Governance Institute welcomes ASX Corporate Governance Council Consultation on 4th ed of Principles and Recommendations
As a founding member of the ASX Corporate Governance Council, Governance Institute welcomes today’s release of the Review of the ASX Corporate Council’s Principles and Recommendations for consultation.
“As the Hayne Royal Commission and recent APRA report on the Commonwealth Bank have shown, good governance is crucial. Establishing good governance requires much more than good intentions,” said Governance Institute Chief Executive Officer Steven Burrell.
The 4th edition of the Principles and Recommendations will help guide organisations towards good governance practices including the establishment of sound ethical frameworks. The Principles and Recommendations are the leading Australian statement on good governance practice and are widely adopted by unlisted entities and NFP’s as a model.
“Sound ethical frameworks are at the heart of good governance structures. The framework should serve as a common and authoritative point of reference for all decision-makers, and give shape to your organisational culture. Having such a framework makes it easy to answer the question ‘Can we/Should we?’” Burrell said.
Additional materials on values, ethics and culture and the greater emphasis on the importance of managing non-financial risks, an area highlighted the APRA report on Commonwealth Bank, are welcomed.
“Our members are often the front-line employees responsible for implementing the Principles and Recommendations – we look forward to consulting widely with them about the practical application of these proposals,” Burrell added.
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