A Non-Accountant’s Perspective on Eight Decades of Integrity
José Dalisay has authored a commemorative book for SGV titled "SGV 80 Years: Celebrating a Continuing Legacy of Integrity, Excellence and Purpose" to mark the accounting firm's 80th anniversary. The work serves as a comprehensive record of the firm’s history, written by Dalisay for The Philippine Star.
Dalisay openly acknowledges his lack of formal training in the field, stating that he is not an accountant and never took an accounting subject. He humorously noted that he could not tell the difference between "book value" and "equity" if his life depended on it. Despite this gap in technical knowledge, Dalisay said he has been privileged to have an inside view of the Philippine accounting profession as an author and, to some extent, a confidant.
His deep involvement with the firm began 20 years ago when he was asked to write the biography of Washington SyCip. SyCip is described as the man whose name is synonymous with Philippine accountancy itself. Generations of Filipinos knew him by the nickname "Wash," recognizing his foundational role in shaping the industry.
From Local Practice to Regional Multinational
Washington SyCip founded the accounting firm that eventually became SGV, originally named SyCip, Gorres & Velayo. He established the practice after choosing to stay in the Philippines rather than return to the United States, a decision that would alter the trajectory of the country’s professional services sector.
The firm grew significantly in its early decades. SGV became the country’s largest firm following its absorption of Fleming & Williamson’s audit practice in 1958. This strategic move consolidated its position at the top of the local market.
During the 1960s and 1970s, SGV completed the Filipinization of the profession. It also became the first Asian multinational with member firms from Taiwan to Singapore during that period, marking a significant expansion beyond national borders.
The firm’s influence was substantial by the early 1970s. By 1971, the firm was serving 63 of the country’s top 100 corporations, demonstrating its critical role in the nation’s largest business entities.
Navigating Global Shifts and Internal Philosophy
In 1985, Washington SyCip and his partners joined Arthur Andersen’s global organization. This move occurred due to a weakening Philippine economy that could no longer support their regional network, necessitating a shift toward international alliances for growth.
Following the implosion of Arthur Andersen in the early 2000s, SGV formed a global association with Ernst & Young. This new partnership allowed the firm to maintain its global reach and technical capabilities despite the collapse of its previous alliance.
On the domestic front, Country Managing Partner Cesar Purisima reorganized SGV into market circles. These circles later evolved into market groups, reflecting an ongoing adaptation to changing business environments.
The firm also established specific internal concepts regarding its structure and culture. The concept of stewardship was first enunciated by CMP Dave Balangue. It was subsequently developed by CMP Vic Noel as a reminder that partners are stewards rather than owners of the firm, reinforcing a culture of responsibility over ownership.