CORPORATE GOVERNANCE SCORECARD 2022

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 allows them to respond quickly and efficiently to customer and market requirements, and to 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)

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".

Due to the health restrictions caused by the pandemic, the Philippines' participation in Overseas Trade Fairs (OTF) were 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 16-19 September 2022, particularly in the National Pavilion, in view of the budget constraints and health and safety concerns. In order to show continued support to CAEXPO, the participation focused on promoting the Philippines as a destination for tourism, trade and investments by looping promotional videos of TPB, BOI and CITEM programs and projects, within a reduced space of 54-sqm. Likewiise, traditionally, the Philippines occupies a total space 400-sqm for the Commodity Pavilion. However, because of the pandemic, the Philippine Commodity Pavilion physical participation was only limited to 90-sqms, and featured only companies with subsidiaries or offices in China.

In response to the continued health risks brought about by the COVID-19 pandemic in FY2022, CITEM issued an Office Order dated 04 March 2022 on Interim Guidelines on Alternative Work Arrangement (AWA) and Workplace Protocols during the Implementation of Alert Level System for agency-wide implementation. The health and safety of CITEM community, stakeholders, and guests are of paramount importance, thus CITEM COVID-19 Response Team has outlined and recommended the health and safety protocols for the following: 1) Alternative WorkArrangement, 2) Required On-site (SWF) Days, 3) Full Flexi-time schedule, 4) Health Protocols, 5) Quarantine and Isolation Protocols, among others. It was stated on page 2, (Item 6 - under Health Protocols) of the Office Order that "For Alert Level 1, external visitors must accomplish the Daily Health Declaration (DHD) form before the scheduled visitand must present vaccination cards upon entry to the CITEM premises. For unvaccinated/partially vacinated individuals, submission of DHD will suffice. For a higher alert level, a negative antigen test taken within 48 hours prior to the scheduled visit is required".

CITEM donated the amount of P10,000.00 to support the Youth Servant Leadership and Education Program (YSLEP) of Caritas Manila which aims to assist underprivileged youths in their studies. Through this project, CITEM contributed to the achievement of the UN’s Sustainable Development Goal on Quality Education. Likewise, CITEM donated Php10,000.00 to SOS Children's Villages Philippines to aid the organization in helping orphan, abandoned, and neglected Filipino children given the care they need. Through this project, CITEM contributed to the achievement of the UN’s Sustainable Development Goal on Good health and Well-being. Details of CITEM's FY2022 CSR activities are available in the agency’s website.

CITEM launched the Sustainability Solutions Exchange (SSX) on 23-25 March 2022 to present and offer sustainable manufacturing solutions, products, and services to increase productivity, efficiency and optimize their market potentials. In its pilot edition, SSX was staged as a digital event – the SSX Digital Exhibition and Conference via Hopin platform. The event highlighted the latest and relevant solutions, technologies, and products, and services, and championed local businesses that adhered to green or sustainable practices.

The maiden edition of SSX onboarded 165 companies/suppliers and featured them in the SSX Advanced Solutions and Marketplace Zones, and 138 purchasers. Together with the DTI (Department of Trade and Industry) Regional Offices (NCR-National Capital Region, Regions 4A, 5, 7, 8) and attached agencies (Design Center of the Philippines, Export Marketing Bureau); and other line agencies (DOST-ITDI- the Industrial Technology Development Institute & PTRI- Philippine Textile Research Institute), SSX succeeded by the sheer number of SMEs in the sustainability space that exhibited in SSX Digital Expo. It was also worth noting that the Design Center of the Philippines (DCP), one of SSX Expo partners, introduced its major projects on pineapple leaves and bakong. Thirty-two (32) SSX suppliers that used bakong (aquatic plant) and pinyapel (from discarded pineapple leaves) displayed their design and services during the Expo.

Further, SSX Digital Conference with the theme: “Solutions towards Green Growth”, addressed key areas to support responsible and sustainable consumption and production, from opportunities and challenges to solutions and systems in practice. This online conference brought together local and international business leaders, sustainability practitioners, and policymakers. They discussed how they have adapted to change. They also explored key programs and opportunities for Philippine MSMEs (micro, small and medium enterprises). Topics included in the Conference are as follows: 1) Keeping up with the Global Sustainability Agenda; 2) The State of Sustainability in the Philippines; 3) How the Philippines is addressing Sustainability and what it means for businesses; 4) Road to Circular Food; 5) Sustainability Trends for the future of food; 6) Zero Emissions, Zero waste, and Zero Barriers, among others. The session "How the Philippines is addressing Sustainability and what it means for businesses" has the highest peak attendee count at 551 attendees, followed by the session on "The State of Sustainability in the Philippines" with 455.

SSX Digital Exhibition and Conference had more than 1,200 attendees composed of participants, suppliers, DTI/CITEM, governemnt/diplomatic corps, NGOs, purchasers, media, event partners and eresource pesons.

CITEM has a CSR report uploaded on the agency's website. Likewise, CITEM launched the Sustainability Solutions Exchange (SSX) on 23-25 March 2022 to present and offer sustainable manufacturing solutions, products, and services to increase productivity, efficiency and optimize their market potentials. In its pilot edition, SSX was staged as a digital event – the SSX Digital Exhibition and Conference via Hopin platform. The event highlighted the latest and relevant solutions, technologies, and products, and services, and championed local businesses that adhered to green or sustainable practices.

The maiden edition of SSX onboarded 165 companies/suppliers and featured them in the SSX Advanced Solutions and Marketplace Zones, and 138 purchasers. Together with the DTI (Department of Trade and Industry) Regional Offices (NCR-National Capital Region, Regions 4A, 5, 7, 8) and attached agencies (Design Center of the Philippines, Export Marketing Bureau); and other line agencies (DOST-ITDI- the Industrial Technology Development Institute & PTRI- Philippine Textile Research Institute), SSX succeeded by the sheer number of SMEs in the sustainability space that exhibited in SSX Digital Expo. It was also worth noting that the Design Center of the Philippines (DCP), one of SSX Expo partners, introduced its major projects on pineapple leaves and bakong. Thirty-two (32) SSX suppliers that used bakong (aquatic plant) and pinyapel (from discarded pineapple leaves) displayed their design and services during the Expo.

Further, SSX Digital Conference with the theme: “Solutions towards Green Growth”, addressed key areas to support responsible and sustainable consumption and production, from opportunities and challenges to solutions and systems in practice. This online conference brought together local and international business leaders, sustainability practitioners, and policymakers. They discussed how they have adapted to change. They also explored key programs and opportunities for Philippine MSMEs (micro, small and medium enterprises). Topics included in the Conference are as follows: 1) Keeping up with the Global Sustainability Agenda; 2) The State of Sustainability in the Philippines; 3) How the Philippines is addressing Sustainability and what it means for businesses; 4) Road to Circular Food; 5) Sustainability Trends for the future of food; 6) Zero Emissions, Zero waste, and Zero Barriers, among others. The session "How the Philippines is addressing Sustainability and what it means for businesses" has the highest peak attendee count at 551 attendees, followed by the session on "The State of Sustainability in the Philippines" with 455.

SSX Digital Exhibition and Conference had more than 1,200 attendees composed of participants, suppliers, DTI/CITEM, government/diplomatic corps, NGOs, purchasers, media, event partners and eresource pesons.

Sustainability Solutions Exchange (SSX) Digital Exhibition and Conference on 23-25 March 2022

CITEM has contact details dedicated for complaints/concerns:
CITEM-Citizen-Charter.pdf, p. 138

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) 8831-2201; through fax no. 8832-3965; 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 health, safety and welfare of its employees which are available in the following documents:

1. Wellness Programs CY 2022
2. CITEM Clinic Report 2022 on CITEM Emmployees' Health 2022
3. Interim Guidelines on Alternative Work Arrangement (AWA) and Workplace Protocols during the Implementation of Alert Level System - which includes: a) health protocols,and b) Quarantine and Isolation protocols

CITEM has a list of Training Programs attended by CITEM Employees in 2022. The list includes objectives/brief description of the training programs.

Data on training and development programs for CITEM employees are available in the document 'Training Programs CY 2022'. Data includes training/program title, number of participants per program, average hours per training held and sex-disaggregated data.

CITEM 's Revised Whistleblowing Policy encourages each employee to speak up when there is an issue or concerns that affects work or accomplishments. It promotes an environment of open communication between employees and all levels of management; to ask questions and report concerns. It is the obligation of everyone to speak up or report about a known or suspected violation to protect the Agency.

Under the said policy, it shall treat all reports, including the identity of the whistleblower/person concerned and the respondent, in an utmost confidential and sensitive manner. Each issue or report will be handled or investigated promptly, consistently, and appropriately. CITEM 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.

CITEM's revised Whistleblowing Policy 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 an utmost confidential and sensitive manner.

Below procedures to protect the whistleblower Against Retaliation are icluded in the said policy:

1. Retaliation actions 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. The GCG may further extend all possible assistance to the whistleblower under the law and given the circumstances.
2. Any person covered by this Policy who retaliates, intimidates, harasses, or undertakes may adverse actions against a whistleblower or any person who, in good faith, has cooperated in the investigation of the whistleblowing report, shall be subject to disciplinary action.
3. CITEM shall not tolerate any retaliatory acts against a whistleblower who submits a whistleblowing report in good faith.
4. A whistleblower shall be protected against retaliation, intimidation, harassment, or other adverse actions for submitting a whistleblowing report in accordance with this Policy. A whistleblower who believes that he/she is the subject of any form of retaliation, intimidation, harassment, or other adverse actions as a result of his/her whistleblowing report should immediately report the same as a violation of and in accordance with this Policy.
5. Such retaliation, intimidation, harassment, or other adverse action may include:

• Discrimination or harassing in the workplace;
• Demotion;
• Reduction in salary or benefits;
• Termination of contract;
• Evident bias in performance evaluation; or
• Any act of threats that adversely affect the rights and interest of the whistleblower.

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.

CITEM's Financial strategic measures are available in CITEM website - page 3 of CITEM's 2022 Performance Scorecard as follows:

1. SM1 - CRR;
2. SM2 - Budget Utilization Rate (BUR)
   • SM2a - Obligations BUR;
   • SM2b - Disbursements BUR based on Total Obligations; and
   • SM2c - Disbursements BUR based on Corporate Operating Budget (COB)

CITEM's non- financial strategic measures are available in pages 3-5 of CITEM's 2021 Performance Scorecard as follows:

1. Percentage of Satisfied Customers in CITEM Signature Events;
2. No. of Trade Buyers attending Export Promotion Events;
3. Implementation of the Board-approved Medium-term Marketing Plan;
4. Increase PR Value;
5. Number of SMEs Participating in Export Promotion Activities;
6. Percentage of Completion of ISSP;
7. Improve Processes to Quality Management System; and
8. Improve Competency Baseline of the Organization

CITEM 's Revised Whistleblowing Policy encourages each employee to speak up when there is an issue or concerns that affects work or accomplishments. It promotes an environment of open communication between employees and all levels of management; to ask questions and report concerns. It is the obligation of everyone to speak up or report about a known or suspected violation to protect the Agency.

Under the said policy, it shall treat all reports, including the identity of the whistleblower/person concerned and the respondent, in an utmost confidential and sensitive manner. Each issue or report will be handled or investigated promptly, consistently, and appropriately. CITEM 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.

Biographical Details of CITEM Board of Governors are available in the CITEM Website.

CITEM Executive Director Paulina Suaco-Juan did not attend a training in CY 2022

CITEM's 2022 Annual Report and Financial Statements are downloadable from CITEM's website : https://citem.gov.ph/corporate-governance

CITEM’s website contains a statement confirming the agency’s full compliance with the Code of Corporate Governance.

COA-Audited 2022 Annual Financial Report
Date of Receipt from COA: 25 May 2023
Date Published Online:9 June 2023

COA-Audited 2022 Annual Financial Report
Date of Receipt from COA: 25 May 2023

Annual Report 2022
Date Published Online: 23 August 2023

The Statement of Management's responsibility for Financial Statement is located in page 20 of the COA-Audited 2022 Financial report.

The BOD reviewed the CITEM Vision and Mission/strategy for the FY 2022

Reference:
Secretary Certificate

1. CITEM 2022 Strategy Map
2. Sec. 14 of the Revised Manual of Corporate Governance
3. Statement of the Role of the Board in Corporate Strategy on the Website

CITEM obtained an overall score of 75.14% in the GCG-transmitted FY2022 Performance Scorecard, with letter dated 31 July 2023.

References:

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

References:

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

References:

1. CITEM Code of Conduct
2. CITEM 2022 New Employee Orientation (NEO) Report

Governance and Nomination and Remuneration Committee Members

1. National Food Authority
   Ms. Elsa Asuncion-Lim (January 2020 - Present)
   
2. Department of Trade and Industry
   Asec. Rosario Gaetos (April 2022)
   Asec. Glenn Penaranda (July 2022 - Present)
3. CITEM
   Ms. Paulina Suaco Juan (January - August 01 2022)
   Dr. Edward L. Fereira (Nov 29, 2022 - present)

References:

1. Committees in the CITEM Board, functions, and appraisal
2. Sec Cert_Board Committees Nomination (Res No. BM 2020-01-11)
3. Board Policy, Actual Meetings 2022

The Compensation/Renumeration Committee Conducted 4 meeting in FY2022.

Reference:

1. Board Meeting Policy and Actual meeting and attendance

The Summary of the actions of Compensation/Renumeration Committee is publicly disclosed

Reference:

1. CITEM Board Committees Accomplishment Report CY2022

Audit and Risk Management Committee Members

1. Bangko Sentral ng Pilipinas
   Mr. Thomas Benjamin B. Marcelo (April 2022)
   Ms. Bernadette Romulo-Puyat (July - Present)
2. Landbank of the Philippines
   Mr. Elcid Pangilinan
3. CITEM
   Ms. Paulina Suaco Juan (January - 01 August 2022)
   Dr. Edward L. Fereira (Nov 29. 2022 - Present)

References:

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

Held 4 meetings in FY2022. The Risk and Audit Management Committee is publicly disclosed.

Reference:

1. CITEM Board Committees Accomplishment Report CY2022

1. Ms. Bernadette Romulo Puyat graduated from the University of the Philippines, likewise, pursued her bachelor’s and master’s degrees in economics. From 2007 to 2018, she served as Undersecretary at the Department of Agriculture where she handled Special Concerns, Administration and Finance, Agribusiness and Marketing, and Regional Engagements.
2. Mr. Elcid C. Pangilinan, a Landbank representative has a background in Economics and Political Science (LSE). He was also a Hubert H. Humphrey Fellow of Public Policy, and pursued management and finance at the Boston University in Massachusetts.
   
   
   
   

References:
CITEM Board of Governors Executive Profile of:

1. BSP – DG PUYAT Executive Director
2. LBP – Mr. Elcid C. Pangilinan

Held 4 meetings in FY2022 of the Risk and Audit Management Committee.

Reference:

1. Board Meeting Policy and Actual meeting and attendance

Conducted 4 meeting in 2022The CITEM Board appoints and designates a risk and Management Committee

References:

1. Committees in the CITEM Board, functions, and appraisal
2. 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.

Reference:

1. CITEM Board Committees Accomplishment Report CY2022

1. Ms. Bernadette Romulo Puyat graduated from the University of the Philippines, likewise, pursued her bachelor’s and master’s degrees in economics. From 2007 to 2018, she served as Undersecretary at the Department of Agriculture where she handled Special Concerns, Administration and Finance, Agribusiness and Marketing, and Regional Engagements.
2. Mr. Elcid C. Pangilinan, a Landbank representative has a background in Economics and Political Science (LSE). He was also a Hubert H. Humphrey Fellow of Public Policy, and pursued management and finance at the Boston University in Massachusetts.

The scheduled of the Board Meetings are stated in the CITEM Board of Governors Regular Board Meetings & Policy

References:

1. Secretary Certificate – Approved 2022 Board Meeting Calendar
2. Board Meeting Policy and Actual meeting and attendance

Did not meet the requirement.

It is the policy of the board that meetings shall be held on a quarterly basis or 4x a year.

In 2022, there were 5 meetings conducted.
Since the policy is on a quarterly basis, the Board meets 125% of the meeting.

References:

1. Board Meeting Policy and Actual meeting and attendance

References:

1. Board Meeting Policy and Actual meeting and attendance

Meeting without the CEO was held on 26 April 2022

References:

1. Board Meeting Policy and Actual meeting and attendance
2. CITEM 26 April 2022 Minutes of the Meeting without the CEO

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:

1. Section 6 (b) of the Rules on the Conduct of CITEM Board of Governors Meeting
2. Board Meeting Policy and Actual meeting and attendance

The Board Secretary is a lawyer. She attended the recent seminar conducted by the ICD on Corporate Secretary as corporate Governance professionals.

References:

1. MCLE Certificate
2. ICD Certificate for Corporate Secretary

The agency’s Internal Audit Service Unit has been working for the agency’s ISO Certification.

References:

1. CITEM Website Key Officers List
2. Office Order of Ms. Karla Grace Dinglasan
3. DBM Approved CITEM Organizational Chart

References:

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

The company completely disclosed their internal control procedure/risk management system.

Reference:

1. CITEM Risk Management System

CITEM's FY 2022 Annual Report is not yet available. The COA-Audited FY2022 Annual Financial Report/Statements which should be included in the agency's annual report is not yet transmitted to CITEM.

The GOCC disclosed all its key risks e.g: compliance review and financial management control and how they handle such risks.

Reference:

1. CITEM Risk Management System

2022 CITEM's FY 2022 Annual Report is not yet available. The COA-Audited FY2022 Annual Financial Report/Statements which should be included in the agency's annual report is not yet transmitted to CITEM.

DTI Secretary or its alternate is the Chairman of the Board, while the Executive Director is an appointive member of the Board.

References:

1. Key Officers
2. Sec. 3, EO 989 Board Composition
3. Board Paper_appointment as ED and appointive member to the CITEM Board with secretary Certificate

CITEM, through the Corporate Secretary and the Executive Committee, conducts orientation programs especially for new Directors.

References:

1. Orientation for the new board member
2. Sec 66 of the Revised Manual of Corporate Governance

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:

1. Section 66 of Manual of Corporate Governance of CITEM
2. HRD Budget

CITEM Executive Director Paulina Suaco-Juan did not attend a training in CY2022

References:

1. Board and Board Committee Assessment for FY2022

Reference:

1. Board and Board Committee Assessment for FY202

The criteria for assessing the performance of the company are based on the following 5 matrix: Financial, Governance, Performance, Operation and Management.

Reference:

1. Board and Board Committee Assessment for FY2022

CITEM conducted an annual performance assessment of the Board Committees

Reference:

1. Board and Board Committee Assessment for FY2022

Date of Receipt from COA: 25 May 2023
Date Published Online:9 June 2023

Date of Receipt from COA: 25 May 2023
Date Published Online: 9 June 2023

All members of the CITEM Board of Directors did not exceed 5 positions in other GOCCs and PLCs.

None. CITEM is compliant with all Good Governance conditions.

Note: Validation of Compliance to Good Governance Conditions for FY 2022 is ongoing.