SM raises governance bar

MANILA, Philippines - SM Investments Corp. (SM) has approved an expanded code of ethics, further strengthening its corporate governance standards to keep pace with emerging trends in the region.

The revised code is a more comprehensive guide on how the company should deal with stakeholders, from investors, creditors, customers and employees to contractors, regulators, suppliers and the general public. Salient provisions added pertain to policies on accountability, integrity and vigilance and non-discriminatory practices as well as enhanced provisions pertaining to conflicts of interest and avoidance thereof. The expanded form aims to strengthen the company’s defenses against potential wrongdoing and to enhance confidentiality and privacy protections.

“The code is very specific about the mere appearance of conflict of interest. The core principle is to ensure that the underlying ethical culture runs across all core business units of the Group and that they are always aligned with best practice,” said Jose T. Sio, SM  executive vice president and chief finance officer.

“The expanded code of ethics provides a broader framework to ensure we cover all areas of engagement with all our stakeholders,” Gil L. Gonzales, SM vice president for Corporate Governance and Risk Management said.

However, the expanded code is not all about restrictions and consequences. A big part of the code is devoted to resolving governance-related issues in a fair, just and expeditious manner.

“After all, the ultimate goal of a code of ethics is to make things better for everyone concerned,” Sio said.