The Small Business Corporation (SB Corporation) was among the 2019 achievers in the Corporate Governance Scorecard (CGS) of all Government-Owned and Controlled Corporations (GOCCs), tallying an assessment score of 93.0 for its 2018 operations and securing the 7th spot out of 82 GOCCs assessed, a big leap from its 2016 score of 58.50 from its previous 39th spot in the ranking.
The CGS of the Governance Commission for GOCCs (GCG) aims to annually assess the Corporate Governance performance of GOCCs and recognize well-governed GOCCs. The CGS assesses each GOCC’s governance policies and practices on Stakeholder Relationships (15%), Disclosure and Transparency (35%), and Responsibilities of the Board (50%).
The CGS helps the Governance Commission and GOCCs identify and assess the latter’s strengths and weaknesses compared to existing corporate governance provisions, and level of adherence to best practices and international standards of corporate governance.
The CGS also works with the Performance Scorecard of GOCCs as it ensures improvement of transparency of GOCCs’ corporate governance initiatives and practices.
Under GCG Memorandum Circular No. 2015-07 instituted in October 2015, the Corporate Governance Scorecard for GOCCs was developed using a methodology benchmarked against the Principles of Corporate Governance of the Organization for Economic Co-operation and Development (OECD) and the ASEAN Corporate Governance Scorecard.
The GCG in partnership with the Institute of Corporate Directors (ICD) established the CGS to raise the Corporate Governance standards and practices of GOCCs to be at par with the ASEAN state-owned enterprises.