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CFO-Asia presentation for Nov16, 2006


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CFO-Asia presentation for Nov16, 2006

  1. 1. 11/27/2006 Copyright © K.Sriram 1 Governance, Ethics & Asia’s Finance Leaders Need for an effective Corporate Governance framework Governance challenges faced by Asia’s Finance Leaders How Asia’s Finance Leaders can foster & promote good ethical practice within their organizations Benefits of having a strong company culture on Governance & Ethics Correlation between good Governance & Ethics Take aways on Ethics This presentation deals with…
  2. 2. 11/27/2006 Copyright © K.Sriram 2 Governance, Ethics & Asia’s Finance Leaders Accountability failures (many were the result of significant structural weakness in corporate governance & accountability models combined with a lack of personal ethics & integrity) Loss of billions ($$$) of invested capital Loss of Investor confidence Impact on livelihood for many employees Impact on work ethics & culture Impact on public confidence & trust Impact on local & national economies Need for a Corporate Governance Framework Harvey Pitt answers... Q) How has the world changed since Enron collapsed? A) Discipline within companies has gotten a lot better. People have spent more time getting their systems under control and making sure they have good internal controls. And we've all gotten smarter ☺
  3. 3. 11/27/2006 Copyright © K.Sriram 3 Governance, Ethics & Asia’s Finance Leaders Shareholder value maximization in an era of hyper- competition Managing / Mitigating risks for shareholders Ethical conduct (transparency) & compliance Improve corporate financial reporting & internal controls Hiring the right person with right skills & values Creating / demanding accountability from ‘one and all’ Ethical decision making Strengthening audit committees Be an effective advisor to the Board of Directors Challenges faced by Asia’s Finance Leaders
  4. 4. 11/27/2006 Copyright © K.Sriram 4 Governance, Ethics & Asia’s Finance Leaders Trust to be the ‘bedrock’ on which an ethical structure (framework) could be built Company-wide ‘Code of Ethics / Conduct’ Leaders demonstrating ethical behavior – ‘The Boss should be more Catholic than the Pope!’ Regular training of junior & senior officers on ethical behavior and conduct Established whistle-blowing policy & protection for whistle- blowers Ethics committee - Review, Monitor & Implement policies Review of ethical behavior during recruitment and performance appraisals Fostering & promoting ethical practice
  5. 5. 11/27/2006 Copyright © K.Sriram 5 Governance, Ethics & Asia’s Finance Leaders Feel-good factor & Trust amongst employees & other connected stakeholders Staff motivation & morale – Increased efficiency Preferred employer status – Caring company Regulatory compliance Overall reputation & brand-building – Good Corporate Citizen status Maintain excellent reputation with banks, financial institutions & investment community - About one in every ten dollars of assets under management in the U.S. - an estimated $2.3 trillion out of $24 trillion - is being invested in companies that rate highly on some measure of social responsibility - FORTUNE Magazine Competitive edge – Impact on business performance Benefits of a strong ethical culture
  6. 6. 11/27/2006 Copyright © K.Sriram 6 Governance, Ethics & Asia’s Finance Leaders Positive correlation between governance & ethics Good corporate citizenship status Correlation between good governance & ethics Companies that demonstrate ethical leadership & superior governance:
  7. 7. 11/27/2006 Copyright © K.Sriram 7 Governance, Ethics & Asia’s Finance Leaders Ethical behavior to be a requirement, not an option Ethics, a must in all daily interactions with internal, external & connected stakeholders Communicate the desired ethical behavior in an ethics Code of Conduct Preserve ethics to let everyone know ethics is here to stay Preserve an ethical culture that perpetuates ethics Promote ethics and their long-lasting benefits Promote ethics from the top – Remember…Bottleneck is always at the top of the bottle! Promote a company culture where ethics is for everybody Never forget to reward ethical behavior Take aways on ‘Ethics’…
  8. 8. 11/27/2006 Copyright © K.Sriram 8 Governance, Ethics & Asia’s Finance Leaders Questions? Thank You ☺
  9. 9. 11/27/2006 Copyright © K.Sriram 9 Event Photos (1 of 3)
  10. 10. 11/27/2006 Copyright © K.Sriram 10 Event Photos (2 of 3)
  11. 11. 11/27/2006 Copyright © K.Sriram 11 Event Photos (3 of 3)