AFPGEN Scores High in ACGS
The ASEAN Corporate Governance Scorecard (ACGS) is a tool consisting of a series of questions in order to assess the performance of the companies in terms of their corporate governance –whether the companies are managed effectively or not. The ACGS evaluates whether companies follow the best practices of corporate governance. These best practices are adopted by several publicly-listed companies in the Asian region. In short, the ACGS provide guidance on how companies should operate.
For firms in the Philippines, It is important to adopt the international corporate governance best practices since it is a major consideration whether foreign companies shall invest in the local firms or not. It could also affect the long-term sustainability and resiliency of the companies.
How did AFPGEN’s ACGS score compare with the performance the previous year?
Based on an independent study made by the Institute of Corporate Directors (ICD), AFPGEN earned a score of 61.4 points in 2016. This score was relatively high compared toublicly listed companies. ICD Director for Corporate Governance Scorecard informed Mangement that, based on AFPGEN’s raw score, AFPGEN was ranked among the top 5 firms among the non-life insurance companies and top 15 overall in the insurance industry which includes both Life Insurance and Mutual Benefit companies.
For firms in the Philippines, it is important to adopt the international corporate governance best practices since it is a major consideration for foreign companies in their decision to invest. It could also affect the long-term sustainability and resiliency of the companies as the ACGS reflects the relationship between the management of company, its board of directors, its clients and other stakeholders.