Good Governance helps create long term value.

According to the WEF’s Measuring Stakeholder Capitalism Report, ‘Governance is foundational to achieving long term value by aligning and driving both financial and societal performance, as well as by ensuring accountability and building legitimacy with stakeholders. The Governance pillar establishes foundation-level priorities for reporting that build on [existing] frameworks, it is not intended to replace them.’

Pan Asia Metals is focusing on:

GOVERNANCE:
Governing Purpose
Setting purpose
Quality of Governing Body
Governance body composition
Ethical Behaviour
Anti-corruption
Protected ethics advice and reporting mechanisms
Risk and Opportunity Oversight
Integrating risk and opportunity into business process

GOAL 4:
QUALITY EDUCATION
Obtaining a quality education is the foundation to improving people’s lives and sustainable development.

GOAL 5:
GENDER EQUALITY

Gender equality is not only a fundamental human right, but a necessary foundation for a peaceful, prosperous and sustainable world.

Governance related achievements are specifically related to 3 of the UN’s SDGs: Goal 12 – Responsible Production and Consumption, Goal 16 – Peace, Justice and Strong Institutions, Goal 17 – Partnerships. Pan Asia has also allocated Goal 4 – Quality Education and Goal 5 – Gender Equality to Governance, as these are 2 Goals that we believe are essential for good governance.

The WEF’s SCM for Governance has 6 core categories, namely:

  1. Setting purpose – The company’s stated purpose to create value for all stakeholders, the means and solutions to economic, environmental, and social issues.
  2. Governance body composition -Composition of the highest governance body and its committees.
  3. Material issues impacting stakeholders -Topics material to key stakeholders and the company.
  4. Anti-corruption – Percentage of governance body members, employees and business partners who have received training.
  5. Protected ethics advice and reporting mechanisms.
  6. Integrating risk and opportunity into business process.

The British Academy states: “The purpose of business is to solve the problems of people and planet profitably, and not profit from causing problems.” Linking a company’s purpose to its core business can deliver long-term value for all stakeholders. Strong governance will instil the confidence to focus on what is material to a company and its stakeholders. Corruption undermines legitimacy and stakeholder trust; it is linked to misallocation of capital, environmental harm, human exploitation and unethical and illegal behaviour.

At Pan Asia Metals, anti-corruption training will offset this. We will always be adhering to the ASX Corporate Governance Council’s 8 ‘Corporate Governance Principles and Recommendations’.

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