Over the years, Zenith Holding has evolved from a single product company to a multi-business corporation. Its diverse businesses include fast moving consumer goods, hotels, paperboards, paper & packaging and agri business.
Corporate Governance, according to ZENITH, is the systemic process by which organizations are directed and managed to increase their wealth-generating capacity. Since huge firms utilize vast quantities of societal resources, ZENITH thinks that the governance process should ensure that these companies are governed in accordance with the ambitions of stakeholders and the expectations of society.
The cornerstones of ZENITH's governance concept are derived from the description and fundamental principles of Corporate Governance: trusteeship, transparency, empowerment and accountability, control, and ethical corporate citizenship. ZENITH thinks that each of these contributes to the development of a corporate culture in which the company is handled in accordance with the principles of Corporate Governance.
The Corporate Governance project of ZENITH is founded on two fundamental principles.
• Management must have the freedom to advance the enterprise without undue limitations.
• This freedom of management must be exercised within a framework of effective accountability.
ZENITH believes that any meaningful policy on Corporate Governance must empower the executive management of the company, while simultaneously establishing a system of checks and balances to ensure that the decision-making authority vested in the executive management is not only not abused but is used responsibly to meet stakeholder aspirations and societal expectations.
ZENITH thinks that huge firms such as itself serve both a social and an economic function. They represent a coalition of interests, including those of shareholders, other capital providers, business partners, and employees. This view places a fiduciary responsibility on the Company's Board of Directors. They are entrusted with safeguarding and enhancing shareholder value, as well as ensuring that the company meets its commitments and responsibilities to its other stakeholders. Inherent to the concept of trusteeship is the duty to ensure equity, or the protection of the interests of all shareholders, regardless of their size.
Transparency, according to ZENITH, entails explaining the company's policies and actions to people for whom it is responsible. Therefore, transparency must result in maximum suitable disclosures, without jeopardizing the strategic objectives of the company. Internally, transparency entails an open relationship between the Company and its employees, as well as the conduct of business that can withstand examination. ZENITH thinks that openness increases accountability.
Empowerment is a key corollary of ZENITH's first basic concept of governance, which states that management must have the autonomy to steer the organization forward. ZENITH thinks that empowerment is the process of maximizing employees' potential. By vesting decision-making authority at the most suitable levels of the organizational hierarchy, empowerment releases creativity and innovation across the entire organization.
ZENITH believes that both the Board of Directors and the management are responsible to the shareholders. The company thinks that the combination of empowerment and responsibility delivers a boost to performance and increases efficiency, hence increasing shareholder value.
ZENITH thinks that control is a necessary corollary of its second basic principle of governance, which states that the freedom of management must be exerted within an appropriate system of checks and balances. Control should prevent the misuse of power, promote management's rapid response to change, and guarantee that company risks are managed effectively and proactively.
ZENITH believes that firms have a responsibility to set excellent ethical standards both internally and in their external contacts. According to the Company, unethical conduct corrupts organizational culture and diminishes stakeholder value.