head Office and Regional Office’s Directory

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?

Yes
1. CSR Statement
2. See Page 24 of PCIC Annual Report 2018
Training and Development(Character-building and technical advancement seminars)
3. Board Resolution No. 97-062
(Amendment to PCIC Hospitalization, Medical and Dental/Optical Benefits Plan)

b. Does the GOCC publish data relating to health, safety, and welfare of its employees?

Yes
1. See Page 24-26 of PCIC Annual Report 2018
Character Enrichment Seminars
2. Data on Health, Safety and Welfare of Employees

c. Does the GOCC have training and development programmes for its employees?

Yes
See Page 24-26 of PCIC Annual Report 2018
Training and Development

d. Does the GOCC publish data on training and development programs for its employees?

Yes
See Page 24-26 of PCIC Annual Report 2018
Training and Development

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?

Yes
1. See Page 53-54 of PCIC Annual Report 2018
Whistleblowing Policy
2. Grievance Procedure

b.Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

Yes
1. See Page 53-54 of PCIC Annual Report 2018
Whistleblowing Policy and
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

Yes
See Page 2-4 of PCIC Annual Report 2018
Corporate Objectives

b. Financial performance indicators

Yes
1. See Page 1 of PCIC Annual Report 2018 – Message from the President
2. See Page 38-46 of PCIC Annual Report 2018
Financial Statement and Notes to Financial Statement
3. Total Comprehensive Income for 2018 – P336,998,006
Dividends to the National Government for 2018 – P160.901 Million

c. Non-financial performance indicators

Yes
1. See Page 1 of PCIC Annual Report 2018 – Message from the president
2. See Page 5 of PCIC Annual Report 2018 – Highlights of Operation
3. See Page 29 of PCIC Annual Report 2018- Customer  Satisfaction Survey
4. See Page 30-33 of PCIC Annual Report 2018 PCIC Extension Office
5. See Page 34 of PCIC Annual Report 2018 PCIC is now Certified ISO 9001: 2015 Complaint Nationwide
6. See Page 56 of PCIC Annual Report 2018 PCIC is Top Government Corporation on Corporate Governance

d. Details of whistle-blowing policy

Yes
 See Page 53-54 of PCIC Annual Report 2018
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

Yes
See Page 47-50 of PCIC Annual Report 2018
Board of Directors

f. Training and/or continuing education programme attended by each director/commissioner

Yes
See Page 47-50 of PCIC Annual Report 2018
Board of Directors

8. Are the Annual Reports downloadable from the GOCC’s website?

Yes
Transparency Seal Section VI

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?

Yes
See Page 55 of PCIC Annual Report 2018
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

Yes
See In Compliance with Sec. 43 of GCG MC 2012-07 Sec. 43.3.a
Audited Annual Financial Report (Date Received: June 28,2019,  Posted: July 10, 2019)

b. Is the annual report released within 90 days from release of audited financial report?

Yes
See Transparency Seal
PCIC Annual Report 2018(Posted: August 27, 2019)

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?

Yes
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?

Yes
See Page 4 of PCIC Annual Report 2018
Review and Monitoring

b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?

Yes
See Page 4 of PCIC Annual Report 2018
Review and Monitoring

12. Did the GOCC achieve 90% in the PES?

Yes
Validated Result of the CY 2018 Performance Scorecard

13. Code of ethics or conduct
a. Are the details of the code of ethics or conduct disclosed?

Yes
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?

Yes
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?

Yes
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?

Yes
The Governance Committee covers the functions of the Nomination and Compensation/Remuneration Committee.
Refer to the responsibilities of the Governance Committee.
Summary of Accomplishments (2018)

15. Did the Nomination and Compensation/Remuneration Committee meet at least twice during the year?

Yes
Attendance record of Directors in Board and Committee meetings 2018

16. If yes, is the report of the Nomination and Compensation/Remuneration Committee publicly disclosed?

Yes
Summary of Accomplishments (2018)

17. Does the Board appoint an Audit Committee?

Yes
Summary of Accomplishments (2018)
Information on Board Committees and their Activities

18. If yes, is the report of the Audit Committee publicly disclosed?

Yes
Summary of Accomplishments (2018)

19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?

Yes
See Page 48 of PCIC Annual Report 2018 – Director Alex V. Buenaventura (Resume)

20. Did the Audit Committee meet at least four times during the year?

Yes
Attendance record of Directors in Board and Committee meetings 2018

21. Does the Board appoint a Risk Management Committee?

Yes
Summary of Accomplishments (2018)
Information on Board Committees and their Activities

22. If yes, is the report on Risk Management Committee publicly disclosed?

Yes
Summary of Accomplishments (2018)

23. Does at least one member on Risk Management Committee have a background in finance and investments?

Yes
See Page 48 of PCIC Annual Report 2018 – Director Alex V. Buenaventura (Resume)

24. Board meetings and attendance

a. Are the Board of Directors meetings scheduled at the beginning of the year(end of Q1)

Yes
Board Matters

b. Does the Board of Directors meet at least monthly?

Yes
Attendance record of Directors in Board and Committee meetings 2018

c. Did the Board of Directors meet on at least 75% on their scheduled meetings?

Yes
Board Matters

d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?

No
See Board Attendance

e. Did the Board of Directors meet separately at least once during the year without the President/CEO present?

Yes
Without the presence of President Jovy C. Bernabe, the PCIC Board of Directors met on August 30, 2018 to discuss the audit results/findings based on COA’s Annual Audit Report on PCIC.

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

Yes
Board Matters

b. Is the Board Secretary trained in legal, accountancy or company secretarial practices?

Yes
Board Matters

26. Internal Audit
a. Does the company have a separate internal audit function?

Yes
See PCIC Organizational Chart

b. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?

Yes
Information on Board Committees and their Activities

27. Risk Oversight

a. Does the company disclose the internal control procedures/risk management systems it has in place?

Yes
See Page 51-52 of PCIC Annual Report 2018 – 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?

Yes
See Page 51-52 of PCIC Annual Report 2018 – Statement on Risk Management and Internal Control

c. Does the company disclose how key risks are managed?

Yes
See Page 51-52 of PCIC Annual Report 2018 – 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?

Yes
See Page 51-52 of PCIC Annual Report 2018 – Statement on Risk Management and Internal Control

28. Board Chairman
Do different person assume the roles of Chairman and CEO?

Yes
The Acting Chairman of the Board is Mr. Crisologo DP. Ignacio while the President is Atty. Jovy C Bernabe.

29. Board of Directors Development

a. Does the GOCC have orientation programmes for new Directors?

Yes
1. See Board Matters
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?

Yes
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 Matters

c. Did all Appointive Directors attend at least 1 training for the calendar year?

Yes
See Page 47-50 of PCIC Annual Report 2018
Board of Directors

30. BOD Appraisal

a. Is an annual performance assessment conducted of the Board of Directors?

Yes
Aside from the performance assessment done through the iPED pursuant to GCG MC No. 2014-03, the Board Members also conducted an overall performance assessment for the Board as a whole in order to assess/determine its effectiveness in carrying out its responsibilities, strengthen its governance performance and practices, and help it determine its development priorities.

b. Does the GOCC disclose the process followed in conducting the Board assessment?

Yes
For the overall performance assessment of the Board, the Board members were made to answer a Board-appraisal form which seeks to evaluate the overall performance of the Board.

c. Does the GOCC disclose the criteria used in the Board assessment?

Yes
Criteria for the Board’s Overall Performance Assessment:
Performance Evaluation System (PES) Rating – 50%
Board’s Performance Review Rating – 50%

Appraisal
31. Committee Appraisal
Is an annual performance assessment conducted of the Board of Directors Committees?

Yes
An annual performance assessment is conducted for each Board of Directors’ Committee. Committee members were asked to answer a Committee appraisal form which seeks to evaluate the overall performance of the Committee. Board members who are not part of the Committee are also asked to evaluate the performance of the Committee in order to gain an outside perspective/impression on the effectiveness of the Committee in carrying out its key responsibilities.

BONUS
Stakeholder Relationship
Does the GOCC practice Global Reporting Index (GRI) on its annual reports?

No

Disclosure and Transparency

Quality of Annual Report

Are the audited annual financial report/statement released within 30 days upon receipt from COA?

Yes
See In Compliance with Sec. 43 of GCG MC 2012-07, Sec 43.3.a
Audited Annual Financial Report

(Date Received: June 28, 2019 Posted: July 10, 2019)

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?

None

2. Is there non-compliance with Good Governance Conditions?

None