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GOOD GOVERNANCE IN THE 21ST CENTURY 
Mary Assunta, PhD 
Senior Policy Advisor 
SEATCA 
Kuala Lumpur, 4 Sep 2014
Principles of Good Corporate Governance 
1.Ethical approach – ethical basis to the business 
2.Balanced objectives - congruence of goals of all interested parties 
3.Strategic management: an effective strategy process which incorporates stakeholder value 
4.Decision-making process in place - reflecting the first three principles and giving due weight to all stakeholders 
5.Equal concern for all stakeholders 
6.Accountability and transparency - to all stakeholders 
http://www.applied-corporate-governance.com/best-corporate-governance-practice.html
seatca.org Annual Deaths Attributed to Major Tobacco-Related Diseases (2006-2012)
seatca.org 
Tobacco Industry’s Profit (in USD)
Preventable Global Epidemic – Caused by one Industry 
•6 million deaths every year globally 
•100 million deaths in 20th Century 
•1 billion deaths predicted in 21st Century 
Tobacco Industry
•"Reversing this entirely preventable [tobacco] epidemic must now rank as a top priority for public health and for political leaders in every country of the world.” 
Dr. Margaret Chan 
WHO Director-General
Globalization of the epidemic 
–restricts the capacity of countries to regulate tobacco through domestic legislation alone 
–international coordination of policies is essential 
FCTC: a global response 
–first public health treaty under WHO – 179 Parties 
Why the Framework Convention on Tobacco Control (FCTC)
FCTC Text 
Art. 5.3 – General Obligations 
◦to “protect these [public health] policies from commercial and other vested interests of the tobacco industry”
Tobacco is more than a narrow health issue 
“Tobacco use poses a major health and human development threat. Avoidable and unnecessary, tobacco linked illnesses strike people in their prime, hit the poorest hardest, inhibit country productivity, burden already weak healthcare systems, and consume scarce national resources.” 
Douglas Webb, UNDP
Not All Industries are the Same Tobacco Industry is Unique 1994 CEOs of 7 Tobacco Companies – said under Oath “Nicotine is not addictive”
31 years earlier… 
“Nicotine is addictive. We are, then, in the business of selling nicotine—an addictive drug.” 
(BAT/Brown & Williamson, 1963) 
A. Yeaman, “Implications of Battelle Hippo I & II and the Griffith Filter,” 
17 July 1963, Doc No. 1802.05
The Policy Making Process and TI Interference Policy Draft legislation 
Public hearings Higher body Committee /Cabinet Highest body Approval Implementation 
Plenary 
Scientific 
Research Seek a seat Scientific Research 
Pro Industry version Delay & weaken Front Group Manipulating science 
Deceiving 
the public 
Discrediting 
advocates 
Corporate Social 
Responsibility 
Image building 
Make friends Using economics Attack Regulation Subverting the law 
Make 
friends 
Make friends Delay & weaken Complain 
Front Group
Tobacco Industry - “Isolation” & “Transparency” are Needed 
•because of the fundamental and irreconcilable conflict of interest between the goals of tobacco control and that of the tobacco industry, arising from the inherently deadly nature of tobacco products. 
•The tobacco industry’s longstanding actions to subvert effective tobacco control policies
Anti Corruption Laws Already in Place in Most Countries 
Aren’t national anti corruption laws sufficient?
Congruency Between Corruption Indicators and Article 5.3 Guidelines 
Corruption Indicators 
Article 5.3 Guidelines 
Protecting against policy manipulation for profit 
Safeguarding public health policymaking from TI 
Bribing/financial disclosure 
Government officials should not take money from or invest in TI. 
Transparency of dealings and decision-making 
Interactions between TI and Gov should be transparent 
Lobbying and interest disclosure 
Government officials disclose conflicts of interest, lobbying register 
Code of Conduct to avoid conflicts of interest 
A code of conduct that dictates the terms of interactions between government officials and TI 
Public access to information 
TI should release information to government
Anti Corruption Laws Already in Place in Most Countries 
•Groundwork already laid 
•Build upon current laws to protect against tobacco industry interference in line with Article 5.3.
Tobacco Industry Requests for a Meeting 
•What do you do when you are subject to, or challenged by a team of corporate lawyers?
Code of Conduct 
•Many governments already have ethical Codes of Conduct for their employees; with sanctions or penalties usually overseen by an Ombudsman. 
•To incorporate Article 5.3 requirements, this code of conduct need to be updated to include preventing conflicts of interest among employees with the tobacco industry
What Good Governance in Interaction with Tobacco Industry means? 
Interaction of Government with Tob Industry is for Regulation 
•No Partnership with the Tobacco Industry 
•Interactions should be transparent, record and disclose all meetings 
•Government officials disclose conflicts of interest 
•A code of conduct that dictates the terms of interactions between government officials and TI 
•TI should release information to government
Primer on Good Governance in Tobacco Control
Good Governance: Exclude Tobacco from Trade & Investment Agreements - TPP 
Exercise Policy coherence 
Malaysia has taken a bold step and proposed exclusion of tobacco in the TPP. 
Step in the right direction to demonstrate this business in not like any other business. It should not be treated as one.
Thank You

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Dr.mary assuntakolandai good governance in the 21st century

  • 1. GOOD GOVERNANCE IN THE 21ST CENTURY Mary Assunta, PhD Senior Policy Advisor SEATCA Kuala Lumpur, 4 Sep 2014
  • 2. Principles of Good Corporate Governance 1.Ethical approach – ethical basis to the business 2.Balanced objectives - congruence of goals of all interested parties 3.Strategic management: an effective strategy process which incorporates stakeholder value 4.Decision-making process in place - reflecting the first three principles and giving due weight to all stakeholders 5.Equal concern for all stakeholders 6.Accountability and transparency - to all stakeholders http://www.applied-corporate-governance.com/best-corporate-governance-practice.html
  • 3. seatca.org Annual Deaths Attributed to Major Tobacco-Related Diseases (2006-2012)
  • 5. Preventable Global Epidemic – Caused by one Industry •6 million deaths every year globally •100 million deaths in 20th Century •1 billion deaths predicted in 21st Century Tobacco Industry
  • 6. •"Reversing this entirely preventable [tobacco] epidemic must now rank as a top priority for public health and for political leaders in every country of the world.” Dr. Margaret Chan WHO Director-General
  • 7. Globalization of the epidemic –restricts the capacity of countries to regulate tobacco through domestic legislation alone –international coordination of policies is essential FCTC: a global response –first public health treaty under WHO – 179 Parties Why the Framework Convention on Tobacco Control (FCTC)
  • 8. FCTC Text Art. 5.3 – General Obligations ◦to “protect these [public health] policies from commercial and other vested interests of the tobacco industry”
  • 9. Tobacco is more than a narrow health issue “Tobacco use poses a major health and human development threat. Avoidable and unnecessary, tobacco linked illnesses strike people in their prime, hit the poorest hardest, inhibit country productivity, burden already weak healthcare systems, and consume scarce national resources.” Douglas Webb, UNDP
  • 10. Not All Industries are the Same Tobacco Industry is Unique 1994 CEOs of 7 Tobacco Companies – said under Oath “Nicotine is not addictive”
  • 11. 31 years earlier… “Nicotine is addictive. We are, then, in the business of selling nicotine—an addictive drug.” (BAT/Brown & Williamson, 1963) A. Yeaman, “Implications of Battelle Hippo I & II and the Griffith Filter,” 17 July 1963, Doc No. 1802.05
  • 12. The Policy Making Process and TI Interference Policy Draft legislation Public hearings Higher body Committee /Cabinet Highest body Approval Implementation Plenary Scientific Research Seek a seat Scientific Research Pro Industry version Delay & weaken Front Group Manipulating science Deceiving the public Discrediting advocates Corporate Social Responsibility Image building Make friends Using economics Attack Regulation Subverting the law Make friends Make friends Delay & weaken Complain Front Group
  • 13. Tobacco Industry - “Isolation” & “Transparency” are Needed •because of the fundamental and irreconcilable conflict of interest between the goals of tobacco control and that of the tobacco industry, arising from the inherently deadly nature of tobacco products. •The tobacco industry’s longstanding actions to subvert effective tobacco control policies
  • 14. Anti Corruption Laws Already in Place in Most Countries Aren’t national anti corruption laws sufficient?
  • 15. Congruency Between Corruption Indicators and Article 5.3 Guidelines Corruption Indicators Article 5.3 Guidelines Protecting against policy manipulation for profit Safeguarding public health policymaking from TI Bribing/financial disclosure Government officials should not take money from or invest in TI. Transparency of dealings and decision-making Interactions between TI and Gov should be transparent Lobbying and interest disclosure Government officials disclose conflicts of interest, lobbying register Code of Conduct to avoid conflicts of interest A code of conduct that dictates the terms of interactions between government officials and TI Public access to information TI should release information to government
  • 16. Anti Corruption Laws Already in Place in Most Countries •Groundwork already laid •Build upon current laws to protect against tobacco industry interference in line with Article 5.3.
  • 17. Tobacco Industry Requests for a Meeting •What do you do when you are subject to, or challenged by a team of corporate lawyers?
  • 18. Code of Conduct •Many governments already have ethical Codes of Conduct for their employees; with sanctions or penalties usually overseen by an Ombudsman. •To incorporate Article 5.3 requirements, this code of conduct need to be updated to include preventing conflicts of interest among employees with the tobacco industry
  • 19. What Good Governance in Interaction with Tobacco Industry means? Interaction of Government with Tob Industry is for Regulation •No Partnership with the Tobacco Industry •Interactions should be transparent, record and disclose all meetings •Government officials disclose conflicts of interest •A code of conduct that dictates the terms of interactions between government officials and TI •TI should release information to government
  • 20. Primer on Good Governance in Tobacco Control
  • 21. Good Governance: Exclude Tobacco from Trade & Investment Agreements - TPP Exercise Policy coherence Malaysia has taken a bold step and proposed exclusion of tobacco in the TPP. Step in the right direction to demonstrate this business in not like any other business. It should not be treated as one.