CORPORATE GOVERNANCE SCORECARD 2023

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)

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".

CITEM's Signature Event, the Manila FAME 2023 was held on 19-21 October 2023 at the World Trade Center Metro Manila (WTCMM). During the event proper, the CITEM EXCOM and MANCOM members were required to be present at all times to assist VIPs/Special guests and welcome visitors during the Opening Ceremony and VIP tour. Likewise, they are also encouraged to visit the site during ingress to be familiar with the physical arrangements of the booths and be present during the event proper for any concerns that may arise.

The assigned employees were also required to wear their face masks at the venue. Likewise, a satellite clinic was provided for the employees and other stakeholders for first aid/health concerns.

Moreover, Senior Citizens and Persons with disabilities (PWDs) were also provided with special registration lane during the event proper. Also, children less than 10 years of age were not allowed to enter the exhibition hall, rather they were allowed to stay in the Kids' Area of the WTCMM Lobby with adult supervision.

The above protocols help ensure customer health and safety during CITEM-organized Signature Events.

CITEM donated the amount of P5,000.00 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.

CITEM also donated the amount of P1,000.00 to Handicapped Care Association (Handicare) Inc., which aims to helps persons with disabilities (PWDs) and their families.

Likewise, CITEM donated Php7,000.00 to support the 26th Pamaskong Regalo Para sa may Kapansanan, an annual gift giving project of Create a Job Disable Association, Inc. (CDAI) which aims to help indigent persons with disabilities. 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 FY2023 CSR activities are available in the agency’s website.

Incorporating Sustainability and SDG Goals in CITEM PAPs. 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. 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 resource persons.

To date, CITEM is maintaining the website (www.sustainability.ph) which is the online community platform for SSX. It promotes products, services and an exchange of ideas on sustainable consumption and production. The website features a diverse range of stories about sustainable technologies, interventions and practices that seek to engage businesses and consumers to start or continue their journey towards sustainability. SSX is also a hub for business, partnerships, and networking. This helps empower CITEM stakeholders by becoming a sustainability partner or enabler.

Participation in Projects/Events promoting Sustainability. Moreover, CITEM spearheaded the participation of 12 enterprises showcasing sustainable products and services at the first edition of the International Ecotourism Travel Mart (IETM) in Silang, Cavite from March 29 to April 2, 2023. CITEM participated through SSX, its sourcing program promoting sustainable goods, practices, resources, and technology.

Implementing Energy Conservation Measures Agency-Wide. CITEM also strived to reduce consumption of energy thru observance of the following energy conservation measures:

1. Air-conditioning systems - follow standard operating hours, setting of air-con thermostat, preventive maintenance, conversion to inverter type units;
2. Lighting systems - follow standard operating hours, Lights/Lamps at Modular desks, Use of LED lights/lamps;
3. Other Furniture/Fixtures/Equipment – Observe proper use of refrigerators and water devices;
4. Fuel - Government vehicles intended for Official Use, Observance of speed limit, Perform BLOWBAGETS before operating, preventive maintenance.

CITEM has a CSR report uploaded on the agency's website. Likewise, CITEM is maintaining the website (www.sustainability.ph) which is the online community platform for Sustainability Solutions Exchange (SSX). It promotes products, services and an exchange of ideas on sustainable consumption and production. The website features a diverse range of stories about sustainable technologies, interventions and practices that seek to engage businesses and consumers to start or continue their journey towards sustainability. Some articles uploaded in CY2023 in the SSX website are as follows:

1. The problem with plastic sachets can actually be resolved (posted: January 24, 2023);
2. How the meat industry contributes to climate change (posted May 15, 2023);
3. Sustainability but make it fashion: Eco-friendly accessories for your closet (posted May 15, 2023)

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:

• 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 health, safety and welfare of its employees which are available in the following documents:

1. Wellness Programs CY 2023
2. CITEM Clinic Report on Clinic Lecture and Health Programs 2023

The CITEM Clinic also reported on percentage of employees with the following cases:

1. Upper Respiratory Tract Infection (47.8%);
2. Body pain (13%)
3. Hypertension controlled (13%);
4. Conjuctivitis (10.1%)
5. Covid-19 positive (7.2%);
6. Others: acute viral infection, diabetes mellitus, tension headache (8.7%)

CITEM has a list of Training Programs attended by CITEM Employees in 2023. 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 2023'. 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.

Whistleblowers may report such acts or omissions that are illegal, unethical, violate good governance principles, against public policy and morals, promote unsound and unhealthy business practices, violate CITEM’s policies, procedures, rules and regulations, or are grossly disadvantageous to CITEM and/or the Government. A Whistleblowing Report (WR) shall be in writing, which contains sufficient facts with basis. Reporting can be submitted through the following reporting portals:

1. GCG Whistleblowing Web Portal;
2. Alternative Reporting Channel (i. Face to Face Meetings with CITEM Officials, Officers, and Employees/ or GCG Officials; ii. E-mail; iii. Phone, among others.

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.

Grievance Machinery. The implementing rules and regulations of EO 180 and the CSC Memorandum Circular No. 45 series of 1989 govern the establishment of grievance machinery in CITEM. This Grievance Machinery is part of the Association of CITEM Employees' Collective Negotiation Agreement (CNA) 2020-2023.

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 included 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 2023 Performance Scorecard - CITEM 2023 Charter Statement and Strategy Map.

CITEM's Financial strategic measures are available in CITEM website - page 3 of CITEM's 2023 Performance Scorecard as follows:

1. SM1 - CRR;
2. SM2 - Budget Utilization Rate (BUR)
   
   • SM2a - Obligations Subsidy BUR;
   • SM2b - Disbursements Subsidy; and
   • SM2c - Corporate Fund BUR

CITEM's non- financial strategic measures are available in pages 4-6 of CITEM's 2023 Performance Scorecard as follows:

1. Percentage of Satisfied Customers;
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 Edward L. Fereira did not attend a training in CY 2023.

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

The BOD reviewed the CITEM Vision and Mission/strategy for the FY 2023

Reference:
Excerpt of the minutes of the meeting_ Jan 17 2023

1. CITEM 2023 Charter Statement and 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
4. Excerpt of the Minutes of the Meeting_ Jan 17 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 uploaded in the CITEM Website for transparency and guidance of all employees
2. CITEM 2023 New Employees Orientation (NEO) Report

Governance and Nomination and Remuneration Committee Members

1. National Food Authority
   Ms. Elsa Asuncion-Lim (January 2020 - July 2023)


2. Department of Trade and Industry
   Asec. Glenn Penaranda (July 2022 – 01 August 2023)


3. CITEM
   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 & 12)

The Compensation/Renumeration Committee Conducted 4 meetings in FY2023.

Reference:
Actual committee meetings and attendance 2023

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

Reference:
CITEM Board Committees Accomplishment Report CY2023

Audit and Risk Management Committee Members

1. Bangko Sentral ng Pilipinas
   Ms. Bernadette Romulo-Puyat (July 2023 - Present)
2. Landbank of the Philippines
   Mr. Elcid Pangilinan
3. CITEM
   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 2020-01-09 & 10)

Held 4 meetings in FY2023. The Risk and Audit Management Committee is publicly disclosed.

Reference:
CITEM Board Committees Accomplishment Report CY2023

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:
BSP – Ms. Bernadette Romulo-Puyat LBP – Mr. Elcid C. Pangilinan

Risk and Audit Management Committee conducted four (4) meetings in FY2023.

References:
Actual committee meetings and attendance 2023

Audit and Risk Management Committee Members

1. Bangko Sentral ng Pilipinas
   Ms. Bernadette Romulo-Puyat (July 2023 - Present)
2. Landbank of the Philippines
   Mr. Elcid Pangilinan
3. CITEM
   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 2020-01-09 & 10)

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

References:
CITEM Board Committees Accomplishment Report CY2023

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:
BSP – Ms. Bernadette Romulo-Puyat
LBP – Mr. Elcid C. Pangilinan

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

1st meeting was held on 17 January (1Q)

References:

1. Excerpt of the minutes of the meeting on 29 November 2022
2. Board Meeting Policy and Actual meeting and attendance 2023

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 2023, although there were 5 meetings conducted, it did not meet and follow the scheduled Board meeting.

References:
Board Meeting Policy and Actual meeting and attendance

References:
Board Meeting Policy and Actual meeting and attendance 2023

Meeting without the CEO was held on 17 January 2023

References:

1. Board Meeting Policy and Actual meeting and attendance

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.

Reference:
Personal Profile

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

References:

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

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.

References:

1. CITEM Risk Management System

CITEM’s material controls (including operational, financial and compliance controls) and risk management systems were reviewed in FY2023

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

References:

1. CITEM Risk Management System

See duties and responsibilities of the committee (column 3).

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

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

References:

1. Website: Orientation for the new board member
2. Sec 66 of the Revised Manual of Corporate Governance
3. Orientation Deck for new directors

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 (page 1 of 3)

No training attended for 2023

References:
Board and Board Committee Assessment for FY2023

References:
Board and Board Committee Assessment for FY2023

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

References:
Board and Board Committee Assessment for FY2023

CITEM conducted an annual performance assessment of the Board Committees

References:
Board and Board Committee Assessment for FY2023

None. CITEM is compliant with all Good Governance conditions.

Note: Validation of Compliance to Good Governance Conditions for FY 2023 is ongoing.