ACCA SBL Syllabus B. Governance - International Corporate Governance Network (ICGN) - Notes ^{6 / 6}

The ICGN issued a report to enhance the OECD guidance

It gives practical guidance for boards to meet investors' expectations

The ICGN believes that companies will only achieve value in the longer term it they manage effectively their relationships with
stakeholders such as employees, customers, local communities and the environment as a whole.

The ICGN guidance emphasises the following points:

1. Sustainable value — long term success is a prerequisite of good governance

2. Boards should be effective, diverse, experienced and accountable for their actions

3. Corporate culture should support ethical behaviour, supporting whistle-blowers it necessary

4. Risk management should be formally undertaken in line with shareholders' expectations

5. Remuneration should be transparent and aligned appropriately with risk and other objectives

6. Audit should be robust, etlective and independent (both internal and external)

7. Disclosure and transparency should be at the heart of all relations with stakeholders

8. Shareholders‘ rights should be protected and respected by directors

9. Shareholder responsibilities should also be respected by shareholders (ie not ignored)