Rule IX: Recognize the Roles of Stakeholders
The Protection of Stakeholders’ Rights
The company is committed to protecting the rights of stakeholders and creating job opportunities by ensuring a stable and strong financial position. As part of the corporate governance framework, the stakeholder protection policy has been developed as stipulated in the relevant laws and regulations.
Accordingly, the company’s Board is responsible for setting standards for protecting the rights of all stakeholders and updating them when appropriate, to clarify changes in the provisions of the law and regulations issued by regulatory authorities.
Keeping the Board aware of any developments in the internal and external environment of the company is essential and allows the Board to intervene immediately if necessary. The executive management headed by the CEO is responsible for the day-to-day management of the company’s operations and the implementation of its strategy. Therefore, one of the primary responsibilities of the board of directors is to select members of the executive management who can take over these tasks efficiently.
The remuneration policy of the company determines the reward system in line with the objectives of the company, shareholders and stakeholders. This policy reflects standards and principles of best practices in good governance based on the relevant regulatory requirements.
The Board of Directors takes responsibility for overseeing the affairs of the company including approving and monitoring the implementation of strategic goals, risk management strategy and corporate governance standards. In addition, the Board of Directors delegates some of its responsibilities to its committees (the Risk Committee, the Audit Committee, the Nomination and Remuneration Committee). The Board provides members of the executive management with a clear framework for managing the company’s operations, and this is achieved through implementing the approved policies.
Stakeholder participation and following the company’s operations
The company aims to understand the expectations and requirements of stakeholders and considers the interests of external and internal parties; these include current and potential shareholders, customers, government bodies and regulatory authorities, employees, suppliers, society, competitors and other external parties. The company strives to provide effective, transparent and timely communication.
The company uses a number of channels to disclose the material information to internal and external parties, including traditional and digital media such as the official website of the company and social media. The company is committed to disclosing all material information to the market through disclosing it to the Capital Markets Authority and the Kuwait Boursa in a precise and timely manner.
We continue our commitment to the principles of transparency by providing information about the company’s performance through periodic reports (annual and quarterly) in Arabic and English, which are prepared in accordance with the laws and regulations. The investor relations page on the company’s official website contains material information regarding the company’s performance. The corporate governance page also includes all the disclosures and information related to the principles of corporate governance such as the company’s memorandum and the articles of association. The sustainability page contains sustainability reports and thought leadership reports that cover the most important information about the company and its contributions to community service.
In addition, the company is committed to providing time for stakeholders, especially for shareholders, to communicate any questions through annual general assemblies, and it also connects with the community of financial analysts through quarterly analyst calls.
Zain is in constant communication with the media to ensure that it provides accurate and timely information about achievements and company performance. The company communicates with colleagues around the world through formal and informal communication channels, with a special focus on enhancing dialog between employees. These communication channels include intranet, webinars, employee notices, newsletters, posters, and communications via modern technology such as video calling. The main purpose is to unify the vision and understanding of the Group’s goals and principles and to ensure that this vision is consistent and compatible throughout Zain’s footprint.
The company is subject to a set of laws and regulations, issued by the relevant regulatory authorities, and it is the responsibility of the Board of Directors to ensure that the company adheres to these laws. Just as the company guarantees the protection of the rights of stakeholders, it also expects all stakeholders to fulfill their obligations governed by contracts, laws and regulations.