Criteria and Selection Process

Criteria

Awards of Excellence in Corporate Governance

Companies considered for the Awards of Excellence in Corporate Governance should demonstrate commitment and achievement in the following areas of corporate governance:

1. A corporate culture and leadership with appropriate corporate structure and policies conducive to good corporate governance.

2. Evidence of protecting and advancing rights and interests of all shareholders, especially minority shareholders.

3. Evidence of maintaining good relationships with different stakeholders via different channels and responding to their needs and concerns, showing respects for ethical, economic, social, environmental and human values in the business process.

4. Effective composition and structure of the board of directors that allows the board to exercise its duties/responsibilities independently and effectively.

5. Demonstration of the high quality of board directors and the whole board and its committees, and examples of their process and performance that advance the value of company and interests of stakeholders.

6. Integrity in financial reporting that ensures quality and timely disclosures of financial and other non-financial information.

7. Effective internal controls and risk management processes as well as internal and external audit process that minimize hazards, fraud, corruption and other malpractices.

8. Clear delineation of the role of executive management and their accountability to the board, and the policy on assessment & compensations for senior executives.

Companies are encouraged to outline their efforts and achievements in complying with or exceeding the Stock Exchange of Hong Kong’s various new rules and requirements, such as Board Diversity, ESG Reporting and Code of Corporate Governance Practices, etc. under respective criterion.

Awards of Excellence in Sustainability

Companies which are interested in the Sustainability Awards are strongly encouraged to provide a more detailed description of their sustainability measures, performance and achievements by referring to all or some of the aspects listed below, in order to allow the Expert Review Group and members of the Judging Panel to make a comprehensive assessment.

1. A corporate culture and leadership with appropriate management, monitoring and public reporting systems and policies conducive to sustainability.

2. Evidence of committing to sustainable use and protection of natural resources along the production chain, demonstrating commitments on reducing the company’s direct and indirect environmental impacts, actively promotes the value of environment along every channel of the supply chain.

3. Evidence of a strong commitment to community investment and philanthropic support.

4. Effective policies and procedures to address risks and responsibilities across the company’s workforce, supply chain, and business partnerships as well as in communities impacted by its operations.

5. Active strategies to ensure equitable access to the company’s goods and services, effective policies and procedures in place to protect consumers’ rights.

6. Evidence of maintaining an ongoing dialogue with different stakeholders and committing to open and transparent reporting systems for social impact.

7. Demonstration of respects for values of staff work/life balance, workforce diversity and non-discrimination; implementing fair, effective, and competitive remuneration strategies and policies.

8. Demonstration of respects for values of staff work/life balance, workforce diversity and non-discrimination; implementing fair, effective, and competitive remuneration strategies and policies.

For both the Awards of Excellence in Corporate Governance and Sustainability, special attention will be paid to the following three areas :

1. Innovations and significant improvements in corporate governance / sustainability made over the last three years.

2. Efforts made to internalize and pursue the highest principles of corporate governance / sustainability over-and-beyond compliance with requirements. 

3. Ability to show positive business impact of the corporate governance / sustainability spirit and practices.

Selection Process

Award policies and selection process/criteria will be overseen by a joint CHKLC-CCGFP Award Organizing Committee (AOC). The selection process will involve an Expert Review Group (ERG) and an Award Judging Panel (AJP). Selection process goes through two rounds.

Preliminary Round

The ERG comprises independent expert assessors from various sectors. Each entry is reviewed independently by two assessors using an assessment model based on the self-completed questionnaire and studying the entrant’s performance of corporate governance practices in accordance with the 8 aspects of corporate governance and / or sustainability with reference to published information. Those satisfying the basic criteria will be short-listed. The ERG then reviews and ranks all short-listed entries, comparing their strengths, weaknesses and achievements. Top entries are recommended for further consideration by the AJP.

Final Round

The short-listed finalist companies will be invited to make a 20-minute verbal presentation followed by questions from the AJP for 15 minutes during the AJP meeting. Finalists are expected to showcase and highlight their achievements in corporate governance in accordance with the 8 aspects of corporate governance and/or sustainability during the AJP meeting.

Decisions of AJP

The Award Judging Panel may recommend three awards in each category (and may increase or decrease the number of awards at its discretion). The Panel reserves the right to withhold awards if the required standards are not met.。

*The decision of the AJP is final and no appeal or correspondence will be entertained.