CORPORATE GOVERNANCE SCORECARD 2020

Section 52 of the CITEM's Manual of Corporate Governance (Recognizing the Stakeholders and Nature of their Interests) identified its various stakeholders as follows:

1. Government
2. SMEs
3. General Public
4. Partner government agencies and other external agencies
5. Private Corporations having similar nature of business as CITEM

Section 55 of the manual also stated CITEM's policies on dealings with its customers as follows:

1. CITEM should operate a highly effective and efficient organization, focused on meeting customer objectives with the aim of providing services which give fair value and consistent quality, reliability, and safety in return for the price paid for the same.
2. CITEM should implement policies of continual improvement, of both processes and skills of the staff, to take best advantage of advances in all aspect of society in order to ensure that it continues to add value to its customer's businesses.
3. CITEM should have a clear and strong line of communication which allow them to respond quickly and efficiently to customer and market requirements, and the government for the customers to receive consistent service in order to successfully and consistently deliver what CITEM is mandated to do.

CITEM's policy on interacting with the communities around it can be found in the following sections of CITEM's Manual of Corporate Governance:

1. Section 47. Corporate Social Responsibility. As an integral part of the National Government, GOCCs are inherently mandated to be socially responsible, to act and operate as good corporate citizens. (page 14)
2. Section 49. Relationship with Stakeholders, of the revised CITEM's Manual of Corporate Governance stated its policy on interacting with its stakeholders. It was also mentioned that the Governing Board of CITEM shall recognize and perform its obligations towards the National Government, together with the employees, suppliers, customers, and other stakeholders, and to communities in which it operates. (page 14)

Does the GOCC disclose a policy that: Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?

The CITEM Annual Report 2020 disclosed CITEM’s activities relative to customer health and safety. Due to the health restrictions caused by the pandemic, CITEM canceled three signature events and 12 out of 18 Overseas Trade Fair (OTF) participations set for 2020. Moreover, due to the limitation brought by the pandemic, this year’s CAEXPO held on November 27-30 was significantly affected. Only four (4) companies with China-based counterparts, distributors, or retailers could join and feature their products in the physical show while 26 non-CN-based companies joined the ONLINE Platform developed by the CAEXPO Secretariat.

CITEM prepared Infographics (dated 23 September 2020) on: CITEM WORKPLACE PREPAREDNESS Advisory which contains the guidelines and safety measures for Employees before work and at work as well as safety of visitors and guests at work. It was stated on page 1 of the Infographics that "Guests and visitors must undergo the same health screening protocols and should only be met at the lobby".

CITEM gave back to those who are struck by calamities in 2020. The Agency extended financial assistance to MSMEs in Cagayan and Albay who were affected by Typhoon Ulysses and Rolly last November 2020. The affected MSMEs are homeworker communities from the Home, Lifestyle, and Food Sectors that produce or manufacture exportable products, or who are integral in the supply chain for export companies. Details of this and other CSR activities are available on the agency’s website and Annual Report 2020.

To spread awareness on sustainability, CITEM also conducted roadshows for its stakeholders in key regions, namely Davao del Sur (Jan. 20-21); South Cotabato (Jan. 22-23); Agusan del Norte and Agusan Del Sur (Jan. 22-24); La Union, Ilocos Sur and Pangasinan (Jan. 27-30); Cagayan de Oro (Jan. 28-30); Tuguegarao and Isabela (Feb. 10-12); and Cebu (Feb. 17-20).

CITEM has a CSR section on its 2020 Annual Report as well as a CSR report uploaded on the agency's website.

CITEM gave back to those who are struck by calamities in 2020. The Agency extended financial assistance to MSMEs in Cagayan and Albay who were affected by Typhoon Ulysses and Rolly last November 2020. The affected MSMEs are homeworker communities from the Home, Lifestyle, and Food Sectors that produce or manufacture exportable products, or who are integral in the supply chain for export companies.

Details of the above and other activities are available in the agency’s website and Annual Report 2020.

CITEM has contact details dedicated for complaints/concerns:
CITEM-Citizen-Charter.pdf, p. 173

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:

• Talking to the Customer Relations Officer at the CITEM Lobby
• Filling out the Feedback Form available at the CITEM Information Desk and dropping it in the Suggestion Box located at the lobby
• Contacting CITEM through phone at +(63 2) 831-2201; through fax no. 832-3965; or via e-mail at info@citem.com.ph

CITEM's policy on employee health, welfare, and safety is available in the following:

1. Employees' Manual (pages 16-17)
2. Revised-Manual of Corporate Governance: Section 39. Training and Development for CITEM Employees; Section 40. Health and Safety, page13 - CITEM shall have development discussions and structured training programs for personal and professional development for CITEM employees.

CITEM implemented several programs related to the health, safety, and welfare of its employees which are available in the following documents:

1. Wellness Programs CY 2020
2. CITEM Clinic Report
3. CITEM Workplace Preparedness Advisory
4. CITEM Annual Report 2020

CITEM has a list of Training Programs attended by CITEM Employees in 2020. The list includes objectives/brief description of the training programs.

Data on training and development programs for CITEM employees are available in CITEM Annual Report as well as in the document 'Training Programs CY 2020'. Data includes training/program title, the number of participants per program, average hours per training held, and sex-disaggregated data.

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 as well as included in CITEM’s Annual Report 2020.

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 as well as included in CITEM’s Annual Report 2020.

CITEM's corporate objectives are available on CITEM website as well as on page 3 of CITEM's 2020 Performance Scorecard - CITEM 2020 Charter Statement and Strategy Map.

CITEM's Financial performance indicators are included in the 2020 Annual and Audited Annual Financial Reports. Likewise, the agency's financial strategic measures are available on page 4 of CITEM's 2020 Performance Scorecard (SM1 - CRR; SM2- Budget Utilization Rate)

CITEM's non- financial performance indicators are included in the 2020 annual report. Likewise, the agency's non-financial strategic measures are available on pages 4-6 of CITEM's 2020 Performance Scorecard

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 as well as included in CITEM’s Annual Report 2020.

Biographical Details of the CITEM Board of Governors are available in the following:

1. CITEM Website – BOG Executive Profile
2. CITEM Annual Report 2020

CITEM's Appointive Director, Ms Pauline Suaco-Juan attended a training in FY 2020. Details are available on CITEM website as well as in CITEM Annual Report 2020.

CITEM's 2020 Annual Reports and Financial Statements are downloadable from the website.

CITEM’s website contains a statement confirming the agency’s full compliance with the Code of Corporate Governance. This is available as well in CITEM Annual Report 2020.

COA-Audited 2020 Annual Financial Report
Date of Receipt from COA: 23 June 2021
Date Published online: 16 July 2021

COA-Audited 2020 Annual Financial Report
Date of Receipt from COA: 23 June 2021
Annual Report Date Published online: 28 Sept 2021

Statement of Management's responsibility for Financial Statement is located on page 21 of the COA-Audited 2020 Financial report

The Board of Directors reviewed the CITEM Vision and Mission/strategy for the FY 2020. Reference:

1. 28 Nov 2019 Minutes of the Meeting stated in page 5 lines 261-263

As a matter of policy in the Section 14 of CITEM's Manual of Corporate Governance, the Board oversees the implementation of the corporate strategy. This is also exhibited by the CITEM 2020 Strategy Map approved by the Board.

References:

1. CITEM 2020 Strategy Map
2. Sec. 14 of the Revised Manual of Corporate Governance
3. Statement of the Role of the Board in Corporate Strategy in the Website

CITEM's 2020 Performance Scorecard is still under evaluation of GCG

The details of the Code of Conduct and Ethical Standards are stated in Sections 1-12.

References:

1. Sections 1-12 of Code of Conduct and Ethical Standards of CITEM Officials and Employees

As stated in the Section 1 of Code of Conduct and Ethical Standards of CITEM Officials and Employees, the board directors, the management, and the employees of CITEM should comply with the code.

References:

1. Section 1 of Code of Conduct and Ethical Standards of CITEM Officials and Employees

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:

1. CITEM Code of Conduct
2. CITEM 2020 New Employee Orientation (NEO) Report

The members of the Governance and Nomination and Remuneration Committee are the following:

1. National Food Authority
   Ms. Maria Merceds G. Yacapin
   Ms. Elsa Asuncion-Lim


2. Department of Trade and Industry
   USEC. Abdulgani M. Macatoman


3. CITEM
   Ms. Paulina Suaco Juan

The governance and nomination and remuneration committee met more than the required meetings for year 2020.

References:
Board Meeting Policy, Scheduled and Actual meeting and attendance

The Summary of the actions of Governance and Nomination and Remuneration Committee is publicly disclosed.

References:

1. CITEM Board Committees Accomplishment Report CY2020

The members of the Audit and Risk Management Committee are the following:

1. Bangko Sentral ng Pilipinas
   Mr. Thomas Benjamin B. Marcelo
2. Landbank of the Philippines
   Ms. Judy O. Kis-Ing
3. CITEM
   Ms. Paulina Suaco Juan

The Summary of the actions of Risk and Audit Management Committee is publicly disclosed.

References:

1. CITEM Board Committee Accomplishment Report CY2020

Mr. Thomas Benjamin Marcelo has an educational background in economics and economic development. He has experience as a Senior Advisor to IMF, and International Relations Department of Bangko Sentral ng Pilipinas.

References:
CITEM Board of Governors Executive Profile

The Risk and Audit Management Committee held five (5) meetings for 2020.

References:

1. Board Meeting Policy, Scheduled and Actual meeting and attendance

The member of the Audit and Risk Management Committee are the ff:

1. Bangko Sentral ng Pilipinas
   Mr. Thomas Benjamin B. Marcelo
2. Landbank of the Philippines
   Ms. Judy O. Kis-Ing
3. CITEM
   Ms. Paulina Suaco Juan

References:

1. CITEM Website: Corporate Governance
2. Committees in the CITEM Board, functions and appraisal
3. Board Meeting Policy, Scheduled and Actual meeting and attendance
4. Sec Cert_Board Committees Nomination (Res No. BM 2020-01-11)

The Summary of the actions of Risk and Audit Management Committee is publicly disclosed.

References:

1. CITEM Board Committee Accomplishment Report CY2020

Mr. Thomas Benjamin Marcelo has an educational background in economics and economic development. He has experience as a Senior Advisor to IMF, and International Relations Department of Bangko Sentral ng Pilipinas.

References:
CITEM Board of Governors Executive Profile

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:

1. Board Meeting Policy, Scheduled and Actual meeting and attendance

Be held on a quarterly basis or four (4) times a year. Nonetheless, Board meet more than four times in 2020 as shown in the attendance.

Reference:

1. Section 3 of the Rules on the Conduct of CITEM Board of Governors Meeting
2. Committees in the CITEM Board, functions and appraisal

CITEM held the Board Meetings at least 75% of the scheduled meetings for 2020. The reference document shows the actual meetings held and the date of the scheduled meetings.

Reference:
Board Meeting Policy, Scheduled and Actual meeting and attendance

Each of the directors/commissioners attended at least 90% of all board meetings held in 2020.

Reference:
CITEM 2020 Policy, Schedule, and Actual Meeting with Attendance

CITEM held a separate meeting without the President/CEO on 17 January 2020 pursuant to GCG Memorandum Circular 2012-07.

References:

1. CITEM 2020 Policy, Schedule, and Actual Meeting with Attendance
2. CITEM 17 January 2020 Minutes of the Meeting without the CEO

CITEM Board must be provided with board papers for the upcoming meeting at least 3 working days in advance as indicated under the CITEM Board of Governors Regular Board Meetings' policy.

References:

1. Section 6 (b) of the Rules on the Conduct of CITEM Board of Governors Meeting
2. CITEM 2020 Policy, Schedule, and Actual Meeting with Attendance

Atty. Anna Grace I. Marpuri is a lawyer. She attended seminars and trainings. (see attached certifications)

References:

1. CITEM Corporate Secretary Profile

References:

1. CITEM Website Key Officers List
2. Office Order of Ms. Karla Grace Dinglasan and Mr. Jaime Antonio Sandoval

As stated in page 2 (no. 5) of the Functions of the Risk and Audit Committee, it is explicitly stated that the Risk and Audit Management Committee has the power to recommend an internal audit. The committee has the function to appoint/ remove an internal auditor

References:

1. Stated in page 2 (no. 5) of the functions of the Risk and Audit Committee

References:

1. CITEM Risk Management System
2. Annual Report 2020

CITEM’s Annual Report 2020 disclosed that the board of directors has conducted a review of the company's material controls

References:

1. CITEM Risk Management System
2. Annual Report 2020

CITEM’s Annual Report 2020 contains a statement from the Board of Governors on the adequacy of the agency’s internal controls/risk management system

Hon. Ramon M. Lopez is the chairman while the Alternate Chairman is Hon. Abdulgani M. Macatoman and the CEO for CITEM is ED Paulina Suaco-Juan. As stated in EO 989, the DTI is the chairman of the Board., while the appointive member representing the private sector is occupied by the CITEM Executive Director.

References:

1. Key Officers
2. Sec. 3, EO 989 of the Ministry of the Trade and Industry.
3. Board Paper appointment as ED and appointive member to the CITEM Board with secretary Certificate

References:

1. Website: Orientation for New Board Members
2. Sec 66 of the Revised Manual of Corporate Governance

CITEM has a policy that encourages directors/commissioners to attend educational programs and CITEM allocated budget for the Board of Governors' trainings.

References:

1. Section 66 of Manual of Corporate Governance of CITEM
2. Page 5 of HRD Budget 2020 - BOG allocation trainings and programs and 2021
3. CITEM BOG Trainings 2020 and ICD Certificates

Ms. Paulina Suaco-Juan is the only Appointive Director of CITEM. She attended a training seminar as evidenced by the link.

References:

1. CITEM 2020 Board of Governor's Training Program
2. ICD Certificate of Ms. Pauline Suaco-Juan
3. Sec. 66 of Manual of Corporate Governance
4. Annual Report 2020

References:

1. Board Committees in the Board and appraisal

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:

1. Website: Board Appraisal System/Annual Performance Assessment
2. Revised Manual of Corporate Governance, Sec. 26, page 9
3. Board Committees in the Board and appraisal

CITEM stated the criteria for Board Appraisal. The criteria for assessing the performance of the company is based in the following 5 matrix: Financial, Governance, Performance, Process and Management.

References:

1. Board Committees in the Board and appraisal

CITEM conducted an annual performance assessment of the Board Committees.

References:

1. Board Committees in the Board and appraisal

COA-Audited 2020 Annual Financial Report
Date of Receipt from COA: 23 June 2021
Date Published on Line: 16 July 2021

All of the Board members did not exceed 5 positions in other GOCC and PLCs. Reference: BOG's positions and designation

CITEM is not included in the initial list of non-compliant GOCCS covered by RA 10149 as per the report uploaded in the Development Academy of the Philippines website