Ayala companies earned seven of the 11 highest rankings of the Institute of Corporate Directors (ICD)’s Corporate Governance Scorecard Project for 2009.

Ranked in the Gold category were Ayala Corporation and its companies Ayala Land, Inc. (ALI), Bank of the Philippine Islands, Globe Telecom, Manila Water Company and ALI’s listed subsidiaries Cebu Holdings, Inc., and Cebu Property Ventures and Development Corporation, all of which scored 95% or above in the governance scorecard. ICD recognized companies that led its scorecard project on May 27 at Manila Peninsula.

A non-stock, non-profit organization, ICD works closely with the Organisation for Economic Co-Operation and Development (OECD), the Global Corporate Governance Forum, and the International Corporate Governance Network on improving actual boardroom practices in the Philippines. ICD is a founding member and permanent secretariat of the Institute of Directors in East Asia Network composed of representatives from Thailand, Indonesia, Singapore, China, Hong Kong, Philippines, South Korea, Taiwan, and Malaysia.

For the last five years, ICD’s corporate governance scorecard has been used by publicly listed companies as a tool to rate and benchmark their corporate governance practices relative to global and regional standards. The project is jointly administered with the Securities and Exchange Commission, the Philippine Stock Exchange, the Institute of Internal Auditors of the Philippines, the Ateneo Law School, and the Center for International Private Enterprise. In 2009, it developed separate scorecards for banks, government-owned and controlled corporations, government financial institutions, and insurance companies.

Led by the parent company, Ayala group companies assessed their own governance practices using ICD’s scorecard to evaluate their practices in the areas of shareholder rights, equitable treatment of shareholders, role of stakeholders in governance, disclosure and transparency, and board responsibilities—key governance principles used as basis for corporate governance practices globally.

In addition to the Ayala group, other companies cited in the Gold category were Energy Development Corporation, First Gen Corporation, First Philippines Holdings Corporation, and PLDT. Nineteen companies were cited in the Silver category for scoring 90 to 94% in the ICD scorecard, including Aboitiz companies, ABS-CBN Broadcasting, Alaska Milk, Benpres Holdings, Centro Escolar University, Chinabank, GMA Network, Highlands Prime, Panasonic Manufacturing Philippines, Petron, PSBank, Security Bank, Semirara Mining, SM companies, and Unionbank.

“We are very happy with the results as they show continued improvement in compliance and corporate governance practices among our listed companies,” said ICD chairman Dr. Jesus Estanislao. “The challenge is to step up to the plate, go beyond mere compliance and into governance that delivers performance and breakthrough results.” Estanislao said that the ICD is now working with select top-ranked companies on a corporate governance improvement pathway to help cultivate a governance culture in organizations through a performance governance system.


Ayala Corporation chairman and CEO Jaime Augusto Zobel de Ayala received the conglomerate’s Grand Chamber Award of Distinction from the Cebu Chamber of Commerce and Industry (CCCI) for its “exemplary and conscientious adoption of the principles of sustainable development in all its strategies, practices, and activities, as exemplified by its distinction as the first ever group of companies in the Philippines to issue a Global Reporting Initiative-compliant sustainability report in 2009.”

“I share this honor and recognition with the entire Ayala management team who altogether oversee the operations of each of our key businesses,” said Zobel in his acceptance speech. “They have all worked vigorously to realize our commitment to sustainability initiatives while ensuring that we remain competitive and relevant as an enterprise to our stockholders.”

Ayala was among the businesses that were recognized for business excellence at the 15th Grand Chamber Awards Night held on June 25 at Waterfront Cebu City Hotel. Other honorees were Benito Sy Gaisano (Entrepreneur of the Year), Edgar Sia II of Mang Inasal, Rey Calooy of RNC Marketing, Joy Martinez Onazawa of Environment Design, Peter and Susan Holaysan of Sta. Fe Resort, Wesley Chiongbian of Mynimo.com, USC Kapamilya Negosyo Na!, and Rey Merida of Amicha Toledo Multi-Purpose Cooperative.

The event was the highlight of the CCCI’s Visayas Area Business Conference. Cebu Governor Gwendolyn Garcia, PCCI chairman emeritus Miguel Varela, CCCI chairman Consul Samuel Chionson, and conference chairman and Cebu Holdings president Francis Monera led the representatives from the public and private sector in attendance.

In keeping with the theme of the Cebu Business Month 2010, “Get Inspired! Go Green,” Zobel’s remarks focused on the role of business in sustainable development. He enjoined colleagues in the private sector to “take on a broader responsibility to tackle environmental and social development issues with the same discipline and thinking we approach traditional business opportunities and be one in this sustainability journey.”