Blog
We also published a book: Modern International Corporate Governance Principles and Models (Part II)
New Fifty Two (52) elements of the 1st comparative International corporate governance standards for listed and unlisted companies
Generally speaking, a good corporate governance system, structure and mechanisms can enable organizations to develop and growth in a sustainable direction.
In order to achieve this goal,together with above 52 standards set, we propose in below the new twenty (20) CG principles in addition to previous principles published in the book-part I. These following principles have basic characteristics such as: comply and explain, easy to understand, with people involvement and competent:
Principle 1 – The corporation appoints someone in charge of corporate governance which focuses on substance more than form.
Principle 2 – The company appoints someone or nomination committee who will access strengths and weaknesses of board of directors and recommend changes.
Principle 3 – The company as a whole will build a code of conduct which formalize ethical standards, guides receiving gifts and donation and supports for employee personal development.
Principle 4 – Shareholders or Owner foster constructive relationship with board or corporate leaders to facilitate the success
Principle 5 – The firm as a whole will adopt better CG practices and the concept of sustainability may be involved in the Code or be integrated with financial reports.
Principle 6 – Executive directors work with management to deliver business strategy, deal with strategic planning, standards of conduct, and resource allocation.
Principle 7 – CEO understand and establish clear division of duties between running the board and running firm-business.
Principle 8 – External audit express opinions on financial information, system audits, cost system.
Principle 9 – Supervisory board establish consultative committees on topics chosen by board
Principle 10 – The corporate governance code preserves the long term value of investors’ investment and includes guidelines for board and committees.
Principle 11 – Firm reports on how they positively and negatively impact on the environment, economic and social life of community.
Principle 12 – Board of Director posses a right mix of expertise, experience and knowledge, skills, and make independent judgement o issues of strategy, performance, resources.
Principle 13 – The firm will provide adequate training for management and employee.
Principle 14 – Board meeting agenda has analysis of impacts on minority shareholders
Principle 15 – Chairman ensures constructive relations within BD and discuss key issues with CEO
Principle 16 – The corporation be aware of social responsibilities on environmental and societal interests of communities.
Principle 17 – Internal control establish sound Internal control system at all levels of the company and report conflicts of interest affecting board of directors and management.
Principle 18 – Internal audit provide independent opinion on future risk; Independent opinion on financial performance.
Principle 19 – The firm employ an officer for information disclosure so that shareholders have equal access to information.
Principle 20 – When the company build a code of corporate governance, it will be based on good judgement rather than description.