Corporate Governance and Business Ethics
At Orla, we view good governance and ethical practices as essential for sustainable business success. These interconnected foundations support the effective management of our affairs, help us earn and maintain public trust, foster compliance with applicable laws and regulations, and create value for all stakeholders, including employees, partners, communities, and shareholders.
The Board of Directors (the “Board”) and Senior Leadership Team at Orla are dedicated to robust corporate governance. Our corporate governance policies and practices are designed to create long-term value and fulfill our responsibilities to shareholders and other stakeholders.
Compensation and ESG
Our short- and long-term compensation programs are designed to be fair, competitive, and aligned with both individual and company wide objectives. These objectives are communicated to each employee early in the year by Orla’s Chief Executive Officer. All employees are involved in executing initiatives that align with these goals and contribute value to the organization.
Risk Management
Risk management forms a fundamental aspect of robust governance and responsible business practices. As a mining company, it is critical that we consistently assess, prioritize, and mitigate the wide-ranging risks facing our Company. These risks range from labour shortages and supply chain disruptions to social unrest, health and safety incidents, security concerns (such as theft, fraud, and cybersecurity threats), and extreme weather events.
Orla has developed a robust Enterprise Risk Management (ERM) Program that is integral to our organizational processes, including strategic planning and decision-making. This program incorporates our ERM Standard, designed to uphold sustainable practices in all our activities so that the Company, as well as our contractors, maintain equally high standards.
ERM System Key Principles
- Monitoring and Reporting on Risk on an Ongoing Basis
- Philosophy/Culture: Foster a culture that supports long term growth in Mexico, the U.S., and beyond, through appropriate risk identification, management, monitoring, and reporting processes.
- Performance: In accordance with a balanced operations plan, maintain focus on free cash flow generation, margin expansion, reserves, and production increase.
- Standard / Best Practices: Meet industry standards and best practices and ensure all risk management processes are performed with consistency and integrity.
- Communication: Ensure transparency across all levels of the organization and encourage synergy across teams to address ongoing priorities.
- Independent Assurance: Engage periodic independent assessments by internal or external auditors to ensure risk management processes are adequate and are operating optimally.
- Reinforcing and Incorporating the Importance of Effective Risk Management : Promote a risk mindset as a normal part of daily business and operating activities and planning at all levels.
- A Practical Framework: Identify and address mechanisms to prioritize risk areas.
- Leadership from the Top Management Levels: Support risk champions with clear roles and responsibilities for risk management.
- Integration: Integrate enterprise risk management into all areas of the business.