Professional Documents
Culture Documents
The corporate governance committee must have a written charter that addresses the
committee’s purpose and responsibilities, and there must be annual performance evaluation
of the Committee. With this, state how it is intended to help to address the risk of fraud in
publicly-listed companies.
The company is responsible for implementing a corporate governance and control procedures, and
provide an annual performance evaluation of the Committee, one of the reasons for doing this is
to minimize or prevent the risk of fraud. One of the board’s governance responsibilities is to
strengthen board ethics, which is by adopting a Code of Business Conduct and Ethics. Under this
code is the culture of honesty and high ethics, and the most effective way to prevent and to deter
fraud is to implement programs such as an anti-corruption or antifraud programs and controls that
are based on core values embraced by the company. If the management or the board has honesty
and integrity it will flow down all over the company, to lower-level management and lower-level
employees. By showing that the management/board has integrity and honesty, there’s a great
possibility that it will absorb by each of the member of the company. One of the principle or
recommendation in an annual corporate governance report is for the board that should set the tone
and make stand against corrupt practices by adopting an anti-corrupt policy and program. This
recommendation is encouraging the employees to report corrupt practices and outlines procedures
on how to combat, resist and stop these corrupt practices. And by all of this the company or the
board will easily address, minimize or prevent the risk of fraud.
Non-financial reporting, corporate social responsibility and triple bottom line has relation to
sustainability, those three are encompasses reporting on business environmental, social and
governance which is also the main component of sustainability reporting.