Role Of Corporate Governance In Nestle

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A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that…show more content…
As stated in Principle 1, The Board of Directors directs the Group’s risk assessment, strategic planning, succession planning and financial and operational management to ensure that obligations to shareholders and other stakeholders are understood and met. The board of directors has a collective responsibility for the management of the group to make sure the group is on the way to approach to their objectives while the non-Executive Directors are responsible for bringing independent judgment and scrutiny to decisions taken by the Board of Directors and providing objective challenges to management. Besides, the board of directors also function as formalising and adopting a set of Code of Ethics through the Code of Conduct as Recommendation 1.3 as stated in the Malaysian Code on Corporate Governance 2012 to make sure its compliance, establishing an appropriate set of corporate disclosure policies and procedures and ensuring a whistleblowing mechanism is in place. The Board of Directors recognizes the importance of independence and objectivity in its decision making process. The Directors are professionals of high calibre and integrity and possess in-depth knowledge and experience of the business to enable them to discharge their duties effectively. The Board of Directors ordinarily schedules four (4) meetings in a year. Board of Directors and…show more content…
The management team will also provide relevant information to the board of directors whenever they need by attending the meeting held by the board of directors. In addition, the management team attend the meeting which is invited by the board of directors to advise and furnish the members of the Board of Directors with information and clarification relating to the items on the agenda for effective discussion and decision making. The Managing Director, supported by the Management Team, implements the Group’s policies and decisions as adopted by the Board of Directors overseeing the operations as well as developing, coordinating and implementing business and corporate strategies. The Managing Director is responsible for the stewardship of the Group’s direction and the day-to-day management of the Group. The Managing Director, together with the Management Team, manages the business of the Group in a manner consistent with the Nestlé Code of Business Conduct and the Nestlé Corporate Business Principles as well as in accordance with any specific plans, instructions and directions of the Board of Directors. When there is a need by the Audit Committee, the relevant members of the Management Team will also be invited to attend the
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