The Danish Recommendations on Corporate Governance were revised and extended in 2010. With a very few exceptions, Novozymes complies with the new code. Internally, we updated and simplified our set of values and commitments during the year.
Novozymes’ management systems have been developed over many years and are constantly adjusted to reflect changes in legal requirements, new business developments, and stakeholder expectations. A cornerstone of these management systems is Novozymes’ corporate governance setup.
Corporate governance is the name commonly given to the frameworks and guidelines for business management, including the overall structures and principles that regulate the interaction between a company’s management bodies, shareholders, and other stakeholders. As every company is unique, there is no exact standard for “good corporate governance.” However, a number of valid principles have been developed and stated in recommendations, guidelines, or law. Novozymes’ goal is to have management systems in place that ensure openness and transparency at all times, providing stakeholders with relevant insight into the business – and, of course, effective management.
In accordance with Danish legislation, Novozymes has a two-tier management system comprising the Board of Directors and Executive Management, with no individual a member of both. The division of responsibility between the Board of Directors and Executive Management is clearly laid down and described in the Rules of Procedure for the Board of Directors and Guidelines for Executive Management, available at www.novozymes.com.