Corporate Governance Scorecard

CORPORATE GOVERNANCE SCORECARD* FOR GOCCS 2015

QUESTION

YES

NO

LINK SOURCE

1. Does the GOCC disclose a policy that:

a. Stipulates the existence and scope of its effort to address customer’s welfare?

 

Page 25 and 27 of Manual on Corporate Governance in LBRDC Website

b. Elaborates its efforts to interact with the communities in which they operate?

 

Page 27 of Manual on Corporate Governance in LBRDC Website

c. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?

 

Page 28 of Manual on Corporate Governance in LBRDC Website

2. Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies?

a. Customer health and safety

 

Employee's Safety and Training Section of LBRDC Website (Training and Seminars attended for CY 2015)

b. Interaction with the communities

 

Page 18, 25 and 28 of LBRDC CY 2015 Annual Report

c. Environmentally-friendly value chain

 

Page 18 and 28 of LBRDC CY 2015 Annual Report

3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?

 

Page 18 and 28 of LBRDC CY 2015 Annual Report and also there is a Corporate Social Responsibility Section on LBRDC Website

4. Where stakeholders 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?

 

Page 65 and 66 of LBRDC CY 2015 Annual Report

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?

 

Employee's Safety and Training Section of LBRDC Website.

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

 

Employee's Safety and Training Section of LBRDC Website (Training and Seminars attended for CY 2015)

 

Page 17 and 27 of LBRDC CY 2015 Annual Report

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

 

Employee's Safety and Training Section of LBRDC Website (Training and Seminars attended for CY 2015, Quarterly Report)

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

 

Employee's Safety and Training Section of LBRDC Website (Training and Seminars attended for CY 2015)

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?

 

Page 3 of the Whistle Blowing Policy posted in LBRDC Website

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

 

Page 3-4 of the Whistle Blowing Policy

7. Quality of the Annual Report. Does the GOCC’s AR disclose the following items:

a. Corporate Objectives

 

This is part of the Performance agreement of LBRDC and GCG for CY 2015

b. Financial performance indicators

 

Page 61 of LBRDC CY 2015 Annual Report

c. Non-financial performance indicators

 

Page 21 of LBRDC CY 2015 Annual Report

d. Details of whistleblowing policy

 

Approved Whistle Blowing Policy is posted in website

e. Biographical details (directors)

 

Page 32 to 34 of LBRDC CY 2015 Annual Report

f. Trainings or continuing education (directors)

 

Posted at Board of Directors Section  of LBRDC Website

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

 

Annual Report CY 2015 including the Financial Statements for the past five years are posted at Transparency Seal Section (Audited Financial Statements)

9. Corporate Governance Confirmation Statement

a. Does the AR 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 such issue?

 

Page 9-10 of LBRDC CY 2015 Annual Report

10. Timely filing/release of annual/financial reports

a. Are the audited annual financial report/statement released within 60 days upon receipt from COA?

 

LBRDC complies with SEC and BIR regulations to submit the Audited Financial Statements to the stated agencies within 30 days upon receipt thereof.

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

 

LBRDC Annual Report CY 2015 was released on August 30, 2016. 90 days from the release of the COA Audited Financial Report received on June 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 the relevant officers of the company?

 

It is stated on Management's Responsibility on Financial Statements/Annual Income Tax Return (page 1 of Audited Financial Statements for CY 2015).

11. Corporate Vision/Mission

a. Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?

 

LBRDC Board of Directors reviewed the Vision and Mission/Strategy before submission of the Performance Evaluation System to GCG per Board Resolution No. 15-11-06 (See Board Resolution 2015, page 5)

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

 

Page 12-13 of LBRDC CY 2015 Annual Report

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


Performance Scorecard for 2015 is posted in Performance Based Incentive Section of LBRDC Website. LBRDC achieved 99.69% in CY 2015

13. Code of ethics or conduct

 

 

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

 

Code of Conduct is posted in Employee's Safety and Training Section of LBRDC Website

b. Does the GOCC disclose that all Directors/Commissioners, senior management  and employees are required to comply with the code?

 

Page 2 (Scope of the Code) of Code of Conduct posted in Employee's Safety and Training Section of LBRDC Website

c. Does the company disclose how it implements  and monitors compliance with the code of ethics or conduct?

 

Page 7 (Compliance with the Rules, Laws and Regulations) of Code of Conduct posted in Employee's Safety and Training Section of LBRDC Website

Employees are required to renew and sign code of conduct certificate and submit to Admin. Department not later than 30 calendar days from the receipt of the code

14. Does the Board appoint  a Nomination Compensation/Renumeration Committee?

 

Constitution of Board Committee is posted in Board of Directors Section of LBRDC Website. Nomination Compensation/Renumeration is part of the Executive Committee

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

 

Meeting of Nomination Committee/ Remuneration Committee is posted at Director's Attendance and Membership in Board Committees section of LBRDC Website. Executive Committee meets at least once a month.

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

 

The committee activities are posted at the Information on Board Committees and their Activities section

17. Does the Board appoint  an Audit Committee?

 

Constitution of Board Committee is posted in Board of Directors Section of LBRDC Website

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

 

The committee activities are posted at the Information on Board Committees and their Activities section

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

 

Directors Jocelyn Cabreza and Antonio Hugo Jr. are Graduates of BS Commerce Major in Accountancy and both are Certified Public Accountants.

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

 

Meeting of Audit Committee is posted at Director's Attendance and Membership in Board Committees section of LBRDC Website
21. Does the Board appoint a Risk Management Committee?
Constitution of Board Committee is posted in Board of Directors Section of LBRDC Website

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

 

The committee activities are posted at the Information on Board Committees and their Activities section. Risk Management Committee is under the Audit Committee

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

 

Director Jocelyn Cabreza and Antonio Hugo Jr. are  Graduate of BS Commerce Major in Accountancy and both are Certified Public Accountants.

24. Board meetings and attendance

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

 

The schedule of Board and Committee Meetings is posted at Board of Director Section of LBRDC Website

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

 

Meeting of Board of Directors is posted at Director's Attendance and Membership in Board Committees section of LBRDC Website

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

 

Meeting of Board of Directors is posted at Director's Attendance and Membership in Board Committees section of LBRDC Website

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

 

Meeting of Audit Committee is posted at Director's Attendance and Membership in Board Committees section of LBRDC Website

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

 

Starting CY 2016, LBRDC Board of Directors met without the President and CEO

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?

 

The Board of Directors and Management Committee member required to provide the Board, the materials and agenda folders at least three (3) days prior to the scheduled meeting.

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

 

Atty. Kriden Balgomera is a graduate of Bachelor of Laws and passed the Bar Exam.

26. Internal Audit

a. Does the company have a separate internal audit function?

 

Internal Audit function is uploaded in Internal Audit Manual

b. Is the head of internal audit identified or, if outsourced,  is the name of the external firm disclosed?

 

Olive Princess J. Silvano Internal Auditor I is identified in the Annual Report CY 2015

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

 

Removal and Appointment of Internal Auditor is stated in the Internal Audit Manual

27. Risk Oversight

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

 

Page 16 of the Annual Report CY 2015

b. Does the Annual Report disclose that the board of Directors/Commissioners have conducted a review of the company's material controls (including operational,  financial and compliance controls) and risk management  systems?

 

Page 11 of LBRDC CY 2015 Annual Report

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

 

It is posted at Transparency Seal section of LBRDC Website (see Risk and Self-Control Assessment)

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?

 

Page 15, 44 and 45 of the Annual Report CY 2015

28. Board Chairman

a. Do different persons assume the roles of Chairman and CEO?

 

It is identified at Board of Directors section of LBRDC Website that Ms. Gilda E. Pico is the Chairman of the Board and Ms. Simeona S. Guevarra is the President and CEO of LBRDC

29. Board of Directors Development

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

 

Page 12 of LBRDC CY 2015 Annual Report

b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional  education programmes?

 

The Board of Directors are included in the annual training program of LBRDC. (See Employee's  Safety and Training Section of LBRDC Website)

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

 

Page 12 of LBRDC CY 2015 Annual Report

30. Board Appraisal

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

 

Annual Performance Assessment of Board of Directors is conducted using the GCG's Internet-Based Performance Evaluation for Board of Directors facility

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

 

Page 15-16 of the Manual on Good Governance posted in LBRDC Website

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

 

Page 15-16 of the Manual on Good Governance posted in LBRDC Website

31. Committee Appraisal

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

 

Annual Performance Assessment of Board of Directors Committee is conducted using the GCG internet-baserd Performance Evaluation for Board of Directors Facility

BONUS

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

 

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

 

Disclosed/Uploaded June 9, 2016 within 30 upon receipt from COA on June 1, 2016.

PENALTY

Responsibilities of the Board

a. Are there members of the Board of Directors who hold more than five
(5) positions in GOCCs and PLCs?

 

No member of the Board of Directors hold more than five (5) positions in GOCCs and PLCs

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

 

LBRDC complied with all Good Governance Conditions