CCML conducts its business in a responsible manner and with honesty, and integrity. We also have the same expectations from all those with whom we have relationships. We insist on doing what is right which sets the tone of our actions and underpins the functioning of our employees. We also insist that all transactions be open, transparent and within the legal framework culminating in responsible financial reporting.
Integrity
CCML does not use bribery as an instrument for any business or financial gain. Employees are not authorized to give or receive any gift or payment which may be construed as such.
Employees are also required to avoid engaging in any personal activity or financial interests which would conflict with their responsibility to the Company.
Role of the Board of Directors
The Board has a fiduciary responsibility for the proper direction and control of the activities of the Company. This responsibility includes such areas of stewardship as the identification and control of the Company’s business risks, the integrity of management information systems and clear, transparent reporting to shareholders. The Board accepts its primary responsibility for the overall control architecture of the Company. However, it recognizes that the internal control system has to be cost effective and that no cost effective system will preclude all errors or irregularities. The system is based upon written procedures, policies, guidelines, an organogram that provides an appropriate division of responsibility, a programme of internal audit, manning of all key functions by qualified personnel and constant training.
Code of Conduct
The Board has adopted a code of conduct for its members, executives and staff, specifying the business standards and ethical considerations in conducting its business. The code includes:
- Corporate governance
- Relationship with employees, customers and regulators
- Confidentiality of information
- Trading in Company’s shares
- Environmental responsibilities
Board Committees
The Board has constituted the following committees:
- Audit Committee
- Human Resource and Remuneration Committee
- Governance and Evaluation Committee
Through its committees, the Board provides proactive oversight in some of the key areas of business and the performance of CEO. The Boards regularly reviews the respective charters of these Committees.
Audit Committee
The Audit Committee operates under a charter approved by the Board. The governing charter of the Audit Committee addresses the requirement of the code of corporate governance issued by the SECP and includes the requirements of best practices. The Committee is accountable to the Board for the recommendation of appointment of external auditors, directing and monitoring the audit function and reviewing the adequacy and quality of the audit process. CEO and the CFO are responsible for the accuracy of financial information for inclusion in the annual report; the Committee provides the Board with additional assurance.
The Committee also ensures that the Company has an effective internal control framework. These controls include safe-guarding of assets, maintaining of proper accounting records complying with legislation and ensuring the reliability of financial information.
Human Resource and Remuneration Committee (HR & R)
The HR & R Committee reviews the human resource architecture of the Company and addresses the requirement of the code of corporate governance. The committee has been constituted to address and improve the crucial area of human resource development. Its aim is to assist the Board and guide the management in the formulation of the market driven HR policies regarding performance management, HR staffing, compensation and benefits. The expanded role of the Committee is to review CEO performance and recommend CEO compensation. Further, the selection, evaluation and compensation of CFO, Company Secretary and Head of Internal Audit is also reviewed and recommended to the Board by the Committee.
Management Structure
The Company has four distinct business sipining units. The accounting for these units is done separately in an arm’s length manner to arrive at the true profit before tax for each unit. Four sipining units heads as defined in the management structure with clear responsibility and authority matrix have direct reporting lines to the Chief Executive Officer. Limits of authority at all levels are clearly defined in our control manual. The Internal Audit function is responsible to monitor compliance with the manual.
Responsibility to Stakeholders
Our primary purpose is to run our business efficiently and profitably to enhance shareholders’ value but we do it with responsibility to all stakeholders. Profitability is essential to discharge this responsibility and the corporate resources are primarily deployed in the achievement of this end. However the Company does not operate in isolation with its environment and accordingly feels responsible to all stakeholders which are:
- Our Shareholders: To protect shareholders’ investments and provide an acceptable return to them.
- Our Customers: Our Customers: To win and maintain customers by developing and providing products, which offer value in terms of price, quality, safety and environmental impact supported by requisite technological expertise.
- Our People: To respect the human and legal rights of its employees with good and safe conditions of work and competitive terms of service.
- Our Business Partners: To seek mutually beneficial relationships with contractors and suppliers of goods and services to the Company.
- Our Society: To conduct business as a responsible member of society, to observe laws, express support for basic human rights and give proper regard to health, safety and environment not only at our various campuses but also beyond, extending it to Society at large.
Service to Society
We are increasingly conscious of the role we have to play as responsible corporate citizens in fulfilling a wide variety of community needs. We believe in “giving something back” by helping address issues such as education, healthcare, public safety, environmental health etc. This is also arising from our basic belief that individual entities when they work together can create powerful synergies and help to improve the conditions of the societies in which they are operating. These principles are not just put forth on paper but we have over the years actively strived to promote issues of education, health and environment. Major portion of our budget for philanthropy and sponsorship is allocated to primary and secondary schooling for less privileged children.
Health, Safety and Environment
At CCML we take maintenance of health and safety standards at our plants and offices seriously. We are committed to actively managing health and safety risks associated with our business and are actively working towards improving our procedures to reduce, remove or control the risk of fire, accidents or injuries to employees and visitors. All our activities at all our campuses are required to conform to international standards for health and safety certified by ISO14001:2004 and OHSAS 18001:2007.
We also ensure that our products are shipped in a safe manner complying with the safety standards and legal requirements.
Role of Shareholders
The Board aims to ensure that shareholders are informed of all major developments affecting the Company’s state of affairs. Information is communicated to the shareholders in the annual report and the interim quarterly reports. The Board encourages the shareholders’ participation at the Annual General Meetings to ensure a high level of accountability. The Company’s financial statements are available on the Company’s website and an officer is designated to answer all shareholder enquiries.