The company is committed to good corporate governance for sustainable success. It provides detailed information on various issues concerning the company’s business and financial performance. The company respects the inalienable right of the shareholders to information on the performance of the company and considers itself a trustee of its shareholders. They believe that sound corporate governance is critical to enhance and retain investors trust. Accordingly, they always seek to ensure that they attain their performance rules with integrity.
Corporate governance is defined in the King IV Report as the “exercise of ethical and effective leadership by the governing body towards the achievement of the following governance outcomes: • Ethical culture, • Good performance, • Effective control and • Legitimacy.” The purpose of this Corporate Governance Policy is to facilitate and encourage the ethical management of the company by its Board of directors, management and stakeholders in order to achieve the primary objectives of the company being sustainability, profitability and increased contribution to the socio-economic stability of our economy. DEFINITIONS Board “the Board of Directors of the Company” Director “a member of the Board of the company, as contemplated in section
4) in appendix H. As stated under the explanation of CSV, a company should be valued based on the environmental, societal and financial values. This is being contradicted by this strategic focus. This is also motivated by the management structure of Heineken. Sustainability should be horizontally and vertically integrated in this structure to be able to implement the environmental, societal values on the same magnitude as the economic values. The organizational position of responsibilities towards sustainable development are shown in Figure 11: Governance model sustainability (Heineken N.V., 2015) in appendix H. The Corporate Affairs Committee is located in the Executive Committee and is represented by the Chief Executive Officer, Chief Corporate Relations Officer, Chief Supply Chain Officer, President Western Europe, Chief Marketing Officer and President Americas (Heineken N.V.).
THEORITICAL REVIEW Good Corporate Governance The concept of Good Corporate Governance (GCG) is a concept that is time to be implemented in companies that exist in Indonesia, because through the concept of the structure of the company, which consists of elements of GMS, directors and commissioners can be established relationships and working mechanisms, , Harmonious authority and responsibility, both internally and externally with the aim of increasing the value of the company for the benefit of shareholders and stakeholders. GCG is needed to encourage the creation of an efficient, transparent and consistent market with laws and regulations. The implementation of GCG needs to be supported by three interconnected pillars, namely the state and
This critical analysis is on a paper by Robert O. Keohane on Global Governance and Legitimacy. In this paper Keohane proposes six standards or criteria that can be used to make legitimacy judgements on international organizations. As the first criterion he says that organizations should have minimal moral acceptability. Which means that governance institutions should not commit serious injustices, and particularly refrain from human rights violations. The second standard is identified as inclusiveness, which talks about the extent at which people who are willing to participate in the governance process are included in the organization.
Investment plans need to reflect both the spirit and the letter of the laws of the society in which the organisation lives and works, and should be seen to support the stated opjectives of governments. At the same time however, they need to support the success of the business. Business success should also be seen as a possitive contribution to the success and welfare of the community. For specific detail on Category 1 LEADERSHIP, refere to the following pages which show: POSITIVE SIGNS TO LOOK FOR - World’s Best Management Practice and WARNING INDICATORS - World’s Worst Management Practice Then look at your own organistion and compare what you see, item by item, with a continuum from excellent (all Postive signs to look for are present) to very bad (all warning indicators are present). Reach a consensus of how your organisation rates on a scale of 1 to 10 according to the rating guide on page You may want to list your organisation’s Strength and Opportunities for Improvement, and this self discovery can then form the basis for a realistic improvement
Implementation is the key to success. Developing annual operational plans against which progress can be monitored, is critical to success. An operational plan is invaluable in ensuring that the front line staff and middle managers stay focused on the agreed upon objectives toward attaining the institution’s goals for becoming a diversity oriented organization. The plan must be characterized by an unambiguous and clear policy statement about the organization’s standpoint about all forms discrimination, disrespect, and harassment. There must be clear and unambiguous statements about ethical and professional interpersonal relationships and significance of each individual’s contribution to the institution’s efforts towards attaining its goals.
Furthermore, according to Jackson and Stent such a strategy should take into cognisance the long-terms and short-terms impact of the strategy on three key aspects, namely the economy, society and the environment. 2) The board should ensure that the company is, and is seen to be a responsible corporate citizen. According to the (IOD: 2009) the success of the company can be measured using various yardsticks that include financial performance as well as the impact of the company on the economy, society and the environment. Thus, according to the King III the company should protect, enhance and, invest in the welfare of the economy, society and the environment. The King III emphasised the fact that being a good citizen for the company imply formulation of an ethical relationship of responsibility between the company and the society within which it operates.
The Board of director, managers and higher officials should ensure proper placement of ‘Comply or explain’ approach by proper disclosures and transparency. The company should ensure that each and every principle as stated in the regulations is been followed and the company complies with each guideline. And in the cases where the company is not able to follow the rules and guidelines, it should be able to explain. To promote the investors to invest in the company and aid them in understanding the extent of application of the Code, companies should provide a positive confirmation statement in the report stating that the company is following all the principle as stated by the regulator and is complied with all guidelines which will turn useful to identify all the deviations. A Checklist practice should be implemented to ensure that key corporate governance practices relating to each principle are described, and confirming if the company complies with each guideline, and if not, to provide an explanation which provides the firm to keep a regular practice of all the practices The code reviewing committee should ensure that all the given rules and norms are properly understood by the
The primary cause of an IT infrastructure audit is to guarantee all IT resources available within a business or organization reach set goals and performance has been achieved while following the correct and the most appropriate processes. The specific objectives of undertaking an IT infrastructure audit may include: · Ensureing that the set infrastructure is compliant with the legal and regulatory requirements. · Ensuring that the IT infrastructure enforces the confidentiality of its corporate data. · Assessing whether the IT infrastructure in an organziation helps in attaining and maintaining data integrity. · Ensureing that the IT infrastructure guarantees availability and reliability of the available