GOOD CORPORATE GOVERNANCE

The practice of good corporate governance is an integral part of an effective and successful regulatory environment that involves the stringent promulgation of rules and regulations. CAAP believes that the complementation between the function of a regulator and the rudiments of good corporate governance defines the mutuallyreinforcing relationship between them. The sharing of responsibilities among the Board of Directors in guiding the management and staff of a corporate entity is similar to the linkage between a regulator and his constituencies in an industry or sector. Surmounting the challenges of compliance and involvement of those concerned in applying the Good Corporate Governance principles of Fairness, Integrity, Accountability and Transparency (FIAT) is vital to the long-term sustainability of any organization.

Aviation safety is both a value and a purpose for CAAP. Its propagation among the stakeholders in civil aviation may enhance their appreciation of its role as regulator and may lead to more informed expectations from the sector. The Philippine Aviation Safety Assessment ( PASA) is the platform on which CAAP seeks to implement its safety compliance program to emphasize adherence to law, policies, regulations and procedures among its stakeholders. The adaption of business ethics as an ethos of work within the organization codified in a Code of Conduct will guide its management and personnel alike, on the standards of right and wrong and the corresponding consequences for any non-compliance. The manner by which CAAP discharges its mandate as a regulator will be reflected on the behavior of its stakeholders. Their adherence to CAAP’s regulatory mandate and the principles of Good Corporate Governance are good indicators of compliance to aviation safety.

As a signatory of the Convention on International Civil Aviation of 1947, CAAP is a member state of a global civil aviation community that adheres to the strictures in promulgating compliance to aviation safety. Aligning to the Standards and Recommended Practices ( SARPs) of the International Civil Aviation Organization ( ICAO) ensures not only the sustainability of the strategic future of CAAP as a regulator but likewise the long- term viability and profi tability of its stakeholders. The heightening competitive pressures resulting from the regionalization of aviation and the harmonization of aviation systems and procedures in the next few years are compelling reasons for making aviation safety and good corporate governance the centerpieces of the operations and focus of aviation-oriented companies. The capstone of their interest lies, however, in the intensity and breadth of their adherence to these principles. It is this joint commitment between CAAP and its stakeholders that will make aviation safety and good corporate governance both a value and a purpose for the sector.