NAVIGATING FINANCIAL SUCCESS: THE ROLE OF ROBUST CONTROLS AND COMPLIANCE IN TODAY’S BUSINESS WORLD

Q: Why are robust controls crucial for organisations and how do they contribute to financial success?

A: Robust controls are essential because they provide a systematic framework for managing, monitoring and safeguarding an organisation’s resources. It is imperative to have a wide range of controls in place as they manage various risks and allow an organisation to achieve its strategic objectives effectively.

These controls ensure that all transactions and processes are accurate, transparent and compliant with regulations, reducing the risk of error, fraud and mismanagement. By promoting accountability and fiscal responsibility, strong controls contribute to the efficient allocation of resources, cost reduction and ultimately, financial success.

At Ceylon Tobacco Company (CTC), there are several local and global policies and business controls in place that allow us to work with integrity. These set a foundation based on which we can achieve our strategic objectives and operate our business efficiently and in compliance.

Q: In a rapidly evolving business environment, what are the challenges and complexities organisations face in maintaining compliance?

A: The modern business landscape presents several challenges regarding financial compliance. These include the rise of new technologies, an ever expanding range of regulations, and a heightened focus on environmental, social and governance (ESG) reporting. Organisations must also grapple with data privacy concerns and the need to adapt to changing market conditions swiftly.

The external complexities are why we must understand the risks we face as a business. As a future fit organisation, we must stay updated and be agile in implementing compliance strategies. This involves adopting a risk-based approach to compliance, using technology to our advantage and creating a culture of compliance within the organisation.

Q: How can organisations balance maintaining stringent controls, and fostering innovation and growth?

A: Striking a balance between maintaining stringent controls, and fostering innovation and growth requires a multifaceted approach. Organisations can tailor their controls based on the level of risk, allowing high-risk areas to have more rigorous rules and providing flexibility in low-risk areas. We must leverage rapidly advancing technologies to our benefit. An automated monitoring system that enables real-time insights will result in quick detection and response to irregularities, promoting a dynamic balance.

Organisations must also educate employees about the importance of controls and compliance, which empowers them to innovate within the established framework. From internal audits to cascading regular training of employees and relevant stakeholders, CTC ensures that all of us know our role and contribution towards a sound control environment. This in turn helps us create a transparent and accountable environment where innovation and growth can flourish.

As an organisation, we must recognise that controls are not put in place to impede innovation or growth. They are implemented to ensure that we deliver our objectives correctly and with integrity.

CORPORATE GOVERNANCE IN THE MODERN BUSINESS LANDSCAPE: BEST PRACTICES AND BEYOND

Q: Why is corporate governance essential for an organisation in today’s complex business landscape?

A: Corporate governance plays a pivotal role in the contemporary business environment. It reinforces an organisation’s transparency, accountability and ethical practices. And it also provides a structured framework for sound decision making and strategic planning, ensuring that an organisation navigates challenges effectively without compromising integrity. With increasing regulatory scrutiny and evolving compliance requirements, robust corporate governance serves as a safeguard against legal and financial risks, and supports in adapting to the shifting landscapes.

These attributes are critical for maintaining stakeholders’ trust, attracting investors and upholding the company’s reputation, whilst fostering long-term sustainability and resilience.

Q: What is your organisation’s approach to corporate governance – and what key initiatives has the company implemented to reinforce corporate governance practices?

A: At CTC, we regard corporate governance as the cornerstone of our operations. We have integrated the environmental, social and governance (ESG) framework into our DNA, and remain steadfast in driving robust corporate governance. Internally, we are proud to live by the British American Tobacco (BAT) ethos behaviours and ‘responsible’ is one of the pillars we abide by.

As a responsible company with over 110 years of operations in Sri Lanka, we continue to deliver with integrity and remain devoted to ensuring transparency across all business areas to create long-term value for the company’s stakeholders. At times, we go above and beyond the regulatory requirements, and hold ourselves to a standard that is stricter than local laws.

Regular assessments, internal audits and compliance checks are integral to our corporate governance strategy. Furthermore, as a publicly listed entity since 1954, we foster an open, transparent dialogue with all stakeholders including shareholders, regulatory bodies and the community, to maintain transparency and accountability. We also ensure key highlights and information are transparently reported in our integrated annual report, available on our website.

Additionally, CTC has a rigorous code of conduct and ethics to guide our employees, reinforcing our commitment to good governance. We have a platform called Speak Up that allows any individual within the organisation or beyond to blow the whistle and report wrongdoings without fear of reprimand.

Q: With the evolving corporate governance landscape, what best practices should organisations adopt to stay transparent and ethical?

A: The future of the business community is headed in the direction of high standards of ESG. Given this trend, measures such as embracing transparency in financial reporting, corporate disclosures and decision-making processes must become the core of any operation.

Forward-thinking measures such as ensuring strict data privacy standards to keep up with ever evolving technological advancements should also be in place to address any potential risks in hybrid working environments. Promoting ethical, inclusive leadership, beginning with senior management, is also vital. Investment in training must also be prioritised to keep the organisation informed.

At CTC, our governance structure incorporates international standards that allow us to be well-equipped to carry out our overall responsibilities. We have zero tolerance for bribery, corruption and harassment. We also have stringent Group Standards of Business Conduct (SoBC), adapted locally, which all employees, suppliers and relevant stakeholders must strictly abide by.

COMPANY DETAILS

Telephone: 2496200 | Email: Contact_CTC@bat.com | Website: www.ceylontobaccocompany.com