- Transparency: Companies should provide clear, accurate, and timely information about their financial performance, operations, and governance practices. Transparency helps stakeholders make informed decisions and fosters trust.
- Accountability: Corporate governance emphasizes accountability at all levels of an organization. This includes holding directors, executives, and employees responsible for their actions and decisions. Accountability helps prevent misconduct and mismanagement.
- Fairness: Companies should treat all shareholders, regardless of their size or influence, fairly and equitably. Fairness extends to matters such as voting rights, access to information, and opportunities to participate in key decisions.
- Responsibility: Corporate governance promotes responsible business conduct. This includes ethical behavior, adherence to laws and regulations, and consideration of environmental, social, and governance (ESG) factors that may impact the company’s sustainability.
- Independence: The board of directors should include a sufficient number of independent directors who are not affiliated with the company’s management or significant shareholders. Independence ensures unbiased decision-making and effective oversight.
- Board leadership: Companies should clearly define the roles of the board of directors and executive management. Separation of the roles of Chairman of the Board and CEO (Chief Executive Officer) is often encouraged to prevent conflicts of interest.
15.2 Principles of corporate governance
