17 Basic Principles of Corporate Governance
Leadership, ethics and corporate citizenship
1. The governing body should lead ethically and effectively.
2. The governing body should govern the ethics of the organisation in a way that supports the establishment of an ethical culture.
3. The governing body should ensure that the organisation is and is seen to be a responsible corporate citizen.
Strategy, performance and reporting
4. The governing body should appreciate that the organisation’s core purpose, its risks and opportunities, strategy, business model, performance and sustainable development are all inseparable elements of the value creation process.
5. The governing body should ensure that reports issued by the organisation enable stakeholders to make informed assessments of the organisation’s performance and its short, medium and long-term prospects.
Governing structures and delegation
6. The governing body should serve as the focal point and custodian of corporate governance in the organisation.
7.The governing body should comprise the appropriate balance of knowledge, skills, experience, diversity and independence for it to discharge its governance role and responsibilities objectively and effectively.
8. The governing body should ensure that its arrangements for delegation within its own structures promote independent judgement, and assist with the balance of power and the effective discharge of its duties.
9. The governing body should ensure that the evaluation of its own performance and that of its committees, its chair and individual members, support continued improvement in its performance and effectiveness.
10. The governing body should ensure the appointment of, and delegation to, management contribute to role clarity and effective exercise of authority and responsibilities.
