What are the 'two A's' that lie at the heart of corporate governance?

The core concepts of the 'two A's' in corporate governance are accountability and alignment.

Accountability refers to the obligation of the board and management to the company's stakeholders, including shareholders, employees, and the broader community. This involves transparent decision-making and an assurance that actions are taken in the best interest of the company and its stakeholders. Effective corporate governance ensures that there are structures in place to hold the leadership responsible for their actions, thus fostering trust and integrity in the organization.

Alignment pertains to ensuring that the interests of various stakeholders are in sync with the company's objectives. This means that there is coherence between the actions of the management and the expectations of shareholders and other stakeholders. Proper alignment helps to mitigate conflicts, particularly between shareholders and management, and can enhance long-term value creation.

Together, accountability and alignment form the foundation of good corporate governance, supporting a sustainable and ethical business environment.