British American Tobacco - Corporate governance (QIAN YANG) Introduction：500
Corporate governance background 250
To begin with we will provide a brief background on the corporate governance. The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. British American Tobacco background 250
British American Tobacco plc (informally BAT) is a British multinational tobacco company headquartered in London, United Kingdom. It is the world’s second-largest tobacco company by sales (after Altria Group, the former Philip Morris International). Founded in 1902, our Group of companies traded through the turbulence of the 20th century, including wars, revolutions and nationalizations. The Group was first listed in 1912, and today we are one of the top 10 companies listed on the London Stock Exchange and feature in the Fortune 500. BAT has a market-leading position in over 50 countries and operations in around 180 countries. We employ more than 55,000 people and, with over 200 brands in our portfolio, we make the cigarette chosen by one in eight of the world’s one billion adult smokers BAT has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of 6 July 2012 it had a market capitalization of £65.6 billion, the sixth-largest of any company listed on the London Stock Exchange.[ We hold robust market positions in each of our four regions – Americas; Asia-Pacific; Eastern Europe, Middle East and Africa; and Western Europe – and we are leaders in more than 60 markets. Our approach to marketing is second to none in our industry, in brand building, innovation and responsibility. Our companies adhere strictly to the high standards of our voluntary marketing principles. In 2012, our subsidiaries enabled governments worldwide to gather more than £30 billion in duty, excise and sales taxes on our products, more than seven times the Group’s profit after tax.
The UK Corporate Governance Code
High quality corporate governance helps to underpin long-term company performance. We are committed to good corporate governance and achieving our business objectives in an honest, transparent and accountability way. We regard corporate governance a key element underpinning the sustainable, long-term growth of our business. In the following part, there are some main principles of the UK Corporate Governance Code. These principles are reflected in our Standards of Business Conduct, which demonstrate our commitment to good corporate behaviour. They have been in place for many years, and are regularly revised to ensure that they remain at the forefront of best business practice. Every Group company and all of our staff worldwide are expected to live up to them.. In addition, our Statement of Business Principles is designed to reflect the expectations of our stakeholders that we operate our business responsibly.
Section A: Leadership
Section A defines the notion of the leadership, argues for its important, and analysis the fact of British American Tobacco.
British American set board audit committee; Audit Committee meet seven times meetings in 2013 and most of directors attended them including the Chief Executive, the Group Finance Director, the Chief Internal Auditor, the Chief Risk Officer and the Group General Counsel. External auditors will also attend the meeting (British American Tobacco annual report, 2013). So, in this section, I will introduce British American Tobacco’s leadership from three aspects:...
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