Governance
At KPMG in the Philippines, we know that trust is earned by doing what is right. To inspire confidence and empower change, we need to consider the economic, environmental and social impact of our activities, align our financial and societal performance as part of a shift toward stakeholder capitalism, and have strong governance in place to oversee all that we do and ensure that we do it well.
Integrity: We take full accountability for our actions, even in challenging circumstances. By promptly acting and speaking up, our priority is to uphold honesty, while adhering to ethical and professional standards.
Together: We foster an environment of inclusivity, safety and belonging through upholding respect and dignity for all. We proactively build and nurture meaningful relationships with individuals from diverse backgrounds, thus driving better outcomes and solidifying our commitment to inclusive leadership.
Excellence: We are dedicated to fostering personal, technical and professional growth. By embracing constructive feedback from one another, we reflect and evolve from both successes and failures.
For Better: We go beyond individual concerns and aspire to make a broader impact from local communities to the global stage. We contribute small yet impactful efforts each day to strengthen the future of the firm.
Courage: We embrace bold thinking and innovative problem-solving. Through candid dialogues and decisive actions, we navigate challenges with a commitment to excellence.
Responsible business practices across services lines
Act lawfully, ethically, and in the public interest
We are committed to the highest standards of personal and professional behavior in everything we do. Within our Global Code of Conduct, we outline the responsibilities all KPMG employees have to each other, our clients and the public. It shows how our Values and Purpose inspire our greatest aspirations and guide all of our behaviors and actions. It defines what it means to work at and be part of KPMG, as well as our individual and collective responsibilities.
At KPMG, we uphold a steadfast commitment to acting lawfully, ethically, and in the public interest. This commitment is exemplified through our comprehensive training program, Integrity at KPMG, which emphasizes doing what is right in all aspects of our work. Our target completion rate for this training is set at 100%, and we are proud to report that we have successfully achieved this goal, with every member of our team completing the Integrity at KPMG training. This accomplishment reflects our dedication to maintaining the highest standards of integrity and ethical conduct, ensuring that every action we take aligns with our core values and serves the public interest.
We consistently uphold our core values even in challenging situations. The latest 2023 KPMG Global People Survey (GPS) results indicate positive progress in our commitment to ethical conduct.
This underscores our unwavering dedication to fostering an environment where our people feel empowered to report unethical practices without fear of reprisal, reinforcing our commitment to integrity and ethical standards at every level of our organization.
We aim to foster transformative services across diverse sectors. Our engagements underscore collaborative efforts with various industries, government entities, and beyond, ensuring a collective approach to societal well-being. From redefining fiscal strategies through Finance Transformation to fortifying digital resilience with Cybersecurity, KPMG strategically positions businesses for success in an interconnected world.
Compliance with Laws and Standards
Act lawfully, ethically, and in the public interest
KPMG’s Core Values define who we are, what we do, and how we do it. They define our culture and our commitment to the highest principles of personal and professional conduct. Based on KPMG’s Core Values, the Global Code of Conduct provides the primary standards of ethical conduct to ensure compliance with local laws, policies, and professional standards.
Zero cases of non-compliance with laws and regulations
We actively engage in a dynamic regulatory environment by fostering strong relationships with a multitude of key organizations in the professional and business sectors to ensure that our business practices benefit society and address negative impacts it might have on society, people, and planet through our active collaboration and coordination with regulatory agencies. Notably, KPMG R.G. Manabat & Co. maintains connections with pivotal institutions and organizations such as the:
- ➦ Auditing and Assurance Council
- ➦ Anti-Money Laundering Council
- ➦ Association of Certified Public Accountants in Public Practice
- ➦ Bangko Sentral ng Pilipinas
- ➦ Bankers Association of the Philippines
- ➦ Board of Accountancy
- ➦ Bureau of Internal Revenue
- ➦ Capital Market Development Council
- ➦ Cooperative Development Authority
- ➦ Financial Executives Institute of the Philippines
- ➦ Insurance Commission
- ➦ Philippine Dealing Exchange
- ➦ Philippine Institute of Certified Public Accountants
- ➦ Philippine Interpretations Committee
- ➦ Philippine Stock Exchange
- ➦ Securities and Exchange Commission
Our commitment to ethical standards is exemplified through its alignment and implementation of the IESBA Code of Ethics for Professional Accountants and the guidelines set by the Board of Accountancy. Upholding these professional standards includes adherence to Philippine Standards on Auditing, Philippine Standard on Quality Management and other relevant issuances of the BOA and other regulatory bodies.
Simultaneously, the firm places a strong emphasis on compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations, as prescribed by the Anti-Money Laundering Council (AMLC). We highly consider regulatory compliance matters that include but not limited to, tax regulations by the Bureau of Internal Revenue, requirements of the Philippine Economic Zone Authority, and the Cooperative Development Authority, as may be applicable to our engagements. This multifaceted compliance approach underscores KPMG's commitment to navigating the complex regulatory landscape of the Philippines with precision and diligence.
Transparency, Integrity and Accountability
Act lawfully, ethically, and in the public interest
Apart from webinars and public engagements, we actively release Thought Leadership articles to showcase our insights and expertise across various business and industry topics and promote transparency.
Authored by KPMG professionals, these articles delve into current trends, challenges, and opportunities, providing strategic insights and recommendations for clients, industry professionals, and the broader business community.
In FY2023, we released 237 Thought Leadership (TL) articles across various topics and sectors.
Top Thought Leadership articles by topic
Published
Our strategic initiatives involve optimizing processes through the Document Management System (DMS) and implementing Robotic Process Automation (RPA). Streamlining processes, such as Aging of Employee Balances, Petty Cash, Job Instruction Requisition, and Purchase Order (PO).
The DMS framework aims to minimize manual efforts, enhance efficiency, and align with Global ESG initiatives, incurring no additional costs. It is led by the Finance & Accounting (F&A) and DMS teams, in collaboration with ITS and Admin.
The RPA is strategically applied to processes like Depreciation/Lapsing Monitoring, Bank Reconciliation, and Timesheet Monitoring to minimize manual efforts, improve efficiency, and align with Global ESG initiatives. This RPA implementation, scheduled to be launched in Q4 FY 2024, to be led by the F&A and RPA teams. This is expected to bring significant improvements in overall operational effectiveness.
Combatting Corruption
Work against corruption in all its forms
Along with our Global Code of Conduct, our anti-bribery and corruption program is designed to ensure we uphold the highest standards of professional integrity. This includes detailed policies for all KPMG R.G. Manabat & Co. personnel, training on anti-bribery and corruption under the We Do What is Right: Integrity at KPMG, compliance procedures and an international whistleblowing hotline that is available for KPMG personnel, clients, and other third parties.
We assess prospective clients, third parties and suppliers in relation to bribery and corruption, where assessment of the prospective client’s principals, its business and other service-related matters is conducted. Further, this also involves background checks on the prospective client, its key management and significant beneficial owners.
A key focus is on the integrity of management at a prospective client, and the evaluation considers breaches of law and regulation, anti-bribery and corruption, and human rights among the factors to consider.
We establish and maintain processes to monitor, manage and control how their personnel and their agents interact with government entities and government officials so as to ensure compliance with applicable laws and regulations and to maintain public trust.
In FY 2023, there were no reports of bribery or corruption at the firm.
Zero reported cases of bribery and corruption
Data Security
Maintain client confidentiality
We are committed to upholding the highest standards of information protection, data privacy, and security. The importance of maintaining client confidentiality is emphasized through a variety of mechanisms including the Global Code of Conduct, regular Data Protection Training, and the annual affidavit/confirmation process that all our professionals are required to complete.
We are required to protect our clients’ data against loss and exploitation; hence, it is critical that we ensure we have appropriate governance structures in place to manage data and cybersecurity risks, especially with the increasing occurrence of cyber-attacks, and the higher sophistication of these cyber-attacks.
We have continued to enhance our detection, reporting, and awareness of cyber-risks which included the following activities:
- ➦ Affidavit/confirmation: Dedicated Security Management
- ➦ Patch and Vulnerability Management
- ➦ Assets Management
- ➦ Identity Management
- ➦ Containment
Zero notifiable breaches
Designed by the Risk Management team, the training focuses on ethical behavior, adherence to professional standards, and making principled decisions in the business environment.
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