Corporate Regulation Benefits of Internal Corporate Regulation
Corporate regulation refers to the laws, Reduces legal and financial risks.
rules, and policies imposed by companies, Promotes ethical business practices.
governments and regulatory bodies to Improves corporate transparency and
ensure companies operate ethically and accountability.
responsibly. Regulations protect investors, Enhances stakeholder trust and
employees, consumers, and the economy by reputation.
preventing fraud, corruption, and Ensures long-term business
mismanagement. sustainability.
Importance of Corporate Governance and EXTERNAL REGULATION
Regulation
In the Philippines, external corporate
Protects investors and stakeholders. regulations are set by government agencies
Enhances company reputation and and regulatory bodies to ensure businesses
credibility. operate legally, ethically, and transparently.
Reduces corporate fraud and financial These regulations cover areas like corporate
scandals. governance, labor, taxation, consumer
Improves economic stability and market protection, and financial reporting.
confidence.
EXTERNAL REGULATORY BODIES
Encourages sustainable business
practices. Primary regulatory bodies responsible for
promoting and enforcing corporate
Internal Corporate Regulation
governance rules, each overseeing specific
Internal corporate regulation refers to the sectors.
policies, procedures, and governance
Securities and Exchange Commission (SEC):
frameworks established within a company
The SEC is responsible for regulating non-
to ensure compliance with laws, ethical
bank financial institutions and promoting
standards, and strategic objectives. These
good corporate governance practices within
regulations help maintain operational
those institutions.
integrity, reduce risks, and promote
transparency within the organization. Bangko Sentral ng Pilipinas (BSP): The BSP
is the central bank of the Philippines and is
Key Components of Internal Corporate
responsible for overseeing the banking
Regulation
sector and ensuring good corporate
1. Corporate Policies & Codes of Conduct governance within banks.
2. Internal Controls & Compliance Programs Insurance Commission (IC): The IC regulates
the insurance industry and promotes good
3. Risk Management Framework
corporate governance within insurance
4. Board of Directors & Committees companies.
5. Whistleblower Protection & Reporting
Mechanisms
6. Employee Training & Awareness
Programs
Regulatory Bodies & Their Functions
1. Securities and Exchange Commission 6. Department of Trade and Industry (DTI)
(SEC)
Regulates businesses, especially sole
Governs corporate registration, financial proprietorships and SMEs.
reporting, and compliance with the Revised
Ensures compliance with consumer
Corporation Code of the Philippines (RA
protection laws under the Consumer Act of
11232).
the Philippines (RA 7394).
Enforces the Code of Corporate Governance
7. National Privacy Commission (NPC)
for publicly listed companies.
Enforces the Data Privacy Act of 2012 (RA
Regulates mergers, acquisitions, and
10173) to protect personal data from
corporate restructuring.
misuse.
2. Bureau of Internal Revenue (BIR)
8. Environmental Management Bureau
Oversees tax compliance, including (EMB) (under DENR)
corporate income tax, VAT, and withholding
Ensures businesses comply with
taxes.
environmental laws like the Clean Air Act
Enforces tax laws under the National (RA 8749) and Ecological Solid Waste
Internal Revenue Code (NIRC). Management Act (RA 9003).
3. Bangko Sentral ng Pilipinas (BSP) (For
financial institutions)
Regulates banks, fintech companies, and
financial institutions.
Ensures compliance with anti-money
laundering (AML) and data protection laws.
4. Department of Labor and Employment
(DOLE)
Enforces labor laws, including minimum
wage, benefits, and workplace safety.
Regulates employer-employee relations
under the Labor Code of the Philippines.
5. Philippine Competition Commission (PCC)
Prevents monopolies and anti-competitive
business practices under the Philippine
Competition Act (RA 10667).
