Corporate Governance Blue Print Driving sustainable development, economic growth, and social progress in Madang Province, Papua New Guinea. Scan to visit our website: www.strategy4growth.net
Disclaimer This is a consolidated Governance Blueprint for Madang Development Corporation (MDC) IF MDC is operating as a company wholly owned by the people of Madang with majority shareholding rights vested upon and acted on by an Independently appointed Chairman and Board of Directors empowered by its duciary responsibility, authority and corporate governance oversight. Strategy4Growth Consultancy operates as a project management and consultancy rm with a speci c focus on development in Madang Province. Our vision is to support and promote stakeholder engagement and participation in the development endeavors within the province. It is important to note that while Strategy4Growth Consultancy played a signi cant role in the design and development of this document, any information provided on our involvement should be understood as a re ection of our contributions as a consultancy rm. We do not claim exclusive responsibility for the outcomes, the success of such endeavors is dependent on a multitude of factors beyond our direct control. Additionally, our consultancy services are offered based on the information available at the time of engagement, and we cannot guarantee speci c outcomes or results. Furthermore, Strategy4Growth Consultancy operates independently of governmental bodies and regulatory authorities. While we may collaborate with such entities in various projects, our recommendations and actions are guided by our professional expertise and ethical standards. Clients and stakeholders engaging with Strategy4Growth Consultancy should exercise their own judgment and conduct due diligence before making decisions based on the information or recommendations provided by our rm. This disclaimer serves to clarify the role and limitations of Strategy4Growth Consultancy in development projects and underscores the importance of informed decision-making by all parties involved. Page 1
ro f yt i r ep so rp dna s s e rgo rp gn i v i rd ,tn e mn r e vo G la i cn i vo rP gnadaM eht fo 2 eht sa etadna m ruo l l Page . s r ed loh e kat s m ra s s en i sub lu f ot d epp iuq e r ett eb dna ,tn e i l i s e r e ro m , r egno rt s eg r e m e l l i w e w , r eht egoT . yt i r ep so rp e v i su l cn i dna tn e mpo l e v ed e lban iat su s fo s laog r edao rb eht ht i w ng i la s e it i v it ca ruo taht gn i ru sn e , s e it inu m mo c ruo fo tn e m e cna vda c i mono c e-o i co s eht ot etub i rtno c l l i w e w , yt i l ibatnuo c ca dna e cnan r e vog fo sd radnat s t s ehg ih eht gn id lohpu y B . e cn i vo rP gnadaM eht n iht i w tn e mpo l e v ed dna egnah c e v it i sop ro f t s y lata c a eb ot s m ia t i ; yt itn e s s en i sub a t su j naht e ro m sa no ita rop roC tn e mpo l e v eD gnadaM h s i lbat s e ot s m ia tn i rp eu lb s iht , y l eta m it l U .tn e mpo l e v ed dna ht wo rg ro f s e it inut roppo w en gn i z i e s dna epa c sdna l s s en i sub gn i v lo v e eht ot gn itpada fo e lbapa c , y rt sudn i ruo n i r eda e l a sa no ita rop roC tn e mpo l e v eD gnadaM no it i sop l l i w no ita m ro f sna rt s ihT . y l e v it c e lano ita r epo e cnahn e ot sthg i sn i e s k s i r etag it i m dna ,no ita co l la e c ruo s e r e z i m itpo , y cn e i c n e v i rd-atad dna ygo lonh c et ega r e v e l lliw eW .no ita vonn i e dna tn e m e vo rp m i suoun itno c fo e cnat rop m i eht s e z i sahp m e tn i rp eu lb s iht n i d en i ltuo no ita m ro f sna rt eht , e ro m r eht ruF .t su rt dna s s enn epo fo e rut lu c a gn i r et so f , c i lbup eht dna , s r ed loh e kat s , s r ed loh e rah s ot no ita m ro fn i eta ru c ca dna y l e m it gn id i vo rp ot t i m mo c e w , y cn e rap sna rt gn i z it i ro i rp y B . e cn i vo rp eht s so r ca yt i l iban iat su s latn e mno r i vn e dna , s s e rgo rp la i co s ,tn e mpo l e v ed c i mono c e e v i rd taht sno i s i c ed d e m ro fn i e ka m ot su e lban e l l i w tn e mng i la e r s ihT . yt inu m mo c la co l ruo fo sno ita r ip sa dna sd e en euq inu eht gn it c e e r o s la e l ih w s e c it ca rp t s eb labo lg ht i w d eng i la e ra y eht e ru sn e ot s e c it ca rp dna s e rut cu rt s e cnan r e vog st i en i l ma e rt s l l i w no ita rop roC tn e mpo l e v eD gnadaM ,tn i rp eu lb s iht hguo rhT . yt i rg etn i dna e cn eg i l id ht i w s e v it c e jbo c ig eta rt s ruo e v e ih ca dna ,ht wo rg e lban iat su s r et so f ,t su rt r ed loh e kat s e cnahn e ot m ia e w , s e lp i cn i rp e s eht ot gn i r ehda y B . sno ita r epo ruo fo t e ca f y r e v e otn i t cudno c la c iht e dna , yt i l ibatnuo c ca , y cn e rap sna rt fo s e lp i cn i rp s eta rg etn i taht k ro w e ma r f gn id iug a sa s e v r e s tn e mu cod s ihT .tn e mn r e vo G la i cn i vo rP gnadaM eht fo m ra s s en i sub eht sa e cn eg r e m e dna ,no ita m ro f sna rt ,tn e mng i la e r sd ra wot p et s lato v ip a stn e s e rp e r no ita rop roC tn e mpo l e v eD gnadaM ro f tn i rp eu lb e cnan r e vo G eta rop roC ehT MADANG DEVELOPMENT CORPORATION - Corporate Blue Print
Message from Chairman PEC & Governor 5 Message from Chairman Madang Development Corporation 6 Introduction Principles of Good Governance 8 Responsibilities of Board Members 9 Shareholders Rights 10 seruolcsiD & ycnerapsnarT 11 Strategic Initiatives 12 tnemegagnE & Corporate Social Responsibility 81 19 ecnanrevoG etaroproC fo sralliP
MESSAGE FROM MADANG PROVINCIAL GOVERNMENT Hon. Remsy Pariwa MP Regional Member & Chairman of Madang PEC As the Regional Member for Madang and Principal Shareholder representing the interests of the people of Madang, it is my honor to address the critical importance of corporate governance for the Madang Development Corporation (MDC). Our commitment to good governance is the cornerstone of our efforts to ensure that MDC operates with the highest standards of integrity, transparency, and accountability. Corporate governance is essential for MDC as it provides a structured framework that guides our operations and decision-making processes. By adhering to principles of transparency, we ensure that all activities, decisions, and performance metrics are openly communicated to our stakeholders, fostering trust and con dence among the people of Madang. Accountability mechanisms are in place to guarantee that our management and board members are responsible for their actions, thus safeguarding the corporation’s assets and ensuring the ef cient use of resources. We are dedicated to fairness and inclusivity, ensuring that all community members bene t equitably from MDC’s initiatives. Participation is a key element of our governance approach; we actively seek and value input from the local community, ensuring that their voices are heard and their needs addressed. Our unwavering commitment to integrity ensures that MDC conducts its business with honesty and ethical behavior, avoiding con icts of interest and making decisions that are in the best interests of the corporation and the community it serves. As we drive sustainable development and economic growth in Madang Province, the principles of effectiveness and ef ciency guide our efforts to achieve our goals in the most resourceful manner possible. By embedding these principles of good governance into the fabric of MDC, we are not only enhancing our operational effectiveness but also reinforcing our commitment to building a prosperous, resilient, and inclusive future for Madang Province. Together, we will ensure that the Madang Development Corporation remains a beacon of good governance, driving meaningful progress and delivering lasting bene ts for all the people of Madang. Governor Remsey Pariwa Regional Member for Madang Principal Shareholder, Madang Development Corporation Page 5
MESSAGE FROM CHAIRMAN OF THE BOARD Dr. Miok Komolong Chairman MDC As Chairman of the Board of Directors of the Madang Development Corporation (MDC), it is with great pride and responsibility that I emphasize our steadfast commitment to exemplary corporate governance. As the business arm of the Madang Provincial Government, MDC is dedicated to operating with the highest standards of integrity, transparency, and accountability, ensuring that our actions consistently align with the best interests of the people of Madang. Good corporate governance is the bedrock upon which MDC’s success is built. By adhering to the principles of transparency, we ensure that our operations, decisions, and nancial performance are clearly communicated to all stakeholders, thereby fostering an environment of trust and openness. Our commitment to accountability ensures that the Board and management are responsible for their actions, with robust mechanisms in place to evaluate and report on our performance regularly. This accountability not only safeguards our assets but also ensures the ef cient and effective utilization of resources. Fairness and inclusivity are central to our governance approach. We are committed to treating all stakeholders equitably, ensuring that our policies and practices bene t the entire community of Madang. By promoting local participation, we ensure that the voices and needs of the people are integral to our decision-making process, thereby enhancing the relevance and impact of our initiatives. Integrity is the guiding principle that underpins all our actions. We are devoted to upholding the highest ethical standards, ensuring that our conduct is beyond reproach and that we make decisions in the best interests of our stakeholders. Our focus on effectiveness and ef ciency drives us to achieve our goals in the most resourceful manner possible, ensuring that MDC’s efforts translate into tangible bene ts for the people of Madang. By embedding these principles of good governance into every facet of our operations, we are not only enhancing our organizational effectiveness but also reinforcing our commitment to sustainable development, economic growth, and social progress in Madang Province. In conclusion, the Board of Directors is unwavering in its dedication to maintaining and promoting good corporate governance within MDC. We believe that by adhering to these principles, we will continue to build a resilient, prosperous, and inclusive future for all the people of Madang. Dr. Miok Komolong Chairman of the Board of Directors Page 6
Introduction Madang Development Corporation (MDC) plays a pivotal role in fostering economic growth, social progress, and environmental sustainability in Madang Province. Corporate governance is crucial for the Madang Development Corporation (MDC) as it establishes a framework of rules, practices, and processes by which the corporation is directed and controlled. This framework ensures that MDC operates with transparency, accountability, and integrity, which are essential for gaining the trust and con dence of stakeholders, including the local community, investors, and government authorities. Good corporate governance practices help in mitigating risks associated with corruption and mismanagement, thus safeguarding the corporation's assets and ensuring that resources are used ef ciently and effectively towards achieving sustainable development goals. Moreover, robust corporate governance is vital for MDC to attract investment and partnerships. Investors and development partners are more likely to engage with organizations that demonstrate sound governance practices because these practices indicate a lower risk of nancial mismanagement and a higher likelihood of achieving desired outcomes. By adhering to principles of good governance, MDC can enhance its reputation and credibility, making it a more attractive partner for both domestic and international stakeholders. This, in turn, can lead to increased funding and support for various projects aimed at economic growth and social progress in Madang Province. For MDC an effective corporate governance fosters a culture of accountability and ethical behavior within MDC. It sets a clear standard for decision-making processes, ensuring that actions taken by the corporation are in line with its mission and objectives. This culture of accountability is essential for fostering local participation and trust, as community members need assurance that their interests are being prioritized and managed responsibly. By upholding high standards of corporate governance, MDC not only enhances its operational effectiveness but also reinforces its commitment to inclusive and equitable development, ultimately contributing to the overall well-being and prosperity of Madang Province Page 7
The principles of good governance for the Madang Development Corporation (MDC) encompass transparency, accountability, fairness, responsiveness, integrity, participation, and effectiveness. These principles ensure that MDC operates ethically, transparently, and ef ciently, fostering trust and credibility among stakeholders. By implementing mechanisms for accountability, engaging the community in decision-making, and maintaining high ethical standards, MDC aims to achieve its mission of driving sustainable development, economic growth, and social progress in Madang Province. This inclusive and responsible approach helps MDC to effectively utilize resources and address the needs and concerns of its diverse stakeholders. Page 8
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