Corporate

Governance & Ethics

Symposium Outcomes
Share information on the supervision and selfregulation 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 companys compliance with regulatory requirements and, to the extent that it is not required by law, its adherence to standards that

define relationships between a companys management, its board, shareholders and other stakeholders provide a structure through which the companys 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 longterm success

Ethics

Reflection in a companys 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 companys formal conduct requirements, or contained in generally stated principles that guide a companys 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

COMPANY

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

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

COMPANY

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 longterm success

Distribution

Consumption

Corporate Governance Defines relationships between management, board, shareholders and other stakeholders

COMPANY

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 longterm success

Distribution

Employment Structure

Consumption

Corporate Governance Defines relationships between management, board, shareholders and other stakeholders

COMPANY

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 longterm success

Employment Structure

Distribution

Quality Information Safety Redress Service Education

Consumption

Corporate Governance Defines relationships between management, board, shareholders and other stakeholders

COMPANY

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

Distribution

Employment Structure

Quality Information Safety Redress Service Education

Consumption

Corporate Governance Defines relationships between management, board, shareholders and other stakeholders

COMPANY

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

Distribution

Employment Structure

Community Standards

Quality Information Safety Redress Service Education

Industry Standards Company Standards

Consumption

Corporate Governance Defines relationships between management, board, shareholders and other stakeholders

COMPANY

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

Distribution

Employment Structure Community Standards Industry Standards Company Standards

Quality Information Safety Redress Service Education

Consumption

Local Values and Culture

Corporate Governance Defines relationships between management, board, shareholders and other stakeholders

COMPANY

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

Distribution

Employment Structure Local Values and Culture

Community Standards
Industry Standards Company Standards

Quality Information Safety Redress Service Education Codes

Consumption

Corporate
Governance & Ethics