Governance and Sustainability

Governance deals with the roles and relationships among management, boards, shareholders and other stakeholders, and rests on transparency and accountability.

Good governance creates value for a company over the long term and thereby affects its shareholders, its employees, its customers and contractors and the communities in which it operates. A successful business with good governance responds to the interests of these stakeholders. If governance fails, the repercussions will be widespread.

Good governance contributes to a company's sustainability, requiring clear definition of the roles and responsibilities of its board of directors and management and its relationships with stakeholders.

PotashCorp is recognized for its leadership in governance and is committed to remaining a leader. Its governance practices, management systems and efforts to engage stakeholders are designed to embed sustainability within the company.

Governance Awards in 2007

Governance and Reporting Awards in 2007

PotashCorp received a number of awards for its governance and reporting in 2007. This included awards from the Canadian Institute of Chartered Accountants for reporting and Canadian Business magazine for governance. The Canadian Institute of Chartered Accountants recognized PotashCorp with the Award of Excellence for Corporate Reporting in the Mining Sector. The company received Honourable Mentions for its electronic disclosure and sustainable development reporting. PotashCorp's governance practices were ranked among the best in Canada by Report on Business magazine's review of Canadian corporate leadership in 2007. PotashCorp placed eighth on the list of 270 companies on the S&P/TSX composite index for its performance on governance issues, including board composition, compensation, shareholders' rights and disclosure. PotashCorp tied for third in the latest annual ranking of Canadian corporate governance by Canadian Business magazine, up from 11th the previous year. It received the highest possible scores in three of four categories: total shareholder return, independence and accountability; and scored well in the disclosure section.