Corporate Governance Scorecard 2021
| COMPONENT | GOCC SUBMISSION | ||||
|---|---|---|---|---|---|
| GRP | ITEM | QUESTION | CITEM COMPLIANCE | ANS | REFERENCE LINK/SUPPORTING DOCUMENTS |
| I. Stakeholder Relationship | |||||
| I | 1.a | Does the GOCC disclose a policy that: Stipulates the existence and scope of its effort to address customer's welfare? | Section 52 of the CITEM's Manual of Corporate Governance (Recognizing the Stakeholders and Nature of their Interests) identified its various stakeholders as follows:
Section 55 of the manual also stated CITEM's policies on dealings with its customers as follows:
|
Y |
CITEM Manual of Corporate Governance, Section 52 and 55, page 15 |
| I | 1.b | Does the GOCC disclose a policy that: Elaborates its efforts to interact with the communities in which they operate? | CITEM's policy on interacting with the communities around it can be found in the following sections of CITEM's Manual of Corporate Governance:
|
Y | CITEM Manual of Corporate Governance, Section 47 and 49, page 14 Corporate Governance Manual (page 14) |
| I | 1.c | Does the GOCC disclose a policy that: Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? | Section 48, Environment, of the CITEM's Manual of Corporate Governance under 'Corporate Social Responsibility' stated that, to wit: "In the course of the operations of CITEM, it should identify opportunities to reduce consumption of energy, water and other natural resources. CITEM should also strive to re-use and recycle where possible and dispose of non-recyclable items responsibly, thereby minimizing our impact on the environment, in doing so, by adopting simple, environmentally friendly initiatives, CITEM will raise awareness among the community". |
Y | CITEM Manual of Corporate Governance, Section 48, page 14. Corporate Governance Manual (page 14) |
| I | 2.a | Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Customer health and safety) | Due to the health restrictions caused by the pandemic, CITEM postponed the implementation of the physical components of its signature events set for FY2021 with the approval of the CITEM Board of Governors during its meeting on 07 May 2021. Moreover, the Philippines' participation in Overseas Trade Fairs (OTF) were likewise affected. Prior to the pandemic, the Philippines occupied between 80sqm to 270sqm space for the CAEXPO's National Pavilion to feature the City of Charm every year. However, the agency rationalized its participation in CAEXPO held on 10-13 September 2021, particularly in the National Pavilion, in view of the budget constraints and health and safety concerns. As a way of continued support to CAEXPO, PH maintained its presence in the National Pavilion, but was not able to feature a City of Charm in this year’s edition. Likewise, because of the travel and customs restrictions brought by the current pandemic, travel and customs guidelines were still put in place. The Secretariat only allowed participation of companies with China-based counterparts such as subsidiaries and distributors. The PH Physical participation is limited to companies with China-based counterparts, distributors or retailers. In the Philippine participation In the 4th China International Import Expo (CIIE) held on 5-10 November 2021, CITEM once again implemented a HYBRID participation as an effect of the global pandemic situation. This year’s participation was a combination of a 108 sqm physical exhibition, which featured 40 exhibitors to promote the “Healthy and Natural” products under the banner of FoodPhilippines, and a virtual component intended to enable companies to e-meet the buyers onsite through an online B2B platform and using the WeChat platform so that buyers can communicate directly with the Philippine Exhibitors. In response to the continued health risks brought about by the COVID-19 pandemic in FY2021, CITEM issued an Office Order dated 12 August 2021 on Health and Safety Protocols for agency-wide implementation. The health and safety of CITEM community, stakeholders, and guests are of paramount importance, thus the CITEM COVID-19 Response Team has outlined and recommended the health and safety protocols for the following: 1) Reporting Skeleton Workforce, 2) Accepting External Visitors, 3) Attending Short Meetings/Engagements Outside CITEM, and, 4) Conducting Local Travels. It was stated on page 2 of the Office Order that "As a rule, external visitors shall be limited to essential meetings, maintenance and other related activities only. Face to face meetings should only be held in the office when videoconferencing or teleconferencing is not possible or not appropriate". |
Y |
Board-approved postponement of Physical component of 2021 CITEM Signature Events Link to the Document CAEXPO Post Event Report, page 2 Link to the Document China International Import Expo Post Event Report, page 1 Link to the Document Office Order on Health and Safety Protocols Link to the Document |
| I | 2.b | Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Interaction with the communities) | CITEM provided sponsorship of Php20,000.00 to Persons with Digitabilities International Virtual Film Festival 2021 (PWDIVFF 2021) which aims to amplify the voices of the persons with disabilities, non-communicable diseases, HIV, lived mental health experience, and to the health sector in general, to present their narratives and spark conversations about the right to health.Through this project, CITEM contributed to the achievement of the UN’s Sustainable Development Goals on Good Health and Well-being and Gender Equality. Details of this and other CSR activities are available in the agency’s website. | Y | CITEM Website: CITEM CSR Activities CY 2021 Link to the Document |
| I | 2.c | Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Environmentally-friendly value chain) | To spread awareness on sustainability, CITEM conducted the "Organizing Zero-Waste Events", a knowledge-sharing session (KSS) on how to plan, produce and launch zero-waste events which was held via Hopin and Facebook Live on 11 September 2021 (Saturday). Guest speakers Akira Sakano from Zero Waste Academy, Anna Oposa from Save Philippine Seas, Jonas Marie Dumdum from Sustainable PH, and Joni Galeste from Buhay Zero Waste shared with the audience sustainable practices for event planning, as well as discussed circular business models that MSMEs could adopt. Likewise, on 21 October 2021, during the second day of FAME+ Market Days which was held online via Hopin, CITEM also conducted "Sense and Sustainability", a talk on how Creative Definitions, a manufacturer of handwoven textiles established a sustainable value chain from farm to textile to products, one step at a time. |
Y | Knowledge-Sharing Session on Organizing Zero-Waste Events Sense and Sustainability Talk in FAME+ Market Days 2021 |
| I | 3 | Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section? | CITEM has a CSR report uploaded on the agency's website. | Y | CITEM Website: CITEM CSR Activities CY 2021 Link to the Document |
| I | 4 | Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights. 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? | CITEM has contact details dedicated for complaints/concerns: CITEM-Citizen-Charter.pdf, p. 138 Feedback and Redress Mechanisms To promote transparency and constant improvement, CITEM encourages stakeholders to express their feedback, concerns, complaints, and suggestions, as indicated in the Citizen’s Charter at CITEM’s official website:
|
Y | CITEM-Citizen-Charter, p. 138 |
| I | 5.a | Performance-enhancing mechanisms for employee participation should be permitted to develop. Does the GOCC explicitly mention the health, safety and welfare policy for its employees? | CITEM's policy on employee health, welfare, and safety is available in the following:
|
Y | Employee-Handbook, pages 16-17 CITEM Manual of Corporate Governance, VII. Section 40. Health and Safety, p.13 |
| I | 5.b | Does the GOCC publish data relating to health, safety and welfare of its employees? | CITEM implemented several programs related to health, safety and welfare of its employees which are available in the following documents:
|
Y | CITEM Wellness Programs CY 2021 CITEM Clinic Report 2021 Health and Safety Protocols 2021 |
| I | 5.c | Does the GOCC have training and development programmes for its employees? | CITEM has a list of Training Programs attended by CITEM Employees in 2021. The list includes objectives/brief description of the training programs. | Y | Training Programs CY 2021 |
| I | 5.d | Does the GOCC publish data on training and development programms for its employees? | Data on training and development programs for CITEM employees are available in the document 'Training Programs CY 2021'. Data includes training/program title, number of participants per program, average hours per training held and sex-disaggregated data. | Y | Training Programs CY 2021 |
| I | 6.a | 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. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior? | CITEM has a Whistleblowing Policy which encourages each employee to speak up when there is an issue or concerns that affects work or accomplishments.Under the said policy, It shall treat all reports, including identity of the whistleblower/person concerned and the respondent, in a confidential and sensitive manner. Each issue or report will be handled or investigated promptly, consistently and appropriately. The company will observe due process where the respondent will be given the chance to hear and explain his/her side within 15 days from receipt thereof. Personnel who initiate a report may be updated on the actions taken, to the extent allowed by law. Said policy is available in the CITEM website and is also incorporated and part of the existing CITEM Employees Manual/Handbook. |
Y | Whistleblowing Policy Employee Handbook |
| I | 6.b | Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? | CITEM has a Whistleblowing Policy which encourages each employee to speak up when there is an issue or concerns that affects work or accomplishments.Under the said policy, It shall treat all reports, including the identity of the whistleblower/person concerned and the respondent, in a confidential and sensitive manner. Each issue or report will be handled or investigated promptly, consistently, and appropriately. The company will observe due process where the respondent will be given the chance to hear and explain his/her side within 15 days from receipt thereof. Personnel who initiate a report may be updated on the actions taken, to the extent allowed by law. CITEM's Whistleblowing Policy also states that Retaliation actions against a whistleblower or any personnel for any report will be taken cognizance of by the CITEM Integrity Monitoring Committee if the report is made in good faith, and the GCG shall extend all possible assistance to the whistleblower under the law and given the circumstances." Said policy is also incorporated and part of the existing CITEM Employees Manual/Handbook. |
N | Whistleblowing Policy |
| II. Disclosure and Transparency | |||||
| II | 7.a | Does the GOCC's website disclose the following items: Corporate objectives | CITEM's corporate objectives are available in CITEM website as well as in page 2 of CITEM's 2021 Performance Scorecard - CITEM 2021 Charter Statement and Strategy Map. | Y | CITEM Website - Mission and Vision 2021 Performance Scorecard Strategy Map, page 2 |
| II | 7.b | Does the GOCC's website disclose the following items: Financial performance indicators | CITEM's Financial strategic measures are available in CITEM website - page 3 of CITEM's 2021 Performance Scorecard (SM1 - CRR; SM2- Budget Utilization Rate) | Y | 2021 Performance Scorecard Strategy Map, page 3 |
| II | 7.c | Does the GOCC's website disclose the following items: Non-financial performance indicators | CITEM's non- financial strategic measures are available in pages 3-5 of CITEM's 2021 Performance Scorecard as follows:
|
Y | 2021 Performance Scorecard Strategy Map, page 3 |
| II | 7.d | Does the GOCC's website disclose the following items: Details of whistle-blowing policy | CITEM has a Whistleblowing Policy which encourages each employee to speak up when there is an issue or concerns that affects work or accomplishments.Under the said policy, It shall treat all reports, including identity of the whistleblower/person concerned and the respondent, in a confidential and sensitive manner. Each issue or report will be handled or investigated promptly, consistently and appropriately. The company will observe due process where the respondent will be given the chance to hear and explain his/her side within 15 days from receipt thereof. Personnel who initiate a report may be updated on the actions taken, to the extent allowed by law. Said policy is available in CITEM website and is also incorporated and part of the existing CITEM Employees Manual/Handbook. |
Y | Whistleblowing Policy CITEM Employees Handbook/Manual, page 9 |
| II | 7.e | Does the GOCC's website disclose the following items: Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners | Biographical Details of CITEM Board of Governors are available in the CITEM Website. | CITEM Board of Governors-Executive Profile | |
| II | 7.f | Does the GOCC's website disclose the following items: Training and/or continuing education programme attended by each director/commissioner | CITEM's Appointive Director, Ms Pauline Suaco-Juan attended the Online Training on "RA 9184 and its 2016 Revised IRR" in FY 2021. Details of the training are available in CITEM website. | Y | CITEM BOG Training 2021 and Certificate |
| II | 8 | Are the annual reports downloadable from the GOCC's website? | |||
| II | 9 | Does the GOCC's website 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? | CITEM’s website contains a statement confirming the agency’s full compliance with the Code of Corporate Governance. | Y | CITEM Website - Statement of Full Compliance with the Code of Corporate Governance |
| II | 10.a | Are the audited annual financial report/statement uploaded on the website within 60 days upon receipt from COA? | |||
| II | 10.b | Is the annual report released within 90 days from release of audited financial report? | |||
| II | 10.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? | |||
| III. Responsibilities of the Board | |||||
| III | 11.a | Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year? | The BOD reviewed the CITEM Vision and Mission/strategy for the FY 2021 Reference:
|
Y | 18 December 2020 Minutes of the Meeting stated in page 5, line 235-237 |
| III | 11.b | Does the Board of Directors monitor/oversee the implementation of the corporate strategy? | References:
|
Y | CITEM 2021 Strategy Map Sec. 14 of the Revised Manual of Corporate Governance CITEM Website: Statement of the Role of the Board in Corporate Strategy |
| III | 12 | Did the GOCC achieve 90% in the PES? | CITEM's 2021 Performance Scorecard is still under evaluation of GCG | ||
| III | 13.a | Are the details of the code of ethics or conduct disclosed? | References:
|
Y | Sections 1-12 of Code of Conduct and Ethical Standards of CITEM Officials and Employees |
| III | 13.b | Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? | References:
|
Y | Section 1 of Code of Conduct and Ethical Standards of CITEM Officials and Employees |
| III | 13.c | Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? | CITEM discloses the process, implementation, and the monitoring of compliance as stated in the CITEM Code of Conduct and the New Employee Orientation Report. The CITEM Code of conduct is readily available in the company intranet. References:
|
Y | CITEM Code of Conduct CITEM 2021 New Employees Orientation (NEO) Report |
| III | 14 | Does the Board appoint a Nomination Compensation / Remuneration Committee? | Governance and Nomination and Remuneration Committee Members
References:
|
Y | CITEM Website: Corporate Governance Committees in the CITEM Board, functions and appraisal Board Meeting Policy, Scheduled and Actual meetings and attendance Sec Cert_Board Committees Nomination |
| III | 15 | Did the Nomination Compensation/Remuneration Committee meet at least twice during the year? | The governance and nomination and remuneration committee have met more than the required meetings for year 2021 under the Board meeting attendance file. References: Board Meeting Policy, Scheduled and Actual meeting and attendance |
Y | Board Meeting Policy, Scheduled and Actual Meetings and attendance |
| III | 16 | If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed? | Yes. The Summary of the actions of Governance and Nomination and Remuneration Committee is publicly disclosed References:
|
Y | CITEM Board Committees Accomplishment Report CY2021 |
| III | 17 | Does the Board appoint an Audit Committee? | The members of the Audit and Risk Management Committee are the following:
References:
|
Y | CITEM Website: Corporate Governance Committees in the CITEM Board, functions and appraisal Board Meeting Policy, Scheduled and Actual Meetings and attendance Sec Cert_Board Committees Nomination |
| III | 18 | If yes, is the report of the Audit Committee publicly disclosed? | Yes. The Summary of the actions of Risk and Audit Management Committee is publicly disclose. Reference:
|
Y | CITEM Board Committees Accomplishment Report CY2021 |
| III | 19 | Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? |
Reference: CITEM Board of Governors Executive Profile |
Y | CITEM Board of Governors Executive Profile |
| III | 20 | Did the Audit Committee meet at least four times during the year? | The Risk and Audit Management Committee held five (5) meetings for 2021 References:
|
Y | Board Meeting Policy, Scheduled and Actual meeting and attendance |
| III | 21 | Does the Board appoint a Risk Management Committee? | The member of the Audit and Risk Management Committee are the ff:
References:
|
Y | CITEM Website: Corporate Governance Committees in the CITEM Board, functions and appraisal Board Meeting Policy, Scheduled and Actual Meetings and attendance Sec Cert_Board Committees Nomination |
| III | 22 | If yes, is the report on Risk Management Committee publicly disclosed? | The Summary of the actions of Risk and Audit Management Committe is publicly disclose. References:
|
Y | CITEM Board Committees Accomplishment Report CY2021 |
| III | 23 | Does at least one member of the Risk Management Committee have a background in finance and investments? |
Reference: CITEM Board of Governors Executive Profile |
Y | CITEM Board of Governors Executive Profile |
| III | 24.a | Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1) | The schedule of the Board Meetings is stated at the beginning of the year in the CITEM Board of Governors Regular Board Meetings & Policy. References:
|
Y | Board Meeting Policy, Scheduled and Actual Meetings and attendance |
| III | 24.b | Does the Board of Directors meet at least monthly? | It is the policy of the board that meeting shall be held on a quarterly basis or 4x a year References:
|
N | Sec. 3 of the Rules of Conduct of CITEM Board of Governors Meeting Committees in the CITEM Board, functions and appraisal |
| III | 24.c | Did the Board of Directors meet on at least 75% on their scheduled meetings? | The CITEM's Board of Directors met 85% (or 6 out of 7) of its scheduled meetings for FY 2021. Reference: Board Meeting Policy, Scheduled and Actual Meetings and attendance |
Y | Board Meeting Policy, Scheduled and Actual Meetings and attendance |
| III | 24.d | Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? | Please note the Complete attendance of Directors for 2021. Each of the directors/commissioners have attended at least 90% of all the meetings held last year, 2021 References: Board Policy, Schedule, and Actual Meeting with Attendance |
Y | Board Meeting Policy, Scheduled and Actual Meetings and attendance |
| III | 24.e | Did the Board of Directors meet separately at least once during the year without the President/CEO present? | Yes, during the first Board Meeting on 11 February 2021 pursuant to GCG Memorandum Circular 2012-07 References:
|
Y |
Board Meeting Policy, Scheduled and Actual Meetings and attendance
|
| III | 25.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? | CITEM clearly disclosed that the Board must be provided with board papers for the upcoming meeting at least 3 working days in advance indicated under the CITEM Board of Governors Regular Board Meetings' policy References:
|
Y | Section 6 (b), Article IV of the Rules on the Conduct of CITEM Board of Governors Meeting, page 6 Board Meeting Policy, Scheduled and Actual Meetings and attendance |
| III | 25.b | Is the Board Secretary trained in legal, accountancy or company secretarial practices? | The Board Secretary Atty. Anna Grace Marpuri is a lawyer Roll of Attorneys: MARPURI, Anna Grace I.; Roll No. 48441 References: 1. CITEM Corporate Secretary Profile |
Y | CITEM Corporate Secretary Profile |
| III | 26.a | Does the company have a separate internal audit function? | The agency’s Internal Audit Service Unit has been working for the agency’s ISO Certification. References:
|
Y | CITEM Website List of Key Officers Office Order of Ms. Karla Grace Dinglasan DBM Approved CITEM Organizational Chart |
| III | 26.b | Does the appointment and removal of the internal auditor require the recommendation of the Audit Committee? | As explicitly stated on page 2 (no. 5) of the Functions of the CITEM Board Committees, the Audit and Risk Management Committee has the "Power of appointment and removal of designated internal auditor/s in the agency". References:
|
Y | Functions of the Risk and Audit Committee, page 2 |
| III | 27.a | Does the company disclose the internal control procedures/risk management systems it has in place? | Yes. The company completely disclosed their internal control procedure/risk management system. References: 1. CITEM Risk Management System |
Y | CITEM Risk Management System |
| III | 27.b | Does the Annual Report disclose that the board of directors/commissioners has conducted a review of the company's material controls (including operational, financial and compliance controls) and risk management systems? | CITEM's FY 2021 Annual Report is not yet available. The COA-Audited FY2021 Annual Financial Report/Statements which should be included in the agency's annual report is not yet transmitted to CITEM. | N/A | |
| III | 27.c | Does the company disclose how key risks are managed? | Yes. The GOCC disclosed all its key risks e.g: compliance review and financial management control and how they handle such risks. References: CITEM Risk Management |
Y | CITEM Risk Management System |
| III | 27.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? | CITEM's FY 2021 Annual Report is not yet available. The COA-Audited FY2021 Annual Financial Report/Statements which should be included in the agency's annual report is not yet transmitted to CITEM. | N/A | |
| III | 28 | Do different persons assume the roles of Chairman and CEO? |
Yes. Hon. Ramon M. Lopez is the chairman while the Alternate Chairman is Hon. Abdulgani M. Macatoman and the CEO for CITEM is ED Paulina Sauco-Juan. References:
|
Y | Website: CITEM Key Officers Sec. 3, EO 989 of the Ministry of the Trade and Industry. Board Paper on appointment as ED and appointive member to the CITEM Board with secretary's Certificate |
| III | 29.a | Does the GOCC have orientation programs for new Directors? | CITEM, through the Corporate Secretary and the Executive Committee, conducts orientation programs especially for new Directors References:
|
Y | Website: Orientation for New Board Members Sec 66 of the Revised Manual of Corporate Governance |
| III | 29.b | Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programs? | The company has a policy that encourages directors/commissioners to attend educational programs and they also include the list of training that was attended by the board of directors. References:
|
Y | Section 66 of Manual of Corporate Governance of CITEM CITEM HMRD Budget |
| III | 29.c | Did all Appointive Directors attend at least 1 training for the calendar year? | Yes, Ms Paulina Suaco-Juan is the only Appointive Director of CITEM. She attended a training seminar as evidenced by the link. References:
|
Y | CITEM 2021 Board of Governor's Training Program CITEM HMRD Budget |
| III | 30.a | Is an annual performance assessment conducted of the Board of Directors? | Yes. The annual performance assessment is reported by the Corporate Secretary who is in charge in the specific area and is consequently presented to the Board. References:
|
Y | CITEM Board and Board Committees Appraisal System |
| III | 30.b | Does the GOCC disclose the process followed in conducting the Board assessment? | The Board of Directors conducts an annual assessment of its performance through GCG’s Performance Evaluation for Directors (iPED) System following the criteria set under GGC Memorandum Circular 2014-03 References:
|
Y | Website: Board Appraisal System/Annual Performance Assessment Revised Manual of Corporate Governance, Sec. 26, page 9 CITEM Board and Board Committees Appraisal System |
| III | 30.c | Does the GOCC disclose the criteria used in the Board assessment? | Yes. The criteria for assessing the performance of the company is based in the following 5 matrix: FInancial, Governance, Performance, Processm and Management References:
|
Y | CITEM Board and Board Committees Appraisal System |
| III | 31 | Is an annual performance assessment conducted of the Board of Directors Committees? | Yes, CITEM conducted an annual performance assessment of the Board Committees References:
|
Y | CITEM Board and Board Committees Appraisal System |
| IV. Bonus | |||||
| IV | 1 Stakeholder Relationship | Does the GOCC practice Global Reporting Index (GRI) on its annual reports? | |||
| IV | 2 Timely release of annual financial report | Is the audited annual financial report/statement released within 30 days upon receipt from COA? | |||
| V. Penalty | |||||
| V | 1 Responsibilities of the Board | Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs? | |||
| V | 2 Responsibilities of the Board | Is there non-compliance with Good Governance Conditions? | |||
