Stronger Corporate Governance legislation is emerging globally. However, true success still comes from self-regulation, increased internal controls and, above all, a strong, ethical corporate culture.
Independence is created not by structures, but by the way people act and the independence of mind that they bring to the organisation. Boards must no longer be purely representative in nature but instead lend expertise and add value to the organisation and its stakeholders. Organisations that can demonstrate sound self-regulating practices are less likely to be inhibited by the intrusive demands from external regulators.
The purpose of good governance principles is to help board members, CEOs and senior managers to develop, implement and maintain a robust governance system that fits their particular circumstances. They also provide mechanisms for the company to establish and maintain an ethical culture through committed self-regulation. The Chubb Corporate Governance Policy encourages the Company to create value by fostering an entrepreneurial spirit combined with innovation, development and exploration. It also provides accountability and control systems that commensurate with the risks involved.
The key components of the Corporate Governance framework are:
- Business planning
- Global risk management
- Performance monitoring
- Accountability
The Chubb Corporate Governance Code is a set of:
- Principles – fundamental rules of ethical behaviour
- Prescribed applications – standards requiring mandatory compliance, and if not, public disclosure
- Best practices – desirable practical standards recommended for optimal governance
The Seven Key Principles of Chubb Corporate Governance are:
- Independence
- Integrity
- Proper oversight
- Accountability
- Strong internal controls
- Transparency
- Deterrence
