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Managing Conflict of Interest

October 2007
ManagementIndustry

Abstract

The issue of the conflict of interests has occupied the minds of a large number of investors who fear that their investment interests may conflict with those of chief or senior executives. This issue has escalated further into fear on the part of some that a conflict of interests may arise even on the public and private scales. Hence, we can define the term ''conflict of interests'' as a situation in which a decision is affected by a material or moral interest of a chief or senior executive, or in other words those who may be defined as (Decision Makers) or their kin or those with whom they have business relations allowing them access to an establishment's future plans, hence a greater insight into the future of that establishment. Therefore, the principal recommendations of international reports focused on the role of governments in activating the laws on the conflict of interests with a view to avert a negative reflection on public faith in executive bodies.

Company

The Savola Group

The Savola Group is one of Saudi Arabia's leading industrial companies, with a strong presence throughout the MENA region & beyond. The company was established in 1979 with an initial SR 40 Million Capital & grew significantly in subsequent years to SR 5 Billion. Savola's first business was in the edible oil industry in Saudi Arabia. It is now one of the most successful and fastest growing multinational food groups in the Gulf and the Middle East Region, also penetrating North African and Central Asian countries, with a wide portfolio of businesses including Edible Oils, Sugar, Noodles/Pasta, Packaging, Real Estate and Franchising. Savola currently has market shares of 62% of the Edible Oils market and 68% of the Sugar market in the Kingdom as well as 79 Retail outlets Supermarkets/Hypermarkets) throughout Saudi Arabia with one Hypermarket in Dubai, UAE. The Savola Group operates its businesses through four Core Sectors, these are "Savola Foods Sector", including Edible Oils, Foods and Sugar and "Savola Retail Sector", including Retail (Panda - and Hyper Panda), Real Estate Sector (Kinan International) and Savola Plastics Sector. In addition to this, Savola also has a Franchising Unit which has exclusive rights in Saudi Arabia for ten internationally renowned brands of fashion wears from different countries. Today, the Group has a work force of more than 16,000 employees, around 160,000 shareholders and is listed in the Top 20 companies in Saudi Arabia.

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