"Companies with a professional and positive commitment to corporate governance are stronger and have a greater record of achievement"
Corporate governance relates to the manner in which company boards oversee the running of an organization by its managers, and how board members are in turn accountable to shareholders.
Zain believes effective corporate governance will in the long term improve our performance, benefiting all stakeholders and ultimately serving the public interest. Every mature corporation needs to develop a culture that defines the role of its people. Companies with a professional and positive commitment to corporate governance are typically stronger, with a greater record of achievement than those that do not.
The benefits of good corporate governance are tangible, with rating agencies now looking at such practices, and lower borrowing costs being made available for companies that comply. This benefit has been evident in Zain’s case over the last decade with financial institutions providing the company with substantial financial facilities.
Additionally, research shows that investors will pay large premiums for companies with effective corporate governance (up to 30%), and that companies with better corporate governance have higher price-to-book ratios. A key part of our vision is in to instill and promote a culture of uncompromising integrity and the highest professional and ethical standards across our entire spectrum of companies Group operations.
One component of Corporate Governance is to have an effective and independent Internal Audit Function. This function in Zain covers our entire group and is outsourced to Protiviti Member Firm (Middle East), a global risk consulting and internal audit firm.
Another component of Corporate Governance is the issuance of financial results in a timely and transparent manner. As the largest publicly traded company on the Kuwait Stock Exchange (KSE), Zain abides strictly by the standards required by the KSE and all regulatory authorities through the full transparency and the timely issuance of both quarterly reviews and annually audited financial statements that are reviewed by our two external auditors, Deloitte & Touche, Al Fahad, Al Wazzan & Co and Baker Tilly Kuwait Dr. Saud Al-Humaidi & Partners.
As part of the corporate governance, Zain has adopted a set code of conduct, embracing the values of the organization and how we do business, whereby the company and all its stakeholders abide by it.
You can read more about the Zain Code of Conduct as well as the Information Security Policy in the related documents below.
Zain has adopted a system of corporate governance based on the principles endorsed by the Organization for Economic Cooperation and Development (OECD). These principles are extensive, and we invite you to read more about them at: http://www.oecd.org
By taking these principles to heart, we are continually striving to implement professional, world-class standards, practices and policies that will result in a corporate governance environment that reinforces our corporate values and assists us in making our vision a reality.