会计论文怎么写 The Development Of Corporate Governance In Malaysia
This is to secure sufficient disclosure so that investors and others can assess companies’ performance and
governance practices, and respond in an informed way.
Figure 1: Inward looking strategic concepts
Corporation
Strategic concepts:
Marketing
Operations management
Strategic management
Internal benchmark and revise strategy
Gain profit from targeted market segments
Profits
However, CSR requires a corporation to be outward looking which means that a corporation must constantly look towards the interests of stakeholders. Thus, performance of the corporation is now benchmarked against the expectations of these stakeholders and no longer the expectations of shareholders. In order to communicate corporate transparency, reputation and sustainability issues, many of the companies are required to address issues of CSR, such as diversity and equality, environment stewardship, community work, talent management and building trust in their annual report. (ACCA, 2004) Figure 2 shows the outward looking model.
Figure 2: Outward looking strategic concepts
Corporation
Strategic concepts:
Marketing
Operations management
Strategic management
Profit gained from market
Donations /
Philanthropy
Satisfy stakeholders’ demands / expectations
Below are the examples of corporate social responsibility:
Diversity and equality
Southern Bank differentiates itself from others with its gender-friendly policies. The bank was the first to offer a credit card tailored for women. It set up bank facilities and offered financial services at The Women’s Institute of Management which is to make sure SBB WIM Master cardholders are part of “an organization that looks forward to women’s involvement in the community, a novel way of fulfilling the agenda for woman’s social and business advancement in society.” (apo-tokyo, 2007)
Environment stewardship
Open disclosure practices on sustainable development are already in place among the leading resource-based companies. Petronas crafted a corporate sustainability framework that is committed to seven key result areas: sustaining shareholder value ; promoting efficient use of natural resources; safety and preserving the environment; product stewardship; respecting human rights; limiting greenhouse effects; and sustaining biodiversity. It is hoped that Petronas will extend this commitment and bench strength to its supply chain, stakeholders and competitors. (Petronas, 2009)
Connecting to community.
Both Microsoft Malaysia and Maxis Communications have carried out programs to narrow the digital divide in the rural communities. Maxis’ Bridging Communities targets rural children who learn to use computers and surf the Internet at cyber camps. The project involves 500 Maxis employees in volunteer brigades. Similarly, Microsoft Malaysia has a community technology support network to help rural folk to keep up the technology advancement. DiGi has an ongoing Yellow Mobile program, which makes stopovers in various states where its staff volunteers teach young, disadvantaged orphans to appreciate the country’s history of music and culture. (apo-tokyo, 2007)
Weaknesses of MCCG (Revised 2007)
Many critics have argued that poor corporate governance was the main reason for the 1997/1998 financial crisis. (Liew, P.K., 2006) Thus, it is essential for us to detect the weaknesses of MCCG. The weakness that are detected from Malaysia Corporate Governace and MCCG (Revised 2007) are discussed below:
Weak Shareholders’ and Creditors’ Protection because of lack of power
According to Johnson et al. (2000), weak legal framework for shareholder protection was an important element for the Asian financial crisis. Although laws concerning shareholder rights and the regulatory framework in Malaysia appeared comprehensive, shareholder rights were often neglected in practice because of the excessive power enjoyed by controlling shareholders. In addition, it is argued that the real problems in Malaysia were “compliance (and) enforcement … (and) a lack of professionalism in regulations”. (Liew, P.K., 2006)
Lack of Transparency and Inadequate Disclosure
It has been argued that the lack of transparency arising from inadequate disclosure allowed significant problems to build up in the financial and corporate sectors. When the financial condition deteriorated, the investors being reluctant to hold shares while creditors became reluctant to rollover maturing short-term debts for fear of an imminent loss due to the lack of transparency. This contributed significantly to the erosion of investor confidence and in part exacerbated the crisis. (Liew, P.K., 2006)
Only applicable to publicly listed, but not private exempt companies
According to Bursa Malaysia’s listing requirements, all the listed companies must include narrative statements in their annual report on how they have applied the broad principles set out in the MCCG . (bursamalaysia, 2009) However, these requirement is not applicable to the private companies. so that the effect is at best minimal.
会计论文怎么写 The Development Of Corporate Governance In Malaysia