Potential impact and opportunity
Failure to comply with corporate governance codes and practices could result in adverse sentiment towards the Company.
A strong and transparent approach to corporate governance will be viewed favourably by the Company's current and potential shareholders.
Mitigation of impact
We recognise the importance of maintaining strong corporate governance procedures and processes and continue to develop systems. We do this through:
- employing the skill, expertise and resources of the Group and its advisers;
- reviewing compliance with corporate governance codes and other regulatory guidelines regularly;
- regular updates on potential changes to the regulatory landscape;
- complying with all relevant national and international laws and acting in accordance with local guidelines and regulations (including those that are industry specific) that govern our operations; and
- establishing Board level responsibility and accountability.
Responsible business practices are a way of doing business within our Company rather than an isolated exercise and this is underpinned by how our Board and committees operate. We have a corporate governance framework which supports an enterprising management team whilst also managing the risks that are inherent in running a growing exploration and production business.
The Board has overall responsibility for corporate leadership and focus on making sure the Company is well run and has a transparent approach to developing the Group. We have responded to the introduction of the UK Bribery Act, which became effective 1 July 2011, with a comprehensive anti-bribery and corruption programme, including the establishment of a Board level Anti-Bribery and Corruption Committee and an Anti-Bribery and Corruption Code.
The 2010 Code, introduced in June 2010, applied from 1 January 2011. The main changes concern risk within the business model, performance-related pay, accountability/re-election of Directors, proper debate, well balanced Board, Board performance and Board training and development. The CSR Committee, formed in 2010, is tasked with maintaining the Company's CSR Policy Framework in line with best practice and appropriate international standards and guidelines. The Committee is responsible for ensuring that the CSR Report is a fair reflection of our policies, systems and performance, is coherent and published in a timely manner and that the same approach is applied to the Company's website www.heritageoilplc.com.