FGV Annual Report 2020

194 FGV HOLDINGS BERHAD Annual Integrated Report 2020 Governance Overview The Board is pleased to present the CGOS that provides a summary of FGV’s corporate governance practices during the Financial year 2020 with reference to the three (3) principles of MCCG 2017: Board Leadership and Effectiveness PRINCIPLE A Effective Audit and Risk Management PRINCIPLE B Integrity in Corporate Reporting and Meaningful Relationship with Stakeholders. PRINCIPLE C The Board advocates the observance of high standards of corporate governance for FGV to sustain growth in the fast evolving corporate environment. This has become even more compelling in the increasingly competitive, challenging and demanding business landscape. As a public listed company, FGV is obligated to deliver sustainable value to diverse stakeholders. It is thus contingent upon the Group to hold itself up to uncompromising corporate governance practices that conform with stakeholder expectations. THE BOARD The current size of nine (9) Board members is appropriate to the size and diversity of FGV Group’s operations. There is also a good mix of skills as the five (5) independent directors bring in added value in specific areas namely plantation (upstream), finance, corporate governance, business management, agronomy, consulting, sustainability and downstream. FGV has also exceeded the recommended 30% women representation on the Board. The Board’s focus during the year had been to increase the pace of FGV’s strategic plan focusing on operational improvements and strengthening governance and accountability as well as addressing the COVID-19 crisis. The delivery of our business strategy has continued to be challenging, due to the ongoing uncertainty resulting from the COVID-19 pandemic. Nevertheless, the Board remains confident in the strength of FGV’s strategic plan and in management’s ability to accelerate this beyond the current crisis. The role of the Board is to create long term sustainable value for the benefit of our shareholders and stakeholders. To achieve this, it is vital that we have a robust corporate governance framework which provides systems of check and controls to ensure accountability and promotes sound decision making on the Group’s Business Plan. In addition, the Board conducts a review, constructively challenged and approved on the Group’s overall Business Plan. CORPORATE LIABILITY FGV has taken appropriate actions in the light of the recent amendment to the new Section 17A of the Malaysian Anti-Corruption Commission Act 2009 (MACC Act 2009) which took effect on 1 June 2020 that imposes corporate liability on companies in the event of failure to prevent bribery and corruption. FGV Directors have been briefed on the requirements of Section 17A MACC Act 2009. CORPORATE CULTURE The Board has set the ‘tone at the top’ in directing FGV’s culture and values by continuing to embrace FGV’s core values : Pride, Respect, Integrity, Dynamism, Enthusiasm (P.R.I.D.E.). One of the key strategic thrusts in FGV’s Business Plan is to improve human capital capabilities to drive the business forward. Creating the desired corporate culture requires the right people with the ability to practise and demonstrate the FGV’s core values P.R.I.D.E. In the effort to build a high performing organisation, the Group has incorporated the P.R.I.D.E core values into the Leadership Competencies for 2020 Performance Management System (PMS) Framework where demonstration of the required leadership competencies, behaviour and values account for 40% of the PMS Score. It is hoped that with this corporate culture, FGV Group will be able to strengthen its corporate governance practices and drive behaviours consistent with FGV’s purpose, values and strategy.