Role of Stakeholder

Governance  >  Annual Corporate Governance Report  > Role of Stakeholder

1) Disclose the company’s policy and activities relative to the following:

 

Policy

Activities

Customers' welfare

We take innovative approaches to increase customer value and enhance customer experience; empower more customers including those with limited access to essential goods and services.

 

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.

 

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

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 valuechain

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.

 

 

 

 

 

 

 

 

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

We promote quality education, gainful micro enterprise, a healthy environment, and cultural development in our communities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 publicprivate 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?

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:

 

  1. Directors, officers and employees shall not offer, promise or give bribes to obtain, retain or “facilitate” business or any transactions of the Corporation;

 

  1. 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.

The Anti-Bribery and AntiCorruption 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

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.

 

 

 

 

 

 

 

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:

 

  1. To maintain a healthy debt mix at a level aligned with strategic and operational requirements at a minimum borrowing/interest costs possible.
  2. To ensure timely and accurate payments of interest and principal as they become due.
  3. To ensure compliance to covenants as stipulated in loan agreements.

 

2) Does the company have a separate corporate responsibility (CR) report/section or sustainability report/section?

A write up on sustainable developments and corporate social responsibility are also included in the Annual Report. A section on Sustainability is also available at the company website (www.ayala.com.ph).

The Company did not publish any Sustainability Report in 2016 (covering 2015 Sustainability and ESG performances) because it is transitioning to Integrated Reporting.

3) Performance-enhancing mechanisms for employee participation.

(a) What are the company’s policy for its employees’ safety, health, and welfare?

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. We maintain a chapel in the office vicinity for daily masses and spiritual growth.

(b) Show data relating to health, safety and welfare of its employees.

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 combat diseases such as flu, hepatitis B, cervical cancer, and pneumonia.

The company maintains on-site medical clinic managed by doctors and nurses supervised by one of the leading hospitals in the country. First-aid and over-the-counter medicines are available when needed. There was no accident-related absences recorded in 2016.

To keep our employees energized and engaged, we organized activities such as annual foundation and summer outing, Halloween Party, and Ayala Olympics are designed to increase and strengthen camaraderie. We have 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 2016:

Items

Employees

Dependents

Annual Executive Check-up

45

 

Annual Check-up (Staff)

28

43

Dental Check-up

53

86

Annual Vaccination Program

59

104

Anti-Cervical Cancer

11

18

Flu Vaccine

53

97

Pneumonia

25

46

R-DNA Hepatitis B

17

17

 

 

 

Recorded absence due to accident

0

0

 

 

 

Fundaytion

50

77

Halloween Party

25

47

Ayala Olympics

12,000 (across the Ayala Group)

0

Gym Members

40

0

 

(c) State the company’s training and development programmes for its employees. Show the   data.

All regular employees are given opportunities for advancement through institutionalized training and career growth programs. Strategically targeting areas for improvement and advancement, these programs ensure that our employees are constantly updated with knowledge and skills needed to deliver quality results. Training programs are either held in-house, online, or thru public courses. In 2016, a total of 1,970 training hours were recorded or an average of 13.4 training hours per employee; 1,084 hours and 886 hours for staff and managerial positions, respectively.

. Ayala’s groupwide Leadership Excellence Acceleration Program (LEAP), developed in collaboration with the Harvard Business School, is offered to its senior leaders and officers. The program covers strategic visioning and execution, customer centricity, innovation and growth, and leading for transformation and engagement. After Ayala LEAP, leadership development focus shifted to the next line of leaders. For the middle managers, Ayala developed the Emerging Ayala Group Leaders Program (EAGLE) which focuses on strategy, innovation, customer centricity, and transformational leadership.

(d) State the company’s reward/compensation policy that accounts for the performance of the company beyond short-term financial measures

The company rewards qualified employees with long-term stock options or stock ownership. The company promotes an ownership culture within the company which aligns the interests of the stock plan participants with those of the shareholders.

4) What are the company’s procedures for handling complaints by employees concerning illegal (including corruption) and unethical behaviour? Explain how employees are protected from retaliation.

The Whistleblower 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 concerns about a perceived wrongdoing, malpractice, or a risk involving the company. The policy likewise provides an assurance that a whistleblower will be protected from reprisals, harassment, or disciplinary action or victimization for whistleblowing.

The whistleblower may submit a written report directly to the Office of the Compliance Officer, or by e-mail to whistleblower@ayala.com.ph, or through a face-to-face meeting with any member of the Disclosure Committee composed of one representative each from the Office of the General Counsel, Strategic Human Resources, Internal Audit, and Enterprise Risk Management.

The company adheres to the ideals of justice and fairness in its business and in all its dealings with its employees. There is an established Investigation Committee and investigation process to look into reported violations of company policies, rules, and regulations. All reports are treated in confidence and discussed with the Audit Committee who monitors the resolution and closure of all reports.

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