Best corporate governance practices?
Posted: Sun Jan 26, 2025 3:07 am
The concept of corporate governance may seem incomprehensible at first, so we have prepared some practices to help you apply corporate governance principles in accordance with current recommendations.
Regular reporting on the company's activities, as well as a clear definition of the roles and responsibilities of management and employees.
The first element worth introducing is kuwait email list transparency in the company's operation and a clear definition of the responsibilities of the various functions. Companies must regularly inform stakeholders about their activities, difficulties, risks or financial results. Publishing reports describing ESG factors helps to build trust . It is also worth adding that all reporting procedures and standards must be transparent to make them as easy to read as possible. Within the organisational structure, roles and responsibilities must be clearly defined, to ensure that decisions are made in an informed manner.
Application of ESG management in the risk management process
Another good practice is the application of ESG management in the risk management process . This includes , among other things , risks associated with climate change and scarcity of natural resources. This allows companies to better prepare for potential challenges and minimize negative impacts.
Responsible management of supply chains
Another governance standard is responsible supply chain management. Companies should not only pay attention to ESG factors, but should also choose suppliers that comply with them. Introducing a supplier assessment and monitoring policy is essential to minimise the risk of suppliers engaging in unethical practices, which can lead to image problems and negatively affect sustainability ratings.
Bringing ethnic and gender diversity into the boardroom
The next corporate governance indicator is board diversity, measured by the percentage of women and minorities on board. Diverse management can bring different perspectives, which fosters decision-making and innovation .
Implement a transparent remuneration policy
Remuneration policies are also relevant in the context of ESG management. Executive remuneration should be disclosed and linked to results or progress in the introduction and management of ESG aspects; such transparency will improve working conditions and is a good motivator.
Regular reporting on the company's activities, as well as a clear definition of the roles and responsibilities of management and employees.
The first element worth introducing is kuwait email list transparency in the company's operation and a clear definition of the responsibilities of the various functions. Companies must regularly inform stakeholders about their activities, difficulties, risks or financial results. Publishing reports describing ESG factors helps to build trust . It is also worth adding that all reporting procedures and standards must be transparent to make them as easy to read as possible. Within the organisational structure, roles and responsibilities must be clearly defined, to ensure that decisions are made in an informed manner.
Application of ESG management in the risk management process
Another good practice is the application of ESG management in the risk management process . This includes , among other things , risks associated with climate change and scarcity of natural resources. This allows companies to better prepare for potential challenges and minimize negative impacts.
Responsible management of supply chains
Another governance standard is responsible supply chain management. Companies should not only pay attention to ESG factors, but should also choose suppliers that comply with them. Introducing a supplier assessment and monitoring policy is essential to minimise the risk of suppliers engaging in unethical practices, which can lead to image problems and negatively affect sustainability ratings.
Bringing ethnic and gender diversity into the boardroom
The next corporate governance indicator is board diversity, measured by the percentage of women and minorities on board. Diverse management can bring different perspectives, which fosters decision-making and innovation .
Implement a transparent remuneration policy
Remuneration policies are also relevant in the context of ESG management. Executive remuneration should be disclosed and linked to results or progress in the introduction and management of ESG aspects; such transparency will improve working conditions and is a good motivator.