We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
"Dharma" in Corporate Governance: Transparency the Biggest Challenge in Asian Countries.
- Authors
Bhasin, Madan
- Abstract
Corporate governance (CG) is about ethical conduct in business; it is beyond the realm of law. It stems from the culture and mindset of management and cannot be regulated by legislation alone. Too many legal provisions and their intricacies would make the real objective worthless. Thus, CG has caught the imagination of all segments of the corporate world. Governance has enjoyed even more limelight as a result of the series of corporate failings, both in public and private sectors, following which markets, investors and society at large have begun to loose faith in the infallibility of these large systems. Recent corporate governance failures in the US and Europe remind us that such breakdowns can severely affect the lives of thousands - employees, retirees, savers, creditors, customers, suppliers - in countries where market economies are well developed. At this point in time the conduct of those who take care of public money is being questioned. They are being tested on the basis of minimal ethical standards. The starting point for reform in Asia is very different from the starting point in Europe or North America. Asian governments, corporate leaders, investors, and regulators realize that corporate-governance practices will not change overnight, so patience is needed. Getting companies to comply with new rules is a daunting task requiring greater transparency and better enforcement, not to mention a cultural upheaval in the boardrooms. CG in Asia has improved, but implanting new forms of behaviour will take time. Full convergence with international accounting and audit standards, better protection of minority investors and stronger enforcement of existing laws and regulations are some of the recommendations to improve CG in Asian countries. CG has been high on the agenda for Asian regulators in recent years with most markets having introduced comprehensive regulations. Yet, as a recent independent research study shows, much work remains to be done and despite compelling evidence of the financial benefits to companies of a good governance culture, the ethos of corporate governance has yet to sink in. Regulators, companies and investors all have a vital role to play. The result has been a slew of rule and law making that has rapidly improved the regulation of corporate governance in key Asian markets. With so much achieved in a relatively short period of time, regulators now appear to be succumbing to the understandable temptation to shift their focus from rule making to rule enforcement.
- Subjects
ASIA; CORPORATE governance; BUSINESS ethics; LAW enforcement; CORPORATION law; INVESTORS; BUSINESS enterprises
- Publication
EBS Review, 2005, Issue 20, p99
- ISSN
1406-0264
- Publication type
Article