Monday, December 18, 2017
| Search
  • Institute of Corporate Directors (ICD)



    ASEAN Corporate Governance Scorecard (ACGS) for Philippine Publicly Listed Companies (PLCs)


    The project aims to improve the performance of Philippine Publicly Listed Companies (PLCs) to meet the ASEAN standards by recommending measures to strengthen areas of weak governance and formulate regulatory reforms that would serve to institutionalize the improved corporate governance standards.




    3 years


    PLCs, government –owned and –controlled corporations (GOCCs), banks, insurance companies and other critical sectors of the economy.


    The Association of Southeast Asian Nations (ASEAN) integration was established in 2015 and the Philippines has worked on accelerating its economic and sociocultural sectors to be at par with the other nations. One of the areas that still needs to be addressed is compliance with the current corporate governance standards in the ASEAN Corporate Governance Scorecard (ACGS). The ACGS was introduced in 2012 to improve corporate governance practices of ASEAN Publicly Listed Companies (PLCs).


    USAID, through the Philippine-American Fund, assists the Institute of Corporate Directors (ICD) in improving the performance of Philippine PLCs to achieve regional standards. ICD accomplishes this by customizing the scorecards to suit the needs of particular sectors without diluting the concept of having an objective measurement. ICD recommends measures to strengthen areas of weak governance and formulate regulatory reforms that would serve to institutionalize the improved corporate governance standards.

    ICD also encourages national government oversight agencies to adopt these standards and include them in the regular performance monitoring of PLCs and Government-Owned and Controlled Corporations. They also work with academic institutions in integrating the ACGS in their business courses.


    ICD assesses the performance of different PLCS, government-owned and controlled corporations (GOCC) and insurance companies in the Philippines using the ACGS.

    As of June 2017, ICD assessed a total of 482 companies: 254 PLCs, 104 GOCCs and 124 insurance companies.

    During the quarter, ICD represented the Philippines in the ASEAN Corporate Governance Experts Meeting held on Apr. 4-6, 2017 in Kuala Lumpur, Malaysia.  The meeting was designed to finalize the standard procedures on the new ACGS dubbed as “ACGS version 2.0”.

    In the newly-agreed assessment process, a validation phase was added after the domestic ranking—an ASEAN peer review assessment. This will verify if scores were standardized in interpretation across ASEAN countries or if a reassessment is needed. The inputs from this meeting and the training on the ACGS version 2.0 were cascaded to the participating countries immediately to initiate the new set of assessment regulations.

    Based on the ACGS version 2.0, the Publicly-listed Companies (PLCs) can receive 30 more points for governance practices beyond minimum compliance, while deduction of as much as 67 points can be imposed for practices that violates good corporate governance. The ACGS version 2.0 has 184 items compared to the previous version which only had 121 items. This year, the assessment process will require a validation process after the peer-review. This added step will only apply to companies which are assessed by ASEAN counterparts. 

    The Project continued to educate companies in improving and updating their corporate governance practices. The ACGS version 2.0 was distributed to 136 directors and executives (29 percent female) who attended ICD’s Corporate Governance Orientation Programs and Distinguished Corporate Governance Speaker Series.



    The Institute of Corporate Directors (ICD) developed a Corporate Governance Scorecard for Philippine Publicly Listed Companies (PLCs) in 2005. ICD has been the leading institution in the field of corporate governance in the Philippines. It has established itself as a national and regional resource for policy advocacy and training of corporate directors. It has the necessary local and international linkages to ensure its continued development and the sustainability of its programs.

    ICD has also been appointed as the Philippine ranking body for the ASEAN Corporate Governance Scorecard of the ASEAN Capital Markets Forum.

    Ricardo Nicanor N. Jacinto
    President & CEO
    Institute of Corporate Directors (ICD)
    14F Trident Tower, Sen. Gil Puyat Avenue
    Makati City