Good governance and best practice creates the environment for the attitudes, mechanisms and behaviors that allow well-informed decision making to take place. Failures of governance or corporate compliance lead to bad decisions and business failures, and sometimes irregularities. Where individuals can be relied upon to act with integrity and according to best practices, a proliferation of guidance and the imposition of regulation is unnecessary.
“Corporate governance is one key element in improving economic efficiency and growth as well as enhancing investor confidence. Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.” OECD Principles of Corporate Governance, 2004.
Corporate governance and compliance guidelines:
The conduct of business should always be in accordance with applicable best practices, laws and regulations of the jurisdictions in which the business takes place including, but not exclusively, fiscal legislation, competition legislation, consumer and data protection legislation and anti-money laundering measures.
The company must conduct its business with integrity and ensure business best practices are spread, known and applied throughout the corporation.
Definition and achievement of long term objectives and strategies, compliant with its mission statement, are critical for a company’s perennial development.
The conduct of business will be successful in the long term where the interests of stakeholders, including fund providers, board of directors, company management, employees, customers, suppliers and other stakeholders are respected, best practices strictly referred to, and in which conflicts of interest are managed appropriately.
Clear accounting best practices, disclosure and timely communication of relevant and material information to facilitate high quality decision-making are critical.
Company information should be considered as confidential and should not be used in a way that is detrimental to the company.