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The NINE CONCEPTS of CORPORATE GOVERNANCE

The NINE CONCEPTS of CORPORATE GOVERNANCE. www.accaforstudents.com/P1. What is “CONCEPT”?. Basic IDEA Principles THEMES Generally accepted rule. Mnemonic:. P enang I ndian F ood R estaurant I n J alan T unku A bdul R ahman. The 9 Concepts. P robity/honesty I ntegrity F airness

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The NINE CONCEPTS of CORPORATE GOVERNANCE

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  1. The NINE CONCEPTS of CORPORATE GOVERNANCE www.accaforstudents.com/P1

  2. What is “CONCEPT”? Basic IDEA Principles THEMES Generally accepted rule

  3. Mnemonic: Penang Indian Food Restaurant In JalanTunkuAbdul Rahman

  4. The 9 Concepts • Probity/honesty • Integrity • Fairness • Responsibility • Independence • Judgment • Transparency • Accountability • Reputation

  5. 1. PROBITY HONESTY & TRUTH NOT MISLEADING STRONG MORALITY “I cannot tell a lie” -Abraham Lincoln

  6. 2. INDEPENDENCE Vested Interest Influences Connection/Relationship Independent Free from conflict of interest Decisions/actions

  7. 3. FAIRNESS EQUAL-HANDED BALANCED NO BIAS RESPECT RIGHTS & VIEWS Stakeholders Stakeholders

  8. 4. Responsibility Clearly defined Roles & Responsibilities Track Credit & Blame “It was not my responsibility”

  9. 5. Integrity High MORAL VALUE STRICT adherence to moral code High PROFESSIONALISM ACTIONSare honest, truthful, fair, independent, etcwithout compromise

  10. 6. Judgement DECISIONS – for the good of the org BALANCED EVALUATION FACTORS

  11. 7. Transparency Open & clear DISCLOSURE Not CONCEALINGinfo Transparency vs. Confidentiality? Tajudin-Danaharta Case

  12. Tajudin-Danaharta Case Owes RM589m Sue in court to recover the debt A government linked-company (GLC) Tan Sri TajudinRamli (former MAS CEO) February 2012 – out of court settlement But the terms of the settlement remain CONFIDENTIAL! There should be transparencyfor the interest of the public (the principal)

  13. 8. Accountability ANSWERABLE for the actions/decisions Can ask QUESTIONS In all relationships Companies to Investors Professionals to their values Business to stakeholders etc

  14. 9. Reputation “goodname” of the entity Affects the business

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