I. SM Prime Holdings, Inc.

SM Prime (SMPH) is one of the largest integrated property developers in Southeast Asia
that offers innovative and sustainable lifestyle cities with the development of malls, residences,
offices, hotels, and convention centers. It is also the largest, in terms of asset, in the Philippines.

II. Vision and Mission

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.

III. Good Governance

Our Board of Directors is at the helm of the company’s governance structure and is
duty-bound to apply high ethical standards, taking into account the interests of all stakeholders.
They provide the tone from the top with regard to how the company is to conduct its business in
a manner that balances the interests of all stakeholders, i.e., employees, communities,
shareholders, customers, suppliers, business partners, government regulatory bodies, etc. The
Board ensures all shareholders are treated fairly and equitably, and also recognizes, protects and
facilitates the exercise of their rights.

Success in implementing corporate governance standards is achieved when corporate

governance standards become embedded in the culture of the organization and in our decision
making and business processes. SM Prime acknowledges that good corporate governance is an
integral part of good management practice and the four core principles of integrity, fairness,
accountability and transparency are embedded in a practical way into business processes.

The impetus for improving corporate governance standards should go beyond mere
compliance. The purpose and relevance of good corporate governance practices should be very
clear and understood throughout the organization. To be effective, it should serve as the
framework upon which all the policies and activities of the organization are built upon.

Through its Corporate Governance Committee, the Board oversees the compliance to the
corporate governance policies in accordance with the requirements of the SEC Revised Code of
Corporate Governance issued on November 19, 2016 as embodied in its Revised Corporate
Governance Manual approved by the Board on February 20, 2017. The revised manual seeks to
increase the responsibilities of the Board, strengthen the protection of minority shareholders, and
increase transparency in both financial and non-financial reporting.

IV. Corporate Social Responsibility

SM Cares, a division of SM Foundation Inc., is the group that handles the corporate social
responsibility programs of SM Prime Holdings, Inc. It was launched in 2004 to organize the
sustainability efforts into a comprehensive program that tackles a wide range of initiatives: From
giving a voice to the under-represented sectors of our society, to preserving the environment
and to creating innovative but sustainable avenues of growth.

The advocacies of SM Cares include Programs on Persons with Disabilities, Children & Youth
Development, Women & Breastfeeding Mothers, Senior Citizens, Overseas Filipino Workers and
Environmental Sustainability, Disaster Resilience and Green Campaigns.
People and the Community
SM Cares focuses on serving the customer and the community where every SM mall
operates. The people in the community and in the mall—most especially the marginalized
sectors of society—are given a voice and opportunity to be heard, through the various
activities and initiatives of SM Cares.

1. Persons with Disability - Commits to making every facility — a place for all. There
customers with special needs feel safe and welcome.
2. Children and Youth Development – Provides children-friendly facility that are designed
for their size, comfort and safety.
3. Women & Breastfeeding Mothers – Promotes the proper environment and support for
mothers to feel free to feed.
4. Overseas Filipino Workers – Honors our modern heroes through our Global Pinoy
Centers, services and programs.
5. Senior Citizens – offers community programs for seniors to be more active, productive,
engage and social.
6. Social Entrepreneurship – Provides venues to assist start-up businesses by promoting
and exposing them to the mainstream market.

Environmental Sustainability
Considering its rapidly growing operations, SM recognizes the impact it has on the
environment. The company has taken measures to prioritize the efficient management of its
resources. SM religiously tracks its use of energy and water, as well as its waste and emissions.
SM implements mitigation measures to ensure that these aspects are managed at optimal
levels.

1. Energy Efficiency – Observes and audits daily consumption in order to identify areas for
reform and improvement.
2. Water Consumption – Conserves, treats and reuses water for sustainable operations and
efficient commercial consumption.
3. Emissions and Waste Management – Monitors waste generation and implements proper
waste disposal in operation.

Disaster Resilience
SM has taken the lead in expressing its commitment to support the Philippine government
and the United Nations Office for Disaster Risk Reduction’s (UNISDR) Private Sector Alliance for
Disaster Resilient Societies (ARISE) by integrating a holistic disaster risk reduction approach into
its design and sustainable operations.

1. Structures – Designs and builds disaster resilient structures to be able to withstand the
effects of calamities.
2. Communities – Prepares and equips communities to be ready and recover when faced
with calamity.
3. Partnerships – Partners with government, non-government and international agencies to
further its advocacies.

Green Campaigns
SM provides different platforms to promote the care for the environment. We organize
advocacy campaigns with call to action, forums, training, as well as fairs to showcase the latest
technologies.

1. Trash to Cash - Encourage communities to regularly recycle and segregate their wastes
properly.
2. Green Retail Agenda – Helps addresses the effects of climate change through an annual
forum for public and private institutions.
3. Green Film Festival – Educates public school students through free screenings of
environmentally themed films.
 SM Cares works with various organizations, corporations, shareholders and people from the
community in coming up with innovative solutions that pave way to living more sustainable lives.
As a responsible mall developer, SM ensures that its CSR programs serve as catalyst for positive
change for the community it serves.

Awards
2017
12th Corporate Governance Asia Recognition Awards
• Icon on Corporate Governance
7th Asian Excellence Awards
• Best Environmental Responsibility
2017 PSE Bell Awards For Excellence in Corporate Governance
• Best Investor Relations Program - Listed Companies - SM Prime Holdings, Inc.
The Asset Corporate Awards - Platinum Awardee
• Excellence in Governance, Corporate Social Responsibility and Investor Relation
MARCOM Awards
• Gold Award for Corporate Social Responsibility - E-Illuminart (SM City Marilao)
International Council of Shopping Centers (ICSC) Global Awards 2017 for Asia Pacific
• ICSC Foundation Community Support Award - SM Cares (Housing Project for Haiyan
Survivors)
2017 Don Emilio Abello Energy Efficiency Awards
2017 Apolinario Mabini Award - PWD Friendly Establishment of the Year

2016
6th Asian Excellence Awards 2016
• Best Investor Relations Company - SM Prime Holdings, Inc.
Institutional Investors Governance Awardee
The Asset Corporate Awards - Platinum Awardee
• Excellence in Governance, Corporate Social Responsibility and Investor Relations

2015
ASEAN Capital Markets Forum (ACMF) and its partners
• ASEAN Corporate Governance Award
5th OFW Gawad Parangal
• Outstanding Specialized and Exclusive Services for Global Filipinos - SM Global Pinoy
People Management Association of the Philippines (PMAP) Foundation
• CSR Excellence Award - SM Cares (Program on Persons with Disabilities)
7th Annual Global CSR Awards
• Merit Award, Best Community Program - SM Cares
ASEAN Corporate Sustainability Summit & Awards 2015
• Special Recognition Award - SM Cares (Program on Persons with Disabilities)
Apolinario Mabini Award Philippine Foundation for the Rehabilitation of the Disabled
• SM Cares (Program on Persons with Disabilities) (Hall of Fame Award)
2015 ASEAN Best Practices for Energy Management in Buildings and Industries
2015 Don Emilio Abello Energy Efficiency Award

2014
International Labour Organization (ILO) and UNICEF
• Breastfeeding in the Workplace Award
ASEAN Best Practices Energy Management for Building and Industries Awards
• 2nd Runner-up in the Large Buildings Category at the ASEAN Energy Awards

4th Asian Excellence

• Best Corporate Governance
2013
The Presidential Apolinario Mabini Award - Disabled-Friendly Establishment of the Year
Award
Corporate Governance Asia - 3rd Asian Excellence 2013 Recognition Award
• Asia’s Icon on Corporate Governance - SM Prime
• Asia’s Outstanding Company on Corporate Governance – SMDC
• Best Environmental Responsibility - SM Prime
Department of Energy - The Don Emilio Abello Energy Efficiency Awards
WWF-2013 Environmental Leadership Award

2012
Asia Pacific Real Estate Association (Aprea) - Best Practices Awards 2012
• Merit Award for Corporate Governance
Philippine Stock Exchange 1st Bell Awards
• One of the best listed firms that garnered the Bell Award for Corporate Governance
The Asset Corporate Awards - Platinum Awardee For All Around Excellence in:
• Corporate Governance
• Social Responsibility
• Environmental Responsibility
Corporate Governance Asia - 2nd Asian Excellence Recognition Awards
• Best Environmental Responsibility
Institute of Corporate Directors
• Gold Award for Corporate Governance
8th Corporate Governance Asia Recognition Awards
• One of the recipients of the Annual Corporate Governance Awards – The Best of Asia

2011
The Asset Corporate Awards - Platinum Awardee 2010 and 2011 For All Around Excellence in:
• Corporate Governance
• Social Responsibility
• Environmental Responsibility
Philippine Foundation for the Rehabilitation of the Disabled, Inc. (The 2011 Apolinario Mabini
Awards)
7th Corporate Governance Asia Recognition Awards
• One of the recipients of the Annual Corporate Governance Awards – The Best of Asia
Corporate Governance Asia - 1st Asian Excellence Awards 2011
• Best Environmental Responsibility
Asia Pacific Real Estate Association Emerging Markets Highly Commended Award - Emerging
Markets Merit Awards:
• Corporate Governance
 SM PRIME HOLDINGS, INC.

Written Report
MNGT28
Good Governance and
Corporate Social Responsibility

Submitted by:
Taganas, Patricia Kate C.
Vergara, Sohfia Jesse N.

Sumbitted to:
Prof. Djehan Astilla, CPA