Embedding Good Practices

Embedding Good Practices

Ethics and Governance

Corporate Governance and The Board

The Board is committed to upholding high standards of integrity and strong business governance to continue to be the main driver of RHB’s corporate governance management and culture, ensuring the integration of professional business ethics across the Group. As such, the Board continues to exercise fiduciary duty as guardian of public monies by maintaining vigilant oversight of the performance of the Management, including decision-making on risk management, leadership, diversity and the sustainability agenda. The Board’s decision-making process involves a two-way dialogue with Senior Management, taking relevant issues into consideration before decisions are made and maintaining an open communication channel to ensure critical information is not overlooked. The Group’s governance structure has put in place relevant provisions for the Board to delegate specific functions and responsibilities, while the ultimate oversight remains with the Board.

The Board’s operations are guided by its Board Charter and the Board’s delegated responsibilities are guided by the clearly defined Terms of Reference (“ToR”) of the respective Board Committees. The ToR are reviewed periodically by the Board and respective committees to ensure their mandates are carried out in line with best practices and regulatory requirements. The composition of the Board Committees is periodically reviewed by the Board and, where required, improved with the support of the Board Nominating & Remuneration Committee.

The Board has put in place a Board Governance Handbook (“BGH”) that provides quick and easy reference on all the policies and guidelines that support the Board in its roles and responsibilities.

The Board continues to invest time and effort in cultivating and fostering a corporate governance culture that amplifies RHB’s core values of Professional, Respect, Integrity, Dynamic & Excellence (“P.R.I.D.E.”) throughout its value chain. These core values are ingrained within the organisation to inculcate a positive corporate culture that will spur RHB to deliver and achieve its strategic objectives. Our P.R.I.D.E. values supplement the overall Culture Component of the organisation, which ultimately contributes to delivering on our Brand Promise to our customers and the rest of our stakeholders.

Code of Ethics and Conduct

The Board has put in place a Code of Ethics and Business Conduct for Directors to promote and inculcate ethical behaviour while fostering good business ethics and compliance among the Directors. The Code is aimed at enabling the Directors to carry out their roles and responsibilities as per the Companies Act 2016, establishing and upholding ethical standards, corporate responsibility and accountability, as well as underlining the responsibility of every Director to perform their duty in a lawful, honest and ethical manner, and free from any conflict of interest.

The Board has also implemented a Group Code of Ethics and Conduct for Employees to ensure a high standard of ethical and professional conduct is upheld in performing their duties and responsibilities. It serves as a guideline to help employees interact with each other, our shareholders, customers, suppliers, competitors and communities.

As a financial institution involved in multiple banking and capital market segments, specific codes of conduct have also been established to complement the main Code of Ethics for Directors and Employees, namely the Code of Conduct for Licensed Representatives and Share Trading Officers, Code of Ethics & Guidelines for Business Conduct for Unit Trust Consultant(s) and Principles to Adopt for Users of Social Media Platforms. These Codes, along with the Key Internal Controls, aim to provide clear guidance on acceptable behaviours and practices of Directors, Senior Management, employees and the Group’s business partners or representatives.

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