Cap. 10:31 PTIBuc E1'tf1TIEs CoRPORATE GovERNANCE No. 4/2018 (m) provide insight into the organisation's relationships with its key stakeholders and how and to what extent the organisation understands, takes into account and responds to their needs; (n) provide concise, reliable information that is material to assessing the organisation's ability to create and sustain value in the short, medium and long term; (o) deal with all the organisation's material issues in an objective manner, providing a balanced view of the organisation including what businesses consider to be the best strategy to deal with the challenges they face. 319. To the extent that the integrated report is subject to assurance, the name of the assurer should be clearly disclosed together with the period under revie\'\', the scope of the assurance exercise and the methodology adopted. 320. The Board should delegate to the audit committee the general oversight function of integrated disclosure. This committee should review the integrated report to ensure that the information in it is reliable and that it does not contradict other aspects of the report. 321. Organisations should have policies in place to determine the initiatives and strategies to cover environmental and social activities. These policies should address stakeholder and community interests/relations and management and provide a basis for information to be included in integrated reporting. Disclosure channels 322. The chief executive officer and the management of the company should report to the Board and the Board to the shareholders. Any deviation from this order of reporting must be disclosed by the Board to the shareholders with reasons therefor. CHAPTER6 CoRPORATE CoNFLJCT PREvEl'<'TION AND REsoumoN Preamble 323. Corporate conflicts are inherent in business. They may be intemal orextemal to the company. There is therefore a need to prevent conflicts and, where they occur, they should be resolved inexpensively and timeously. Principles 324. Prevention and resolution of corporate conflict makes it possible to safeguard the rights of shareholders and protect the propetty and business reputation of the company. 325. Corporate conflict prevention and resolution must be based on the provisions of the law and best practice codes. 326. For a company to successfully solve corporate conflicts, controversies and problems and to achieve its corporate goals, it must establish conditions, processes, procedures and systems for the prevention and resolution of corporate conflicts. 327. The Board is responsible for corporate conflict prevention, resolution and review and may establish a corporate conflict resolution (CCR) committee to assist in tllis regard. 328. In preventing or resolving corporate conflicts the needs, interests and rights of the disputants must be taken into account and the processes involved must be cost etTective. 329. Inquisitorial alternative dispute resolution mechanisms as opposed to the adversarial court based dispute resolution method should be preferred in corporate dispute or conflict resolution because these mechanisms are more likely to build rather than destroy relationsllips. 151

Select target paragraph3

Add to table of contents