Code of Corporate Governance

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Introduction The Financial Reporting Council of Nigeria (FRC) issued the Nigerian code of corporate governance in 2018, to harmonise the various sectoral codes of corporate governance which include:

i. Code of corporate governance for the telecommunication industry 2016;

ii. Code of corporate governance for banks and discount houses in Nigeria 2014;

iii. Code of corporate governance for public companies in Nigeria 2011;

iv. Code of good corporate governance for insurance industry in Nigeria 2009; and

v. Code of corporate governance for licensed pension fund operators 2008.

Principle of these codes deal with sustainability.

This principle places emphasis on paying adequate attention to sustainability issues including environment, social, occupational and community health and safety ensures successful long term business performance and projects the company as a responsible corporate citizen contributing to economic development.

(b) Recommended practices 26.1 The Board should establish policies and practices regarding its social, ethical, safety, working conditions, health and environmental responsibilities as well as policies addressing corruption.

The policies should include the following: The company’s business principles, practices and efforts towards achieving sustainability;

The management of safety issues including workplace accidents, fatalities, occupational and safety incidents; Plans and strategy for addressing and managing the impact of serious diseases on the Company’s employees and their families;

 

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The Principles also include

Plans and strategy for addressing and managing the impact of serious diseases on the Company’s employees and their families;

The most environmentally beneficial options particularly for companies operating in disadvantaged regions or in regions with delicate ecology, in order to minimise environmental impact of the company’s operations;

The nature and extent of employment equity and diversity (gender and other issues);

Training initiatives, employee development and the associated financial investment;

Opportunities created for physically challenged persons or disadvantaged individuals;

The environmental, social and governance principles and practices of the Company; and Corruption and related issues.

The Board should monitor the implementation of sustainability policies and Report on the extent of compliance with the policies.

 

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The IIRC has developed and published The International Framework to provide a foundation for the development of integrated reports. Note that the symbol is used by the IIRC as a designation for integrated reports and reporting.

The international framework (like IFRS) contains principles based requirements set out in bold paragraphs. Paragraphs which are not bold provide guidance to assist in applying the requirements.
Using the framework An integrated report should be a designated, identifiable communication.

Any communication claiming to be an integrated report and referencing the Framework should apply all the requirements identified in bold unless:  the unavailability of reliable information or specific legal prohibitions results in an inability to disclose material information; or

 disclosure of material information would cause significant competitive harm

 

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In the case of the unavailability of reliable information or specific legal prohibitions, an integrated report should:

 indicate the nature of the information that has been omitted;

 explain the reason why it has been omitted; and  in the case of the unavailability of data, identify the steps being taken to obtain the information and the expected time frame for doing so. An integrated report should include a statement from those charged with governance that includes:

 an acknowledgement of their responsibility to ensure the integrity of the integrated report;

 an acknowledgement that they have applied their collective mind to the preparation and presentation of the integrated report;  their opinion or conclusion about whether the integrated report is presented in accordance with this Framework;