The set of purposes for which the board has been established are:
To approve and monitor various critical business and the corresponding financial strategies of the company thereby assessing every major risks which the Company might face and the ways through which it can be mitigated.
To oversee processes that have been designed to ensure that the Company; its employees etc are very much functioning under the law of the land as well as the applicable laws and regulations and the Company's conduct manual that is applicable equally at all places.
The company's power structure has been clearly defined along with the responsibilities of the head of the company is in between the functioning of the board and the executives withholding the responsibilities of the various businesses, departments and projects of the company. The decision making is a joint work with none of the individual having superior powers of decision.
The appointment of new directors to the board is being done after a formal, rigorous and transparent procedure. The appointment is being achieved while depending on the information that board are being supplied on periodic basis that too in form of skills and qualification which is most suitable as well as appropriate so that the complete board including the new individual will get enabled to form a unit while discharging its duties. All directors over here receive induction on joining the board and are regularly updated to refresh their skills and knowledge.
Procter & Gamble has enabled several committees with various responsibilities set forth in its charter with purpose being the long term company benefits. Those five standing Committees are as follows
Compensation & Leadership Development Committee
Governance & Public Responsibility Committee
Innovation & Technology Committee.
1 b. Evaluate, based on the literature on the relationship between corporate governance and corporate performance, how important compliance is for the protection of shareholder interests.
Corporate governance and the associated system is quite necessary for ensuring better performance of the whole