ASEAN CORPORATE GOVERNANCE SCORECARD SELF-ASSESSMENT
(2022-2023)
PART E: RESPONSIBILITIES OF THE BOARD
ACMF | ASEAN CORPORATE GOVERNANCE SCORECARD | |||||||||||
LEVEL 1 | ||||||||||||
PART E: RESPONSIBILITIES OF THE BOARD | ||||||||||||
SCORECARD ITEM | GUIDING REFERENCE | RESPONSE (Yes/No) | COMPANY REMARKS | |||||||||
E.1 Board Duties and Responsibilities | ||||||||||||
Clearly defined board responsibilities and corporate governance policy | ||||||||||||
E.1.1 | G20/OECD | PRINCIPLE | V: | YES | PSE's Manual on Corporate GovernanceandPSE's BOD Manualstipulates the | |||||||
Does | the company disclose its corporate | Disclosure and Transparency | company's corporate governance policies. These are disclosed in the | |||||||||
governance policy / board charter? | (A) Disclosure should include, but not | company's Governancepage under Board Matters. | ||||||||||
be limited to, material information on: | ||||||||||||
9. Governance structures and policies, | PSE's 2022 Integrated Annual Corporate Governance Report | |||||||||||
in particular, the content of any | ||||||||||||
corporate governance code or policy | Pages 21, Recommendation 2.12Pages 20-21, Recommendation 2.12 | |||||||||||
and the process by which it is | Page 51, Recommendation 8.7 | |||||||||||
implemented. | ||||||||||||
E.1.2 | G20/OECD | PRINCIPLE | VI: | YES | In addition to the provisions of the Revised Corporation Code, the company | |||||||
Are the types of decisions requiring board of | Responsibilities of the Board | states which corporate actions require Board approval in PSE's Manual on | ||||||||||
directors / commissioners' approval disclosed? | (D) The board should fulfil certain key | Corporate Governanceand PSE'sSEC Form17-A2022. | ||||||||||
functions, including: | ||||||||||||
1. Reviewing and guiding corporate | PSE's 2022 Integrated Annual Corporate Governance Report | |||||||||||
strategy, major plans of action, risk | ||||||||||||
policy, annual budgets and business | Pages 21, Recommendation 2.12Pages 20-21, Recommendation 2.12 | |||||||||||
plans; setting performance objectives; | Page 51, Recommendation 8.7 | |||||||||||
monitoring | implementation | and | ||||||||||
corporate | performance; | and | ||||||||||
overseeing major capital expenditures, | ||||||||||||
acquisitions and divestitures. | ||||||||||||
2. Monitoring the effectiveness of the | ||||||||||||
company's governance practices and | ||||||||||||
making changes as needed. | ||||||||||||
3. Selecting, compensating, monitoring | ||||||||||||
and, when necessary, replacing key | ||||||||||||
executives and overseeing succession | ||||||||||||
planning. | ||||||||||||
4. Aligning key executive and board | ||||||||||||
remuneration with the longer term | ||||||||||||
interests of the company and its | ||||||||||||
shareholders. | ||||||||||||
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5. Ensuring a formal and transparent | |||||||||||
board | nomination | and election | |||||||||
process. | |||||||||||
6. Monitoring and managing potential | |||||||||||
conflicts of interest of management, | |||||||||||
board | members and | shareholders, | |||||||||
including misuse of corporate assets | |||||||||||
and abuse in related party | |||||||||||
transactions. | |||||||||||
7. Ensuring the integrity of | the | ||||||||||
corporation's accounting and financial | |||||||||||
reporting | systems, | including | the | ||||||||
independent | audit, | and | that | ||||||||
appropriate systems of control are in | |||||||||||
place, in particular, systems for risk | |||||||||||
management, | financial | and | |||||||||
operational | control, and compliance | ||||||||||
with the law and relevant standards. | |||||||||||
8. Overseeing the process of disclosure | |||||||||||
and communications. | |||||||||||
E.1.3 | G20/OECD | PRINCIPLE | VI: | YES | The roles and responsibilities of the company's Board of Directors are clearly | ||||||
Are the roles and responsibilities of the board | Responsibilities of the Board | stated inPSE's Manual on Corporate Governance(Article IV, Section 2 - | |||||||||
of directors / commissioners clearly stated? | (D) The board should fulfil certain key | Establishing Clear Roles and Responsibilities of the Board of Directors) and | |||||||||
functions, including: | |||||||||||
PSE's BOD Manual. | |||||||||||
1. Reviewing and guiding corporate | |||||||||||
strategy, major plans of action, risk | |||||||||||
policy, annual budgets and business | Board of Directors | ||||||||||
plans; setting performance objectives; | Board Committees | ||||||||||
monitoring | implementation | and | |||||||||
corporate | performance; | and | PSE's 2022 Integrated Annual Corporate Governance Report | ||||||||
overseeing major capital expenditures, | |||||||||||
acquisitions and divestitures. | Page 21, Recommendation 2.12Pages 20-21, Recommendation 2.12 | ||||||||||
2. Monitoring the effectiveness of the | |||||||||||
company's governance practices and | |||||||||||
making changes as needed. | |||||||||||
3. Selecting, compensating, monitoring | |||||||||||
and, when necessary, replacing key | |||||||||||
executives and overseeing succession | |||||||||||
planning. | |||||||||||
4. Aligning key executive and board | |||||||||||
remuneration with the longer term | |||||||||||
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interests of the company and its shareholders.
5. Ensuring a formal and transparent board nomination and election process.
6. Monitoring and managing potential conflicts of interest of management, board members and shareholders, including misuse of corporate assets and abuse in related party transactions.
7. Ensuring the integrity of the corporation's accounting and financial reporting systems, including the independent audit, and that appropriate systems of control are in place, in particular, systems for risk
management, financial and operational control, and compliance with the law and relevant standards.
8. Overseeing the process of disclosure and communications.
Corporate Vision/Mission
E.1.4 | G20/OECD | PRINCIPLE | VI: | YES | The Company's updated vision and mission are stated on its website (Mission, | ||||
Does the company have an updated vision and | Responsibilities of the Board | Vision and Values).PSE's Manual on Corporate Governance(Article IV, | |||||||
mission statement? | ICGN | (2014): | 4.1 | Code of | Section 2 - Establishing Clear Roles and Responsibilities of the Board of | ||||
Directors) states that it is the duty of the company's Board of Directors to | |||||||||
Conduct/Ethics | |||||||||
formulate (and update / review) vision, mission, strategic objectives, policies | |||||||||
The board should adopt high standards | |||||||||
and procedures that shall guide the Company's activities. | |||||||||
of business ethics through codes of | |||||||||
conduct/ethics (or similar instrument) | |||||||||
and oversee a | culture | of | integrity, | PSE's 2022 Integrated Annual Corporate Governance Report | |||||
notwithstanding | differing | ethical | Page 9-10, Recommendation 2.2 | ||||||
norms and legal standards in various | |||||||||
Pages 10-11, Supplement to Recommendation 2.2 (1) | |||||||||
countries. This should permeate all | |||||||||
aspects of the company's operations, | |||||||||
ensuring that its vision, mission and | |||||||||
objectives are ethically sound and | |||||||||
demonstrative of its values. Codes | |||||||||
should | be effectively communicated | ||||||||
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and integrated into the company's | |||||||||
strategy and operations, including risk | |||||||||
management | systems | and | |||||||
remuneration structures. | |||||||||
E.1.5 | G20/OECD | PRINCIPLE | VI: | YES | PSE's Manual on Corporate Governance(Article IV, Section 2 - Establishing | ||||
Does the board of directors play a leading role | Responsibilities of the Board | Clear Roles and Responsibilities of the Board of Directors) states that it is the | |||||||
in the process of developing and reviewing the | D. The board should fulfil certain key | duty of the company's Board of Directors to formulate (and update / review) | |||||||
vision, mission, strategic objectives, policies and procedures that shall guide | |||||||||
company's strategy at least annually? | functions, including: | ||||||||
the company's activities. | |||||||||
Reviewing | and | guiding | corporate | ||||||
strategy, major plans of action, risk | |||||||||
management policies and procedures, | Business objectives and strategies are reviewed annually. This was conducted | ||||||||
annual budgets | and business | plans; | over two sessions held on 23 November 2022 and on 11 January 2023. Mid- | ||||||
setting | performance | objectives; | |||||||
term business objectives and strategies are reviewed every three (3) years | |||||||||
monitoring | implementation | and | |||||||
while long-term business objectives and strategies are reviewed every five (5) | |||||||||
corporate | performance; | and | |||||||
overseeing major capital expenditures, | years. The Chairman and President's messages contain the business strategies | ||||||||
acquisitions and divestitures. | for each year and their implementation. Their messages are included in the | ||||||||
annual report distributed to the company's stockholders. The Board also | |||||||||
reviews the annual budget and business plans, including the major | |||||||||
expenditures, of the company. | |||||||||
The company utilizes its Project Management Framework ("PM Framework") | |||||||||
to guide all project teams in implementing the company's projects (generally | |||||||||
classified as strategic or non-strategic). The PM Framework outlines common | |||||||||
parameters and best practices in managing projects such as communication | |||||||||
systems, approval processes, identifying risks, project risk mitigation, and | |||||||||
monitoring project status. | |||||||||
PSE's SEC Form 17-A 2022 | |||||||||
Page 27, "Ongoing Plans and Programs" | |||||||||
PSE's 2022 Integrated Annual Corporate Governance ReportPages 9-10, | |||||||||
Recommendation 2.2 | |||||||||
Pages 9-10, Recommendation 2.2 | |||||||||
Pages 10-11, Supplement to Recommendation 2.2 (2) | |||||||||
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PSE - Philippine Stock Exchange Inc. published this content on 30 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2023 10:21:18 UTC.