Corporate Governance

Good corporate governance requires us to have the systems and resources to effectively manage our risks and obligations to people, communities and the environment. Governance structures and processes aim to ensure that we have the capacity to manage the financial, people, social and environmental dimensions of our business, and that our processes and performance conforms with external requirements as well as our internal policies and standards.

Board and Senior Management

The Board, working with senior management, is responsible to shareholders for WMC's overall business performance, including aspects such as safety, health, environment and community. The Board ensures that appropriate strategies, policies, procedures and systems are in place to manage risks, improve business performance and maintain high standards of ethical behaviour and legal compliance.

In the sustainability context the Board's responsibilities include:

• providing strategic direction, and approving, business strategies and objectives
• approving policies for managing business risks, safety and occupational health, community and environmental matters
• maintaining a business performance overview
• seeking assurance that appropriate control and monitoring systems are in place to manage key operational risks and their impacts
• ensuring that reporting of information to the board is adequate, accurate and timely
• ensuring that material developments that affect the business are reported to shareholders and markets.

The Executive Committee is chaired by the Chief Executive Officer and includes all of the group's Executive General Managers. The Committee develops company strategy and policy, and guides the operation of company businesses in accordance with the company's strategies, policies and values. The Executive Committee meets monthly and a review of environment, health and safety performance and progress is included in these meetings. The executive committee reports to the board on a monthly basis.

Operating sites provide quarterly assurance reports to the executive management team detailing progress in closing-out critical actions arising from audits of EHS Management Standards and Major Hazard Standards. (Read about WMC's Audit and Assurance activities). In 2005, the Group Internal Audit function will undertake independent audits of the sites' compliance against internal EHS Management Standards and Major Hazard Standards, and follow up critical actions arising from audit findings.

Line and Functional Responsibilities

Line managers at our operating sites are responsible for the operational performance of the businesses, including management of environment, health and safety, and our relationships with communities or governments.

Line managers are also responsible for implementing company policies, and for ensuring the sites' management systems and procedures meet the requirements of company standards set by corporate. In relation to Safety, Health, Environment and Community matters, corporate responsibility for developing policies and standards rests with the Safety, Environment and Social Development department.

Functional support for the site implementation of policies and systems is provided by functional specialists located at sites and regional centres.

Additional information: WMC Corporate Governance