A commitment to transparency
We are committed to good corporate governance and achieving our business objectives in an honest, transparent and accountable way. We regard corporate governance a key element underpinning the sustainable, long-term growth of our business.
These principles are reflected in our Standards of Business Conduct, which demonstrate our commitment to good corporate behaviour. They have been in place for many years, and are regularly revised to ensure that they remain at the forefront of best business practice. Every Group company and all of our staff worldwide are expected to live up to them.
In addition, our Statement of Business Principles is designed to reflect the expectations of our stakeholders that we operate our business responsibly.
We are proud that our commitment to high standards of corporate governance is reflected in our number one ranking in an index published in the Institute of Directors’ (IoD) 2016 Good Governance Report .
The IoD’s report, published in September 2016, ranks FTSE 100 companies based on their corporate governance performance. Its index is the only one of its kind to combine measurable factors with the views of investors, business leaders and governance professionals.
Oliver Parry, Head of Corporate Governance Policy at the IoD, talks to Ian King of Sky News about BAT's top ranking in the IoD’s Good Governance Report. The clip is from Ian King Live, broadcast on 7 September 2016.
The principal governance rules applying to British American Tobacco p.l.c. (the ‘Company’) are contained in the UK Corporate Governance Code (the “Code”), which can be found on the Financial Reporting Council's website. As required by the Code, the Corporate Governance Statement in our Annual Report describes how we apply its Principles and provides our formal report on compliance with its Provisions.
In the interests of transparency, we prepare a report annually summarising our approach to corporate governance by reference to each Principle and Provision of the Code.
The Company has unlisted trading privileges for its American Depositary Receipts (ADRs) on NYSE MKT. None of its securities are listed on any United States securities exchange or registered pursuant to the securities laws of the United States. The Company is not subject to the NYSE MKT listing standards or the corporate governance rules under the Sarbanes-Oxley Act 2002.
Nevertheless, in the interests of transparency, we also prepare a voluntary annual statement explaining the principal differences and common areas between the Company’s corporate governance practices and those that would be required if the Company were subject to those US rules.
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