good corporate governance
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GOOD CORPORATE GOVERNANCE. Misbahuddin Azzuhri. Corporate Governance. Ethics. Reflection in a company’s operations of the values and moral principles used in the communities in which they operate - PowerPoint PPT PresentationTRANSCRIPT
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GOOD CORPORATE GOVERNANCEMisbahuddin Azzuhri
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Corporate Governancethe function of a company’s compliance with regulatory requirements and, to the extent that it is not required by
law, its adherence to standards that:
define relationships between a company’s management, its board, shareholders and
other stakeholders
provide a structure through which the company’s objectives are set, and how they
are achieved and monitored
recognise the value of business ethics and corporate awareness of society interests to
reputation and long-term success
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Ethicsg Reflection in a company’s operations of the
values and moral principles used in the communities in which they operate
g Successful markets and corporate performance are founded on a commitment to basic ethical principles aligned as much as possible to the interests of individuals, corporations and society
g Ethical standards may be expressed in a company’s formal conduct requirements, or contained in generally stated principles that guide a company’s preferred conduct or behaviour
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Frameworkg No single model for corporate governance g Corporate governance is a set of principles that
may be variously applied in particular circumstances by government, regulators, institutions and corporations
g Principles primarily designed to promote confidence in capital markets, but also have general application
g OECD has developed broad principles and supporting statements for best practice in corporate governance
g Interest shown in OECD principles by non-member Asian countries
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Corporate Governance
• Defines relationships between management, board, shareholders and other stakeholders
• Provides structure through which company objectives are set, achieved and monitored
• Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
COMPANY
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Corporate Governance
g Defines relationships between management, board, shareholders and other stakeholders
g Provides structure through which company objectives are set, achieved and monitored
g Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
Structure and
management of operations
to ensure consumer outcomes
COMPANY
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Corporate Governance
• Defines relationships between management, board, shareholders and other stakeholders
• Provides structure through which company objectives are set, achieved and monitored
• Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
Distribution
COMPANY
Consumption
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Corporate Governance
• Defines relationships between management, board, shareholders and other stakeholders
• Provides structure through which company objectives are set, achieved and monitored
• Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
Distribution
COMPANY
Consumption
g Employment
g Structure
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Corporate Governance
• Defines relationships between management, board, shareholders and other stakeholders
• Provides structure through which company objectives are set, achieved and monitored
• Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
Distribution
COMPANY
Consumption
g Employment
g Structure
g Quality
g Information
g Safety
g Redress
g Service
g Education
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Corporate Governance
• Defines relationships between management, board, shareholders and other stakeholders
• Provides structure through which company objectives are set, achieved and monitored
• Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
Distribution
COMPANY
Consumption
g Employment
g Structure
g Quality
g Information
g Safety
g Redress
g Service
g Education
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Corporate Governance
• Defines relationships between management, board, shareholders and other stakeholders
• Provides structure through which company objectives are set, achieved and monitored
• Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
Distribution
COMPANY
Consumption
g Employment
g Structure
g Quality
g Information
g Safety
g Redress
g Service
g Education
Community Standards
Industry Standards
Company Standards
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Corporate Governance
• Defines relationships between management, board, shareholders and other stakeholders
• Provides structure through which company objectives are set, achieved and monitored
• Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
Distribution
COMPANY
Consumption
g Employment
g Structure
g Quality
g Information
g Safety
g Redress
g Service
g Education
Local Values
and Culture
Community Standards
Industry Standards
Company Standards
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Corporate Governance
• Defines relationships between management, board, shareholders and other stakeholders
• Provides structure through which company objectives are set, achieved and monitored
• Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success
Distribution
COMPANY
Consumption
g Employment
g Structure
g Quality
g Information
g Safety
g Redress
g Service
g Education
Local Values
and Culture
Community Standards
Industry Standards
Company Standards
Codes
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GCG: THE PRACTICESmisbahuddin azzuhri
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Good Governance di ASEANCorruption Perception Index
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Good Governnace in The World
Quintile Countries/Territories
Top quintile: More than 32%
Albania, Cambodia, Cameroon, FYR Macedonia, Kosovo, Nigeria, Pakistan, Philippines, Romania, Senegal
Second quintile: 18 – 32%
Bolivia, Dominican Republic, Greece, India, Indonesia, Lithuania, Moldova, Peru, Serbia, Ukraine
Third quintile: 6 – 18%
Bulgaria, Croatia, Czech Republic, Luxembourg, Malaysia, Panama, Russia, Turkey, Venezuela, Vietnam
Fourth quintile: 2 – 6%
Argentina, Bosnia-Herzegovina, Finland, Hong Kong, Ireland, Portugal, South Africa, Spain, United Kingdom, United States
Bottom quintile: Less than 2%
Austria, Canada, Denmark, France, Iceland, Japan, South Korea, Netherlands, Sweden, Switzerland
% of respondents reporting they paid a bribe to obtain a service
Source: Transparency International Global Corruption Barometer 2007.
Bribery Practices Percentage
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CGPI – 2005 (according to GCG practices in 2004)
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CGPI – 2006 (according to GCG practices in 2005)
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CGPI – 2006 (according to GCG practices in 2005)
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CGPI – 2007 (according to GCG practices in 2006)
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NEXT|Business Ethics in A Global EconomyMisbahuddin Azzuhri