ID :
131600
Tue, 07/06/2010 - 14:55
Auther :
Shortlink :
https://oananews.org//node/131600
The shortlink copeid
CORPORATE GOVERNANCE SHOULD NOT BE A MERE BUREAUCRATIC FUNCTION
KUALA LUMPUR, July 6 (Bernama) - Corporate governance should not be a mere bureaucratic function under the purview of a compliance or internal audit department but must cut across every function, job and role in an organisation, said Crown Prince of the state of Perak Raja Dr Nazrin Shah.
He said to be effective, the principles that underpin corporate governance,
such as trust and intergrity, should be internalised and this must begin with
the top leadership.
"Corporate malfeasance can occur at any and all levels of an organisation.
However, those with greater authority and power can potentially do the greatest
damage," he said in his address at the Second Annual Corporate Governance Summit
here Tuesday.
Raja Nazrin also said occasionally even the best-managed companies can fall
victim to bad decisions, if not bad intentions, and when that occured it was
critical that there was a willingness to take responsibility for those failures.
"To do otherwise would be to make a mockery of the whole idea of good
corporate governance," he added.
He said for bad behaviours to be eradicated there must be a very strong
oversight institution.
"Incentives that skew behaviour towards excessive and irresponsible risk
taking must be removed and heavy penalty must be imposed on those found guilty
of malpractice.
"Likewise, whistleblowers should be empowered to disclose any evidence of
misconduct and be protected from victimization thereafter," said Raja Nazrin,
adding that there must also be space for independent and responsible media and
a vibrant civil society.
He also said as Malaysia moved forward to transform itself into a
high-income economy, companies must not only strengthen their credibility among
international investors but also be able to compete with best in the world.
Raja Nazrin said according to "The McKinsey Quarterly" survey, investors
were drawn to companies with good governance and were willing to pay a premium
of between 11 and 16 per cent.
-- BERNAMA
He said to be effective, the principles that underpin corporate governance,
such as trust and intergrity, should be internalised and this must begin with
the top leadership.
"Corporate malfeasance can occur at any and all levels of an organisation.
However, those with greater authority and power can potentially do the greatest
damage," he said in his address at the Second Annual Corporate Governance Summit
here Tuesday.
Raja Nazrin also said occasionally even the best-managed companies can fall
victim to bad decisions, if not bad intentions, and when that occured it was
critical that there was a willingness to take responsibility for those failures.
"To do otherwise would be to make a mockery of the whole idea of good
corporate governance," he added.
He said for bad behaviours to be eradicated there must be a very strong
oversight institution.
"Incentives that skew behaviour towards excessive and irresponsible risk
taking must be removed and heavy penalty must be imposed on those found guilty
of malpractice.
"Likewise, whistleblowers should be empowered to disclose any evidence of
misconduct and be protected from victimization thereafter," said Raja Nazrin,
adding that there must also be space for independent and responsible media and
a vibrant civil society.
He also said as Malaysia moved forward to transform itself into a
high-income economy, companies must not only strengthen their credibility among
international investors but also be able to compete with best in the world.
Raja Nazrin said according to "The McKinsey Quarterly" survey, investors
were drawn to companies with good governance and were willing to pay a premium
of between 11 and 16 per cent.
-- BERNAMA
