Podcast
Questions and Answers
What should the company ensure regarding non-financial and sustainability issues?
What should the company ensure regarding non-financial and sustainability issues?
The company should ensure that the material and reportable non-financial and sustainability issues are disclosed.
Companies should adopt a globally recognized standard/framework in reporting sustainability and non-financial issues.
Companies should adopt a globally recognized standard/framework in reporting sustainability and non-financial issues.
True
Which of the following frameworks can be used for disclosure of sustainability issues? (Select all that apply)
Which of the following frameworks can be used for disclosure of sustainability issues? (Select all that apply)
What is the purpose of a comprehensive communication channel for a company?
What is the purpose of a comprehensive communication channel for a company?
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The manner of disseminating relevant information is more important than the content itself.
The manner of disseminating relevant information is more important than the content itself.
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What should the company have in terms of internal control system and risk management?
What should the company have in terms of internal control system and risk management?
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An adequate and effective internal control system helps sustain safe and sound operations and implement ___ to attain corporate goals.
An adequate and effective internal control system helps sustain safe and sound operations and implement ___ to attain corporate goals.
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What is the role of the independent internal audit function?
What is the role of the independent internal audit function?
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Study Notes
Increasing Focus on Non-Financial and Sustainability Reporting
- Companies must disclose material non-financial and sustainability issues to stakeholders.
- A focused policy on non-financial information disclosure emphasizes economic, environmental, social, and governance (EESG) management.
- It is crucial for companies to adopt globally recognized reporting standards like G4 Framework (GRI), Integrated Reporting Framework (IIRC), and SASB’s Framework.
- External pressures such as resource scarcity and globalization influence corporate sustainability responses, impacting long-term viability and competitiveness.
- Effective disclosure addresses both strategic and operational objectives concerning sustainability challenges.
Promoting Comprehensive and Cost-Efficient Access to Information
- Companies should establish comprehensive and efficient communication channels for relevant information dissemination.
- Media and analyst briefings are vital for timely communication of public and material information to shareholders and investors.
- The communication strategy should not only focus on content but also on how the information is delivered.
- Organized reporting channels enhance timely access to important information that influences investor decision-making.
Strengthening Internal Control System and Enterprise Risk Management Framework
- A robust internal control system and risk management framework are essential for integrity, transparency, and governance in business operations.
- Internal control systems should be sufficient and effective, tailored to the company's size, risk profile, and operational complexity.
- Effective controls foster management oversight, risk recognition, control activities, and proactive communication on risk management.
- An effective enterprise risk management framework encompasses risk identification, measurement, evaluation, mitigation, and monitoring.
Internal Audit Function
- Companies should establish an independent internal audit function to ensure unbiased assurance and improve operations.
- Internal audits enhance governance, risk management, and control functions across the organization.
- Core functions of internal audit:
- Provide independent risk-based assurance to the Board and management on governance and control processes.
- Execute regular audits according to an annual plan and company risk assessments.
- Offer consulting and advisory services related to governance and control as needed.
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Description
This quiz focuses on Principle 10 of corporate governance, which emphasizes the importance of non-financial and sustainability reporting. Participants will explore the guidelines for disclosing non-financial information and the management of economic, environmental, social, and governance (EESG) issues. Test your knowledge on how these principles affect business sustainability!
