A number of businesses are recognizing the significance of good corporate governance especially with the public becoming more discerning, not to mention more vigilant, about the way companies conduct their operations, with public perception impacting a company’s profitability and long-term sustainability. Just recently, Manny Pangilinan’s First Pacific Group invited US business ethics expert Thomas Donaldson to speak on corporate governance and business ethics with the board of directors and senior managers of PLDT, Meralco and other businesses affiliated with the First Pacific Group.
In a roundtable discussion where we were invited together with fellow star columnist Boo Chanco, Donaldson (who is the director of the Zicklin Center for Business Ethics and Research) and who is also a professor at the Mark O. Winkelman, Wharton School in the University of Pennsylvania) tackled key enhancements on good governance, arising from the need to “navigate the new world of business,” emphasizing the role of ethics, reputational risk and integrating ethics into strategy. Donaldson has written extensively on the subject of business ethics and corporate governance, testifying before the US Senate regarding the Sarbanes-Oxley corporate reform legislation during the height of the Enron scandal.
MVP, who obtained his MBA also from Wharton, avers that “good governance” is indeed at the heart of corporate leadership, and that business plans and strategies should always take into account the “evolving demand of business ethics.”
Not that corporate governance is new to MVP, since it has been a pillar of his strategy in running his businesses, seen from the time First Pacific made its investment with PLDT in 1998 with transparency, accountability and fairness inculcated in the mindset of employees via the company’s manual on corporate governance and code of business conduct and ethics. Not surprisingly, PLDT received the Platinum Plus award earlier from the Institute of Corporate Directors’ (ICD) Corporate Governance Scorecard for publicly listed companies, having been a Gold awardee for four consecutive years with a score of 95 percent in the ICD scorecard.
It would seem the culture of good governance and corporate responsibility is rubbing off on the other companies under MVP – something that is being noticed by many sectors. A few days ago, Philex Mining Corp.’s Padcal mine in Benguet won the “Best Mining Forest” award from the Philippine Mine Safety and Environment Association – the 10th time it has done so. On the other hand, Philex’s Silangan project also received the Industry Excellence in Exploration platinum award and the “Best in Mining Forest” honors for the exploration category. The mining giant was also cited by Forbes Asia as one of the “Best Under a Billion” companies in Asia for 2012, with a market cap of $2.72 billion (as of July this year) and posted sales of $349 billion.
SM: It’s not all about business
The SM Group, one of the biggest conglomerates in the country, is becoming more conscious than ever of the need to reach out and engage with the public especially with regard to its corporate social responsibility programs. Hans Sy recently met with us, Inquirer columnist Mon Tulfo and ABS-CBN regional director Charie Villa (whose Choose Philippines advocacy campaign received an Award of Excellence during the recent Philippine Quill Awards) to get feedback on how to best communicate its efforts and serve a bigger sector of the public via its CSR projects.
People should be made aware that SM has a lot of community programs ranging from blood donations and medical missions in partnership with government and private groups, and gives scholarships to bright and talented young people via the SM Foundation. In fact, four of SM’s scholars were among the top 10 during the recent CPA licensure examinations. We are told that PWDs (Persons with Disabilities) are also employed in SM malls, providing opportunities for the “physically challenged” to showcase their skills and potentials via job fairs geared for PWDs.
Incidentally, SM Development Corp. was also in Forbes Asia’s list of “Best Under a Billion” companies, one of only three corporations from the Philippines that made it in the list pared down to 200 from over 15,000 companies in 15 countries across Asia Pacific. The award honors businesses that have shown resiliency against the backdrop of a precarious global economy, with annual revenues recorded between $5 million and $1 billion. Forbes scrutinized the companies who made it in the 200 list based on sales growth, earnings growth and return on equity over the last three years, with the period ending in August this year.
“It’s not all about business,” Hans told us, admitting that effective communication efforts are integral to raise public awareness about the company’s activities without sounding that they are drumbeating their accomplishments. Definitely, the public has the right to know all sides of an issue – which more often than not can be muddled by overzealous groups who are not above engaging in disinformation and misinformation to destroy the reputation of businesses and individuals.
‘Dog immunity’
Ritz Towers along Ayala Ave. has a number of expats and diplomats among its tenants, most of whom have pets to keep them company. Hotelier Arthur Lopez, one of the unit owners as well as a Ritz homeowners board member, had to remind a diplomat living in the building that dogs have to be kept on a leash and provide a muzzle for larger dogs especially when going into the elevators to protect the other residents in case the animal suddenly gets edgy and aggressive.
“Dogs have no diplomatic immunity,” Arthur emphasized to diplomats living at the Ritz.
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Email: spybits08@yahoo.com.