Our stakeholders — based on their level of influence on our environmental, social, and governance performance — have been grouped into eight categories after a full stakeholder engagement exercise in 2015. These groups are:
- Frontline vendor partner
- Service vendor partner
- Parent companies and affiliates
- Disaster respondents
Stakeholder engagement takes many forms and it can be formal and informal. Rather than having one-off consultations around specific topics, we prefer to take an integrated approach towards stakeholder engagement. This means we have an ongoing dialogue about our role in society, our products and services, our business performance, and other issues.
The instruments we use to conduct this dialogue include:
- Customer hotlines and other self-service channels and/or touchpoints, satisfaction and engagement surveys, field visits, and product launches for customers;
- Engagement surveys, independent development plan discussion, performance evaluation, planning, meeting, and/or kick-offs or strategy alignment for our employees (KaGlobe);
- Program launches, forums, conferences and meetings, email correspondences, and focus group discussions with media;
- Conference, meetings, briefings, and/or electronic dialogue, compliance with laws and regulations, and partnerships for government;
- Meetings and SMS text message alerts for disaster respondents;
- Board and committee meetings for parent companies and affiliates;
- Meetings and alignment, operations review and audit for service vendor partners;
- Vendor engagement survey and town halls for frontline vendor partners.
In accordance with our MCG, the Board ensures that all our shareholders, including minority shareholders are treated equally and fairly. In relation to the class of shares they hold, shareholders with the same class of shares are treated equally as well and in accordance with the rights each share entitles them to and applicable laws. Our shareholders’ rights are in our MCG, By-Laws and Articles of Incorporation. At the minimum, our Board shall be committed to respect the following basic rights of our shareholders:
- Voting Right
Shareholders, including minority shareholders, have the right to elect, remove and replace directors and vote on certain corporate acts in accordance with the Corporation Code. The nomination procedures of the Corporation shall also be provided to all shareholders to promote awareness of their right to elect and vote at the ASMs through the notice and agenda of the meeting. Cumulative voting shall be used in the election of directors. Directors may be removed with or without cause, but directors shall not be removed without cause if it will deny minority shareholders representation in the Board. Removal of directors requires an affirmative vote of two-thirds (2/3) of the outstanding capital of the Corporation.
- Pre-emptive Right
All shareholders have pre-emptive rights as set out in the Corporation Code and the Articles of Incorporation, unless there is a specific denial of this right in the Articles of Incorporation or an amendment thereto. They shall have the right to subscribe to the capital stock of the Corporation. The Articles of Incorporation may lay down the specific rights and powers of shareholders with respect to the particular shares they hold, all of which are protected by law so long as they are not in conflict with the Corporation Code.
- Right of Inspection
Shareholders shall be allowed to inspect corporate books and records including minutes of Board meeting and stock registries in accordance with the Corporation Code and shall be provided an annual report, including financial statements, without cost or restrictions.
- Right of Information
Upon request and for a legitimate purpose, a shareholder shall be provided, upon request, with periodic reports which disclose personal and professional information about the directors and officers and certain other matters such as their holdings of the Corporation's shares, dealings with the Corporation, relationships among directors and key officers, and the aggregate compensation of directors and officers. The Information Statement/Proxy Statement where these are stated must be distributed to the shareholders before annual general meetings and in the Registration Statement and Prospectus in case of registration of shares for public offering with the Commission.
The shareholders, including minority shareholders, shall have the right to propose the holding of a meeting, and the right to propose items in the agenda of the meeting, provided the items are for legitimate business purposes.
In accordance with existing law and jurisprudence, minority shareholders shall have access to any and all information relating to matters for which the Management is accountable for and to those relating to matters for which the Management should include such information and, if not included, then the minority shareholders can propose to include such matters in the agenda of stockholders’ meeting provided always that this right of access is conditioned upon the requesting shareholder's having a legitimate purpose for such access.
- Right to Dividends
Shareholders have the right to receive dividends subject to the discretion of the Board. However, the Commission may direct the Corporation to declare dividends when its retained earnings is in excess of 100% of Its paid-in capital stock, except: a) when justified by definite corporate expansion projects or programs approved by the Board or b) when the Corporation is prohibited under any loan agreement with any financial institution or creditor, whether local or foreign, from declaring dividends without its consent, and such consent has not been secured; or c) when it can be clearly shown that such retention is necessary under special circumstances obtaining in the Corporation such as when there is a need for special reserve for probable contingencies.
As a policy and as much as practicable, Globe shall observe a 30-day period for the payment of dividends to shareholders from the declaration date of such dividends. The policy on dividends (dividend policy) is posted on the Globe website and reflected in our Integrated Report and i-ACGR.
- Appraisal Right
In accordance with the Corporation Code, shareholders may exercise appraisal rights under the following circumstances:
- In case any amendment to the Articles of Incorporation has the effect of changing or restricting the rights of any shareholder or class of shares, or of authorizing preferences in any respect superior to those of outstanding shares of any class, or of extending or shortening the term of corporate existence;
- In case of sale, lease, exchange, transfer, mortgage, pledge or other disposition of all or substantially all of the corporate property and assets as provided in the Corporation Code; and
- In case of merger or consolidation.
At Globe, Customer Experience continues to be at the core of everything we do. As always, it defines our brand of service, how we differentiate ourselves from competition and how we continuously innovate to delight our subscribers, customers and other stakeholders.
To create a wonderful world for our customers, partners, and the community, we prioritize protecting our customers’ data and regard privacy with utmost importance. We have set and observe clear-cut measures on:
- Judicious use and collection of customer data, whether the information is personal or non-personal
- Limiting access to or processing of private data to authorized personnel and with strict conﬁdentiality
- Abide by Groupe Special Mobile Association’s (GSMA) high-level privacy principles based on internationally recognized and accepted principles on privacy and data protection
As part of our mission to promote the intelligent and judicious use of the internet, we also educate the youth to better understand the impact of their online behavior so they can be responsible digital citizens. This cyber wellness advocacy takes the form of the award-winning Digital Thumbprint Program (DTP), held in partnership with Optus and Singapore Telecommunications Ltd. (Singtel), which targeted grades 7-12 students in public and private high schools nationwide. Learn more about our DTP, child rights protection initiatives and anti-fraud campaign through our 2016 ASR (pp. 74-75).
Climate change remains a real, immediate threat to our existence. Developing countries — particularly low-lying, coastal areas like the Philippines — bear the biggest brunt as they are usually the worst hit by droughts, ﬂooding, famine, and extreme weather events.
Thus, environmental sustainability emerges as our immediate responsibility, especially in the face of two contrasting events: global warming and the rising demand for energy in homes and industries.
This is in response to two of the United Nations’ Sustainable Development Goals (SDGs): Responsible Consumption and Production and Climate Action. These two global goals go hand in hand in urgently seeking to reduce our ecological footprint and mitigating the drastic effects of climate change — with human and material losses at stake —as signiﬁcantly brought about and accelerated by human activities.
We are relentless in promoting environmental sustainability by reducing and managing the impact of our business operations on the planet. This is a mission embraced by all our employees, partners, and customers which is reﬂected in our Environmental Sustainability Policy.
Globe also complies with the Environmental Impact Statement (EIS) system of the DENR and pays nominal ﬁling fees required for the submission of applications for Environmental Clearance Certiﬁcates (ECC) or Certiﬁcates of Non-Coverage (CNC) for all cell sites and other facilities, as well as miscellaneous expenses incurred in the preparation of applications and the related environmental impact studies.
On the operations front, we continued to push our paperless billing initiative, with electronic billing statements sent to Globe postpaid customers to eliminate further environmental stress and billing delays. In 2016, we introduced Bill via Text through GlobeMYBILL, where customers received a text from Globe with a link to access their latest billing statements online. On top of Globe myAccount and email, we continuously innovate and introduce more channels on how to view customers’ billing statements with more ease and ﬂexibility.
As critical partners in our mission, Globe employees help magnify and multiply our environmental efforts. Employees are treated to free rides to work through Globe Shuttle in support of carpooling. We also have bike facilities in numerous Globe locations and offer various telecommuting solutions, including online messaging apps like Google Hangouts and Skype, Cisco IP conference phone calls, and large-screen MondoPad sessions to minimize our employees’ carbon footprint when they travel to work.
Learn more about our environmental and sustainability policies and initiatives, through our 2016 ASR (pp. 68-73).
Globe believes that empowered employees deliver better and more innovative Globe products and services, that in turn, will make customers feel special and valued. Happy customers, in turn, develop brand affinity and loyalty that redound to higher shareholder value, making shareholders feel conﬁdent and rewarded. This is rooted in our philosophy of “Circle of Happiness.”
Hence, we put a premium on workplace diversity, just compensation and beneﬁts, engagement, safety and wellbeing, human rights, and continued learning of every employee — our Ka-Globe — and strive to create a wonderful work environment for everyone.
By promoting full and productive employment and decent work for all women and men and espousing a safe and secure working environment for all workers, we respond to the UN Sustainable Development Goal of promoting sustained, inclusive, and sustainable economic growth. Incorporated in this mission are factors that spur the desired growth, from labor productivity and eliminating hazardous work, to enhancing trade assistance and access to ﬁnancial services.
We also have a longstanding, healthy, and constructive relationship with the Globe Telecom Employees Union Federation of Free Workers (GTEU-FFW), characterized by industrial peace and anchored on a mutual agreement to focus on shared goals such as attaining higher levels of productivity and consistent quality of service to customers across different segments.
Read more about how we value employee welfare in our 2016 ASR (pp. 76-78).
In today’s knowledge-based economy, human capital development as a valuable organizational resource has become central to business strategy. With the rising trend towards teamwork and empowerment to hurdle the pace of technological advancement, organizational learning and the agility to learn faster than the competition is seen as the route to competitive advantage and market leadership. Globe University is the venue for competency building requirements of the company, enabling the Next Globe and offer innovative learning solutions beyond Globe. Through an emphasis on creating and facilitating a corporate learning culture and developing the capability of Globe and its employees, it seeks to amplify organizational know-how to deliver the industry’s best-trained workforce as a source of competitive advantage. With the need to develop key talent imperatives for the organization, Globe University is a visionary step in the right direction to drive a step change in workforce capabilities and performance.
Read more about how we encourage training and development of our employees in our 2016 ASR (pp. 78-80).
Globe is committed to provide the best protection for the health and safety of its employees. To this end, part of our policy on health, safety and welfare for employees include the commitment to:
- Continuously assess all health and safety hazards in the workplace and provide programs toward its eliminations;
- Comply with all occupational safety and health news applicable to the telecommunication business;
- Train and motivate employees to work in a safe manner and encourage the business partners to adopt these principles;
- Report the occupational safety and health performance to all stakeholders;
- Conduct a regular review of the Company's management system to ensure that the commitments of this policy are being delivered, and that Globe strives for continual improvement.
Launched in 2010, our comprehensive Occupational Safety and Health Policy is committed in providing the best protection for the health and safety of its employees and the communities surrounding its operations. This includes requiring all employees to undergo annual physical examination to gauge current health and physical condition. The result will be used by Globe's in-house health adviser located at The Globe Tower (TGT) Clinic to create a personalized wellness program to improve the Company's overall health with quarterly consultations to check if the program is on-track and set the baseline for next year's wellness program.
It is Globe’s policy to protect the rights of our creditors by maintaining, at all times, our good credit standing. We thus strictly observe contractual obligations, and regard fair and truthful disclosure and transparency of ﬁnancial records and dealings of utmost importance to assure creditors of our continued credit worthiness.
We also follow socially responsible procurement practices for vendors. The team maximizes value through commodity management, selection of best-in-class suppliers, and pursuit of process excellence in procurement and supply chain management.
As the leader in mobile technology in the Philippines, it is only ﬁtting for Globe to take care of the local communities impacted by our business operations and put development programs in place to help improve the quality of life and provide livelihood opportunities.
In accordance to ISO 26000, we constantly embed shared value in our business model to create a Globe of Good. We respond to the following Sustainable Development Goals of the UN through a wealth of overarching principles and practices:
- Good Health and Well Being – Promoting sound mental health and well-being
- Quality Education – Helping ensure all youth and a substantial proportion of adults, both men and women, have achieved digital literary through ICT training by 2030
- Decent Work and Economic Growth – Helping achieve higher levels of economic productivity through diversiﬁcation, technological upgrading and innovation, including a thorough focus on high-value added and labor-intensive sectors
- Peace, Justice and Strong Institutions – Contributing to national capacity to prevent violence and crime, starting with our own workplaces and organizational jurisdiction
- Sustainable Cities and Communities – Making human settlements inclusive, safe, and resilient
Through our ﬁve-year expanded Global Filipino School (GFS) program, Globe intends to transform select public schools into centers of excellence in ICT and innovative teaching methods. This program is expected to beneﬁt all 218 school divisions of the DepEd nationwide by 2020.
Through great partnerships, we are able to provide crowd-funded loans to deserving micro-enterprises in the areas of agriculture, food, retail, and services in the Philippines. We also have ongoing ecotourism efforts that cater to communities involved in ﬁsheries and aquatic resources.
Product responsibility plays a key role in our advocacy of creating a Globe of Good. Just as we have sought for greater cooperation with national agencies and local government units (LGUs) to allow faster processing of permits to facilitate building of cell sites, we also cooperate with homeowners’ associations (HOAs) to expedite the construction of cell sites to improve internet services. Globe cell sites have been issued radiation-safety certiﬁcates by the DOH, proof that radio frequency signals coming from such facilities do not pose any adverse health impact.
We harness mobile and ICT solutions for the welfare of the public at large, from emergency response to disaster preparedness and management. Globe recognizes that communication is a critical tool for capacity building and an effective emergency response mechanism that is why we have been at the frontlines of supporting 911 as the new nationwide emergency hotline number.
Disaster risk resilience and management are a cornerstone of our public service roadmap. By 2020, we seek to substantially increase the number of cities and human settlements that adopt and implement integrated policies toward climate change mitigation and resilience to disasters. Towards this end, we have actively pursued a plethora of programs and partnerships.
After becoming the ﬁrst telecommunications company in the country to be re-certiﬁed in Business Continuity Management System (ISO 22301) on an enterprise-wide scale in 2016, we stepped up on the implementation of best practices on business resiliency to assure our customers and stakeholders that we are equipped to handle business disruptions in the event of a major incident or disaster.
Apart from service-related initiatives, we recognize our employees and partners’ passion for service and desire to be agents of societal change. Every Ka-Globe is provided with 2 days of Volunteer Time-Off annually to pursue their advocacy. Globe provides activity-based and skill-based volunteering to support the work of a partner group or community, organizing everyone who wants to join various advocacies and providing pro-bono services, skills transfer, or capacity building. We also offer volunteaming, where employees can freely choose which advocacy they want to support.
Read more about how we ensure harmonious service and interaction with our communities as well as disaster respondents in our 2016 ASR (pp. 74-75, 82-91). Know more about our Business Continuity Management (BCM) also through our 2016 ASR (pp. 89-91)and as posted on our Company Policies webpage.
Shifting our focus to sustainable value creation, we published our first Integrated Report for 2017. It contains information about our strategy, governance, and performance in the context of its external environment and how these create value for our stakeholders and stakeholder community. Through this Integrated Report, we hope to deepen our stakeholders’ understanding of how we contribute to addressing the major challenges and key issues in today’s society, linking our sustainability performance to our business results. This report also highlights our strategy in line with our vision, anticipating a shift towards a pervasive digital lifestyle of every Filipino.
Prepared in accordance to the International Integrated Reporting Framework (International Framework), advocated by the International Integrated Reporting Council (IIRC) and in reference to the Global Reporting Initiative (GRI) Standards and the United Nations’ Sustainable Development Goals, our Integrated Report follows a process to help us identify material issues for reporting. Material issues and an update on the stakeholder map were defined through the consultancy services of ThePurposeBusiness, Ltd. founded in Hong Kong. The Materiality Analysis and Stakeholder Engagement exercises were done in 2015, and the outcome started to be reported in 2016.
Committed to Creating More Value for Shareholders