Rights of Shareholders

Succession Planning

Succession planning is a critical element of the human resources strategy at the Company. As part of the Company’s talent review process, individual development plans are discussed on an annual basis and key talents are identified for potential higher roles in the future.

[For further details please refer to page number 198 of the Report on Corporate Governance which is part of the Integrated Annual Report]

Board architecture

Enriched by stalwarts with diverse experience and expertise, the Board provides strategic guidance to the management. It has an optimal number of Independent Directors, which ensures accountability and transparency. All Board members are accomplished individuals with backgrounds in manufacturing, sales, marketing, sustainability, governance, finance, technology, cyber security, human resource, mergers & acquisitions, management, operations, enterprise risk management and academia. The Board has several sub-committees that work together to translate the Board’s decisions into measurable outcomes for the business.

Gist of skills, expertise and competence of Directors as on March 31, 2023

* All the above details mentioned are as at March 31, 2023.

Board evaluation

We conduct performance reviews of the Board of Directors as a whole, Committee(s) of the Board and individual directors once in a financial year. The parameters for evaluating the Board’s performance include the Board’s composition, the process of appointment to the Board of Directors, a common understanding of the roles and responsibilities of the Board members and many more. The evaluation also involves a check on the Board’s independence and the Management’s effectiveness. We maintain a record of the attendance of the members at the meetings of the Board and committees and this information is summarised in the Report on Corporate Governance, which is included in this Integrated Annual Report.

Our Committees

The Board has established the following committees to perform the statutory tasks and obligations as required by various applicable laws. By performing comprehensive assessments of procedure and policy implementation, these committees maintain oversight of essential business operations. The committees meet regularly to carry out the functions entrusted to them by the Board. The strategic advice of these committees and their support help strengthen the Board’s decision-making process.

Policies

Crompton’s policies equip its employees and stakeholders with clear principles and standards. These policies serve as a decision-making framework, ensuring consistency and fairness in operations. The clear and well-communicated policies help to develop a positive business culture. In order to ensure ethical and transparent conduct of operations, the Board has formulated and implemented well defined codes, policies, charters and practices across the organisation.

EHS Policy

The Board has a well-defined Corporate EHS (Environment, Health and Safety) policy and has integrated ESG considerations into the day-to-day functions of the Company that govern our business. These include having robust governance systems, risk management and controls; serving our consumers remarkably and transparently; investing in our employees and nurturing a diverse and inclusive work environment; strengthening the communities in which we live and work; expanding sustainable solutions for our consumers and within our operations.

Supplier selection process

Our supplier onboarding process involves a comprehensive screening procedure that evaluates potential suppliers based on their capability, quality, performance and ability to deliver on time. We also assess their compliance with legal, environmental, health and safety guidelines and their willingness to participate in our sustainable supply chain management programme. In addition to this, we consider their total landed cost competitiveness and financial strength, by evaluating their balance sheets of the previous two years. These criteria are essential to our procurement process as it helps us work with suppliers who align with our values and comply with our quality, sustainability and financial stability standards. By conducting a thorough screening process, we ensure that our suppliers meet these criteria and contribute to our overall success.

Whistle blower policy

We have a Whistleblower Policy in place to enable employees to report any violations and ensure that the reporting process is transparent and fair. The policy outlines the procedures for tracking complaints, conducting investigations and imposing disciplinary measures. It also makes sure that complainants are protected from any retaliation and provides guidelines on maintaining confidentiality during the reporting process. The policy also extends to our vendors and encourages them to report any incidents they might witness.

Any reported violation is thoroughly investigated and appropriate actions are taken in accordance with the policy. To promote awareness of the Whistle blower Policy, we have developed an e-learning tool accessible to all employees, including new hires during their induction. Additionally, we have provided a tollfree number for employees to register a complaint via telephone.

Code of Conduct

We prioritise upholding ethical standards, as outlined in our Code of Conduct/ Ethics. We have an online portal called ‘Success Factors’, to ensure that all employees affirm their commitment to these standards. New hires are required to adhere to the Code of Conduct. Additionally, we provide training modules for existing employees to reinforce the importance of ethical behaviour.

Our employees actively support the internal control system by consistently demonstrating integrity and ethical values through their actions, directives and overall behaviour. Our Code of Conduct emphasises the crucial role that employees play in promoting a values-based organisation.