Читать книгу Corporate Governance - Quantity Versus Quality - Middle Eastern Perspective - Saleh Hussain - Страница 30

The number of corporations around the world taking steps to establish social responsibility divisions or committees is on the increase. As often said and quoted: Corporations are social institutions, incorporated by society for the benefit of the society, and they have no business existing if they stop serving the society".

These committees and divisions are fashionable, however, it is almost always the case that they believe "it is good to have" not "must have". With such thinking the noble idea of having them as part of the good governance of the company is completely shattered.

Companies need to believe in the merits of social responsibility as responsible, corporate citizens for social responsibility is everybody's business. Look at the following questions that the corporations can ask themselves and decide why they need to address this very important element of good governance.

•The purpose of establishing a social responsibility division or committee needs to be spelled out clearly in its charter. Some companies consider it a public relations and marketing tool to attract more business and gain acceptance by the society. There will be a big problem if it is looked at that way only. Society will soon understand such a purpose and shy away from showing interest in the concerned company. The purpose must have sincerity, reliability and a noble approach directed in an honest manner to the service of the society. Society expects to see the positive contribution the company makes to the life of its workforce and their family members and the social needs within the environment in which the company operates. Society will watch the actions taken by the company, not only intentions, and judge accordingly.

•The membership structure of a social responsibility division must be carefully thought through. Is it enough to leave it to management to handle or does the board need to be represented as well? Will it be left only to senior management or will line management be involved? These questions about structure and their answers lead to a clear and workable structure.

•The written charter of the division must specify the scope and services of the division and to whom these services will be provided - only to staff members or to their families as well? Any other stakeholders and society interest groups?

•What is the role of social responsibility within the CG in the company? Is it fully supported by the board and shareholders? The more the board and shareholders support social activities in the company - the more its position is strengthened.

•Large corporations have led the way in actually establishing a "social responsibility committee" as a board function, the same as other committees like audit, remuneration and nomination. The level of support becomes high, and the commitment and attention such a committee receives assist it to perform its duties satisfactorily. The membership of a board-level social committee should consist of board members, senior executives and representatives of societal interest groups. The voice of the committee should always have the attention of the board as it becomes an important business of that governing body.