What are the principles of corporate governance?

Corporate governance refers to the framework of policies and guidelines that inform a company’s conduct, decision-making and practice. This infrastructure is built upon four key principles: accountability, transparency, fairness and responsibility.

Accountability

Businesses must be able to account for and explain every action and decision taken and are obligated to take ownership of the risks involved.

Transparency

A corporation must exercise openness and willingness to disclose truthful, accurate and timely information regarding the company’s financial, social and political position to shareholders, stakeholders, consumers and the wider community.

Fairness

All shareholders and stakeholders should be considered and treated equally, regardless of their respective shareholdings or position on the corporate ladder.

Responsibility

Directors must act ethically at all times. They should take a top-down approach to ethical conduct and engage with long-term shareholders on issues and concerns that affect the company’s long-term value creation.

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