Kuliah II - Defining Corporate Governance

Mohamad Fajri MP dan Deni Darmawati

Kuliah II – 19 Maret 2010

DEFINING CORPORATE GOVERNANCE

What is corporate governance?

There is no single, accepted definition of corporate governance.

There are substantial differences in definition according to which country is considered.

The subject may be treated in a narrow or a broad manner, depending on the viewpoint of the policy maker, practitioner, researcher or theorist.

GCG Overview

FILOSOFI BESI SEMBRANI.ppt

What is corporate governance? In a narrow view, corporate governance is

restricted to the relationship between a company and its shareholders. This is the traditional finance paradigm, expressed in agency theory.

In a broad view, corporate governance may be seen as a web of relationships, not only between a company and its owners (shareholders) but also between a company and a broad range of other stakeholders: employees, customers, suppliers, bondholders etc. Such a view tends to be expressed in stakeholder theory.

What is corporate governance?Cadbury Committee (1992)

“the system by which organization are directed and controlled or a set of rule that define the relationship between shareholders, managers, creditors, the government, employee, and other internal and external stakeholders in respect to their rights and responsibilities.

What is corporate governance?Solomon (2007: 14) Corporate governance is defined as the

system of checks and balances, both internal and external to companies, which ensures that companies discharge their accountability to all their stakeholders and act in a socially responsible way in all areas of their business activity.

Pengertian Corporate Governance

Corporate governance merupakan proses dan struktur yang diterapkan dalam menjalankan perusahaan dengan tujuan utama meningkatkan nilai pemegang saham dalam jangka panjang dengan tetap memperhatikan kepentingan stakeholders yang lain.

The Indonesian Institute for Corporate Governance

Turnbull, 1997

Syakhroza, 2002

OECD, 1999

“Seperangkat sistem, struktur dan mekanisme yang mengatur perusahaan dalam melindungi kepentingan stakeholders, mencapai tujuan perusahaan yang diterima menjadi corporate culture dan nilai-nilai bersama serta menjadi alat kontrol untuk memastikan terciptanya check and balances.”.

Mohamad Fajri MP, 2009

Seperangkat peraturan yang mengatur hubungan antara pemegang saham, pengelola perusahaan, pihak kreditor, pemerintah, karyawan serta pemegang kepentingan intern dan ekstern lainnya yang berkaitan dengan hak-hak dan kewajiban mereka, atau dengan kata lain suatu sistem yang mengatur dan mengendalikan Perusahaan.

Cadbury Committee

Good Corporate Governance in Simple Terms

In the right way At the right time In the right place

By the right people

Doing the right thingDoing the thing right

For the balanced interests of shareholders

and other stakeholders

Based on the principles:TransparencyAccountability

FairnessResponsibilityIndepedency

MELAKUKAN APA YANG DITULIS DAN MENULISKAN APA YANG DILAKUKANGCG

Manfaat GCG (Testimonial)

“Dengan GCG, segala bentuk intervensi susah masuk. Misalnya upeti atau sumbangan yang tidak jelas pertanggungjawabannya. Kami telah jalan sesuai rules dan bisnis. Kalau menghadapi hal-hal negatif seperti itu, kami bilang saja, itu melanggar GCG”. (Yosafat Siregar, Kadiv Grup Manajemen Risiko & Internal Audit PT Astra International Tbk)

“Sebagai perusahaan yang dikenal menjalankan GCG, imbasnya juga bagus. Dari awal para mitra tahu bahwa kami berbisnis dengan jujur dan tidak bertele-tele.” (Lukito Dewandaya, Presiden Direktur PT Astra Graphia Tbk)

“Kami merasakan manfaat GCG.Salah satunya kami merasakan kinerja yang membaik dan sustainable dalam menghadapi krisis.” (Hilmi Panigoro, CEO Group Medco)

“Kami percaya bahwa pe ne rapan GCG secara benar dan konsisten tidak hanya akan membuat perusahaan kami semakin besar, namun juga menjadi semakin baik,” (Dr Ridwan Zachrie, Direktur SDM Ke patuhan dan Risiko Recapital Ad visors)

What is corporate governance?The Organization for Economic Cooperation

and Development (OECD) (2004)Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides structure through which the objectives of company are set, and the means of attaining those objectives and monitoring performance are determined.

What is corporate governance?Australian Stock Exchange (ASX) (2003)

Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the company set and achieved, how risk is monitored and assessed, and how performance is optimized.

GCG = Investasi Menuju Kesuksesan

Shareholder Concept

Fokus pada maksimalisasi pemenuhan kepentingan pemegang saham semata-mata

Orientasi bisnis jangka pendek (short-term profits)

Tidak mempertimbangkan eksternalitas negatif korporasi yang harus ditanggung oleh pihak lain

Stakeholder Concept

Fokus pada keseimbangan kepentingan seluruh stakeholder melalui aktivitas dan proses bisnis yang bertanggungjawab, transparan, fair

Orientasi bisnis jangka panjang (sustainable operation)

Berupaya untuk menjadi good coporate citizen

Teori Corporate Governance

Secara umum perspektif di dalam memahami corporate governance dapat dibedakan menjadi dua pendekatan, yang sangat berbeda secara prinsipil:

Agency TheoryJensen and Meckling(1976) Fama and Jensen (1983)

Fundamental corporate governance problem deals with how is the principal (shareholder) able to prevent the agent (generally management) from maximizing his own self-interest.

Solutions to agency problems involve establishing a ‘nexus’ of optimal contracts (explicit as well as implicit) between the owners and management of the company. These contracts, also knows as the “internal rules of the game”, identify the rights of agents in the organization, performance criteria against which they will be evaluated and the resulting payoff functions they will tend to face.

Transaction Cost EconomicsWilliamson (1979,1981, 1983,1984) The firm itself is a governance structure. The

governance problem of a firm are perceived to proceed from a number of contractual hazards, including self interested opportunism, information asymmetries, asset specificity and small number bargaining, and the problem of bounded rationality (Learmount, 2002).

Corporate governance deals with identifying internal measures and mechanisms to economize the costs associated with contractual hazards as the external market mechanism can not be relied on to mitigate these problems because of the fact that it has “limited constitutional powers to conduct audits and has limited access to the firm’s incentive and resource allocation machinery” (Williamson, 1975, p. 143 in Learmount, 2002).

Stewardship ModelDavis, Schoorman and Donaldson (1997) To identify different psychological and sociological

characteristics antecedents to the principal-steward relationships and to examine “a model based on manager-principal choice rather than a determinism” (1997, p. 43).

Managers are more likely to serve organizational rather than personal goals when (i) their needs are based on growth, achievement and self-actualization; (ii) they identify themselves with their organization and remain highly committed to the organizational values; and (iii) their philosophy is based on involvement and trust in a culture based on collectivism and low power distance.

Managers choice to behave as stewards or agents, or principals choice to create an agency or stewardship relationship is contingent on their psychological motivations and perceptions of the situation.

Stewardship Model Keasy and Wright (1997) Two dimensions of corporate governance are

stewardship and entrepreneurship. Good corporate governance is “as much concerned with correctly motivating managerial behaviour towards improving the businesses, as directly controlling the behaviour of managers” (Keasey and Wright, 1997, p. 2).

The stewardship dimension emphasizes issues like fund misappropriations by, and controlling the behaviours of, non-owner managers; and entrepreneurship dimension deals with reallocation of economic resources in new combination involving both innovations and corporate restructuring.

Stakeholder Model Freeman (1984) Unlike “production view” of the

firm,“managerial view” of the firm requires the top management to “simultaneously satisfy the owners, the employees, and their unions, suppliers and customers” (Freeman, 1984, p. 6) in order to be successful.

In a “stakeholder-serving” organization, managers in different functional disciplines can be more responsive to the external environment by carrying forward the notion of “internal stakeholders” as the conduits to external groups. In such an organization, the executives should act as “corporate spokesperson, political and social participant and manager of the human resources of the firm” (Freeman, 1984, p. 247).

Stakeholder Model Buchholz (1989) To ensure participation of a wider constituent groups

(with economic and/or social stakes in corporate activities such as employees, customers, suppliers, stockholders, banks, environmentalists, government, to name but a few) in the governance process, assuring that their wide range of interests are taken into account by corporate management and ultimately, the interests of society as a whole

Give shareholders increased rights to participate in important management decisions.

Change in the composition of boards by including more outside directors to alleviate concern boards are too subservient to management.

Employee representation at some level in corporate governance.

Reinforce of government rules and regulation over issues like insider trading,hostile takeover.

Stakeholder Model Donaldson and Preston (1995)To critically analyze significant distinctions,

limitations and implications associated with stakeholder concepts. Attempt was made to contrast actual or potential problems experienced by stakeholders or may experience as a result of management actions or inactions and effort was made to explore the justifications and responsibility of directors of the firm’s as trustees for the stakeholders.

Stakeholder Model Donaldson and Preston (1995) The stakeholder theory is descriptive and instrumental: it can be

used as a framework to test empirical claims, estimations relevant to stockholder concept, and to examine the connections between corporate performance and stockholder management. Descriptive justifications: it is unethical management behavior to focus solely in the interest of shareowners; statutes have extended the range of permissible concern by boards to non-shareowner constituencies. Instrumental justification: success in satisfying multiple stakeholder interests constitutes the ultimate test of corporate performance, with monitoring devices that reduce information asymmetry, and enforcement mechanisms including law, exit and voice, and emphasis of fairness. The fundamental basis of stockholder theory is normative: stakeholders have legitimate interest on the intrinsic value of the firm. Normative justifications: a pluralistic theory of property rights supports various groups a moral interest or stake in the affairs of the corporation. The stockholder theory is managerial: recommends attitude, structures, and practices to constitute stockholder management. Managerial Implications: managers are responsible to select actions to maximize the interest of legitimate stakeholder.

Fairness Transparency Accountability Responsibility

bagi stakeholder untuk menjamin perlindungan terhadap perbuatan fraud, self dealing dan penyimpangan oleh orang dalam

melalui keterbukaan informasi yang tepat waktu, akurat, dan berkualitas tentang kondisi perusahaan

manajemen yang efektif berdasarkan pada keseimbangan kewenangan dan tanggung jawab antara manajer, pemegang saham, Direksi, Komisaris, dan auditor

tanggung jawab perusahaan sebagai anggota masyarakat untuk mematuhi hukum dan bertindak sesuai dengan nilai-nilai masyarakat

OECD Version

Prinsip-Prinsip Good Corporate Governance

ASAS/ELEMEN/ASPEK GCGTransparansiAkuntabilitasResponsibilitasIndependensiKewajaran dan Kesetaraan (Fairness)

TransparansiUntuk menjaga obyektivitas dalam menjalankan bisnis, perusahaan harus menyediakan informasi yang material dan relevan dengan cara yang mudah diakses dan dipahami oleh pemangku kepentingan. Perusahaan harus mengambil inisiatif untuk mengungkapkan tidak hanya masalah yang disyaratkan oleh peraturan perundang-undangan, tetapi juga hal yang penting untuk pengambilan keputusan pemegang saham, kreditur dan pemangku kepentingan lainnya.

AkuntabilitasPerusahaan harus dapat mempertangjawabkan kinerjanya secara transparan dan wajar. Untuk itu perusahaan harus dikelola secara benar, terukur dan sesuai dengan kepentingan perusahaan dengan tetap memperhitungkan kepentingan pemegang saham dan pemangku kepentingan lain. Akuntabilitas merupakan prasyarat yang diperlukan untuk mencapai kinerja yang berkesinambungan.

ResponsibilitasPerusahaan harus mematuhi peraturan perundang-undangan serta melakukan tanggung jawab terhadap masyarakat dan lingkungan sehingga dapat terpelihara kesinambungan usaha dalam jangka panjang dan mendapat pengakuan sebagai good corporate citizen.

IndependensiUntuk melancarkan pelaksanaan asas GCG, perusahaan harus dikelola secara independen sehingga masing-masing organ perusahaan tidak saling mendominasi dan tidak dapat diintervensi oleh pihak lain.

Kewajaran dan Kesetaraan (Fairness)Dalam rangka melaksanakan kegiatannya,

perusahaan harus senantiasa memperhatikan kepentingan pemegang saham dan pemangku kepentingan lainnya berdasarkan asas kewajaran dan kesetaraan.

Pengaruh GCG Terhadap Nilai Pengaruh GCG Terhadap Nilai PerusahaanPerusahaan

Premium bagi Perusahaan yang mengimplementasikan Good Corporate Governance secara Efektif

Malaysia 22.1 % 26.0 %

Thailand 23.1 % 28.0 %

Japan 17.0 % 21.8 %

Indonesia 24.3 % 29.8 %Taiwan 18.0 % 24.0 %

South Korea 18.8 % 28.7 %

ASAL INVESTOR Asia US and Europe

Source : World Bank – McKinsey, 2000

Fakta Empiris

Japan

Taiwan

South Korea

Thailand

Malaysia

% Premium

Indonesia18%U.S.Avg 2000

14% U.S. Avg2002

21

19

20

20

22

25

20

20

24

26

25

27

2002 Survey

2000 Survey

McKinsey & Co.:Premium investors are willing to pay for a well governed company (2002)

Good Corporate Governance merupakan faktor menentukan di samping faktor kinerja keuangan dalam proses pemilihan target investasi

TERIMAKASIH

MOHAMAD FAJRI MP – [email protected]