Good governance of the Bank requires and promotes a healthy relationship with its stakeholders to whom it has duties and obligations. The Bank is devoted to a high level of moral conduct and fair dealing with all its stakeholders, who generally include its employees, depositors and other clients, suppliers, environment, the state, and the community it operates.
The Bank affirms that its employees play a very important role in achieving its long-term success. The Bank’s future as a business and as an institution is greatly dependent on the knowledge, skills, integrity, innovativeness and loyalty of its people.
The Bank is committed to provide its employees with a workplace free of sexual harassment, as well as harassment based on factors such as race, color, religion, age, marital status, sexual orientation, or disability.
It ensures that its employees are competent, dedicated and upright through proper talent selection and acquisition. Employees are given proper orientation and training to improve and further develop their skills and potentials. To facilitate this, the Bank has established its own university known as the “UnionBank University” comprising of various academies where employees get relevant training in various disciplines important to the Bank’s success.
Employees are entitled to competitive benefits, including a defined retirement plan. Rank and file employees are protected through proper representation during collective bargaining with the management.
The Bank, through its Human Resources Services Group has the “U Care” project as part of its Employee Engagement Program. It serves as an avenue for promoting health, personality development and general welfare of employees. The project also gives opportunity for employees to lend needed assistance to their co-employees and persons outside of the Bank.
From January 2014 to May 2015, the Bank convened Brown Bag Session on “Love is in U.” There are also workshops conducted under the Popcorn Learning Sessions on “Habits of Highly Effective People” and “Financial Life Planning,” where employees get apprised of relevant ideas on leadership and financial consciousness.
Various sports-oriented activities and health awareness programs were also hosted by the Bank for its employees under its Healthy U program. These included: Zumba Sessions, Bone and Joint Nerve Problem, Darts, Badminton and Billiards Showdown, Aboitiz Sportsfest – Basketball and launch of the Walking Club.
Fun and socialization activities were also sponsored by the Bank like “Paint my DNA,” “Christmas Wreath Making Contest,” “One Last Dance: Hurray! Dance Party,” ”Easter Egg Hunt” and the launch of the Performing Arts Group. These enabled the employees to mingle together and at the same time, challenge their creativity and innovation in friendly competitions. In coordination with local government of Pasig City, the Bank likewise conducted fire, earthquake and emergency evacuation drills to promote emergency preparedness among employees of the Bank.
Maximization of shareholders’ wealth is a primary duty of the Bank. It is committed to protect shareholders’ rights as expressed in the Bank’s CG Manual, remove impediments to the exercise of these rights and allow shareholders opportunity to seek redress for violation of the same.
The Bank encourages its shareholders to attend annual stockholders’ meeting and exercise their right to elect directors. If shareholders cannot cast their votes personally, they are given the right to vote by proxy. A month before the annual meeting, shareholders are furnished with copies of the Bank’s Preliminary Information Statement, accompanied by its Annual Report and Audited Financial Statements.
Minority shareholders are granted the right to propose the holding of a meeting, and recommend items for inclusion in the agenda, provided these are for legitimate business purposes.
Shareholders have the right to remove and replace directors and vote on certain corporate acts, inspect corporate books and records and be furnished with annual reports and financial statements. They may dissent from corporate acts and demand payment of the fair value of their shares in the manner provided for under the Corporation Code.
Shareholders have the right to dividends, which shall be declared and paid out of the Bank’s unrestricted retained earnings as often and at such times as the Board may determine after making provision for necessary reserves in accordance with law and the regulations of the BSP.
The Bank has mechanisms to maintain frequent and clear communication with its shareholders, investors and creditors. It has accessible channels, e.g. company website (www.unionbankph.com) and periodic “UnionBanker” newsletters, where its shareholders and investors are informed of important announcements and disclosures in addition to the Bank’s submissions to regulatory bodies. It has an Investor Relations Office (IRO) whose mission is to strengthen the Bank’s relations with outside parties through the development and implementation of an investor relations program. The Bank participates in the regular conduct of analysts’ briefings by one of its principal stockholders, Aboitiz Equity Ventures. IRO conducts face-to-face meetings with investors, financial analysts, investment banks, rating agencies, the investing public, and other interested parties on a per-need or per-request basis. Discussions are held with business reporters to provide deeper appreciation and understanding of the Bank’s unique culture and competitive advantages. Conference calls are conducted for investors and analysts located outside the Philippines. If the subject matters of interest call for expertise on a specific subject, the IRO may invite other Bank executives to participate in the discussion. The IRO immediately responds to investors’ and analysts’ queries or concerns via telephone and e-mail.
The Bank is conscious of the special nature of its business that is imbued with public interest, and which imposes a more exacting standard of governance than that required by of other enterprises.
The Bank recognizes its obligation to be truthful and objective in its dealing with its customers. While it is entitled to employ all fair and honest means to promote its products and services, it does not, however, knowingly make false representations to customers. All employees of the Bank deal with its depositors and customers in a manner that creates value for them through appropriate and sound banking practices.
The Bank is cognizant of, and consistently observes the Bank Secrecy Law, Anti-Money Laundering Act, and other laws governing the banking industry. The Bank provides in its website information on consumer protection such as safe surfing guidelines and other security awareness information for its depositors and customers.
The Bank upholds the principles of truthfulness, fairness and respect in its dealings with its suppliers. It continues to build and maintain good relations with them, honouring agreements which are entered into in conformity with the law and public policy.
All purchases of equipment, supplies and services for the Bank are made on the basis of quality, utility and price offered by the vendor. While the Bank may actively negotiate for favorable terms with its suppliers, it does not knowingly mislead them with respect to competitors’ price and terms, its plans for future purchases, or other particulars of their transactions. The Bank does not use its vantage position as customer of the supplier, to impose unfair conditions that could not have been obtained by negotiations in good faith, or commit acts or omissions that unjustly breach contractual obligations.
The Bank has great respect for the State which conferred its juridical personality. It is the Bank’s policy to fully comply with all applicable laws and regulations with the end view of meeting the legal standards of business conduct.
The Bank keeps its duty to the public to provide banking services and products suitable to their needs. It will continuously uphold its commitment to meaningful and efficient services carried out in its realm of strong governance standards.
The Corporate Philanthropy and Social Responsibility (CPSR) Unit of the Bank is the implementing body of its commitment to making the difference for the community with the purpose of connecting with and enabling society.
The Unit’s flagship program is the UnionBank Learning System: Developmental Reading Integrated with Values Education for Good Citizenship. On February 2013, the Bank and the Department of Education entered unto a Memorandum of Understanding for adoption and use of UnionBank Learning System (UBLS) in the DepEd Grade 2 English Learner’s Materials and Teacher’s Guides.
Another flagship program of the CPSR is The Lumina Pandit II: Unending Light Program with the University of Santo Tomas (UST). In the UST Library, there are over 400 years of our national memory in books. Recognizing the inherent value of this rare collection of books and archived documents to our cultural heritage, the Bank partnered with UST to restore and preserve old books, publish catalogues and digitize the collection and upload them online to make them accessible to the public. So far, the Program has restored 41 volumes of rare books, digitized a total of 155,798 pages and has set up a virtual library featuring these rare and antique collections and showcase our worth as a nation and our contribution to humanity.
Please visit the section of CPSR in the Bank’s website.
Other than the CPSR, the employees of the Bank are likewise engaged in individual philanthropy activities under its “Go Beyond” program to assist targeted beneficiaries within the Bank’s community or outside of it. Programs from January 2014 to May 2015 included: Book Drive, Drive to Provide-Newspaper Fund Drive, Tara! Laro Tayo!, Balik Eskwela and U-Geek Auction. These were programs to raise funds for donation to support organizations and their beneficiaries.
The Bank is an environment-sensitive organization. It is committed to environmental protection especially in areas encompassed by its business operations. Through the years, it has provided and promoted programs advocating environment preservation and supports activities for advancing environment awareness and protection.
From January 2014 to May 2015, the Bank engaged in activities espousing environment protection awareness among employees including Tree Planting and Love Affair with Nature-Mangrove Tree Planting in Puerto Princesa, Palawan.