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Corporate governance<br />
Our governance<br />
Sound governance resonates well beyond the boardroom. By consistently<br />
striving to build trust and a sound control environment while fostering<br />
growth, we underpin the long-term sustainability of the business in the<br />
interests of our shareholders and of the society in which we operate.<br />
Our approach to governance<br />
Sound governance resonates well beyond the boardroom. By consistently<br />
striving to build trust and a sound control environment while fostering growth,<br />
we underpin the long-term sustainability of EuroChem’s business in the<br />
interests of our shareholders and of the wider communities in which we operate.<br />
We continue to work on developing sound strategic oversight, effective<br />
communications and strong controls. These form the bedrock of sustainable<br />
growth.<br />
Our governance approach is informed by a clear social strategy:<br />
• prioritising health and safety and investing in our workforce has provided<br />
us with talent and commitment and has reinforced employee engagement;<br />
• our customers have come to know and respect EuroChem as a reliable,<br />
high-quality partner and supplier;<br />
• beyond the direct economic impact of our business lies our systematic<br />
approach to investing in education, sports and environmental protection<br />
to support local communities;<br />
• being a responsible corporate citizen has allowed us to build a solid,<br />
continuous and productive dialogue with authorities at local, state, and<br />
federal levels.<br />
EuroChem is a member of the Russian National Council on Corporate<br />
Governance. We are firmly committed to fostering national dialogue on<br />
improving corporate governance standards and we hope that our participation<br />
contributes to its development.<br />
66 EuroChem Annual Report and Accounts <strong>2011</strong><br />
Some questions for the EuroChem Directors<br />
Andrey Melnichenko<br />
Chairman of the Board<br />
Q. Why is EuroChem so committed to sound corporate governance and<br />
information disclosure?<br />
A. Although it is currently a privately held company, there will come a time<br />
when we seek to list EuroChem’s shares on an international exchange.<br />
While our sales are global, our assets are still concentrated in Russia.<br />
Because a certain stigma continues to be attached to Russian companies<br />
as a result of past corporate governance weaknesses, we wish to not only<br />
explain but also to demonstrate our governance story well in advance<br />
so as to be appropriately valued by the international investment community<br />
when the time comes.<br />
Possibly more importantly, we firmly believe that sound governance is good<br />
for business – our actions resonate through the whole production chain.<br />
Over the last few years, the Board has set out and tested a system which<br />
helps us anticipate, assess and mitigate risks, while pursuing targeted<br />
strategic development initiatives that are focused on building the<br />
sustainability of our business. We have overseen the development of a<br />
strong management team – one I feel is amongst the very best in Russia –<br />
and have been working together in pursuit of value-building growth through<br />
vertical integration and the capture of opportunities in Russia and elsewhere.
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