Role of Stakeholder
Company Policies and Activities
At Ayala, the team understands the importance of making informed decisions and takes a proactive approach to assess and evaluate all aspects of the company's operations. This includes considering the potential impact of policies and activities on stakeholders, such as employees, customers, and the wider community.
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Customers’ Welfare
Policy
Our product and services are designed in such a way that customers and the general public’s health and safety are improved and safeguarded.
Our businesses put customers first, providing superior end-to-end customer experience within a corporate culture of genuine service and care. Feedback are regularly analyzed and addressed to continually raise the bar of customer service and engagement.
For Water: Our water and wastewater business ensures that water quality always complies with the Philippine National Standard for Drinking Water.Our stakeholder engagements are designed and implemented to understand our customers well. We offer our customers sustainable lifestyle as we design our products and services. We also provide customer touch points to ensure that their feedback and concerns are monitored and acted upon. We do an annual customer satisfaction survey so we can improve the overall customer experience.
Activities
For Water: Our water and wastewater business implements a Water Safety Plan developed in 2009 to minimize and/or eliminate contamination at each stage-from source to production, storage and conveyance to customers. It reports no major water contamination since beginning operations in 1997, at testament to its commitment to secure safe and potable water supply for its customers.
For Real Estate: Our real estate business ensures that its products and services do not pose a risk to health and safety. Moreover, by advancing sustainable design, it restores the environment and improves quality of life.
Supplier/Contractor Selection Practice
Policy
We have an Investor Relations Council composed of investor relations officers from our publicly-listed units. The council meets regularly to flesh out ideas and share updates to ensure the alignment of our investor relations programs. We also hold regular group-wide investor engagements, such as Ayala group non-deal roadshows attended by senior management across the group to provide investors a top-down view of the conglomerate.
We shall support community development by providing opportunities to community-based entrepreneurs and cooperatives with the use of our buying volume.
Activities
Whenever possible, subsidiaries of the Ayala group choose and accredit suppliers that observe sustainability practices. We actively include locally based community enterprises and small businesses in our supply chains to boost inclusive economic growth.
We make sure that environmental impacts are always considered when procuring supplies, especially for environmentally sensitive projects. All our suppliers undergo a screening or accreditation process, which includes assessments of their safety, health, and environmental policies.
Moreover, our companies ensure that their suppliers are always legally compliant and adhere to stringent quality standards.
The Ayala group maintains an updated list of both reliable and delinquent suppliers through Ayala ProcurementNet. This platform, together with the various procurement measures of our subsidiaries, addresses the negative performance of vendors and reports repeatedly erring suppliers. To minimize engaging potentially delinquent suppliers, regular vendor evaluations are conducted across our group.
Environmentally Friendly Value Chain
Policy
We shall establish social and environmental parameters in accrediting suppliers, and shall prefer suppliers that observe sustainability practices.
We shall support community development by providing opportunities to community-based entrepreneurs and cooperatives with the use of our buying volume.
Activities
Whenever possible, subsidiaries of the Ayala group choose and accredit suppliers that observe sustainability practices. We actively include locally based community enterprises and small businesses in our supply chains to boost inclusive economic growth.
We make sure that environmental impacts are always considered when procuring supplies, especially for environmentally sensitive projects. All our suppliers undergo a screening or accreditation process, which includes assessments of their safety, health, and environmental policies.
Moreover, our companies ensure that their suppliers are always legally compliant and adhere to stringent quality standards.
The Ayala group maintains an updated list of both reliable and delinquent suppliers through Ayala ProcurementNet. This platform, together with the various procurement measures of our subsidiaries, addresses the negative performance of vendors and reports repeatedly erring suppliers. To minimize engaging potentially delinquent suppliers, regular vendor evaluations are conducted across our group.
Community Interaction
Policy
We promote quality education, gainful micro enterprise, a healthy environment, and cultural development in our communities.
Activities
Through Ayala Corporation’s social commitment arm, Ayala Foundation Inc. (AFI), the Group actively consults with communities to understand their dreams, needs, aspirations, and even their capacities. AFI’s interventions in education, youth leadership, sustainable livelihood, and arts and culture ensure great participation from the members of the communities. Each community member is an active partner, not just a beneficiary or recipient. AFI conducts community insighting and other forms of intensive on-the-ground work and research prior to starting projects. AFI conducts program reviews on a periodic basis to ensure the effectiveness of the programs.
AFI is a strong believer in public-private partnerships. Every sector in its program communities has a role to play to ensure the effectiveness and sustainability of its programs. In addition, the Foundation is consistently in consultation with its stakeholders (donors, project partners, LGUs/government representatives, etc.) before, during, and after any intervention.
Other subsidiaries of Ayala Corporation have programs that engage community and develop activities and programs that will improve the Filipinos quality of life. The Group ensure that we include the broader community in our creation of shared value process.
Anti-Corruption Programmes and Procedures
Policy
Ayala adopts a zero tolerance policy towards bribery and corruption. Thus, all directors, officers and employees of the Corporation are obliged to strictly observe the following guidelines:
Directors, officers and employees shall not offer, promise or give bribes to obtain, retain or “facilitate” business or any transactions of the Corporation; Directors, officers and employees shall not request, agree to accept of take bribes from any person or organization.
The foregoing applies even if made through another person.
Activities
The Anti-Bribery and Anti-Corruption Policy must be strictly observed in all transactions and dealings of the directors, officers and employees of Ayala with the customers, suppliers and business partners of the Corporation as well as with the government,
The Offices of the Internal Audit, Controller, SHR, the Finance Group, Compliance Officer and General Counsel, subject to the approval of the President and CEO, shall provide for the Implementing Rules of this Policy.
Among the other guidelines on anti-corruption, the Company sets guidelines for dealing with business gifts and gratuities to protect the integrity of its employees and its business interests.
Safeguarding Creditors’ Rights
Policy
The Company shall protect the rights of all creditors as an integral stakeholder.
The Company shall comply with all positive, affirmative and negative debt covenants for so long as the obligations are outstanding.
In the event of a default, the Company will abide with the relevant provisions of the agreement pertaining to defaults, remedies, and penalties for all outstanding obligations.
The Company shall regularly furnish all creditors information that will enable the lenders to evaluate the Company.
The Company shall embed Creditor’s protection in its internal Treasury Performance Management Systems.
Activities
The Company shall ensure that all covenants for all obligations are identified, monitored and complied with. The Company regularly tracks and complies with deadlines of reports related to covenants that need to be submitted.
The Company shall endeavor that no event of default will occur. All events that are considered events of default are identified, monitored and complied with to prevent any event from occurring. In the unlikely event of a default, the Company will immediately notify all creditors, abide with the provisions pertaining to default, including remedies and pay the penalties if needed.
The Company shall identify all information and frequency of submission that lenders are to be provided for in accordance with the loan agreements. The company endeavors to submit these information, including audited annual financial statements, unaudited semiannual reports, and verification of no-default on or before due date.
Internally, the Company has a specific section in Treasury tasked with Debt Management. The objectives of the Debt Management Section are:
To maintain a healthy debt mix at a level aligned with strategic and operational requirements at a minimum borrowing/interest costs possible.
To ensure timely and accurate payments of interest and principal as they become due.
To ensure compliance to covenants as stipulated in loan agreements.
Whistleblowing policy, practices and procedures for stakeholders
Policy
Integrity is a core value of Ayala Corporation (the “Corporation”). It means doing the right thing and being accountable for one’s own actions. The Corporation adopts transparency as a tool in its pursuit of integrity. In line with this, the Corporation adopts this WHISTLEBLOWER POLICY (the “Policy”) to encourage directors, officers, and employees, and all suppliers, business partners, contractors and sub-contractors to come forward and raise serious concerns about a perceived wrongdoing, malpractice or a risk involving the Corporation.
This Policy provides a formal mechanism and an avenue for directors, officers, employees, suppliers, business partners, contractors and sub-contractors and other third parties to raise such concerns. This Policy provides an assurance that a person who will raise a concern (the “Whistleblower”) will be protected from reprisals, harassment or disciplinary action or victimization for whistleblowing.
Activities
Ayala Corporation has a whistleblowing system outsourced to an independent third-party, P&A Grant Thornton, which may be accessed through this link: https://proactivehotline.grantthorntonsolutions.ph/ report/ayala-corporation.
Alternatively, whistleblowers may send or communicate a report though the following other channels:
Face-to-face meetings – Any member of the Disclosure Committee (the “Committee”) composed of one representative each from the Office of the General Counsel, Strategic Human Resources (SHR), Internal Audit Division (IAD), and Enterprise Risk Management.
Email – whistleblower@ayala.com
Mail – Office of the Compliance Officer 38F Ayala Triangle Gardens Tower 2, Paseo de Roxas cor. Makati Avenue, Makati City 1226, Philippines
Mobile/Telephone Number – +63 917 7978908 +632 7218 1640
Fax – +632 7751 650
The complete whistleblower policy may be accessed here: https://ayala.com/app/uploads/2024/02/AC-Whistleblower-Policy_Final-v2.pdf
For more information on Ayala’s Sustainability initiatives, you may refer to the company’s Integrated Annual Reports, which it has been releasing since 2017 (www.ayala.com.ph/investors/annual-reports). A section on Sustainability is also available at the company website (www.ayala.com.ph/sustainability-at-ayala).
Company’s Policy for its Employees’ Safety, Health, and Welfare
The well-being of Ayala employees is important to us. In this regard, the organization remains responsible in ensuring the employees’ occupational health and safety. The organization remains committed to being compliant to related regulations on industrial health and safety, both locally and globally.
A fundamental part of this commitment is informing and training the employees on disaster preparedness, and in conducting their activities in a safe, healthy, and responsible manner. The organization realizes that an assessment of the risks related to business and employees is critical and to this end, the organization ensures a continuous and updated review and assessment of the related processes. It is important that hazards to the organization are identified clearly to ensure quick and proper response in mitigating these elements. This include identifying activities that minimize the risks, and establishing control measures benchmarked with industries’ best practices.
The Company maintains a comprehensive medical and wellness program which provides for in-patient and outpatient benefits for employees, dependents and retirees. It is designed to provide payments of the actual, reasonable and customary expenses incurred by an employee and eligible dependents and retirees, subject to a maximum amount limit.
We also encourage employees to undergo annual executive check-up or physical examinations for health maintenance. The company pays for memberships in gym, sports club and interest clubs. For the spiritual growth, we allocated a room for daily masses while the Chapel of the building is being built.
Data Relating to Health, Safety and Welfare of its Employees
It has always been our belief that the most important part of our company are the talents we have and the most meaningful investment we can do is on them.
Health programs for periodic medical and dental care and annual medical check-up are available to our employees and their dependents. We also established an annual vaccination program to prevent certain diseases such as covid 19, flu, cervical cancer, and pneumonia.
The company maintains on-site medical clinic managed by doctors and nurses from Healthway, an AC Health Company. First-aid and over-the-counter medicines are available when needed. There were no accident-related absences recorded in 2023.
To keep our employees energized and engaged, we organized activities around holistic wellness. This includes programs related to Mental, Physical, Social, as well as Spiritual Wellness.
On mental health, we have partnered with Mind You, a company that provides data-driven mental healthcare solutions and access to psychologists as well as psychiatrists to our employees and dependents. We also regularly provide webinars, where employees and dependents can learn about how to better handle and cope with stress as well as difficult work and/or personal situations at any stage in their life as an employee.
The company also launched Active Wellness Wednesdays where employees come together after office work to run, jog or walk with their co-employees across different departments. Other employee activities include our annual summer outing, dubbed as Unplug, Fundaytion Day, ACtoberfest, Halloween Party, and Ayala Olympics which are designed to increase and strengthen camaraderie. We provide access to gym memberships, creative workshops enrolled our employees to a gym membership and also supported our employees’ sport and other interests through our annual JZA Cup comprising of golf, badminton, volleyball, bowling, and street dance, among others.
Below are the data relating to employee-related activities for the year 2023:
| Items | Employees | Dependents |
|---|---|---|
| Annual Executive Check-up | 22 | -- |
| Annual Check-up (Staff) | 35 | 49 |
| Dental Check-up | 30 | 31 |
| Annual Vaccination Program - Flu Vaccine | 75 | 99 |
| Annual Vaccination Program - Pneumonia | 16 | 7 |
| Recorded absence due to accident | 0 | N.A. |
| Fundaytion (Family Day) | 67 | 101 |
| Halloween Party | 85 | 53 |
| Movie Night | 47 | 67 |
| Wellness Program 2.0 | 103 | N.A. |
Training and Development Programmes for its Employees
Ayala accelerates growth opportunities by making learning accessible in a variety of modalities to adapt to preferences and competency gaps. The organization recognizes the need to shift toward more personalized training and need for upskilling and reskilling. Ayala’s objective is to help employees acquire new skills, knowledge, and mindsets that can directly improve their job performance, develop expertise in their current function, and prepare them for development/growth in their career.
These learning programs cover a range of topics – innovation, leadership, technology, communication, well-being – available through multiple channels to suit employees’ learning needs and preferences. Managers and employees have regular conversations on their learning and development goals and draw up the plan to achieve these goals.
Ayala highly values its human and intellectual capital. The organization heavily invests on employee learning in order to develop a pool of best-in-class talent that is equipped for the future.
Company’s reward/compensation policy that accounts for the performance of the company beyond short-term financial measures
Ayala provides competitive compensation and benefits packages that are benchmarked against industry standards. The company offers a long-term incentive program through its Employee Stock Ownership Plan (the “Plan”) for its executives and employees in recognition of loyalty, dedication and exemplary performance. The grants are given on a deferred basis following a 3-year vesting schedule from grant date. In an employee is separated for cause, the proportionate unpaid deferred portion of the grant allocation is automatically forfeited in favor of Ayala while the paid portion will be subject to Ayala’s right to repurchase.
As approved by the stockholders, the company allocated 3% of its authorized capital stock for distribution to eligible employees under the Plan. On April 28, 2023, the Board approved the 2023 stock option program pursuant to the Plan. The program authorizes the grant to 81 executives, in accordance with the terms of the Plan, stock options covering up to a total of 632,500 common shares at a subscription price of Php635.74 per share, which is the rounded off volume-weighted average prices of our common shares at the Philippine Stock Exchange over the last 5-day trading days from April 20, 2023 to April 27, 2023. Also on April 26, 2024, the Board pursuant to the Employee Stock Option Plan, approved the grant to 111 employees executives stock options covering up to a total of 790,000 common shares at a subscription price of Php588.29 per share, which is the rounded off volume-weighted average prices of our common shares at the Philippine Stock Exchange over the last 5-day trading days from April 19, 2024 to April 25, 2024.
Management Succession Planning
Ayala Corporation recognizes the critical importance of effective succession planning to sustain organizational excellence and drive continuous growth.
It is the responsibility of Ayala’s Board of Directors to adopt a professional development program for employees and officers, and an effective succession planning program for Directors, key officers, and management in the Corporation in accordance with the criteria set in the Corporate Governance and Nomination (CGN) Committee Charter.
To exercise this function, the task of reviewing the succession plans for members of the Board and senior executives (from group heads to the Chief Executive Officer) and to review and evaluate the qualifications of all persons nominated to positions in the Corporation which require appointment by the Board is delegated to the CGN Committee. In conducting its review of the succession and evaluation of qualifications, the Committee considers the following factors:
A. Duties and responsibilities of the position/s under consideration;
B. For the nominees:
-
- Level of knowledge on the Corporation’s business;
- Potential to assume greater responsibility in the organization;
- Ability, integrity and expertise; and
- Results of previous performance assessments.
The Committee’s review of the management succession plan shall be done periodically and also take into account relevant human resource policies of the Corporation and its vision, mission and overall corporate strategy.
The Strategic Human Resources (SHR) team prepares the management succession plan for presentation to the CGN Committee. The SHR team strives to ensure that the Corporation has a consistent, efficient and effective succession development program to enable the organization to provide continuity in leadership and minimize disruption on day-to-day operations. In preparing the management succession plan for review of the CGN Committee, the SHR team adheres to the following principles:
- Each position shall have an emergency successor and at least one long-term successor.
- Successors may come from within or outside a business unit.
- If there are multiple identified successors, they shall be ranked according to readiness to assume the position.
Employees’ Performance Management Framework
The company has established an effective performance management framework that ensures that Management, Managers and Staffs’ performance is at par with the standards set by the Board and Senior Management.
CEO/President/Senior Management Group
Process
The performance of the Senior Management Group, including the Chairman and the President, are regularly evaluated. The Company uses an evaluation system which includes self-assessment and discussions.
Criteria
The company’s Performance Evaluation System includes metrics, deliverables, accomplishments and development plan.
Managers & Staff
Process
- The performance review of all managers are regularly evaluated and is supported by an online evaluation system.
- Deliverables are set at the start of every performance year, discussed and agreed upon as a collaborative effort between Immediate Supervisors and employees.
- Regular feedback and mid-year review is set and observed.
- Evaluations are done based on defined and agreed upon metrics.
- Performance dialogue is an important part of the evaluation system.
Criteria
The company’s Performance Evaluation System includes metrics, deliverables, accomplishments and development plan