CORPORATE GOVERNANCE AND REPUTATION MANAGEMENT

“BETTER COMPANIES, BETTER SOCIETIES” (GLOBAL CORPORATE GOVERNANCE FORUM

(GCGF))

GOVERNMENT EXISTS TO PROVIDE (Diagram 1)

Corporate Governance and Reputation Management 1

POLITICS, GOVERNMENT, GOVERNANCE AND YOU

GOVERNMENT EXISTS TO PROVIDE (Diagram 1)SECURITY AND DEVELOPMENT

FREEDOM FROM WANTFEAR

Deter Compel Reassure NEEDS RIGHTS MARKETS

-Crime Use Min the citizens Material and responsibilities -Free Market

-Violence to Maximum of state Needs civil, social Economy

-Terrorism force where capacity -Food and economic -Private

Etc deterrence to Maintain rule of -Home duties to Sector Driven

-External Fails law, maintain -School family Public-Private

Aggression order and -Hospital community Sector

restore Stability etc and Partnership

if and when state Minus the

necessary People

Corporate Governance and Reputation Management 2

Governance is the regularised ways of ordering human societies at all levels of organisation from family units to entire societies based on the following principles

- Balancing Power with power at many levels within and among many informal or formal organised structures in organisation, society or state

- Monitoring Performance

- Accepting non-violent conflicts as an important indicator of problems with relevance on in-house conflict prevention and management mechanisms for reaching sustainable solution in eliminating conflict

- Empowering shareholders stakeholders and communities with enforceable rights with moral responsibilities to check abuses of Authority over them.

Corporate Governance and Reputation Management 3

STAKEHOLDERS MUST SPEAK TRUTH TO THEMSELVES

To govern, it is obligatory to haveINSTRUMENTS INSTITUTIONS CAPACITYFormal and InformalIn and out

Resources Know Know How toLaw Codes Policies Directives Board Investors Management Why How apply etc and Staff need skills and or Build Shareholders Knowledge

Show-Howother stakeholders Techniquesfor Methods CORPORATE

PERFORMANCE

Sustained Superior quality of Create BalanceGrowth goods and services double benefits risk taking and

for shareholders risk managementand other stakeholders

Corporate Governance and Reputation Management 4

BUT THERE ARE RISKS

RISKS

Society Market Environment Suppliers and Board/Owners

Environment Customers Management StaffAllow Companies and competitors lead to do insider

tradingTo do Regulatory to collusion and commercial corporate

fraudAnd Policy cartels bribery etcCapture

Corporate Governance and Reputation Management 5

THEREFORE THE NEED FOR CORPORATE INTEGRITY SYSTEM

Because Boards operate in the interest of management rather than shareholders (AD)

THE INTEGRITY SYSTEM

NORMS AND GOVERNANCE PUBLIC BROADERCULTURE RULES AND CHECKS AND

REGULATIONS BALANCES

Corporate Codes Ethical Regulatory Law Civil & Investors CSOs Public Consumer

Citizenship of Leadership Enforcement Criminal Watchdogs Reporting Campaign

Conduct Liabilities Investigative

Compliance Whistle Corporate Gatekeepers Journalism System Blowing Governance

Source TI Accountants Auditors Rating AgenciesCorporate Governance and Reputation

Management 6

Now you can talk of corporate reputation which- Is dependent on effective corporate governance with

CSR and CSI of impact.- Has more market value (20%) than the quality of the

board- As a risk is clearly an important component of overall

enterprise risk- Increases corporate esteem and competitive advantage

Thus Reputation is made from the perception and opinions through inter-relationship of CEOs, Executives, Management and Staff and interaction with the media, government officials, institutional investors, analysts and host communities etc and from sources of information ranging from personal interacts to academic, journals, media etc.

Corporate Governance and Reputation Management 7

TOOLS FOR REPUTATION MANAGEMENT

Information Strategic Direct CommunicationGathering Counsel Lobbyingand Analysis

Corporate Governance and Reputation Management 8

THE SOCIETAL INCREASING RISK

RISK

Direct Conflict UnequalIntegrity

Political corruption of interest access to policyand the and Influences between govt makers and balance ofPeddling official and decision making

information business sectors processes

and

Representation

Corporate Governance and Reputation Management 9

FROM INFLUENCING POLICY AND DECISION SHAPING AND MAKING TO SHAPING PUBLIC DEBATE AND MORE

SO SHAPING SCIENCE

ALERT SIGNAL

Shaping Managing LandscapingScience with “ghost” the Media the publicjournal and the message SpaceArticles supportingDubiousScientific research

Corporate Governance and Reputation Management 10