LEGAL REGULATION AND

ISSUES
REGULATION

- Is defined as a legal system that controls and regular the business

activities of a certain country. As discussed previously, corporation are legal
entities that have similar rights accorded to the person. A corporation is
allowed to perform function that human make, like engaging business
activates( e.g., signing contract , owning properties, negotiating terms of
engagement and others).
THE RATIONAL FOR REGULATION

- The study of economic describes hoe societies product and consumer

goods and service. Million Friedman, considered by many to be the forest
most economist of the twentieth century suggested that more money
infused in an economic system lessens the degree of government
involvement. Friedman was a staunch advocate of free markets because he
believes that free marketers raise the standard of living and not from
central planning by the government (Hetzel2007)
FREE MARKET

- Considered a basic from of capitalism ( monetary goods and service are

owned by private individuals and companies) a free market is an economic
system that restricts government intervention in the economy. This concept
means that private business are based on supply and demand and that less the
government is involved in the economy the better off business will be.
LAWS, CODES AND REGULATION

-We now discuss the various code, law and regulation that are
relevant in the practice of CSR and corporation governance:
* Sarbanes and Oxley Act (SOX)- Although this is an American
legislation it is significant because of increased financial
accountability in auditing(internal and external)and disclosure to
protect investors.
*Organization for Economic Cooperation and Development
(OECD)
- There are many codes from various international
agencies such as a International Corporate Governance
Network (ICGN) and they all revolve around similar
principles of good corporate governance.
PHILIPPINES CORPORATE CODE

- The Corporation Code of the Philippines was approved in 1980

that prescribes the rule and regulation in the establishment and
operation of corporations in the Philippines. The content of this
code includes the incorporation of private corporation, regulation of
the board of directors and the power and capacity of corporation by
laws and board meeting.
Some of the notable change made with the revised code are:
1.Removal of the minimum number of incorporators.
2.Required minimum P1,000,000.00 capital stock on stock corporation .
3.Removal of the 50-years corporate term. This means a corporation can exist
indefinitely.
4.Creation of a one-person corporation(OPC)
5.Use of the Internet to attend a meeting and filing of reports which were not
allowed in the old code.
6. Power of the Securities and Exchange Commission(SEC) to remove
disqualified direction or trustees.
PHILIPPINE CODE OF CORPORATE
GOVERNANCE

- The SEC first came out with the code in 2002 and has undergone
numerous amendments the latest of which was done in 2019.One of
the main purposes of the code is to align Philippine governance
codes with that of the international business community standards
(such as the OECD and ASEAN Corporate Governance Initiatives).
COMPANY CODE
-There are countless examples of governance code
adopted by companies based on widely accepted
international governance code such as the OECD. The
Organization for Economic Cooperation and
Development(OECD 2015) provides the guidelines for
how organization may practice good governance.
POLITICAL ISSUES AND CORPORATE GOVERNANCE

- Political issues are important topics of good corporate governance.

Good governance does not limit itself to addressing business
disruptions and creating a competitive advantages through strategy.
How these political issues are addressed such as climate
change ,healthcare,incometaxes, bribery in government and others
are part and parcel of a company’s long-term strategy. These are
issues that concern just about every individual in any society-the
stakeholder.