Our corporate governance model seeks to ensure the creation of value in a sustainable way for the company, in accordance with its strategic objectives, the standards, the purpose and the values of Parque Arauco. In addition, it proposes adequate management control, transparency and equal treatment of our shareholders.
Our Corporate Governance is led by a Board of Directors of nine members who were individually elected by the Ordinary Shareholders’ Meeting for a period of three years, having the possibility of being re-elected indefinitely.
The average tenure of our board is 11 years (2020).
Our governance structure
In their sessions, the Board defines short, medium and long- term objectives, monitors the progress of our strategy, determines the structure and processes necessary to manage risks, and ensures compliance with business ethics and the application of the commitments in accordance with the rules and regulations of the countries where we operate.
Corporate governance structure :
- Board of Directors: Composed of nine members, three of whom are independent. Conducts corporate governance.
- Corporate management: They are in charge of the transversal functions that accompany the management of the business units.
- Directors Committee: Composed of three directors; two of them independent, carry out the activities described in article 50 bis of the Chilean Corporation Law.
- Corporate committees: Analyze risk management, ethics and sustainability in an interdisciplinary way, define guidelines for the application of these issues in the organization.
- Management of business units: They lead the development of businesses in each country, considering profitable and sustainable growth in their operations.
Corporate Governance Pillars
For Parque Arauco it is important to ensure compliance with business ethics and commitments in accordance with the rules and regulations of the countries where we are present. Here are our pillars:
Ethical Culture in Parque Arauco
Ethical culture is the cornerstone of our company. It is based on our values and disseminated through our policies and procedures throughout the organization. The main elements through which the ethical culture is deployed are: the Code of Business Conduct, Whistleblower Channel, Crime Prevention Model and Internal Control Management.
Code of Business Conduct
Our code of business conduct defines the framework under which our employees interact with our stakeholders, and defines the obligations that each worker, executive and director must meet.
Whistleblower channel: EthicsPoint
We have a channel open to our stakeholders: customers, tenants, users, workers, suppliers, investors, shareholders, neighbors, and the community in general. Through this we receive, anonymously and confidentially, any information on irregularities, inappropriate use of company assets or resources, abusive behavior, violations of the current legal system or breach of our corporate policies.
Crime prevention model
This system is aligned with the regulations of each country and allows combating money laundering, terrorist financing, corruption, bribery, reception, unfair administration, incompatible negotiation, misappropriation, water pollution or influence peddling, among others. illegal within our context and relationship as a company. Its objective is to ensure compliance with the regulations that govern the actions of the company. It covers 100% of our operation and responds to the applicable regulations in each country.
The crime prevention model has among
- A Crime Prevention Officer for Chile and Peru and a Compliance Officer for Chile and Colombia.
- A Corporate Crime Prevention Policy that applies to all divisions of the company, in addition to all its related economic units.
- Guidelines for the implementation of procedures, manuals and policies.
- Dissemination and periodic training.
- Continuous monitoring and evaluation systems.
- Complaints channel.
Parque Arauco uses a model that includes elements of the Risk Management Process contained in the NCh-ISO 31000: 2012 Standard and the COSO ERM Framework. In this way, we strive to comply with the precautionary principle and anticipate situations that represent a threat to the sustainability of our operation or to the stakeholders with which we are involved. In parallel, we classify risks into three categories within our internal control and management map. Each one is associated directly or indirectly with environmental, social or economic issues of the operation.
Seven phases were defined that allow a systematic and permanent approach to risks:
Phase 1: Establishing the context.
Phase 2: Risk identification.
Phase 3: Risk analysis.
Phase 4: Risk assessment.
Phase 5: Risk treatment.
Phase 6: Monitoring and review.
Phase 7: Communication.