Corporate Governance Scoring
In the past few years, the company has done well in corporate governance scoring. Data and statistics can support this claim. For instance, we recorded 97%, 98%, and 99% in 2019, 2020, and 2021 respectively.
The score is important as it helps us as the management to assess the firm’s corporate governance practices as well as policies and the level to which they serve every financial shareholder’s interests. The score for those three years indicates a higher governance risk, which is a sign of great performance and good promise. We understand that risk governance is important and beneficial as it allows for the establishment and reinforcement of risk culture and enables the company management to communicate as well as monitor compliance with risk appetite.
The management is equipped with the knowledge that risk culture is an intangible quality that risk experts seek to integrate within firms.
The capability to change behaviors of internal masses to that of one community that is aware of risks.
The scoring being high and improving each year shows that the company is in a good place to deal with risks. Another benefit is that it allows monitoring of compliance with risk appetite. We understand that this refers to a key element of a productive risk governance scheme that fosters the risk culture. It is essential that we establish the risk boundaries and that we become ready to accept that for the accomplishment of company objectives. Risk governance will aid in driving the communication of the risk appetite throughout the entire enterprise. When the appetite is strong, it will result in the firm focusing more on attaining success in the industry.
Regulatory Compliance Reporting Outcomes and Good Standing
Statistics are clear and show that the company is trending in the right direction.
According to the Regulatory Compliance report, the firm is in good shape as none of the key corporate governance obligation dimensions has scored more than 1 in the non-compliant category.
Rather than only applying the 1% corporate social responsibility allocations on the licensed revenues as modified by the organization since 2016, the TRA shared that we need to focus on all revenues. Additionally, they requested that we seek to reverse CSR funding the amounts associated with specific advertising and human resource activities. It is important that the fiscal impact of the above adjustments would cost the organization close to 5m for the time between 2010 and 2021.
While looking at the medium risk, it has been identified that some bulk messages are sent beyond the controlled timings, which are 9 a.m. to 8 p.m., and without the opt-out in the message footer.
At low risk, it has been determined that company subscribers can get more than the usual 10 SIMs when utilizing various types of identifications, which shows a breach of regulation.
According to consumer protection regulations, consumers ought to sign a termination form at STC shops when ending a service. According to the international roaming regulation, the tariff notification SMS fails to be sent to top users when starting the first data session or when customers request it. The STC website also does not include coverage maps despite approval by the TRA in 2018. Lastly, it has been determined that the customers are not provided with the code of practice.
The current initiative is adopting the Ethics and Compliance Program, holding the inauguration awareness session, publication of the Code of Ethics and Supplier Code of Conduct on the company’s website.
All this is to be arranged in collaboration with STC KSA’s Ethics and Compliance team.
This would aid in creating a work environment culture whereby every employee is treated with respect. Every individual is accorded the same and equal access to advancement opportunities, and the workplace becomes a nurturing as well as positive surrounding. Additionally, similar to other instances in established organizations in different sectors, it can assist in ensuring that the firm operates within the law and remains true to its ethical principles that are essential to the business and identity. The program will demonstrate to the employees as well as the community that the firm is devoted to acting right in its business activities.
It is noteworthy that compliance sections or departments are unable to drive revenue.
This makes it tempting for many to disregard compliance and view it as a drain on the expenditure.
Breach of compliance has the capacity to result in major damages or, in worst cases, even destroy an organization. A reputation or image that may have taken much time to cultivate can be ruined with only one negative headline. Recovering from such a failure would not only cost the firm time but money as well. In most instances, the long-term effect is more costly than the necessary resources to finance and operate a productive compliance initiative. A common area of compliance that most companies have failed in is the anti-corruption. The United States government has pledged to actively and aggressively pursue firms and people for violating the Foreign Corrupt Practices Act.