Transparency, Disclosure and Accountability are three main pillars of corporate governance.

For decades, Reliance Industries Limited is growing in step with India’s industrial and economic development. The Company has helped transform the Indian economy with large projects and world-class execution. The quest to help elevate India’s quality of life continues and is unabated. It emanates from a fundamental article of faith: ‘What is good for India is good for Reliance’. Good governance practices stem from the dynamic culture and positive mindset of the organisation. For a good company the objective of Corporate Governance is to meet stakeholders’ aspirations and societal expectations.

Reliance played a leading role in caring for India and Indians in the last couple of years of the pandemic. We now aim to care for the Planet as we embark on our most exciting transformation – the Green Transformation. – Mukesh D Ambani, Chairman & Managing Director, Reliance Industries Limited

“Between my past, the present and the future, there is one common factor: Relationship and Trust. This is the foundation of our growth.” – Dhirubhai H. Ambani, Founder Chairman, Reliance Industries Limited

The company believes, Corporate Governance is not just a destination, but a journey to constantly improve sustainable value creation. “It is an upward-moving target that we collectively strive towards achieving.”, the company said.

The six core values (viz. Customer Value, Ownership Mindset, Respect, Integrity, One Team and Excellence) enshrined in Values and Behaviours guide corporate governance framework, RIL annual report said. The Company has put in place an internal multi-tier governance structure with defined roles and responsibilities of every constituent of the system. The Company’s shareholders appoint the Board of Directors, which in turn govern the Company.

The Board has established various Committees to discharge its responsibilities in an effective manner. The Chairman and Managing Director (CMD) provides overall direction and guidance to the Board. In the operations and functioning of the Company, the CMD is assisted by four Executive Directors and a core group of senior level executives. Corporate Governance encompasses a set of systems and practices to ensure that the Company’s affairs are being managed in a manner which ensures accountability, transparency and fairness in all transactions in the widest sense.

“We are committed to meet the aspirations of all our stakeholders. This is demonstrated in shareholder returns, high credit ratings, awards and recognitions, governance processes and an entrepreneurial performance focussed work environment. Additionally, our customers have been benefited from high quality products delivered at extremely competitive prices.”, RIL Annaul Report 2022 said.

The essence of Corporate Governance lies in promoting and maintaining integrity, transparency and accountability in the management’s higher echelons. The demands of Corporate Governance require professionals to raise their competence and capability levels to meet the expectations in managing the enterprise and its resources effectively with the highest standards of ethics. It has thus become crucial to foster and sustain a culture that integrates all components of good governance by carefully balancing the inter-relationship among the Board of Directors, Board Committees, Finance, Compliance & Assurance teams, Auditors and the Senior Management.

At RIL, Corporate Governance is all about maintaining a valuable relationship and trust with all the stakeholders. We consider stakeholders as partners in our success and remain committed to maximising stakeholders’ value, be it Customers, Local Communities, Employees, Suppliers & Distributors, Trade Unions, NGOs, Investors & Shareholders and Government & Regulatory Authorities. This approach to value creation emanates from RIL’s belief that sound governance system, based on relationship and trust, is integral to creating enduring value for all.

Role and responsibilities of constituents of Governance Structure

Board of Directors

The Board of Directors is the apex body constituted by shareholders for overseeing the Company’s overall functioning. The Board provides strategic direction and leadership and oversees the management policies and their effectiveness looking at long-term interests of shareholders and other stakeholders.

The Board, inter alia, reviews and guides corporate strategy, major plans of action, risk policy, annual budgets, acquisitions and divestments. It also monitors implementation and effectiveness of governance structures. The Chairman is responsible for fostering and promoting the integrity of the Board while nurturing a culture where the Board works harmoniously for the long-term benefit of the Company and all its stakeholders.

The Board and it’s Committees provide effective governance to the Company. The Chairman takes a lead role in managing the Board and facilitating effective communication among the Directors. The Human Resources, Nomination and Remuneration Committee reviews succession planning of the Board and Senior Management. Based on the manner of performance evaluation laid by the HRNR committee, a consolidated report is provided to the Chairman to facilitate individual feedback and advice to the Directors.

Board Committees

The Board has delegated its functioning in relevant areas to designated Board Committees to effectively deal with complex or specialised issues. Company Secretary: The Company Secretary plays a key role in ensuring that the Board (including committees thereof) procedures are followed and regularly reviewed. The Company Secretary ensures that all relevant information, details and documents are made available to the Directors and Senior Management for effective decision-making at the meetings.

The Company Secretary is primarily responsible to assist and advise the Board in the conduct of affairs of the Company, to ensure compliance with applicable statutory requirements, to provide guidance to Directors and to facilitate convening of meetings. The Company Secretary assists the Chairman in management of the Board’s administrative activities such as meetings, schedules, agenda, communications and documentation.

The Company Secretary interfaces between the management and regulatory authorities for governance matters. The Company’s internal guidelines for Board and Committee meetings facilitate decision-making process at its meetings in an informed and efficient manner.

Ethics / Governance Policies

Reliance strives to conduct business and strengthen relationships in a manner that is dignified, distinctive and responsible. It adheres to ethical standards to ensure integrity, transparency, independence and accountability in dealing with all the stakeholders. Therefore, It has adopted various codes and policies to carry out duties in an ethical manner, the company said.

Anti-Bribery & Anti-Corruption Policy

According to the report, the Company is committed in doing business with integrity and transparency and has a zero-tolerance approach to non-compliance with the anti-bribery policy. The Company prohibits bribery, corruption and any form of improper payments / dealings in the conduct of business operations. Training / awareness programs are conducted on periodical basis to sensitise employees.