Corporate Governance Scorecard

CORPORATE GOVERNANCE SCORECARD* FOR GOCCS 2023

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?

 

The Manual of Corporate Governance identified the various stakeholders of LBRDC and was stated on page 26 of Manual of Corporate Governance.

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

 

 The Manual of Corporate Governance identified the various stakeholders of LBRDC and was stated on page 27 of Manual of Corporate Governance.

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

 

The Manual of Corporate Governance identified the various stakeholders of LBRDC and was stated on page 28 of Manual of Corporate Governance.

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

a. Customer health and safety

 

 The activities done by LBRDC for CY 2023 are posted on the Corporate Social Responsibility page of LBRDC Website.

b. Interaction with the communities

 

The activities done by LBRDC for CY 2023 are posted on the Corporate Social Responsibility page of LBRDC Website.

c. Environmentally-friendly value chain

 

 The activities done by LBRDC for CY 2023 are posted on the Corporate Social Responsibility page of LBRDC Website.

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

 

The activities done by LBRDC for CY 2023 are posted on the Corporate Social Responsibility page of LBRDC Website.

4. Where stakeholder's 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?

 

LBRDC has a Feedback and Redress Mechanism part on its official Website.

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?

 

LBRDC have different policies about health, welfare, and safety namely the following: (a.) Drug-Free Workplace Policy and  Program.

(b.) HIV/AIDS Workplace Policy Program.

(c.) Sexual Harassment Policies and Procedures.

(d.) Workplace Policy and Program on Tuberculosis (TB) Prevention and Control.

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

 

LBRDC posted the DOLE-submitted Annual Work Accident/Illness Data Report for CY 2023 under the CSR portion of its website.

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

 

LBRDC posted the DOLE-submitted Annual Work Accident/Illness Data Report for CY 2023 under the CSR portion of its website.

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

 

 LBRDC has posted the Trainings and Serminars attended for CY 2023 in the Transparency seal.

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?

 

As stated in Section D-1 \- Reporting of the Whistleblower on the Guidelines of Whistleblowing and Reporting
"All reports from whistleblowers must state the specific condition/s, action/s, and/or
omission/s being complained about, as well as the corresponding laws, rules or
regulations allegedly violated. If possible, documentary and other evidence in support
of the reports attached to the reports.
a. For acts involving employees with a rank of Manager and above- to the Chairman,
LBRDC Executive Committee (ExeCom); and
b. For acts involving employees below the Manager level- to the LBRDC President.
c. Reports on graft and corrupt practices and other reportable conditions coursed
through the mail or email or telephone shall be referred to the Admin Department
for referral to the appropriate body/person.
d. Reports on graft and corruption and other reportable conditions may also be
submitted to the Governance Commission for GOCCs in accordance with GCG MC.
2014-04.

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

 

 As per Section D - 2 - Protection against Retaliatory Actions subject to the conditions under item D.3
hereof
i. No administrative action shall be entertained or pursued by the
Corporation against a whistleblower relating to a report or disclosure
deemed protected under these guidelines. No retaliatory action shall be taken against a whistleblower such as, but
not limited to, discriminatory action; reprimand; punitive transfer; undue
poor performance reviews; obstruction of the investigation; withdrawal of
essential resources; adverse reports; attachment of adverse notes in the
personnel 201 file; ostracism; questions and attacks on motives;
accusations of disloyalty and dysfunction; public humiliation; and the
denial or work necessary for promotion.
Any employee who refuses to follow orders to perform an act that would
constitute a violation of this provision shall likewise be protected from retaliatory
action.

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

a. Corporate Objectives

 

LBRDC Corporate Objectives/Strategic Objectives are part of the LBRDC Performance Scorecard and Strategy Map for CY 2023.

b. Financial performance indicators

 

 LBRDC Financial Performance Indicators in the LBRDC Performance Scorecard and Strategy Map for CY 2023 are EBITDA, Construction Margin, Return on Equity, and Budget Utilization Cost.

c. Non-financial performance indicators

 

 LBRDC Non-Financial Performance indicators in the LBRDC Performance Scorecard and Strategy Map for CY 2023 are ISO Certification, Competency Assessment, Work Related Accidents, No. of Strategic Tie Up, Customer Satisfaction Survey, No. of Construction and Renovation Projects Completed on time and No. of Manpower Agreement Established.

d. Details of whistleblowing policy

 

As stated in Section D-1 \- Reporting of the Whistleblower on the Guidelines of Whistleblowing and Reporting
"All reports from whistleblowers must state the specific condition/s, action/s, and/or
omission/s being complained about, as well as the corresponding laws, rules or
regulations allegedly violated. If possible, documentary and other evidence in support
of the reports attached to the reports.
a. For acts involving employees with rank of Manager and above- to the Chairman,
LBRDC Executive Committee (ExeCom); and
b. For acts involving employees below Manager level- to the LBRDC President.
c. Reports on graft and corrupt practices and other reportable conditions coursed
through the mail or email or telephone shall be referred to the Admin Department
for referral to the appropriate body/person.
d. Reports on graft and corruption and other reportable conditions may also be
submitted to the Governance Commission for GOCCs in accordance with GCG MC.
2014-04.

e. Biographical details (directors)

 

All the Biographical Details of all directors are on the Transparency Seal page of LBRDC Website

f. Trainings or continuing education (directors)

 

All the Training of the appointive directors are stated in the Biographical Details of each director posted on the Transparency Seal page of LBRDC Website.

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

 

LBRDC Financial Statements was already posted in LBRDC website on June 07, 2024.

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?

 

The Disclosure is on page 8  of the LBRDC Corporate Social Responsibility for CY 2023.

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 received the Audited Financial Statements by COA on May 09, 2024 and was posted in LBRDC website on June 07, 2024.

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

 

 

LBRDC received the Audited Financial Statements by COA on May 09, 2024. Due to circumstances brought by resignation of personnel in-charged in website posting, the CY 2023 Annual Report was posted to LBRDC website on September 25, 2024

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?

 

The Board of Directors affirmed the true and fair presentation of the annual financial statements as reflected on page 4 of the CY 2023 Audited Financial Statements issued by COA. The statement was signed by the Chairman of the Board, the President and CEO, and the Corporate Treasurer

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 and approved the mission, vision, strategy map, strategic objectives, and strategic measures for CY 2023 as per Board Resolution No. 2022-12-37.

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

 

The Disclosure is on page 3  of the LBRDC Corporate Social Responsibility for CY 2023.

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

 

LBRDC received the validated scorecard of 55.94% for its CY 2023 PES from GCG on September 17, 2024. LBRDC submitted its request for consideration, outlining its accomplishments that were not considered in the validation and submitting all supporting documents thereto, within thirty (30) calendar period as allowed per GCG memorandum Circular No. 2024-01.

13. Code of ethics or conduct

 

 

  

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

 

The Code of Conduct's purpose is to help directors and employees understand the company’s standards for business ethics as a guide in properly carrying out their responsibilities to the company.

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

 

The Disclosure is on page 8  of the LBRDC Corporate Social Responsibility for CY 2023.

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

 

The Disclosure is on page 8 of the LBRDC Corporate Social Responsibility for CY 2023.

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

 

 The members of the Nomination and remuneration committee are Director Feliciano L. Macalino, Director Pamela S. Baricuatro, and Director Lourdes Candy R. Darimbang. The committee was created as per Board Resolution No. 22-08-08. CY 2023.

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

 

The Committee conducted  four (9) meetings in CY 2023.

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

 

The list of resolutions and  the action of the committee was posted in the Board of Directors tab on the LBRDC Website.

17. Does the Board appoint an Audit Committee?

 

 The members of Audit committee are Director Manuel C. Piczon, Director Pamela S. Baricuatro, Director Abner O. Malabanan, Director Virgil G. Nery and Director Lourdes Candy R. Darimbang. CY 2022.

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

 

The list of resolutions and  the action of the committee was posted in the Board of Directors tab on the LBRDC Website.

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

 

Director Abner O. Malabanan is a graduate of BS Commerce major in Accounting.

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

 

 The Committee conducted nineteen (16) meetings in CY 2023.
21. Does the Board appoint a Risk Management Committee?   The members of Compliance and Risk Management committee are Director Antonio Ramon A. Lim, Director Manuel C. Piczon and Director Ricardo C. Juliano. The committee was created as per Board Resolution no. 22-09-12. CY 2023.

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

 

The list of resolutions and  the action of the committee was posted in the Board of Directors tab on the LBRDC Website.

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

 

 Director Ricardo C. Juliano is a  graduate of BS Commerce major in Accounting.

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 was approved on December 27, 2022, as per Board Resolution No. 22121-25.

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

 

 The Board met at least once a month as per the list of resolutions and the actions taken posted on the Board of Directors of LBRDC Website.

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

 

100% of the scheduled meeting for CY 2023 was held on the stated schedule for the year.

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

 

All of the directors have attended at least 90%  of total regular meetings and special meetings for Board and Board level committees for CY 2023.

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

 

 

LBRDC President and CEO is not present in December 19, 2023 Board Meeting

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 Disclosure is on page 8  of the LBRDC Corporate Social Responsibility for CY 2023.

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

 

 Atty. Reo S. Andarino is the LBRDC Corporate Secretary until March 14, 2024. He is a Bar Passer Batch 2006

26. Internal Audit

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

 

 Board approved organizational chart which was also submitted to GCG has a separate Internal Audit Unit that reports to the Audit Committee. It was also stated in the Chapter 3 of the Internal Audit Manual. 

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

 

The appointment and removal of the internal auditor requires the recommendation of the Audit Committee for approval of the Board.

 

27. Risk Oversight

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

 

 LBRDC created a risk management policy given by the LANDBANK for the mitigation of the risk for LANDBANK subsidiaries.CY 2023.

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?

 

 The Disclosure is on pages 9 of the LBRDC Corporate Social Responsibility for CY 2023.

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

 

 Key Risks for LBRDC are: 1. Credit; 2. Compliance; 3. Interest Rate; 4. Liquidity; 5. Operational; 6. Market; 7. Reputation and 8. Strategic. The risk are managed thru the use of the risk management tools that was given by LANDBANK to mitigate the risks.

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?

 

 The Disclosure is on page 9 of the LBRDC Corporate Social Responsibility for CY 2023.

28. Board Chairman

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

 

 LBRDC Chairman of the Board is Mr. Antonio Ramon A. Lim and the President and CEO is Mr. Ricardo C. Juliano, MNSA

29. Board of Directors Development

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

 

 LBRDC conducted an orientation program for the newly appointed directors for CY 2022 last March 18, 2022. The coverage of the orientation program includes the creation and history of LBRDC, its key officers, financial performance for CY 2021, and the services it offers. LBRDC has no new appointed directors for cy 2023

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

 

LBRDC Executive Committee is tasked to recommend to the Board regarding the continuing education of Directors and there is an allocated P 80,000.00 worth of seminar per director per year. Corporate Governance.

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

  

 

All of the appointed directors attended at least one (1) training this year. Their training for the year is on page 21 of the LBRDC Corporate Social Responsibility

30. Board Appraisal

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

 

 LBRDC conducted CY 2023 its own Performance Assessment for the Board of Directors posted in the Transparency Seal of the LBRDC Website.

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

 

 LBRDC has posted the process followed in conducting the Board assessment.

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

 

LBRDC has posted the criteria used in the Board assessment.

31. Committee Appraisal

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

 

 

 LBRDC conducted in CY 2023 its own Performance Assessment for Board Level Committees posted in the Transparency Seal of LBRDC Website

BONUS

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

 

 

 LBRDC does not practice Global Reporting Index (GRI) on its annual report.

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

 

 LBRDC received the Audited Financial Statements by COA on May 29, 2024, and was posted on the LBRDC website on June 07, 2024.

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?

 

There are no members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs.

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

 

LBRDC has yet to receive Good Governance Conditions results for CY 2023 from GCG