Our governance - Li & Fung

About LF

Our governance

We are committed to the principles of good corporate governance which emphasize transparency, accountability and independence, and believe this enhances shareholder value.

Our Board of Directors and management team are committed to principles of good corporate governance which are consistent with prudent management and enhancement of shareholder value. These principles emphasize transparency, accountability and independence.

Risks are inherent in our business and the markets in which we operate. We recognize that risk management is the responsibility of all of our people as an integral part of our day-to-day business process. Our risk management and internal control system is designed to manage the risk of failure to achieve our corporate objectives and provides reasonable, but not absolute assurance against material misstatement, loss or fraud, and to achieve long-term shareholder value.

The Board is responsible for maintaining a solid and effective system of risk management and internal controls at Li & Fung and for reviewing its effectiveness and adequacy of necessary policies and procedures, helping us achieve high standards of corporate governance.

We are a constituent of leading global sustainability indices, including the FTSE4Good Index Series, MSCI Global Sustainability Indexes and STOXX® Global ESG Leaders indices and in Hong Kong, we are a constituent member of the Hang Seng Corporate Sustainability Index Series.

In Hong Kong, we are also recognized as a Caring Company under the Hong Kong Council of Social Services’ recognition scheme.

As a member of the Fung Group we have been a signatory to United Nations’ Global Compact since 2002 and have been publicly disclosing our progress to implement its 10 principles into our business via the Global Compact Communication on Progress Report.

Our latest awards

Regional CFO of the Year – Ed Lam
The Asset Triple A Awards 2017

Best Annual Report Awards – Honourable Mention
Hong Kong Management Association – 2017

Best Corporate Governance Award – Gold Award in non-HSI Medium Market Capitalization
Hong Kong Institute of Certified Public Accountants 2017

Best Companies to Work for in Asia 2017 – 2018
HR Asia

“Launch of the Year” – The Kitchen
Ignite 2017

Quam IR Awards 2016 – Hong Kong Index Constituents (Hang Seng Index) Category
Quam IR

Investor Relations Awards 2017 – Best IR Company (Mid Cap)
Hong Kong Investor Relations Association

Best Supply Chain Solution China Award
The Asset Triple A Awards 2017

“Best Investor Relations Company”, “Asia’s Best CEO (Investor Relations”, “Asia’ Best CFO (Investor Relations” and “Best Investor Relations Professional” – Asian Excellence Awards
Corporate Governance Asia – 2017

“Best Onboarding Experience” – Asia Recruitment Awards – Silver
HR Magazine 2016

Excellence in Organisation Development – HR Innovation Awards 2016 – Bronze
Human Resources

Sustainability Award, Certificate of Excellence (2017)
Hong Kong Management Association

Hong Kong Green Organization 2015-2018
Hong Kong SAR Government’s Environmental Campaign Committee

Hong Kong Awards for Environmental Excellence – Gold, “Servicing and Trading” 2015 – 2018
Hong Kong SAR Government’s Environmental Campaign Committee

“Best CEO (Investor Relations)”, “Best Investor Relations by Hong Kong Company”, “Asia’s Best CFO (Investor Relations)”, “Asia’s Best CSR” – Asia Excellence Awards
Corporate Governance Asia – 2016

“Platinum Award in Financial Performance, Corporate Governance, Social Responsibility, Environmental Responsibility and Investor Relations”
The Asset Magazine 2009 – 2016

“Best CSR” – Asia Excellence Recognition Awards
Corporate Governance Asia 2012 – 2014

“Caring Company”
The Hong Kong Council of Social Services 2002 – 2016

To learn more about our governance, download the ‘Our commitment to good governance’ and ‘Our approach to risk management’ sections of our Annual Report.

Sustainability is integral to our business and our planning process

With operations spanning more than 230 offices and distribution centers in over 40 markets, addressing sustainability requires us to responsibly manage our environmental, social and governance performance, and to work with our customers, suppliers and industry partners to further the sustainability of supply chains and communities across our network. Health, safety and wellbeing, climate change, resource scarcity and increasing demands for transparency and accountability are important issues driving change in how we do business and engage with our ecosystem.

These issues pose risks, challenges and opportunities that we address through our Sustainability Strategy and day-to-day activities.

Respect for human rights is at the core of our beliefs and embedded in the way we do business

At Li & Fung our values foster a respect for human rights. We are committed to maintaining a respectful workplace free from discrimination and harassment of any form and to providing equal opportunities for all our people in support of the International Labour Organization’s (ILO) declarations on human and labor rights. We affirm these commitments in our Code of Conduct and Business Ethics.

We expect our suppliers to share our commitment to create better working conditions that uphold fundamental human and labor rights. This includes compliance with relevant local laws and regulations and meeting the obligations outlined in our Supplier Code of Conduct, which is based on the ILO’s core conventions and the requirements of the California Transparency in Supply Chains Act, and the UK Modern Slavery Act. You can read our Disclosure Statement on Modern Slavery which discloses our policies and actions relating to modern slavery and human trafficking in business and the supply chain.

Since 2002, the Fung Group has been a signatory to the United Nations’ Global Compact (UNGC), the world’s largest corporate sustainability initiative. Each year we disclose our progress in implementing actions to support the UNGC’s 10 Principles related to human and labor rights, the environment and anti-corruption.

Code of Conduct and Business Ethics

The foundation of Li & Fung’s culture lies in our history and our values. We believe we should always conduct ourselves and our business openly, honestly and in compliance with all applicable laws.

Our reputation is built on the actions of our people and we believe our success is built on our common vision of shared values and commitment to consistent and high standards, which are outlined in our codes of conduct.

Our Code of Conduct and Business Ethics sets out general principles on the way our people should conduct themselves at all times, how they should serve our customers and how they should work with our suppliers.