Organizational Structure-Corporate Governance Project
To achieve the vision, and mission of the Center and allow it to carry out its responsibilities effectively, the Center is structured in to three departments managed by an executive director with an oversight of CG Advisory Board as exhibited in the organizational chart below.
The departments are:
- Assessment Department
- Research Department
- Training Department
Figure 1: Organizational Structure of Corporate Governance Center
Corporate Governance Assessment Department
The main objective of this department is to track, monitor, and assess corporate governance practices in Saudi Arabia and other GCC markets based on certain national and international CG principles. These help in understanding its relationship to long term value creation and to stakeholders’ confidence in companies and markets. The department will start the monitoring and assessment of the publicly listed companies on Tadawul (Saudi Stock Exchange). Then it may expand its function to include the publicly traded companies on all of the GCC markets. Ultimately, this department may expand its function to include large family businesses/firms, and some government departments, authorities and agencies.
The department issues its CG report on an annual basis, starting with the Corporate Governance Index (CGI) which currently is limited to assessing the corporate governance practices of the publicly listed companies on the Saudi market. Within its annual reporting the department may promote good corporate governance through identifying and highlighting organizations with best governance practices and encourage others to adopt these best practices. In a given years CG Center calculates and publishes the CGI of the year before. This is the case as the financial reports of the companies for the year X are published at the beginning of year X+1.
Corporate Governance Research Department
The objective of this department is to conduct and disseminate quality CG research that guides good governance practices, improve board of director’s effectiveness, enhance trust in the capital market, and create sustainable value for all stakeholders and train graduate and undergraduate students. The department also is to identify challenges in CG and develops solutions and policy recommendations that address these challenges. The outcome of this department can impact the processes of the other two departments and the country’s public policy making. Also the other two departments, the assessment department and training department, may feed into this department CG issues that need to be researched. The research may lead to generating income for the Centre. For the department to achieve its objectives, it will pursue the following:
- Develop a comprehensive research program. Encourage and fund research projects in CG, financial accounting, financial reporting and disclosure that contribute to the development of good CG practices and social responsibility. Enhance the role of financial reporting and corporate governance in the development and maturity of capital markets.
- Organize conferences and symposiums on CG and financial reporting and disclosure.
- Host distinguished speakers in CG and financial reporting and disclosure.
- Establish partnerships with distinguished local and international institutions and CG centers to promote and advance CG and exchange experiences.
Corporate Governance Training Department
The objective of this department is to promote the value of CG to the economy and society. It does so by its publications; round table discussions and workshops; lectures/seminars; governance training courses for board members, regulators, CG specialists, and other interested parties; and if possible participate in offering graduate and undergraduate courses on governance within College of Business programs and in the community. These based to independent studies and internships for studies in the various aspects of CG. Some of the training courses and workshops can be used to generate income for the Center.
The Center under this department would bring together corporate and capital market leaders from the region as well as internationally. One of the main objectives of this department is to bring together CEOs, board chairmen, and board directors of leading publicly traded Saudi companies along with regulators, and corporate governance scholars and professionals in rigorous discussions and exchanges of ideas about new development in corporate governance and regulations. This department could be combined with the Research Department as their objectives overlap and they serve each other especially at the initial stages.