WA4STEAM follows Best Corporate Governance Guidelines in EU and Spain. The association is committed to comply with European Principles of Good Governance according to the report from IFC World Bank Group: “A Guide to Corporate Governance Practices in the European Union 2015”
- Delegation of authority. European companies should produce a schedule of matters reserved for the board (this sets out the parameters of delegated authority and a schedule of authorities for executive management (this identities the financial thresholds regarding decision-making powers).
- Checks and balances. Appropriate checks and balances ensure that no one person has unfettered power over decision making. This may include splitting the role of chief executive (leading executive management) from that of the board chair; using a “four eyes” principle when signing contracts or making important commitments on behalf of the company; having an external auditor; and involving independent directors on the board.
- Professional decision making by an effective team. European boards are considered key decision- making bodies and so should focus on improving board effectiveness and efficiency.
- Accountability and transparency. European companies frequently voluntarily disclose more information than required by law as a means of gaining the confidence and commitment of investors and other external stakeholders.
- Conflicts of interest. Directors in European companies are aware that directors are prohibited from directing the activities of the company in favor of themselves or particular shareholders.
- Aligning incentives. ecoDa (European Confederation of Directors’ Associations) recommends that European companies align incentives in a way that is consistent with the long-term interests of the company.