Findings from business integrity research launched at the Conference on Corporate Governance and Responsibility: Theory Meets Practice

Singapore, 21 July 2016 – A joint research by ASEAN CSR Network (ACN) and National University of Singapore (NUS) Business School’s Centre for Governance, Institutions and Organisations (CGIO) revealed that on average, only 54 per cent of the top listed companies in five ASEAN countries have a publicly disclosed  commitment to anti-corruption. The study looked at the top 50 listed companies in each of the five countries – Indonesia, Malaysia, Philippines, Singapore and Thailand – and assessed their level of public disclosure related to their anti-corruption efforts.

Some of the key findings include:

• Companies scored an average of 45 per cent in their overall level of disclosure across the five ASEAN countries;
• Thailand led the overall level of disclosure, followed by Singapore, the Philippines, Malaysia and Indonesia
• On average, only 54 per cent of top listed companies in the five ASEAN countries have a publicly disclosed commitment to anti-corruption.
• 96 per cent of companies expressed a commitment to comply with relevant laws and regulations in their country;
• Top leadership support was not as explicitly stated, with companies across the region scoring an average of 18 per cent although Thailand bucked the trend, scoring an average of 47 per cent;
• On average, only 14 per cent of the companies disclosed that their anti-corruption policy explicitly applies to third parties acting on behalf of the company;
• On average, 59 per cent of the companies had a policy covering gifts, hospitality and expenses although the average score across the countries was 59 per cent, the scores were pulled by Thailand which scored a high 84 per cent compared to the others which ranged from 39 per cent in Malaysia to 63 per cent in Indonesia;
• Only 19 per cent of the companies disclosed that they explicitly prohibit facilitation payments; and
• Only 31 per cent of companies disclosed policy covering political contributions that either prohibits such contributions or requires that such contributions be publicly disclosed.

The study was implemented as part of ACN’s “Integrity Has No Borders” initiative and supported by the United Kingdom’s Foreign and Commonwealth Office Prosperity Fund. 13 questions from Transparency International’s study “Transparency in Corporate Reporting” were used. The information was gathered from the companies’ website, annual reports, sustainability reports, corporate governance reports and Code of Conduct.

More work needed to ramp up adoption and implementation of anti-corruption policies in ASEAN

The findings reveal that much work needs to be done on various fronts to boost corporate commitment and action against corruption in ASEAN.

 “The findings are a good start for ASEAN companies to compare their level of disclosure in anti-corruption policies and accompanying actions and enable them to do the necessary actions to rectify any shortcomings. It will be a work-in-progress but companies need to start somewhere. Progress made to tackle corruption in Southeast Asia will go a long way in building a more cohesive regional economic community with the fruits of labour shared by one and all,” said Ms Yanti Triwadiantini, Chair of ACN.

“This is a good baseline for Singapore to be benchmarked using international standards,” said Associate Professor Lawrence Loh, Director of CGIO at NUS Business School. “With room for improvement, we need to analyse and understand the inhibitors and issues faced by organisations and nurture a culture of transparency and disclosure.”

The findings were released today at the Conference on Corporate Governance and Responsibility: Theory Meets Practice. The conference, which is held from 20 to 22 July 2016, is designed to provide a platform for key stakeholders engaged in teaching, researching and implementing corporate governance and responsibility to participate in high-level lectures, interactive dialogue and consultation, and sharing of practices and experiences, including site visits and executive meetings.

The event brings together some 200 speakers and delegates from across the region and globally. This includes senior representatives from universities and think tanks, as well as corporate practitioners, civil society leaders, and policymakers. 

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About ASEAN CSR Network (ACN)

The ASEAN CSR Network (ACN) was established in December 2010 with support from the ASEAN Foundation in line with the achievement of an ASEAN Community in 2015. As a regional organisation, ACN provides a platform for networking and cooperation, supports capacity-building and training activities, helps to rally collective action on key issues, and provides a link with regional and international bodies interested in supporting the advancement of CSR in the region.

About National University of Singapore (NUS)

A leading global university centred in Asia, the National University of Singapore (NUS) is Singapore’s flagship university, which offers a global approach to education and research, with a focus on Asian perspectives and expertise.

NUS has 17 faculties and schools across three campuses. Its transformative education includes a broad-based curriculum underscored by multi-disciplinary courses and cross-faculty enrichment. Over 38,000 students from 100 countries enrich the community with their diverse social and cultural perspectives.

NUS has three Research Centres of Excellence (RCE) and 27 university-level research institutes and centres. It is also a partner in Singapore’s fifth RCE. NUS shares a close affiliation with 16 national-level research institutes and centres. Research activities are strategic and robust, and NUS is well-known for its research strengths in engineering, life sciences and biomedicine, social sciences and natural sciences. It also strives to create a supportive and innovative environment to promote creative enterprise within its community.  

For more information on NUS, please visit www.nus.edu.sg. 

About the Centre for Governance, Institutions and Organisations

The Centre for Governance, Institutions and Organisations (CGIO) was established by the National University of Singapore (NUS) Business School in 2010. It aims to spearhead relevant and high-impact research on governance issues that are pertinent to Asia, including corporate governance, governance of family firms, state-linked companies, business groups, and institutions. CGIO also organises events such as public lectures, industry roundtables, and academic conferences on topics related to governance.

NUS Business School is known for providing management thought leadership from an Asian perspective, enabling its students and corporate partners to leverage global knowledge and Asian insights.

The School is one of the 17 faculties and schools at NUS. A leading global university centred in Asia, NUS is Singapore’s flagship university, which offers a global approach to education and research, with a focus on Asian perspectives and expertise. Its transformative education includes a broad-based curriculum underscored by multi-disciplinary courses and cross-faculty enrichment. Over 37,000 students from 100 countries enrich the community with their diverse social and cultural perspectives.

For more information, please visit bschool.nus.edu.sg, or go to the Think Business portal, which showcases the School’s research.