Leading the way in corporate governance

How does your company ensure that the interests of various stakeholders – such as shareholders, employees, and the community – are considered in your governance framework?

Tan: CICT’s corporate governance framework is designed to ensure that the interests of all stakeholders, including investors, employees, tenants, shoppers, suppliers and communities, are carefully considered. For investors, regular updates on CICT’s performance are provided at annual general meetings (AGMs). The company also engages extensively with both retail and institutional investors through various channels, including group meetings and investor conferences..

Meanwhile, employees benefit from a high-performance work culture that values diversity and teamwork, supported by regular staff communications, engagement programmes, and training. For tenants and shoppers, CICT maintains high tenant retention through proactive engagement and digital platforms such as CapitaStar that enhance tenant and shopper experiences. The company also fosters strong supplier relationships by ensuring fairness and recognising excellence in service quality, with 100 per cent of its supply chain adhering to the CapitaLand Investment Supply Chain Code of Conduct.

Finally, CICT is committed to community engagement, actively participating in sustainability initiatives and social programmes, including pursuing green certifications for all its properties.

Chng: Keppel has adopted a comprehensive stakeholder engagement approach, to ensure that the interests of various stakeholders are considered as part of our governance framework. These stakeholders could be individuals, groups of individuals or organisations that affect and/or could be affected by Keppel’s activities, products and services and the company’s performance.

We engage with our stakeholders regularly through various platforms in determining the company’s material areas of focus, and to ensure that our stakeholders’ concerns are meaningfully captured and addressed. Materiality assessments are important components of Keppel’s strategy and reporting approach.

Sim: At SBS Transit, our corporate governance framework is firmly rooted in inclusivity, which balances the diverse needs of our stakeholders. The introduction of our board diversity policy in 2019 is a testament to this commitment, ensuring a rich blend of expertise, experience, age, and gender within the board. The diversity of our board enhances its ability to understand the diverse interests of stakeholders and to develop strategies that effectively address their concerns.

The board works in close collaboration with management to identify key stakeholder groups and develop strategies that effectively address their concerns, maintaining transparency and accountability throughout the organisation. This inclusive approach is further exemplified by our early adoption of hybrid meetings with shareholders, which promote real-time communication, live voting, and increased participation.

Yuen: We have a diverse board and management team, which helps ensure that the interests of various stakeholders are represented, and that decisions are made in the best interests of the company to achieve long-term sustainable growth.

Our engagement with our stakeholders includes regular and open communications with investors through webinars, investor meetings and AGMs, which help foster trust, provide updates on our strategy and key business developments, and ensure support for our strategic initiatives.

We also regularly conduct a materiality assessment with internal and external stakeholders to help us identify and understand the importance of ESG topics to them. In the latest round, we found that some of the ESG topics identified in our previous exercise three years earlier no longer held the same priority and significance for stakeholders, partly due to Covid and changes in the environmental and social climate. With these findings, we refreshed our sustainability commitments to align them with the interests of our stakeholders, and this has guided our strategy and actions recently.

Achieving high standards of corporate governance while driving business growth can be challenging. How does your company strike this balance, particularly in a competitive market?

Tan: In a changing market, strong corporate governance is essential for navigating the complexities of a dynamic business environment, building trust with our stakeholders, and strengthening our reputation and competitive advantage to position us for long-term success.

Our governance principles are embedded in our business strategy where we adopt best practices and uphold corporate governance standards in accordance with the Code of Corporate Governance 2018. This includes having clear policies, rigorous internal controls, and a robust risk-management framework that allows us to make informed decisions while minimising risks. Agility is also key and we maintain high standards of governance by ensuring that our board is composed of diverse experienced individuals with expertise in a wide range of areas.

Chng: In driving growth, we adopt an effective, balanced and integrated approach to risk management with the aim of optimising returns, while taking into consideration the business risks and their impact on corporate sustainability.

Growth should never come at the expense of good governance – we care about how results are achieved, and not just that they are attained. We firmly believe that having a robust system for controls and risk management will enable the company to deliver outstanding performance, while maintaining the highest ethical standards in line with applicable laws and regulations, thus defending our “right to play” in the markets where Keppel operates.

Sim: We believe that long-term shareholder value is intrinsically linked to robust corporate governance, which is deeply embedded in our vision, mission, and core beliefs. Our corporate governance framework aligns with our commercial objectives, viewing compliance costs as an investment in future success, rather than an impediment to growth. By integrating strong and effective risk management, transparency, and accountability, we safeguard stakeholder interests and enhance decision-making, enabling us to thrive in a competitive market while upholding high standards.

Yuen: We do not see corporate governance and business growth as being mutually exclusive. In fact, we aspire to the highest standards of corporate governance as we believe that good governance is necessary to drive long-term value creation.

In our opinion, having a strong foundation in governance, encompassing aspects such as a robust risk culture, strong code of conduct and effective internal controls, allows us to capitalise on emerging opportunities while proactively mitigating potential impact. The integration of governance principles into our day-to-day business activities has created an environment that fosters responsible risk-taking without stifling innovation.

Strong corporate governance often starts with ethical leadership. How does your leadership team foster a culture of ethics and integrity within the company?

Tan: To foster a culture of ethics and integrity, the board has adopted a code of business conduct and ethics which requires every director to adhere to the highest standards of ethical conduct. This commitment from top leadership shapes the desired organisational culture and reinforces the importance of ethical behaviour throughout the organisation. A whistle-blowing policy is also in place to provide employees with clear, accessible and trusted channels to report any dishonest practices and other improprieties in the workplace.

Chng: Good corporate governance starts with a company’s board of directors and management, who play a crucial role in ensuring transparency, accountability, optimal performance, and good processes and practices in the company.

At Keppel, we believe in setting the tone from the top. Keppel’s board is led by our chairman, Danny Teoh, who sets a strong ethical and behavioural tone and takes a leading role in Keppel’s drive to achieve and maintain a high standard of corporate governance, together with the full support of the other directors, our chief executive officer Loh Chin Hua, and management. This focus on governance cascades down through management to every Keppelite, collectively promoting a culture of accountability and transparency within the organisation.

Sim: The leadership team fosters a strong culture of ethics and integrity at SBS Transit by embedding our code of conduct into the organisation’s operations. This code, which employees acknowledge from their first day of work and is reaffirmed annually, is not just a set of guidelines but a fundamental part of our corporate identity. It acts as a moral compass, guiding employees to make decisions that reflect high ethical standards, and is reinforced by our vision, mission, and core beliefs, which together create a strong foundation. Our code of conduct is also extended to our contractors, consultants, and agents.

Yuen: My leadership team and I have communicated a clear purpose – empowering people, businesses and communities through technology – and it is aligned with our Singtel28 growth plan. Our purpose and values unite everyone from various businesses and countries across the group and also shape the way we work. By setting the tone from the top and fostering a culture of ownership and doing the right thing, our people understand the importance of responsible business practices, transparency and integrity.

We promote open communication and encourage them to speak up about ethical issues through channels such as an independent whistle-blower hotline, thus ensuring everyone contributes to maintaining a high standard of ethics and integrity within the organisation.