Credicorp enforces the highest standards of Corporate Governance as a guide for the behavior of all members of our organization. We are confident that Corporate Governance must be underpinned by an organizational culture stressing ethical behavior of all Credicorp employees, who must adhere to the principles of honesty, integrity and fairness.
At Credicorp, Corporate Governance translates into a set of conduct guidelines built on the basis of universally accepted values and which provide a simple and clear guide for behavior.
These principles seek to build trust among our stockholders and stakeholders whose expectations about our company are very diverse. Corporate Governance initiatives are presented together with the evaluation of financial results.
However, the corporation’s governance also affects its performance in the field of Corporate Social Responsibility, a wider concept that includes our commitments to the development of social groups with which our company interacts. Consequently, the final goal of the company’s Corporate Governance practices is to built trust among all our stakeholders and thereby gain greater competitive advantages, help us improve our performance, lay the foundation for sustainable and profitable growth, and contribute to create greater value for our shareholders.
Credicorp is listed in the New York Stock Exchange and fully complies with the Sarbanes Oxley Act in force in the United States since July 2002. The Sarbanes Oxley Act has become the international standard against which Corporate Governance practices are rated.
The Sarbanes Oxley Act raised the standards for governance practices in key areas including transparency, disclosure and equal treatment to all shareholders. Credicorp’s goal is to enforce a disclosure policy to ensure that the company’s management and all its stakeholders will share a single perception of the company’s performance and prospects.
Likewise, the Sarbanes Oxley Act regulates oversight of ethical behavior and indicates the responsibilities pertaining to management, while requiring independence of management from boards of directors and independent auditors.
Principally in compliance with the Act’s provisions, in 2004 Credicorp improved Board and Audit Committee practices, including disclosure of the independent auditors’ selection policy and the auditors’ responsibilities, together with rules for the appointment of the Audit Committee’s members.
Credicorp’s web site, at Corporate Governance section, disclosed, as required by the New York Stock Exchange, an account of Significant Differences between Credicorp’s Corporate Governance compared with US companies. Likewise, the code of conduct and code of ethics for financial professionals were published in this section and 20-F, as required by the NYSE.
You’ll also find information regarding: Credicorp’s Bylaws, Audit Committee Charter, Complaint System Policy, Anti-money laundering policy, Social Responsibility, Disclosure Controls and Procedures Policy, Internal Control System Policy, Credicorp’s Financial Statements and subsidiaries reporting standards Policy and BCP’s Financial Statements reporting standards policy.
Many of the most advertised cases of inadequate Corporate Governance steam from a weak internal control environment, poor accounting practices and deficient risk management procedures. As a norm to prevent these types of weaknesses, article 404 of the Sarbanes Oxley Act requires independent auditor attestation of the status of internal controls. At Credicorp article 404 mandates auditing and certifying internal controls procedures by the end of fiscal year 2006. Credicorp already did a large portion of this task during 2004 by identifying the processes that have significant impact on the main accounts and classifying them by degree of complexity and critical importance. An internal methodology was developed to document these processes, assess risks and determine the effectiveness of controls.