Best corporate governance practices?

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Another good practice is the application of ESG management in the risk management process . This includes , among other things , risks associated with climate change and scarcity of natural resources. This allows companies to better prepare for potential challenges and minimize negative impacts.

Responsible management of supply chains
Another governance standard is responsible supply chain management. Companies should not only pay attention to ESG factors, but should also choose suppliers that comply malaysia mobile phone number data with them. Introducing a supplier assessment and monitoring policy is essential to minimise the risk of suppliers engaging in unethical practices, which can lead to image problems and negatively affect sustainability ratings.

Bringing ethnic and gender diversity into the boardroom
The next corporate governance indicator is board diversity, measured by the percentage of women and minorities on board. Diverse management can bring different perspectives, which fosters decision-making and innovation .

Implement a transparent remuneration policy
Remuneration policies are also relevant in the context of ESG management. Executive remuneration should be disclosed and linked to results or progress in the introduction and management of ESG aspects; such transparency will improve working conditions and is a good motivator.

Giving rights and protection to minority shareholders
The protection of minority shareholders is also a factor in assessing governance principles. Companies should ensure that mechanisms are in place to enable these shareholders to participate in key decisions. Ensuring equal voting rights fosters transparency and democratic governance.

Create a code of ethical behavior and train periodically on it.
To facilitate the introduction of corporate governance and enable employees to understand and assimilate it more quickly, it is good practice to have a code of ethical behaviour in place, as well as regular training. This will help build and reinforce an organisational culture based on integrity.