Corporate

Governance and
Financial
Management
MODELS OF CORPORATE GOVERNANCE
Capital
PAG-IBIG FUND
Market Model
Industrial
Model
Entrepreneurial
Corporate Model

Centers around
Centers around
the interest of
Primarily driven by the vision and
various
the interests of innovation of a
FOCUS stakeholders
shareholders and founding
including
financial markets. entrepreneur or a
employees,
small group of
suppliers and the
local community entrepreneurs.
MODELS OF CORPORATE GOVERNANCE
Capital
PAG-IBIG FUND
Market Model
Industrial
Model
Entrepreneurial
Corporate Model

Characterized by
Emphasizes Often
close
transparency, characterized by
relationships
accountability and a flexible and
Governance between
efficiency to dynamic
Structure companies,
attract and retain organizational
suppliers and
investors. structure that
local institutions,
encourages risk-
often with
taking and
significant
innovation.
government
involvement.
MODELS OF CORPORATE GOVERNANCE
PAG-IBIG FUND
Capital
Market Model
Industrial
Model
Entrepreneurial
Corporate Model

Decisions may
Decisions are Decisions are
prioritize long-
often based on made to support
term stability,
maximizing the entrepreneurs
Decision employment
shareholder value vision often
Making retention and
and achieving focusing on long-
regional
short-term term growth and
development
financial goals. market
over immediate
financial gains. disruption.
MODELS OF CORPORATE GOVERNANCE
Capital
PAG-IBIG FUND
Market Model
Industrial
Model
Entrepreneurial
Corporate Model

Commonly found
Many publicly Many start-ups
in countries with
traded companies (developing) and
strong industrial
in developed technology
Example conglomerates.
economies companies
operate under this operate under
JAPAN and
model. SOUTH KOREA this model.

WESTERN EUROPE,
USA, CANADA, UK EAST ASIA AND
GENERALLY IN
MOST DEVELOPING
ECONOMIES.
 CONNECTION BETWEEN FINANCIAL
MANAGEMENT AND GOOD GOVERNANCE
PAG-IBIG FUND
TRANSPARENCY AND ACCOUNTABILITY
Financial management involves Good governance requires
maintaining accurate records, transparency and accountability in
producing timely financial reports, decision-making processes to ensure
and ensuring transparency in that actions are in the best interest of
financial transactions. stakeholders.

ETHICAL STANDARDS AND INTEGRITY

Financial management encompasses Good governance is founded on
adhering to ethical standards in ethical behavior and integrity in all
financial decision-making, including aspects of organizational operations,
honesty, integrity, and fairness. including financial management.
 CONNECTION BETWEEN FINANCIAL
MANAGEMENT AND GOOD GOVERNANCE
PAG-IBIG FUND
RISK MANAGEMENT
Financial management involves Good governance requires effective
identifying, assessing, and managing risk management practices to
financial risks to safeguard the anticipate and mitigate risks that may
organization's assets and financial affect the organization's ability to
stability. achieve its objectives.

COMPLIANCE AND REGULATIONS

Financial management entails Good governance necessitates
compliance with relevant laws, compliance with legal and regulatory
regulations, and accounting frameworks to uphold the rule of law
standards to ensure legal and and maintain the organization's
regulatory requirements are met. This credibility.
includes financial reporting standards
such as GAAP or IFRS.
 CONNECTION BETWEEN FINANCIAL
MANAGEMENT AND GOOD GOVERNANCE
PAG-IBIG FUND
STRATEGIC PLANNING AND RESOURCE ALLOCATION
Financial management involves Good governance requires strategic
strategic planning and resource decision-making and effective
allocation to optimize the use of resource allocation to align
financial resources and achieve organizational goals with stakeholder
organizational objectives. interests.

STAKEHOLDER ENGAGEMENT
Financial management involves Good governance emphasizes
communicating financial information stakeholder engagement and
to stakeholders, including participation in decision-making
shareholders, employees, creditors, processes to ensure that diverse
and regulators. perspectives are considered and
stakeholders' interests are
represented.