C orporate Governance & E thics

2. Corporate Governance & Ethics

3. Symposium Outcomes Share information on the supervision and self- regulation of the direct selling industry in Asian markets

4. 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

5. 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

6. 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

7. Concepts Corporate Governance and Ethics • increasingly part of the business lexicon • cover a wide range of issues • not well-defined or understood

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. Corporate Governance & Ethics