Marimel A.

Loya, September 30, 2022

MBA- LCUP Good Governance & Social Responsibility
Reflection Essay on Corporate Governance

In setting up a business one must understand the value of corporate governance. According to the
Organization for Economic Co-operation and Development (OECD), Corporate Governance is the system
by which business corporations are directed and controlled. It specifies the distribution of rights and
responsibilities among different participants in the corporation, such as the board of directors who acts as
the governing body of the corporation, managers who is responsible for setting, managing and executing
the strategies of the company, shareholders who invest in a corporation by buying its stocks and receive
economic benefits in return and other stakeholders, and spells out the rules and procedures for making
decision on corporate affairs.

Good corporate governance starts with personal integrity. In corporate governance, it stars with
the CED who establishes the values and sets the example for the rest of the organization to follow.

Corporate structure includes shareholders who elect the Board of Directors whose key purpose is
to ensure the company’s prosperity by strategically directing the company’s affairs. The Board of
Directors appoints management team to oversee the daily operation of the company. The Corporate
structure then highlights the presence of the external forces in the governance of the corporation. This
shows that governance requires ensuring the balance between the rights of the majority shareholders and
the right of stakeholders that the Board and Management must consider.

Corporate Governance includes both social and institutional aspects. It encourages a trustworthy,
moral, as well as ethical environment.

In conclusion, good governance guarantees corporate success and economic growth. It preserves
the stockholders confidence, as a result of raised. It provides proper incentives to the owner as well as
managers to achieve objectives that are in interest of the shareholders and the organization.

Reference:
Felipe Alfonso, Francisco Roman and Rose Quiambao (2005) Social Responsibility and Governance in the Philippines
Marimel A. Loya, October 7, 2022
MBA- LCUP Good Governance & Social Responsibility
Reflection Essay on Corporate Social Responsibility

Corporate Social Responsibility (CSR) is the idea that a company should play a positive role in
the community and consider the environmental and social impact of business decisions. This essentially
creates the triple bottom line that every company must strive to meet – profit, people and the planet.
When a company does business, there are multiple stakeholders involved with every transaction. From
the employees that supply the products or services to the customers that purchase them, may people are
affected by a single company’s operations. And even if they aren’t directly involved with the business,
they could still be affected too.

Many companies have realized the importance of treating their employees fairly, and as such
have launched CSR programs in line with this. For example, more and more companies have started to
provide healthcare benefits to their employees.

This topic somehow is something that companies need to give more emphasis. Not just for
compliance as it may seem but highlighting the importance of social responsibility and giving back to the
people who serve them and community who have trusted and continuously patronizes their services.

CSR that way I understand and by further readings - a responsibility to the society which we can
deliver thru our company practices – by mission, vision and objectives, thru employee’s duties and
responsibilities, and initiatives of common individuals.

The authenticity of CSR is being challenged sometimes if not all the time. Make sense. But my
view on this is not about the sincerity of the kindness or generosity of the company but by the consistency
and the way it is being delivered.

In conclusion, the goal for a socially responsible one is to bring as much of as positive impact to
the people as reliable as possible.
Marimel A. Loya, October 7, 2022
MBA- LCUP Good Governance & Social Responsibility
Reflection Essay on Internal and External Institution of Corporate Governance

No matter how great a company is, its effectiveness is ultimately defined by the results it
produces. Corporate governance may refer to the structures and processes for the efficient and proper
direction and control of companies (both public and private) in the interest of all stakeholders, though the
bottom line of it all is RESPONSIBILITY.

Furthermore, as they are integrated on the business process, the corporation must take
responsibility on ensuring that these markets are dealt with utmost forbearance and care that their
intention for existence is equally satisfied as much as the company’s desire to gain required sales volume
and funding. Differing market requirements requires congruent company action and policy making
strategies so as to ensure continuing satisfaction of both parties’ intentions.

Take a look of what the conglomerate Ayala Corporation owned telecommunication giant Globe
Telecom did to satisfy market demands. Globe has seen the growing needs of their market-based
customer services like post-paid plans for mobile users for personal and fully customizable mobile data
plans. In order to meet these market demands, Globe has introduce the world’s first ever fully-
customizable mobile data plans that give their customers the power to choose their monthly recurring
fees, the length or period of their data plans, their services according to their preferred usage such as
mobile internet plans, voice and text messaging services, other mobile services that will boost up their
mobile experience to suit their usage and mobile data needs. By introducing this innovative platform to
their market, Globe has ensured their leadership in telecommunication services and sustainability of their
profits while satisfying what the market has demanded.
Marimel A. Loya, October 14, 2022
MBA- LCUP Good Governance & Social Responsibility
Reflection Essay on Organizations and their Structural and Political Environment

For any organization, the environment consists of the set of external conditions and
forces that have the potential to influence the organization. In the case of Subway, for
example, the environment contains its customers, its rivals such as McDonald’s and
Kentucky Fried Chicken, social trends such as the shift in society toward healthier
eating.

It is useful to break the concept of the environment down into two components.
The general environment (or microenvironment) includes overall trends and events in society
such as social trends, technological trends, demographics, and economic conditions.
The industry (or competitive environment) consists of multiple organizations that collectively
compete with one another by providing similar goods, services, or both.

Every action that an organization takes, such as raising its prices or launching an
advertising campaign, creates some degree of changes in the world around it. Most organizations
are limited to influencing their industry. Subway’s move to cut salt in its sandwiches, for
example, may lead other fast-food firms to revisit the amount of salt contained in their products.
A few organizations wield such power and influence that they can shape some elements of the
general environment. While most organizations simply react to major technological trends, for
example, the actions of firms such as Intel, Microsoft, and Apple help create these trends. Some
aspects of the general environment, such as demographics, simply must be taken as a given by all
organizations.

Overall, the environment has a far greater influence on most organizations than most
organizations have on the environment.
Marimel A. Loya, October 28, 2022
MBA- LCUP Good Governance & Social Responsibility
Reflection Essay on Principle of Best Audit Practice

Audit is needed for the assurance of companies. More specifically, it is needed to ensure the
correctness of all accounts which are related with the business. Moreover, the most important thing is to
ascertain if the financial statements (Income Statement and Statement of Financial Position) have been
arranged to present the synopsis of transactions.

Audit offers relevance and reliability and provides information concerning profit and loss.
However, internal control weakness is solved and expectation gap is minimized. Audit facilitates the sale
of business and makes it easier to compare. With audit, goodwill can be increased and loan can be
obtained more easily.

Furthermore, audit helps to identify and prevent errors and frauds, helps to present a proof and
helps to gain remuneration. Also, it helps to keep accounts regularly and arrange future plan, to evaluate
tax.
Marimel A. Loya, October 28, 2022
MBA- LCUP Good Governance & Social Responsibility
Reflection Essay on Agency Problems and Accountability of Corporate Managers and Shareholders

An agency problem is a conflict of interest inherent in any relationship where one party is
expected to act in another's best interests. In corporate finance, an agency problem usually refers to a
conflict of interest between a company's management and the company's stockholders. The manager,
acting as the agent for the shareholders, or principals, is supposed to make decisions that will maximize
shareholder wealth even though it is in the manager’s best interest to maximize their own wealth. In
corporate context, the key agency relationships are those between stockholders, and BODs, executives,
and managers.

Among identified principal – agent issues includes managerial opportunism, power supremacy vs.
technical expertise and trust. While, an identified agency problems involve adverse selection, agency
cost, conflict of interest, legal requirements versus opportunistic behavior, and self-interested behavior.

In conclusion, my take on this– based on further readings, issues maybe inevitably standing in
every organization, however pre-existing remedies come in place with agent and principal’s
accountability to go against external force affecting governance.
Marimel A. Loya, October 28, 2022
MBA- LCUP Good Governance & Social Responsibility
Reflection Essay on Standards Setting, Best Practices and Corporate Governance Reform

The Philippines has not been short of reforms or lacking in laws that promote corporate
governance. However, there are two inherent weaknesses in its legal and regulatory framework that
critically impede the progress of the various governance initiatives. One of the more prominent
weaknesses is the weak enforcement power of our regulatory bodies. This is primarily due to the lack of
funding and qualified personnel. Likewise, our judiciary system remains ineffective in protecting the
rights of shareholders and minority interest as it continues to be slow in the giving of final resolution and
decision on cases. The light sanctions for non-compliance and the absence of serious penalties associated
with fraud is another major hindrance. It is aptly observed by Cayanan (2007) that no one has yet been
imprisoned for not complying with financial reporting standards. Though significant headway has been
made in strengthening the accounting and auditing standards, the level of compliance to these standards
by listed Philippine companies still needs further improvement. The corporate governance field is quite
new and dynamic. Corporate governance practices even in the most developed countries are far from
being perfect. Changes and challenges in the business scenario will continue to dictate how good
governance will evolve in the coming years. Efforts to come up with best practices will be ongoing.

However, without an effective enforcement system to complement these best practices, all efforts
will be wasted. Cheung (2006) proposed that ensuring the country has a strong legal and regulatory
framework and an impartial judiciary is an important step, as is empowering regulators to act on
violations of the securities rules. In short, the system is as good as the people comprising it. Moreover, the
quest for corporate governance best practices should not be merely compliance “in form” but “in
substance”. The desire for good corporate governance should come from within each participant and from
the indomitable and unwavering spirit of enforcers to stick not only to the letters of the laws and
regulations but the real essence behind the letters as aptly put by an author. Only then can true governance
be attained.