Corporate governance

REFLECTIONS ON THE FUTURE

Prof.Dr.Aung Tun Thet

INTRODUCTION

New Economy

• Need for more accountability, transparency integrity and due diligence• Compliance with international norms and standards

New Economy

• Growth of private corporate sector• Growth of equity markets and institutions

• Growth of international private capital flows (FDIs)

CONTEXT

Corporate Governance• Balance • Economic and social goals • Individual and communal goals• Align • Interests of individuals, corporations and society

BOD Commitment

Five Golden Rules

1. Ethics: clearly basis 2. Align Business Goals: creation of stakeholder

decision making model 3. Strategic management: effective process

incorporates stakeholder value 4. Organization: suitably structured 5. Reporting: systems provide transparency and

accountability

Relevance of Corporate Governance

• From • SMEs and family-owned businesses • To • State/Public/Private companies

RECOMMENDATIONS

Journey of Corporate Governance• Rudimentary

• Developing

• Acceptable

• Advanced

• Leading Practice

Policy Makers

• Evaluate and improve legal, regulatory, and institutional framework • Support economic efficiency, sustainable growth and financial stability

Recommendations• Introduce new Company’s Law• Raise awareness of Corporate Governance • Undertake BOD training/evaluation• Promote professionalization of BOD• Adopt Corporate Governance Codes based on OECD/ASEAN Guidelines• Strengthen CSR/UN Global Compact

Recommendations