What are the responsibilities of a company principal.
Principals have different roles depending on the nature of an individual business, but the universal responsibility of a commercial business principal is significant influence. Some principals are also the founder, owner and CEO. Others own a large portion of company equity and sign off on major decisions. Some principals are simply considered major parties to a business transaction. Many legal documents designate a “principal,” the majority of which refer to someone with decision-making authority.
The Different Roles of a “Principal”
We are a family-owned company. The readiness to fully commit oneself to the company in good times as well as bad is something that applies in equal measure to everyone who works for it. We want to remain independent. Growth by our own efforts is decisive in this regard. Geographical proximity to our customers is essential. Still, a powerful headquarters is necessary. All our dealings are marked by fairness, moderation, and trust.
Principal is a term with many meanings. As it relates to business, a principal can range from a company’s representative dealing with a contractor to the company’s leader.
Some companies have a specific position identified as the principal, and these positions often represent key members of the leadership team. Principals may handle client and business relationships, as well as develop the mission and strategic vision for the firm. For smaller companies, the president, CEO, owner and principal are often the same person.
In legal terminology, the principal might be the party who gives legal authority for another party called the “agent” to act on the principal’s behalf. These principals can be individuals, corporations or even government agencies.
The last type of principal is the principal investor, or the investor who owns the most shares of the company. This is normally the owner or some other member of the leadership team.
In almost every circumstance, the company principal’s major responsibility is managing relationships. This is most obvious in principal-agent transactions, where the principal is also responsible for compensating the agent and offering indemnification. But all principals act as representatives of a company’s interest and are, in that way, ambassadors for the company.
As a company, we have a social responsibility. We commit to a liberal constitution, fair market economy, and free competition. We respect the laws and cultures of the countries in which we operate. At all of our sites, we support innovative approaches and projects that promote social development and serve the people. We promote equality and reject discrimination of any form. At the same time, we heed transparency, reliability, and openness in both inward and outward communication. After all, this creates trust. Last but not least, the protection of the environment and health is very close to our hearts. We therefore, consistently use the best technology in order to prevent any harmful effect resulting from our economic activity.
Our managers convey the TRUMPF values through their everyday actions. We expect our managers to demonstrate initiative, openness, and self-confidence. Managerial ability derives from personal and professional competence. Management also means commitment to innovation. Our managers include employees in decision-making processes. Communication between managers and employees is marked by politeness, respect, and trust. The behavior of our managers should set an example to the employees entrusted to them.
The same high performance and quality expectations followed by the entire company are also placed on our employees. The safeguarding of jobs is a high priority for us, as is a fair system of remuneration. We promote our employees’ personal and professional competence. Creative freedom is just as important as a readiness to express, and criticism is seen as an opportunity. We treat each other with mutual respect and together see to the protection of the company’s intellectual and material property.
We aim to make a positive impact through our brands, our commercial operations and relationships, voluntary contributions and various other ways in which we engage with business partners and society at large. We’re also committed to continuously improving the way we manage our impacts and our longer-term goal of developing a sustainable business.
Working with others
We want to work with suppliers, agents, distributors and other business partners who have values similar to ours and uphold the same standards as we do. Our Responsible Sourcing Policy and Responsible Business Partner Policy, aligned to Unilever’s Code of Business Principles, seek to uphold twelve fundamental principles covering business integrity including specific responsibilities relating to employees, consumers and the environment.
Unilever’s reputation for doing business with integrity and with respect for the interests of those our activities can affect is an asset, just as real as our people and brands. Our first priority is to be a successful business: that means investing for growth and balancing short term and long term interests. It also means caring about our consumers, employees and shareholders, our business partners and the world in which we live.
To succeed requires the highest standards of behavior from all of us. We want our Code of Business Principles, related Code Policies and third party compliance programme to have a positive impact in day-to-day business, each one of us must uphold these at all times.