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C orporate Governance & E thics. Symposium Outcomes Share information on the supervision and self- regulation of the direct selling industry in Asian markets. Symposium Outcomes
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Symposium Outcomes Share information on the supervision and self- regulation of the direct selling industry in Asian markets
Symposium Outcomes Topics such as industry regulation, consumer protection policy, corporate governance & ethics, and relationship building suggest an underlying theme of an industry looking to assure new markets of - the value and integrity of its operations, and - respect for their legal and cultural traditions
Context • Business corporations are increasingly important for wealth creation, and how companies are operated will influence society as a whole • To serve this wealth creation function, companies must focus on their objectives and be accountable for their actions through the structure of good corporate governance arrangements
Symposium Outcomes How should a session on corporate governance and ethics contribute to Symposium outcomes? - Describe the concepts - Discuss their role for reassuring consumers and regulators in emerging markets
Concepts Corporate Governance and Ethics • increasingly part of the business lexicon • cover a wide range of issues • not well-defined or understood
Corporate Governance Corporate governance is the function of a company’s compliance with regulatory requirements and, to the extent that it is not required by law, its adherence to standards that • define relationships between a company’s management, its board, shareholders and other stakeholders • provide a structure through which the company’s objectives are set, and how they are achieved and monitored • recognise the value of business ethics and corporate awareness of society interests to reputation and long- term success
Ethics • Reflection in a company’s operations of the values and moral principles used in the communities in which they operate • Successful markets and corporate performance are founded on a commitment to basic ethical principles aligned as much as possible to the interests of individuals, corporations and society • Ethical standards may be expressed in a company’s formal conduct requirements, or contained in generally stated principles that guide a company’s preferred conduct or behaviour
Framework • No single model for corporate governance • Corporate governance is a set of principles that may be variously applied in particular circumstances by government, regulators, institutions and corporations • Principles primarily designed to promote confidence in capital markets, but also have general application • OECD has developed broad principles and supporting statements for best practice in corporate governance • Interest shown in OECD principles by non-member Asian countries
Direct Selling • Direct selling is supply of goods and services, away from a fixed retail location, usually face-to-face • Contribution to economic and social development not generally recognised • Advantages over conventional retail supply • Direct selling can present issues at distribution and consumption levels
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success COMPANY
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success COMPANY Structure and management of operations to ensure consumer outcomes
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long- term success COMPANY Distribution Consumption
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long- term success COMPANY Distribution • Employment • Structure Consumption
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long- term success COMPANY Distribution • Employment • Structure • Quality • Information • Safety • Redress • Service • Education Consumption
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success COMPANY Distribution • Employment • Structure • Quality • Information • Safety • Redress • Service • Education Consumption
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success COMPANY Distribution • Employment • Structure Community Standards Industry Standards Company Standards • Quality • Information • Safety • Redress • Service • Education Consumption
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success COMPANY Distribution • Employment • Structure Local Values and Culture Community Standards Industry Standards Company Standards • Quality • Information • Safety • Redress • Service • Education Consumption
Corporate Governance • Defines relationships between management, board, shareholders and other stakeholders • Provides structure through which company objectives are set, achieved and monitored • Recognises the value of business ethics and corporate awareness of society interests to reputation and long-term success COMPANY Distribution • Employment • Structure Local Values and Culture Community Standards Industry Standards Company Standards • Quality • Information • Safety • Redress • Service • Education Codes Consumption