The significance of Corporate Governance (CG) has been greatly enhanced in recent years, thanks to the role it plays in driving and creating good governance, all-round transparency and a clear business environment in a company. A consequence of this is the positive impact on the financial markets and their ability to support corporate entities in achieving their financial objectives at a competitive cost while preventing them from falling into financial difficulties and other business risks that threaten bankruptcy and seizure of assets.
In Saudi Arabia, STC was one of the first companies that established effective governance. As early as 2004, a governance function was created within the management structure of STC. The function clarified the relationship between the Board of Directors and the owners/shareholders on one hand, and the Board of Directors and Executive Management on the other. In addition, it helped in streamlining all external relationships – especially with external legal and regulatory entities, the government sector and suppliers and vendors enabling efficient and effective interactions that have since helped the company achieve its tactical as well as strategic objectives.
In continuation of the above as well as being fully aware of the value and benefits of good governance, STC has been keen in adopting comprehensive principles of governance, compliance and control and all-round transparency while remaining fully compliant with the applicable Corporate Law, Corporate Governance and any other regulations. The company has also been striving to raise the standards and levels of corporate governance in line with the regional and global best practices.