Corporate Governance in Meralco
MERALCO aims for excellence that goes beyond compliance.
The Company commits to strengthening its culture of good governance and responsible management practices, while benchmarking with the international community and global companies. MERALCO believes that the reward of good governance is not just recognition but the continuous improvement on Company operations, breakthrough performance and sustainable growth that will serve the best interest of all our stakeholders.
As the country’s largest power distribution utility that caters to the power requirement of its more than 5 million customers in its franchise area, Manila Electric Company (Meralco) has been at the forefront in promoting good governance regulations, policies and practices within its organization in its dealings with private and public stakeholders. In 2010, the Company made corporate governance a major thrust and institutionalized the "Be Right" communication policy in the Meralco culture.
The structure, functions, policies and programs of the Company are in accordance with the stringent laws and policies enforced by the regulatory agencies such as, the Securities and Exchange Commission (SEC), the Philippine Stock Exchange (PSE), the Philippine Dealing and Exchange Corporation (PDEx), the Department of Energy (DOE) and the Energy Regulatory Commission (ERC). Policies and implementing rules on Corporate Governance, Code of Ethics, Whistleblowing, Conflict of Interest, Related Party Transactions and Management Control, are in place to set out the duties and responsibilities of the Board, Management and Employees in safeguarding the rights of the shareholders and stakeholders.
As a testament to the trust accorded to it by the stakeholders, the Company’s consolidated revenues and consolidated sales volume consistently grow. In 2013 the Company’s Standard & Poor’s (S&P) credit rating was raised to BB with stable outlook. Moving forward, the Company strives to continue improving its service and performance.
The Corporate Governance Office (CGO), which was established since March 16, 2010 attests to the Company’s dedication to pursue excellence in corporate governance. Its mandate is to support the Board of Directors and Management in the formulation and implementation of CG plans, programs and initiatives, and in monitoring compliance among the ranks to achieve the highest standards of competence and ethical culture among directors, officers and employees of the Company. CGO functionally reports to the Nomination and Governance Committee of the Board and administratively to the Management.
In pursuit of further improvements in governance, the Company is actively involved with national and international CG advocates and organizations such as the Good Governance Advocates and Practitioners of the Philippines (GGAPP) and the Ethics and Compliance Officers Association (ECOA). The Company participates in best practice and knowledge-sharing events organized by GGAPP and ECOA with CG practitioners, Board and Senior Management. United by Good Governance principles and philosophy, responsible owners, directors and professionals yield ethical companies and ultimately, economically sustainable businesses.
The Revised Manual of Corporate Governance is the foundation of Meralco's governance policies, which states the responsibilities of the Board, Management and the Company to stockholders and all other stakeholders. It complies with the SEC Code of Corporate Governance under SEC Memorandum Circulars No. 2 Series of 2002, No. 6 Series of 2009, No. 9 Series of 2014, and No. 19 Series of 2016. The Revised Manual of Corporate Governance was amended and submitted to the SEC on April 24, 2017.