“Corporate governance is one key element in improving economic efficiency and growth as well as enhancing investor confidence. […] Corporate governance also provides the structure through which the objectives of the Company are set, and the means of attaining those objectives and monitoring performance are determined”. (OECD Principles of Corporate Governance, 2004).
An effective corporate governance is not just complying with regulatory duties, but it is attained by all procedures and voluntary actions needed to pursue the best interest of the Company and its stakeholders.
The new Frontis Governance’s CG Rating Report takes into account all relevant governance procedures and practices, in order to identify the main areas of risk of a sustainable growth. Each main governance aspect is analysed by taking into account the specific circumstances related to the company, the sector, the local market and the specific contexts.
More than 100 governance-related indicators are analysed and categorized in 4 macro areas:
- Share Capital and Shareholder rights;
- Board of Directors (or Supervisory Board at the dual system);
- Remuneration;
- Internal controls.
A numerical score is assigned to each indicator, based on the level of compliance with international and local market’s best practice, to allow an immediate comparison with relevant peers. Main areas of concern are hyperlinked to the relevant section at the report, in order to easily identify the qualitative analysis.
The CG Rating Report will also be available at SRI-CONNECT, the first SRI professional network.