Why is CG necessary in PLDT?
Good corporate governance has always been the commitment of PLDT to stakeholders. It is the cornerstone of top management’s strategy since 1998 when First Pacific made its investment in the company. CG is also necesary because, first of all, it is mandated by the Philippine and US Securities and Exchange Commission regulations, and corporate governance standards set by the Philippine and New York Stock Exchange. Secondly, CG is becoming a global trend that positively impacts the corporation’s market value. Thirdly, adoption of compliance programs likewise caused the absolution of directors from personal liability for breach of fiduciary obligations. The regulators found that a company’s compliance efforts served as evidence of good-faith attempts of management to educate employees and comply with the law.
