3. Policies are put in place requiring Boards at all
levels to be held accountable for their decisions to key
stakeholders, including shareholders.
4. Boards and senior managers are encouraged to consider
key stakeholder views with justice and avoidance of bias
or vested interests. The Board and management should
apply fair practice in their dealings with stakeholders
and adhere to the spirit not just the letter of all rules and
regulations that govern the organization. The organization
should provide effective redress for violations.
5. Both the members of Boards and senior management
should understand what the responsibilities of the
Board are in their jurisdiction and Boards should be
encouraged to carry them out with honesty, probity and
integrity. Organizations should ensure that procedures
and structures are in place so as to minimize, or avoid
completely, potential conflict of interests that could arise.
6. Good Board Practices are encouraged at all levels within
the organisation evidenced by well-structured Boards
with the appropriate composition and mix of skills. The
appropriate procedures should be in place to ensure that
Boards perform efficiently.
7. A risk management framework is present enabling the
organisation to identify, assess and mitigate risks throughout
the organisation not just at the parent company level.
8. Key stakeholders (which includes shareholders) and
their legitimate interests and expectations have been
identifies at all levels throughout the organisation and
that these are known.
9. All parts of the organisation act as a Good Corporate
Citizens, behaving ethically, complying with all relevant
laws, regulations, standards and codes as well as taking
into consideration social and environmental issues
relevant to the organisations operations.
10. Reward systems encourage good governance.
Resources should also be made available to strengthen
governance practices which help create value and ensure
sustainability of the organization.
11. The organisation manages its Reputation and
Reputational Risk. Reputation defines an organization as
well as the individuals associated with that organization.
Good practices ensure a good reputation. Bad practices
can destroy a reputation overnight.
All the above should be carried out not as a checklist but
in the spirit of making the organisation as a whole a better
performing value creating entity.
Stakeholder Expectations & Subsidiary Governance
PHOTOGRAPHY BY ALEC AALTONEN
18
Hawkamah issue02 56pages.indd 18
Article by Alison Dillon Kibirige
9/19/13 10:07 AM