Disclosures toward a positive impact on the Philippine capital markets

The 2025 Golden Arrow Awards are just around the corner. To those still unfamiliar, this is a recognition of proper disclosures for publicly listed corporations (PLCs) in the ASEAN region and measured by the ASEAN Corporate Governance Scorecard (ACGS).

Launched in 2011 by the ASEAN Capital Markets Forum (ACMF), in collaboration with the Asian Development Bank (ADB), the ACGS aims to enhance corporate governance standards among PLCs across six participating ASEAN countries: Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. By providing a standardized framework for assessing corporate governance practices, the ACGS seeks to elevate the region’s investment appeal by promoting transparency, accountability and equitable treatment of shareholders.​

True enough, with the competitive nature in business, the corporates have been jockeying for top-level performance and recognition, rapidly increasing public fora participation and private consultancies on the subject.

The Institute of Corporate Directors (icd.ph) has received an influx of corporate members with over ten inductees in the last few months alone, establishing the need for PLCs to be aligned with the latest significant corporate governance initiatives. Needless to say, ICD corporate membership is an excellent track for your Golden Arrow Award journey. It is not just a trend, but an opportunity to evolve and not be left behind.

Key components of the ACGS

The ACGS encompasses the following:​

Rights of shareholders: Ensuring that shareholders have the ability to exercise their rights effectively, including participation in decision-making processes and access to relevant information.​

Equitable treatment of shareholders: Guaranteeing that all shareholders, including minority and foreign shareholders, receive fair and equal treatment, with mechanisms in place to protect against abusive actions by insiders.​

Role of stakeholders: Recognizing the importance of stakeholders beyond shareholders, such as employees, customers, suppliers and the community, and ensuring that their rights are respected and upheld.​

Disclosure and transparency: Mandating timely and accurate disclosure of material information, including financial performance, governance structures and ownership, to facilitate informed decision-making by investors.​

Responsibilities of the board: Assessing the effectiveness of the board of directors in providing strategic guidance, monitoring management, and ensuring accountability to shareholders.​

Importance of the ACGS to Philippine PLCs

For PLCs in the Philippine Stock Exchange (PSE), adherence to the ACGS framework has become increasingly significant:​

Enhanced investor confidence: Attracting both domestic and international investors seeking transparent and well-governed companies.​

Benchmarking and continuous improvement: Identifying areas for improvement and fostering a culture of continuous enhancement.​

Recognition and reputation: Recognition through accolades such as the Golden Arrow Awards, enhancing their reputation and brand value.​

The Golden Arrow Awards

The ICD confers the Golden Arrow Awards based on ACGS scores divided into five levels, peaking at 5 Golden Arrows:

1 Golden Arrow: 80 to 89 points

2 Golden Arrows: 90 to 99 points​

3 Golden Arrows: 100 to 109 points​

4 Golden Arrows: 110 to 119 points​

5 Golden Arrows: 120 to 130 points​

In the 2024 Golden Arrow Awards, which is based on 2023 Annual Reports and operations, the following PLCs received the prestigious 5 Golden Arrows: BDO Unibank Inc., China Banking Corporation, Globe Telecom Inc., SM Investments Corporation, and SM Prime Holdings Inc. reflecting a strong correlation of high marks and, market capitalization and sustainable success.

Meanwhile, the following received the 4 Golden Arrows: Aboitiz Equity Ventures Inc., ACEN Corporation, Ayala Corporation, Ayala Land Inc., AyalaLand Logistics Holdings Corp., Belle Corporation, Manila Electric Company, Manila Water Company Inc., Metropolitan Bank & Trust Company, Philippine National Bank, Premium Leisure Corp., Rizal Commercial Banking Corporation and Union Bank of the Philippines.

Let these awardees inspire all our PLCs to perform and raise the bar for the Philippine capital markets!

Conclusion

The increasing trend will continue as ASEAN PLCs have prioritized good governance practices at the Board level. The ICD and various governance advisory groups are leading the way as the number of participants in the field have mushroomed. Looking forward to the 2025 ACGS Golden Arrow Awards.