Cap. 10:31 PuBuc E:-l!TrES CoRPORATE GovERNANCE No. 4/2018 387. Compliance policies should be integrated and aligned with other business efforts and objectives to avoid duplication of efTort and to take advantage of oppmtunities for synergies. 388. Compliance with laws, mles, codes and standards should be incorporated in the code of conduct of the company to entrench a compliance culture. Employees should be encouraged to understand and, as necessary, implement the laws, rules, codes and standards of good corporate governance. 389. A compliance culture should be developed and encouraged by the leadership of the company through establishing appropriate structures, education and training programmes, cmmnunication and key compliance indicators. CHAPTERS STA.KEHOLDER RELATIONSHIPS Preamble 390. A company is a multi-interest enterprise. It binds itself to contracts and can be held legally responsible for its actions. It has many stakeholders who have vital interests in its operations and results. Its operations have consequences beyond itself as they always affect, in one way or another, the community in which it carries on business, the national economy and society in general. In the governance of a company therefore, a balance has to be maintained between the maximization of shareholder value and interests and the protection and promotion of the interests of other stakeholders. 391. A stakeholder can affect or can be atTected by a company's operations. "Stakeholdcr"includes shareholders, institutional investors, creditors, lenders, suppliers, customers, regulators, employees, trade unions, the media, analysts. consumers, society in general, conununities, auditors and potential investors. 392. Stakeholders are the raison d'etre for corporate governance and the prime constituency of the company. The relationship between a company and its stakeholders is regulated by law and by best practice codes. PrincijJ!es 393. The legal rights and legitimate expectations of the company's stakeholders should be identified, recognized, respected and promoted in the course of creating wealth and jobs and sustaining a financially sound business enterprise. 394. Corporate actions should take into account stakeholder and societal interests. 395. There should be constructive engagement between a company and all its stakeholders as well as among the stakeholders themselves. 396. The Board should appreciate that stakeholder perceptions affect a company's reputation. Reputation is based on how well a company performs having regard to the legitimate interests and expectations of stakeholders. 397. The Board must, in the best interest of the company, strive to achieve an appropriate balance of interests between its various stakeholders. 398. Stakeholders should know their responsibilities towards the company and should be circumspect al:xmt making public statements that can damage its interests. 399. The gap betw·een stakeholder perceptions and the perfonnance of the company should be measured and managed in order to enhance and protect corporate reputation. 400. The Board should bear in mind that the interests of stakeholders in the company are dynamic and subject to change. 157