Muscat – The decision aims to align business practices with global standards of social responsibility while ensuring transparency and accountability.

Under the new regulations, the Board of Directors of each closed joint-stock company is required to adopt a policy outlining the company’s approach to CSR. The policy must be in line with global best practices and reflect a commitment to sustainable, socially responsible initiatives.

The company may, as part of its social responsibility, establish an independent foundation in collaboration with peer companies.

The annual report for each company must provide a comprehensive overview of CSR activities, detailing the funds spent on these initiatives, their impact, and their long-term sustainability. The report should also measure the effectiveness of the company’s efforts in achieving the outlined CSR objectives.
The new regulation mandates that companies develop an annual plan to implement their CSR policy. This plan must include key elements such as the allocated budget, methods of support and participation, the values the company aims to promote, and the specific community segments or social causes the company targets.

The strategy or plan should, at a minimum, include the following:

• The allocated budget
• Available support and participation methods
• The values and principles the company alms to promote through the activities it carries out or supports
• The community segments or social areas the company targets
  To organize the dealings with the related parties, the Audit and Risk Management Committee is tasked with reviewing all transactions with related parties, both routine and non-routine. The committee is responsible for submitting recommendations to the Board of Directors.
  The decision also specifies that all disclosures of related-party transactions must adhere to International Financial Reporting Standards (IFRS). This includes the disclosure of any rights or benefits granted to related parties that could potentially influence the integrity of decision-making within the company.