PLDT complies with the Philippines and US requirements being listed in both the Philippine Stock Exchange and New York Stock Exchange. PLDT also benchmarks itself with the parameters of notable rating agencies and international best practices set by well known organizations to be at par with leading practitioners of good governance.





CG Best Practices

• Organization for Economic Co-operation and Development (“OECD”) – Principles of Corporate Governance
The OECD groups 30 member countries sharing a commitment to democratic government and the market economy. The OECD Principles of Corporate Governance were endorsed by OECD Ministers in 1999 and have since become an international benchmark for policy makers, investors, corporations and other stakeholders worldwide.


• Asian Development Bank (“ADB”) - Corporate Governance Principles for Business Enterprises
The ADB has taken a wide range of steps to improve corporate governance in the region. Ten core principles have been listed in a manner consistent with global best practice. All the principles are interrelated and tied by the common threads of a performance orientation within the bounds of acceptable conduct.


• European Corporate Governance Institute (“ECG”I) - Corporate Governance and Control
Corporate governance is concerned with the resolution of collective action problems among dispersed investors and the reconciliation of conflicts of interest between various corporate claimholders. In this survey, ECGI reviews the theoretical and empirical research on the main mechanisms of corporate control, discusses the main legal and regulatory institutions in different countries, and examines the comparative corporate governance literature.


• The Business Round Table – Principles of Corporate Governance
The Business Round Table is an association of chief executive officers of leading corporations with a combined workforce of more than 10 million employees in the United States and $3.5 trillion in revenues. The principles are intended to assist corporate management and boards of directors in their individual efforts to implement best practices of corporate governance, and also to serve as guideposts for the public dialogue on evolving governance standards.


• The Corporate Board – Seven Components of Good Corporate Governance
The Corporate Board is a 32-page, no advertising, bi-monthly journal providing vital information to corporate directors and senior officers on a variety of corporate governance topics. Their corporate governance framework recognizes the dynamic nature and broad scope of governance within a company.


• Michael C. Jensen / Harvard Business School “U.S. Corporate Governance: Lessons from the 1980s”
Michael C. Jensen, Harvard Business School, examines the takeover boom of the 1980s that challenged entrenched corporate management, who since the 1930s held the reins of corporate decision-making, often at the expense of shareholder interests – the political reactions to them, and the economic effects of the reactions. The effect of corporate restructuring on capital investment and R&D was also evaluated and explained the phenomenon of excess capacity and the forces that lead to exit. Finally, he analyzes the breakdown of internal control systems and makes recommendations to strengthen them.


• McKinsey Consulting “Corporate governance develops in emerging markets”
McKinsey on Finance is a quarterly publication written by experts and practitioners in McKinsey & Company’s Corporate Finance & Strategy Practice. Their research shows that shareholders in emerging markets are willing to pay a premium for good governance standards.


• George Washington University Law School and Villanova University School of Law “The Sarbanes-Oxley Act and the Reinvention of Corporate Governance?”
The Sarbanes-Oxley Act, signed into law by President Bush in July 2002, creates the need to re-think the way the study of corporate governance is approached in two ways and has the potential to dramatically change the way corporate is thought, written and taught.


• Ivey Business Journal “From corporate governance to corporate responsibility: The changing boardroom agenda“
For a time, good corporate governance and socially responsible investment (SRI) had little to do with each other. The growing activism of institutional shareholders, however, has made SRI – along with what this author calls the economics of reputation, and the recognition that CSR must be encouraged – one of the drivers behind the widespread willingness to assume greater corporate social responsibility.