Governance
- Our Approach
- Our Performance
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'Strong economic, environmental and social performance as well as good governance are critical success factors for the Company.'
Message from Special Advisor to the CEO and Head of Group Secretariat
- Karen Wood
Special Advisor to the CEO and Head of Group Secretariat
BHP Billiton’s corporate objective is to create long term value through the discovery, development and conversion of natural resources and the provision of innovative customer focused solutions. In pursuing this objective we have committed to the highest level of governance and strive to foster a culture that values and rewards exemplary ethical standards, personal and corporate integrity and respect for others. We consider this fundamental to our commitment to sustainable development. We also believe that there is a link between high-quality governance and the creation of value.
The Board of BHP Billiton has delegated the authority necessary to run the business in pursuit of the corporate objective to the Chief Executive Officer. In so doing the Board has imposed certain limits on how the CEO uses that authority. Those limits include requirements that the CEO will not allow the business to operate without ensuring that there are appropriate systems in place to meet the highest standards of governance. Those systems inlcude processes to identify and control risks and to ensure that we do not allow the culture of the company to develop or subsist in a way that condones dishonest conduct, or lack of integrity, respect or dignity in relationships amongst those involved in or affected by its activities.
The Board and its Committees monitor the performance of management to gain assurance that the progress is being made toward the corporate objective within the limits that have been imposed. The Sustainability Committee, for example reviews the effectiveness of the Group’s policies and systems for identifying and managing the health, safety, environment and community risks we confront, while the Risk and Audit Committee evaluates the effectiveness of the systems for identifying and managing strategic and business risks.
Fostering a culture that reflects our commitment to our Charter values is a challenge for an organisation as broad and diverse as ours. In assuming responsibility for the corporate culture the CEO is supported by the Global Ethics Panel. That Panel is made up of representatives from our geographic regions and our businesses and advises the CEO on matters affecting the values and behaviors of the company including its ethical foundations.
While the global nature of our business presents many challenges, it also affords us the opportunity to take best practices on matters of governance wherever we find them and integrate those practices into our way of life. The pages that follow illustrate the systems and processes that have been put in place to meet our governance commitments. More information on how we manage governance can be found in the Corporate Governance Statement that forms part of our 2006 Annual Review.
Karen Wood
Special Advisor to the CEO and Head of Group Secretariat
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