Corporate Governance Scorecard

 

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CORPORATE GOVERNANCE SCORECARD* FOR GOCCS 2018**

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?

 

Yes. See page 3, SR 2016-2017. "LANDBANK Mission" 

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

 

Yes. See LANDBANK's Manual on Corporate Governance, Chapter 1.E, page 3 

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

 

YesSee LANDBANK's Manual on Corporate Governance, Chapter 1.E, page 3 

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

a. Customer health and safety

 

Yes. See pages 68-69, SR 2016-2017. "Customer Service"

"b. Interaction with the communities

 

Yes. See pages 40-51, SR 2016-2017. "Community Development"

c. Environmentally-friendly value chain

 

Yes. See pages 52-65, SR 2016-2017. "Environmental Protection and Management"

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

 

Yes. See pages 42-49, SR 2016-2017. "CSR Programs"

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?

 

Yes. See LANDBANK's website "Contact Us" page and GCG whistleblowing portal link in the Transparency Seal page.

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. Please see 2018 Human Resource Management Report. In paragraph 1 under Annual Medical Examination, it states that:

LANDBANK values its human resources and provides its employees with opportunities to maintain their health and well-being.  Since 2016, LANDBANK has made mandatory the annual medical examination with the issuance of Executive Order No. 001, Guidelines on the Mandatory Annual Medical Examinations (AME) for LANDBANK Employees. This is in line with the Bank's thrusts of safeguarding employee health, safety and well-being, promoting productivity and complying with the Occupational Safety and Health Standards and the Policy on Working Conditions at the Workplace set by regulatory bodies including the Civil Service Commission.

 

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

 

Yes. Please see 2018 Human Resource Management Report. In paragraph 1 under Healthcare Services, it states that:

To provide its employees with access to medical services, LANDBANK operates a worksite Medical Clinic manned by healthcare professionals (i.e., internists, occupational health physicians, nurses) offering services such as consultation, first aid treatment, medical record-keeping, certification/fitness assessment and emergency ambulance transportation, if necessary.  In 2018, medical consultation in the LBP Medical Clinic was availed of 5,717 times.

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

 

Yes. Please see 2018 Human Resource Management Report. In paragraph 1 under Learning and Development Initiatives, it states that:

Guided by its mission of developing and nurturing talents who exemplify the highest standards of ethics and excellence, consistent with the best in the world, LANDBANK provides its employees with learning and development (L&D) interventions. The Organization Development Department, the Bank’s training arm, adopts the 70-20-10 principle, where learning is sourced through various modes — on-the-job (70%), informal (20%) and formal, both classroom and on-line (10%). 

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

 

Yes. Please see 2018 Human Resource Management Report. In paragraphs 2-3 under Learning and Development Initiatives, it states that:
 

Eight hundred eleven (811) talents joined LANDBANK in 2018.  As part of their on-boarding and to facilitate their smooth integration into the organization, they attended a series of training programs, where Bank officers and supervisors served as resource persons.  The three-day orientation program entitled LANDBANK in Perspective introduced them to the Bank’s strategy map, history, organizational structure and culture among others.  A one-day session on Professional Image Enhancement (PrImE) was conducted to improve their capability to project a more positive, professional, confident, and credible image in dealing with existing and potential clients.  Additionally, new hires for branches underwent classroom-type training on branch banking for four days, followed by an on-the-job training in the designated Training Branches.

In 2018, 95% of the Bank’s workforce were provided with at least two (2) L&D programs, while the remaining 5% had one.

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. Please see 2018 Human Resource Management Report. Under Employee Discipline and Accountability, it states that:

Cognizant of its responsibility to continually uphold the highest standards of ethics and excellence among its employees, LANDBANK formulated and implemented LBP Administrative Order (AO) No. 141, series of 2018, otherwise known as the Revised Guidelines on Internal Whistleblowing and Reporting.  

LBP AO No. 141 was issued to fully comply with the provisions of Governance Commission for GOCCs (GCG) Memorandum Circular No. 2016-02 (Revised Whistleblowing Policy for the GOCC Sector).  Major changes include additional reporting channels and a listing of reportable conditions such as acts or omissions that are illegal, unethical, and violative of good governance principles, and those that are against public policy and morals, promote unsound and unhealthy business practices, and are grossly disadvantageous to the Bank and/or the Government.


See also LANDBANK's Guidelines on Internal Whistleblowing and Reporting (2010) and the Revised Guidelines on Internal Whistleblowing and Reporting (2018)

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

 

Yes. See LANDBANK's Guidelines on Internal Whistleblowing and Reporting (2010) and the Revised Guidelines on Internal Whistleblowing and Reporting (2018)

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

a. Corporate Objectives

 

Yes. See LBP WebsiteTransparency SealStrategy Map 

b. Financial performance indicators

 

Yes. See LANDBANK’s Transparency Seal page (C. On LANDBANK’s Financial and Operational Matters – 2018 COA Audited Financial Statement)

c. Non-financial performance indicators

 

 

d. Details of whistleblowing policy

 

Yes. See LANDBANK's Guidelines on Internal Whistleblowing and Reporting (2010) and the Revised Guidelines on Internal Whistleblowing and Reporting (2018).

e. Biographical details (directors)

 

Yes. See Transparency Seal. II. B.1  On the LANDBANK’s Board and Officers Complete listing of the Directors and Officers with attached resume, and their membership in Board Committees Affiliates, and List of LBP Board of Directors and Officers with Attached Resume​

f. Trainings or continuing education (directors)

 

Yes. Please see Relevant Qualifications and Experiences page.

 

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

 

Yes. Go to website Quicklinks under Publications Section, Annual Report.

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?

 

Yes. See  AR 2017 page 53, Corporate Governance  (1st paragraph)

10. Timely filing/release of annual/financial reports

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

 

Yes. See Transparency Seal, Item I.6.b

Date Posted: July 30, 2018
Date of Receipt from COA: July 6, 2018
 

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

 

Yes. Date Posted: October 4, 2018.

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? 

 

Yes. See page 132, AR 2017, Statement of Management’s Responsibility For Financial Statements

11. Corporate Vision/Mission

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

 

Yes. LANDBANK conducted its Strategy Refresh and reviewed the Vision and Mission on October 24-26, 2018. See Transparency Seal, Board Meetings and Attendance (2018)

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

 

Yes. See Corporate Governance page. Under Board's Overall responsibility, it states that:

The LANDBANK Board sets the overall policies and strategic directions of the Bank, which serve as the guide of management and operating units in the day-to-day operations. Moreover, the LANDBANK Board provides the oversight functions in the overall Bank performance, and champions good corporate governance by strong adherence to ethical standards and compliance with legal, institutional and regulatory requirements. The Board also ensures that the Bank remains accountable to its various stakeholders.

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

 

Yes. See LBP website, click on the Transparency Seal, Balance Scorecard

13. Code of ethics or conduct

 

Yes. See page 24-25, SR 2016-2017, Ethics and Conduct

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

 

Yes. See Code of Conduct for LANDBANK Directors and Employees

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

 

Yes. Code of Conduct for LANDBANK Directors and Employees

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

 

Yes. Please see Code of Conduct for LANDBANK Directors and Employees and 
 

LANDBANK Sustainability Report 2017, "GRI Content Index (CORE)" page 94-97

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

 

Yes. The equivalent to this is the Corporate Governance Committee which has the same functions, except that it cannot approve any increase in Compensation/Remuneration without GCG approval. See page 21 of SR 2016-2017; and see Corporate Governance page, Item G. List of Board-Level Committees Including Membership and Function (as of 31 December 2018) Corporate Governance Committee.

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

 

Yes. Director’s Attendance to Board and Board-Level Committee Meetings (CY 2018)”, 13 meetings. See also "Board Meeting and Attendance (2018)" on Transparency Seal page of the website.

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

 

Yes. The CGCom issued 88 resolutions. See "Board Meeting and Attendance (2018)" on Transparency Seal page of the website.

17. Does the Board appoint  an Audit Committee?

 

Yes. 

 

The Audit and Compliance Committee’s primary purpose is to provide assistance to the LANDBANK Board of Directors in fulfilling its oversight responsibilities specifically:

 

  1. For Internal Audit:

 

  1. To oversee Senior Management in establishing and maintaining an adequate, effective and efficient internal control framework.  It shall ensure that systems and processes are designed to provide assurance in areas including reporting; monitoring; compliance with laws, regulations and internal policies; efficiency and effectiveness of operations; and safeguarding of assets; and
  2. To oversee the internal audit function.

 

  1. For Compliance, to oversee the implementation of the Bank’s Compliance Program.

 

As of December 31, 2018,  the Audit and Compliance Committee is composed of the following Board of Directors:

 

Chairperson

Director Atty. Jesus V. Hinlo, Jr.

Member

Director Atty. Jaime L. Miralles

Director Virgilio DV. Robes

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

 

Yes.  The Audit Compliance Committee’s oversight responsibilities and accomplishment report are incorporated in the Bank’s Annual Report which is posted in the LANDBANK website hence, available to the public.

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

 

Yes.  Directors Hinlo, Miralles, and Robes have finance background. Please see Relevant Qualifications and Experiences page.

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

 

Yes. 

 

The Audit and Compliance Committee holds its meeting at least once a month to ensure the effectiveness and adequacy of the internal control system and that risks are properly managed.  On top of the discussion of the regular reports of the Internal Audit Group and Compliance Management Group for its notation or approval, the Committee also deliberates on various issues and concerns related to the Bank’s existing internal controls, potential breaches and breaches, and recommend ways and measures to strengthen internal controls and manage risks.  Business Units (BUs) concerned are also required to present to the Committee the status and/or actions taken on audit’s recommendations to address internal control breaches which contributed to the perpetration of various crimes or incidents in the Bank to strengthen and enhance internal controls on information systems, lending operations, incoming remittances, case management, human resource management, etc.  Likewise, BUs which failed the audit are required by the Committee to present their action plans to ensure that control weaknesses are immediately addressed and prevented from recurring.  

 

In 2018, the Audit and Compliance Committee held 15 meetings with an average attendance of 88%, summarized as follows:

 

Audit and Compliance Committee

Numbers of  Meetings during Committee Chairmanship/ Membership

Number of Meetings

Attended

Percentage Attendance

Director Atty. Jesus V. Hinlo, Jr.

15

15

100%

Director Atty. Jaime L. Miralles

6

6

100%

Director Virgilio DV. Robes

15

13

87%

DA Usec. Atty. Francisco M. Villano, Jr.

3

2

67%

Director Rodolfo V. Puno

4

3

75%

Director Crispino T. Aguelo

9

9

100%

Average Attendance

88%

21. Does the Board appoint a Risk Management Committee? 

Yes. See LANDBANK Risk Management Philosophy and Culture. In paragraph 1, it states that:

Risk Management (RM) goes hand-in-hand on co-equal footing with LANDBANK’s business strategy. It is an integrative component of good governance which the LANDBANK Board, Risk Oversight Committee (RISKCOM) and Senior Management oversee to ensure adequacy of framework, policies, internal controls, RM systems and procedures to manage risks. (GCG III.27.d and GCG III.21)

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

 

Yes. See Risk Oversight Committee. In paragraph 1, it states that:

The board-level RISKCOM is primarily responsible for the LANDBANK‟s RM framework, policies and guidelines and ensures the alignment of RM objectives with the Bank‟s overall business strategies and performance goals. (GCG III.22) The RISKCOM oversees the RM program of the Bank ensuring that RM systems are in place, limits and tolerances are observed, system of limits remain effective and immediate corrective actions are taken whenever there are breaches.

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

 

Yes. See Risk Oversight Committee. In paragraph 2, it states that:

The Committee is chaired by Director Crispino T. Aguelo with the Finance Secretary represented by the Deputy Treasurer of the Philippines [DToP] Erwin D. Sta. Ana as Vice-Chair (effective 16 April 2018). (

24. Board meetings and attendance

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

 

Yes. See Transparency Seal, Board Meetings and Attendance, Item II.B.3.  It states on the "Board Meetings and Attendance" part that, "The schedule of the meetings of the Board of Directors is agreed upon at the beginning of the year. In general, there are at least two meetings scheduled per month, held on every second and fourth Tuesday of each month."

 

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

 

Yes. See Director's Attendance.  See also "Board Meeting and Attendance (2018)" on Transparency Seal page of the website.

 

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

 

Yes. See Director's Attendance.

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

 

Yes. See Director's Attendance. and the Transparency Seal in the website, II B.4.

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

 

Yes. The Meeting was held last 21 November 2018. The LBP Board of Directors approved on 30 March 2016 the enhancement in the Manual of Corporate Governance which provides that the Board will meet at least once a year without the President present. See the Transparency Seal. "Board Meetings and Attendance" (2nd par.)

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 materials are provided to the Board within 3 working days before the meeting. See the website's Transparency Seal Board Meetings and Attendance

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

 

Yes. The Corporate Secretary from January to July 2017 was VP Felix L. Manlangit, a lawyer and the Head of Field Legal Services Department, while the Officer-in-Charge, Corporate Secretary from August to December 2017 was Atty. Myra-Lyn S. Peñalosa. See Transparency Seal's Board Meetings and Attendance.

26. Internal Audit

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

 

Yes.

To ensure its independence, the Internal Audit Group reports functionally to the Audit and Compliance Committee and administratively to the President and CEO.  The IAG is composed of five units, namely: Lending Operations Audit Department; Field Operations Audit Department; Head Office and Systems Technology Audit Department; Audit Services Team; and Quality Assurance and Support Team.

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

 

Yes.  The Internal Audit Group is headed by Vice President Maria Edelwina D. Carreon.

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

 

Yes. Please refer to Transparency Seal's D. On LANDBANK’s Governance Matters, 9. Manual of Corporate Governance, 5.1 Responsibilities in the Functional Supervision over IAG and CMO.


Under the Audit and Compliance Committee Charter, Section 6.1.a., one of the responsibilities of the Committee in the functional supervision over IAG and CMG is to endorse to the Board the appointment or removal of the Heads of IAG and CMG.

27. Risk Oversight

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

 

Yes. See LANDBANK Risk Management Philosophy and Culture. In paragraph 5, it states that:

At the Strategic Level, the LANDBANK Board through the RISKCOM and Senior Management, are actively involved in an enterprise-wide RM oversight which involves formulation and approval of RM framework, policies and strategies, internal controls, and RM system as well as the annual review thereof. (GCG III.27.a) The LANDBANK Board and Senior Management are also involved in an organizational-wide risk monitoring which is used as basis for decision-making and review of LANDBANK’s controls/mitigating measures (operational, financial and compliance control) and RM system. (GCG III.27.b)

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?

 

Yes. See LANDBANK Risk Management Philosophy and Culture. In paragraph 5, it states that:

At the Strategic Level, the LANDBANK Board through the RISKCOM and Senior Management, are actively involved in an enterprise-wide RM oversight which involves formulation and approval of RM framework, policies and strategies, internal controls, and RM system as well as the annual review thereof. (GCG III.27.a) The LANDBANK Board and Senior Management are also involved in an organizational-wide risk monitoring which is used as basis for decision-making and review of LANDBANK’s controls/mitigating measures (operational, financial and compliance control) and RM system. (GCG III.27.b)

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

 

Yes. See LANDBANK’s Risk Management.

  1. Credit RM
  2. Market RM

3. Liquidity RM

  4. Operational RM

  5. Information Security & Technology RM

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 LANDBANK Risk Management Philosophy and Culture. In paragraph 5, it states that:

At the Strategic Level, the LANDBANK Board through the RISKCOM and Senior Management, are actively involved in an enterprise-wide RM oversight which involves formulation and approval of RM framework, policies and strategies, internal controls, and RM system as well as the annual review thereof. (GCG III.27.a) The LANDBANK Board and Senior Management are also involved in an organizational-wide risk monitoring which is used as basis for decision-making and review of LANDBANK’s controls/mitigating measures (operational, financial and compliance control) and RM system. (GCG III.27.b)

28. Board Chairman

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

 

Yes. See Corporate Governance under Board Composition. The Chairman is Finance Secretary Carlos G. Dominguez, while the Pres. & CEO is Alex V. Buenaventura. 

29. Board of Directors Development

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

 

Yes. See Transparency Seal, item 1.C Names of Officials / Board of Directors (1st par.)

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

 

Yes. See Transparency Seal, item 1.C Names of Officials / Board of Directors (3rd par.). . See also Corporate Governance under BOARD’S OVERALL RESPONSIBILITY, Item L states that:

 

All Members of the Board of Directors are expected to attend orientation and training. A Director shall have an adequate orientation process and continuous development and education regarding the Bank’s operations.

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

 

Yes. Please see Relevant Qualifications and Experiences page.

30. Board Appraisal

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

 

Yes. See Corporate Governance under Performance Assessment Program, it states that:

Performance rating sheets developed by the Institute of Corporate Directors (ICD) are disseminated yearly to evaluate the performance of the Board and the Board-level Committees. The results of the performance assessments are evaluated and deliberated upon annually by the Corporate Governance Committee in a duly constituted meeting.

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

 

Yes. See Corporate Governance under Performance Assessment Program, it states that:

The Director Performance Review (DPR), one of the components of the Performance Evaluation for Directors in the GOCC Sector, appraises the performance of individual members of the GOCC Governing Board.  The DPR Forms are being accomplished and submitted by each director directly to the GCG through the iPED System.

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

 

Yes. See Transparency Seal, Section II. Code of Corporate Governance for GOCC's, Item B.3 Information on Board Committees and their activities, 2018 Board Meetings and Attendance

It states that, "Performance evaluation of the Bank’s Board of Directors is central to corporate governance. Performance rating sheets developed by the Institute of Corporate Directors (ICD) are disseminated yearly to evaluate the performance of the Board and the Board-level Committees. The results of the performance assessments are evaluated and deliberated upon annually by the Corporate Governance Committee in a duly constituted meeting."

31. Committee Appraisal

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

 

Yes. See Transparency Seal, (Chapter 13, page 76, Corporate Governance Manual 2016)

BONUS

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

 

Yes. 

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

 

Yes. 

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?

 

None. See Transparency Seal, List of LBP Board of Directors and Officers with Attached Resume (2017). 

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

 

None

 

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*Based on the prescribed format of the Governance Commission for GOCCs. 
**Latest available data/reports

 

 


Corporate Governance Scorecard 2017

Corporate Governance Scorecard 2016