Issue link: https://blog.providence.org/i/1526508
Governance GOVERNANCE STRUCTURE PROVIDENCE | ESG REPORT | 33 INTRODUCTION ENVIRONMENTAL SOCIAL GOVERNANCE ABOUT US Governance focuses on the Providence organizations and includes: • Internal controls • Leadership structure • Ethical standards KEY GOVERNANCE FACTORS INCLUDE: • The composition and independence of the Board as fiduciaries • Annual education and evaluation tied to the Board's oversight performance, legal and fiduciary responsibility, and conflict of interest • Accountability controls through the Board's oversight of executive performance and compensation criteria tied to ESG performance • Annual Audit Committee and Board review of independent auditor report • People, Culture and Compensation Committee's use of independent compensation consultant • Executive compensation, risk management, and transparency in financial reporting • Strong corporate governance oversight operating with integrity, and accountable to its communities COMMITMENTS: 1. Industry-leading ethics, human rights, data privacy and cybersecurity 2. Comprehensive reporting of financial performance and social and environmental impact 3. Board diversity reflecting diversity of communities 4. Board of Directors trained in ESG leadership 5. Advocacy aligned with our values and ESG goals Financial Stewardship Leadership and Ethics Compliance and Risk Management The Board plays a central role in selecting and overseeing the CEO and senior leadership, ensuring ethical conduct, and maintaining high standards of integrity and transparency in all decision-making processes. The Board oversees the compliance program and policies that ensure compliance with federal and state laws across the seven-state service area, data privacy regulations, government payors and risk-management practices. The Board is responsible for overseeing financial management, including budgeting, financial reporting and fiscal responsibility. The Board's oversight in ensuring that resources are allocated efficiently and sustainably is crucial to Providence's long-term success.