Principles Flashcards
What principle/s tackle the board’s governance responsibilities?
Principles 1-7
What principle/s tackle disclosure and transparency?
Principles 8-11
What principle/s tackle the internal control system and risk management framework?
Principle 12
What principle/s tackle cultivating a synergic relationship with shareholders?
Principle 13
What principle/s tackle the duties to stakeholders?
Principles 14-16
The numeric pattern of principles is ____
7-4-1-1-3
T or F. One principle can have many recommendations.
T
The company should be headed by a competent, working board to foster the long-term success of the corporation, and to sustain its competitiveness and profitability in a manner consistent with its corporate objectives and the long-term best interests of its shareholders and other stakeholders.
Principle 1
The fiduciary roles, responsibilities and accountabilities of the Board as provided under the law, the company’s articles and by-laws, and other legal pronouncements and guidelines should be clearly made known to all directors as well as to stockholders and other stakeholders.
Principle 2
Board committees should be set up to the extent possible to support the effective performance of the Board’s functions, particularly with respect to audit, risk management, related party transactions, and other key corporate governance
concerns, such as nomination and remuneration. The composition, functions and responsibilities of all committees established should be contained in a publicly available Committee Charter.
Principle 3
To show full commitment to the company, the directors should devote the time and attention necessary to properly and effectively perform their duties and
responsibilities, including sufficient time to be familiar with the corporation’s business
Principle 4
The Board should endeavor to exercise objective and independent judgment on all corporate affairs.
Principle 5
The best measure of the Board’s effectiveness is through an assessment process. The Board should regularly carry out evaluations to appraise its performance as a body, and assess whether it possesses the right mix of backgrounds and competencies
Principle 6
Members of the Board are duty-bound to apply high ethical standards, taking into account the interests of all stakeholders.
Principle 7
The company should establish corporate disclosure policies and procedures that are practical and in accordance with best practices and regulatory expectations.
Principle 8
The company should establish standards for the appropriate selection of an external auditor, and exercise effective oversight of the same to strengthen the external auditor’s independence and enhance audit quality
Principle 9
The company should ensure that material and reportable non-financial and sustainability issues are disclosed.
Principle 10
The company should maintain a comprehensive and cost-efficient
communication channel for disseminating relevant information. This channel is crucial for informed decision-making by investors, stakeholders and other interested users.
Principle 11
To ensure the integrity, transparency and proper governance in the conduct of
its affairs, the company should have a strong and effective internal control system and enterprise risk management framework.
Principle 12
The company should treat all shareholders fairly and equitably, and also recognize, protect and facilitate the exercise of their rights.
Principle 13
The rights of stakeholders established by law, by contractual relations and through voluntary commitments must be respected. Where stakeholders’ rights and/or interests are at stake, stakeholders should have the opportunity to obtain prompt effective redress for the violation of their rights.
Principle 14
A mechanism for employee participation should be developed to create a symbiotic environment, realize the company’s goals and participate in its corporate governance processes.
Principle 15
The company should be socially responsible in all its dealings with the communities where it operates. It should ensure that its interactions serve its environment and stakeholders in a positive and progressive manner that is fully
supportive of its comprehensive and balanced development.
Principle 16
