MBA106-Business Policy

Regina Gulo Pacho

Activities and Assignment 1

SIMPLE BUSINESS POLICIES

Selected Company: SM PRIME HOLDINGS

Vision:

To build and manage innovative integrated property developments that are catalysts for a
better quality of life.

Mission:

We will serve the ever-changing needs and aspirations of our customers, provide
opportunities for the professional growth of our employees, foster social responsibility in the
communities we serve, enhance shareholder value for our investors and ensure that
everything we do safeguards a healthy environment for future generations.

I. Policies that are related to the company's Mission and Vision

 Projects are selected based on the company’s mission, capacity and support from
stakeholders. The company must ensure that it has the capability to deliver a
project that is financially feasible, physically viable and that there is support
from stakeholders, without any conflict with the community.
 Market studies are done by qualified consultants during the feasibility stage of
the project to determine the economic feasibility of the success of the project
 The company will continue to find new ways to improve the standard of living of
its customers by adapting well to the ever fast-changing technology, people’s
needs and convenience
 The company will develop projects not just in highly urbanized locations but also
in rural areas to help improve the lives of those in less developed areas
 The company recognizes the need to protect the natural environment. It will
adhere to the best environmental practices in the community. The company will
proactively protect the environment by organizing reforestation excursions,
encouraging its employees to volunteer in such events aiming to protect the
environment, among others.
 The company is committed to maintain and periodically update a safety and
security program for its employees
 The company provides free health care coverage to its employees
 The company will periodically upgrade its security procedures and facilities to
ensure the safety and welfare of employees in the workplace
MBA106-Business Policy
Regina Gulo Pacho

 The company will provide training and development programs to employees

with the goal of improving the organization’s overall performance by having
highly competent and well-trained personnel
 The company will set aside funds to give financial assistance, donations and
scholarships to alleviate the status of those in need

II. Policies that are related to the government law including taxes and HR
policies for employment; a minimum of 10

 The company will ensure that all financial reports comply with internal financial
management and accounting standards, as well as applicable laws, rules, and
regulations
 The company will annually adopt, by resolution, provisions on who may sign
and approve documents
 The company will see to it that all taxes, licenses and permits are calculated
accurately and that they are paid/remitted on time
 The company will hire its officers and employees based on education and
experience, and that they will be compensated equitably based on qualifications
and performance
 A director should not use his position to profit or gain some benefit or advantage
for himself and/or his related interest. If an actual or potential conflict of interest
may arise on the part of a director, he should fully and immediately disclose it
and should not participate in the decision-making process
 For related party transactions, there should be full disclosure of the details,
nature, extent and all other material information on transactions with related
parties in the company’s financial statements and quarterly and annual reports to
the SEC and PSE
 Board members should be people who support the organization and its mission.
The Board should establish a policy on the recruitment of new board members,
always seeking out those who are willing to share their skills and dedication

III. The company's monitoring policies; a minimum of two

 The company will design and periodically review the effectiveness and
applicability of its risk management system, to monitor existing and emerging
risks as well as ways to mitigate them. Appropriate risk treatment plans should
be available for all types of risks that the company is vulnerable to, like country
risk, project cost and completion risk, and customer default risk
 The company will have its Internal Audit department which will review the
compliance of employees and officers to proper internal control, management
and disbursement of finances, among others
 A committee on corporate governance will be created. The committee will assist
the board in implementing, reviewing, and evaluating the corporate governance
framework. Also, the committee will be responsible in recommending continuing
relevant education or training programs for directors, assigning tasks or projects
and developing policies for the remuneration of directors and officers.
 A compliance officer will be designated to monitor, review, evaluate, and ensure
the company’s compliance with the relevant laws, provisions, rules and
regulations, and all governance issuances of regulatory agencies
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Regina Gulo Pacho

IV. Strategies for Business Policy, a minimum of 4

 To know where the company is heading, management should know where it

currently is at by gathering facts. This will be done through tools like SWOT
analysis.
 The company will make and periodically review and update its vision, mission
and strategic objectives.
 Strategic objectives will be translated into more detailed tactical/short-term
plans, seeking the help and support of all concerned personnel and department
 The company will continually review all objectives and action plans to make
sure it is still on track to achieve that overall goal. Actual output will be analyzed
and compared with what was planned.
 All members of the Board of Directors must believe in the company’s mission,
will be responsible for developing a strategic plan with the staff to set the course
on how the mission will be accomplished over a specific period of time
 The company must at all times be aware of and have the keys to a successful
project: Financial Feasibility-Economically Viable, Experienced Team, Support
from Stake Holders, and familiarity with the Mission/Strategic Plan