Accountability

Corporate accountability refers to a board’s responsibility for providing explanations for a company’s conduct.

• The board should present a balanced and clear assessment of the company’s position and prospects
• The board is responsible for determining the nature and extent of any risks it may take
• The board should keep proper risk management and internal control systems
• The board should put in place formal and transparent arrangements for corporate reporting and risk management, as well as for maintaining a relationship with the company’s auditor

Transparency

Stakeholders should be kept informed about a company’s activities, plans and any risks inherent in its business strategy.

In acting transparently, a company demonstrates its willingness to provide clear information, such as accurate financial performance figures, to shareholders and other stakeholders, who can then be confident in the company’s decision-making and management processes.

Fairness

All shareholders should receive equal treatment and consideration, whatever shareholdings they may have. A company should also aim to treat all of its stakeholders, including employees, communities and public officials, fairly.