Onto Better Governance for GOCCs: An ICD and GCG MOA Signing Ceremony

by: Micaela Segui, CSSWB

Corporate Governance Analyst

Institute of Corporate Directors

Good corporate governance practices can help government-owned and controlled corporations (GOCCs) operate more efficiently, improve access to capital, mitigate risk, and safeguard against mismanagement. It makes GOCCs more accountable and transparent and gives them the tools to respond to stakeholder concerns. Corporate governance also contributes to development by encouraging new investments, boosting economic growth, and providing employment opportunities.

In addition, the Governance Commission for GOCCs (GCG) has initiated a thorough reevaluation of its Code of Corporate Governance in collaboration with the Institute of Corporate Directors (ICD) to ensure that GOCCs are governed in a transparent, accountable, and fair manner as commenced by a Memorandum of Agreement (MOA) signing ceremony held on 15 January 2024 at the GCG Office. 

The strategic partnership between the two parties involves conducting a comprehensive review of the existing CG Code and CG Scorecard for GOCCs, recommending enhancements to align practices and policies with contemporary governance standards, and facilitating capacity-building sessions and training programs for GOCCs based on the revised CG Code and CG Scorecard. This remarkable collaboration will serve as key towards a more economically-viable, responsive, and accountable GOCCs. With the expertise of ICD, the GCG will further be assisted towards improving their governance system, especially with the promotion of gender diversity and sustainability. In a similar fashion, ICD will be able to fulfill its mission to achieve a nation grounded in good governance across all sectors and industries. 

Attendees of the said MOU signing ceremony were (seated from L-R): ICD Trustee, Atty. Jose Tomas Syquia; ICD Chairman, Atty. Pedro Maniego Jr.; GCG Chairperson, Atty. Marius Corpus; GCG Commissioner, Atty. Geraldine Marie B. Berberabe-Martinez; (standing from L to R):  and ICD’s Director for Research & Development, Roberto Bascon Jr.; GCG Commissioner, Atty. Brian Keith Hosaka; GCG Executive Director, Atty. Johann Carlos Barcenas. Both parties have expressed their gratitude on how their engagements have flourished since 2015 during the creation of the GOCC scorecard and CG Code. 

To a great degree, the collaboration between ICD and GCG is a step closer to building better boards as aligned with internationally - recognized corporate governance standards and practices. With optimism, may this memorable event boost synergy for ICD and its regulatory partners.