The Institute in the year 2010 inaugurated an Award for excellence in governance titled the “ICPSK Champions of Governance (COG) Award” to be given to those Organizations and individuals that exhibit the highest standards of practice of good governance in line with its vision and mission. The Award aims at promoting practices in good governance in the following ways:
a) Recognition of practice and application of good governance in both public and private sector entities.
b) Recognition of innovations in Organizations that support good governance.
c) Encouraging Organizations to focus on enhancement of good governance.
Categories of the ICPSK COG Award
The Award has the following categories and in each category there will be three awards; best in the category and first and second runners up:
a) Finance and Investment Sector Award
b) Commercial and Services Sector Award
c) Industrial and Allied Sector Award
d) Insurance Sector Award
e) Statutory Bodies Award
f) Small and Medium Enterprises Award
g) Co-operative Sector Award
h) Retirement Benefits Sector Award
i) Water Services Sector
j) NGO/Humanitarian Sector Award
k) Chairman of the year Award
l) CEO of the year Award
m) Company Secretary of the year Award
n) Champion of Governance Award
o) Most improved Organization Award
Parameters Evaluated in the ICPSK COG Award
Some parameters are applied discreetly, depending on the sector/organization set-up. The following parameters are evaluated:
a) The Board of Directors
b) Ethical Leadership and Corporate Citizenship
c) Accountability, Risk Management and Internal Control
d) Transparency and Disclosure
e) Shareholders’ Rights and Obligations
f) Shareholders’ Relationship
g) Compliance with Laws and Regulations
h) Sustainability and Performance Management
COG Award process
b) Participating Organizations are required to pay a nominal registration fee. Organizations may also wish to pay an additional amount to cover dinner fees for three participants for the Gala Night where the results will be announced. Participating Organizations complete a registration form and submit it to the Institute together with the registration fee and supporting documents. The supporting documents that accompany the self-assessment tool include:
(i) Audited accounts of the last three years
(ii) Minutes of the last 3 Board Meetings
(iii) Written policy for induction of Independent Directors
(iv) Code of Corporate Governance
(v) HR Policy for recruitment, training, remuneration and staff welfare, etc.
(vi) Whistle Blower Policy
(vii) Policy for Succession planning at senior levels of management just below the Board Level
(viii) Appraisal policy for reviewing the effectiveness of the Board of Directors
(ix) Corporate Disclosure Policy
(x) Policy of ESOPs
(xi) Policy on Corporate Social Responsibility
(xii) Health, Safety and Environmental Policy
c) Each participating organization shall enter in all the four awards as follows;
(i) Organization COG Award
(ii) Chairman of the Year Award
(iii) Company Secretary of the Year Award
(iv) COG CEO of the Year Award
d) After registering and paying the registration fee, a self-assessment form is sent to the organization for completion and return to the Institute together with all supporting documentation as required in the form.
e) A team of at least two Assessment Consultants is assigned to each organization to carry out the evaluation.
f) Data collected from the organization is then analyzed.
g) The organizational results are classified according to the following:
(i) Sector ranking
(ii) Chairman ranking
(iii) COG Chief Executive Officer ranking
(iv) Certified Secretary ranking
h) Background checks are done on the participants. This involves getting information from industry regulators, Ethics and Anti-Corruption Commission, association bodies and other relevant government institutions.
i) The evaluation results are then submitted to a Jury for final decision making.
j) The Gala Night is then held where the results are announced.
COG Award Evaluation Tool and Scoring
Below are the three categories of the COG Award Tools:
a) For the Organizational COG Award Tool, each question of a parameter is assessed in four stages;
(i) Implementation of this ‘criteria/question’ or policies; High = 3, medium = 2, Low = 1; and Max = 3; Total a, b, c=10
(ii) Availability of policies, plans, guidelines to support the criteria/question; High = 3, medium = 2, Low = 1; and Max = 3.
(iii) Maturity 4 years =4 points, 1 and less years= 1 point
(iv) Then each parameter is assessed as Plan Do Check Act Review/Improved; PDCAR = 15 points @ 3 high, 1 low;
(v) All points for each parameter are then reduced to 100
b) For the Chairman’s Tool, two peers evaluate the chairperson. The assessment Tool is then subjected to a desk review by two assessors who then have a face to face interview with the Chairman. The Peer score is reduced to 60% while the assessors’ score is marked at 40% giving a total of 100%.
c) For the CEO and the Certified Secretary, the process of evaluation includes a self-assessment, desk review and face to face interviews based on the Execution, Planning and Maturity aspects with the total score reduced to 100%.
The assessor is required to read the performance statement, make observations and provide for evidence to support his observations, write down notes to record and indicate the status of the evidence and then rate this evidence on the scale provided in the OBSERVATION column i.e High = 3, medium = 2, Low = 1; and Max = 3. The assessor shall complete each and every box/space/question with a short precise statement.
PDCAR Scoring (Plan, Do, Check, Act and Review)
The assessors have a second level of scoring added under the PDCAR (table 2.0 below). This comprises of Plan, Do, Check, Act and Review process to ascertain the culture of governance in the organization. This is then doubled to give weight to the parameter.
REVIEW OF MANUAL
This Governance Audit Manual may be reviewed from time to time by the Council at its discretion and subject to the laws.
This manual was approved by the Council of the Institute on Thursday January 21, 2016
This manual shall come into effect from March 1, 2016