Corporate

Governance,
Ethics and
CSR
Principles of Corporate
Governance
Author:
Justine Simpson
John Taylor

Presentation by:
Agus Sholikhan Yulianto
 History and background of corporate
governance
ownership

Limited  emphasis on the relationship between shareholders and

Company 1856 Sparation directors.


Corporate A company should be managed in the best interests of its
Need for stakeholders, with a particular emphasis on its shareholders.
Governance
 Consideration should be given to all stakeholders in relation to
the activities a business undertakes, for example employees, the
the system by which general public, lenders, suppliers should all be considered and
organizations are directed all factors affecting them covered, not just financial issues.

‘the direction,
control management and control of
an organisation’ (1992)
The link between corporate governance
and cethics
Corporate
Governance
Right

?
good corporate ethics to value
what is right in society with
CORPORATE how it conducts
ETHIC itself.

ETHIC

?
Wrong
Definition of corporate governance
The latest UK Corporate Governance Code
(June 2010) states that ‘the purpose of
corporate governance is to facilitate
effective, entrepreneurial and prudent
management that can deliver the long-term Cadbury Committee.
success of the company’.
 Corporate governance is the system by which companies are
 It must act in the best interest of its owners directed and controlled.
(shareholders).  Governance of companies is the responsibility of the board
 Consideration should be given to all of directors.
stakeholders.  The appointment of directors and auditors is the
 It must comply with relevant codes.
 Consideration should be given to the
shareholders’ role in governance.
balance of power within the board of
 Shareholders also need to satisfy themselves that an
directors. appropriate governance structure is in place.
 Fair remuneration should be exhibited.  The board is responsible for setting the company’s strategic
 Risk must be monitored and managed. aims and providing the leadership to put them into effect.
 Good ethics must be observed and  The role of the board is to supervise the management of the
Corporate Social Responsibility must be business and report to shareholders on their stewardship.
considered.  The board’s actions are subject to laws, regulations and the
 It should employ independent auditors.
approval of shareholders in general meeting.
Reports that have been produced in
relation
to corporate governance issues
The collapse of a number of large corporations through fraudulent and unethical behaviour was
really when the definition and control of corporate governance started to be taken seriously as
worried investors and regulators through the media started to demand action.

 dominant individual;
 inexperienced or limited board;
 companies run in the interests of executive
directors – high
 remuneration packages and share options;
 unreliable financial reporting;
 auditors not sufficiently independent of the
company, misled or
 incompetent;
 ineffective internal controls;
 inadequate risk management;
 non-involvement by institutional shareholders.
Key concepts and principles
 Good Governance
Standards for Public
The OECD Principles Services 6: Core
of Corporate Principles of Good Generic Principles of
Governance Governance Good Governance
promote values for the hole organization develop the capacity and effectiveness of
protect and facilitate he exercise of and demonstrate good governance the governing body agree and promote
shareholders’ rights through behaviour values
ensure strategic guidance of the focus on the organization’s purpose and engage with shareholders and stakeholders
company, the effective monitoring of on outcomes for citizens and service be fair and impartial protect people’s rights
management by the board users behave ethically

make timely and accurate disclosure on take informed transparent decisions and set strategic purpose and outcomes
all material matters manage risks identify and manage risk

recognize the rights of stakeholders and engage with stakeholders and make make informed and transparent decisions
encourage active co-operation accountability real monitor performance

ensure equitable treatment of all develop the capacity and capability of the disclose everything so that accountability
shareholders governing body to be effective is effective

promote transparent and efficient

markets, be consistent with the rule of perform effectively in clearly defined comply with the law define roles and
law roles responsibilities
Corporate Gonermane di Indonesia
 Establishment of the National Committee on Corporate
Financial Governance Policy.
Crises 1997- Komite Nasional Kebijakan Corporate Governance (KNKCG) th 1999
1998 strengthen
KNKCG diubah menjadi Komite Nasional Kebijakan Governance
(KNKG) th 2004
Corporate
Governance Pedoman Nasional Good Corporate Governance (Pedoman Nasional
GCG) -1999, 2001, 2006
Capital  Undang-undang Nomor 40 Tahun 2007 Tentang
market A study conducted by the Asian
Development Bank (ADB)
Perseroan Terbatas.
identified the lack of corporate kesetaraan organ perusahaan yang terdiri dari Rapat Umum Pemegang Saham
Undang-undang Nomor 8 governance as a key contributor to (RUPS), Dewan Komisaris, dan Direksi
Tahun 1995 tentang Pasar the impact and depth of the crisis
(Zhuang, et al, 2000).
Modal (UU PM).  Pedoman-pedoman CG

Undang-undang Nomor  Inisiatif CG lainnya

21 Tahun 2011 tentang
Otoritas Jasa Keuangan Annual Report Award (ARA)
(UU OJK).
Capital Market Awards:
IICD Corporate Governance Award:
CORPORATE GOVERNANCE
ASSESSMENT
 Reports on the Observance of Standards and Codes (ROSC).
 Credit Lyonnais Securities Asia (CLSA)
 ASEAN CG Scorecard.
PEDOMAN CORPORATE GOVERNANCE

Lima Asas GCG untuk korporasi umum (Pedoman

GCG Indonesia, 2006)

 Transparansi atau Keterbukaan (Transparency)

 Akuntabilitas (Accountability)
 Tanggung jawab (Responsibility)
 Kemandirian (Independency)
 Kewajaran (Fairness)

Secara lebih khusus, KNKG juga menerbitkan

pedoman tahun 2008 untuk korporasi publik
dengan Asas GCG yang berbeda, yaitu

 Demokrasi
 Transparansi
 Akuntabilitas
 Budaya Hukum
 Kewajaran 
Tujuan Penerapan CG di Indonesia
 Mendorong tercapainya kesinambungan perusahaan melalui pengelolaan berdasarkan asas transparansi,
akuntabilitas, tanggung jawab, kemandirian serta kewajaran.

 Mendorong pemberdayaan fungsi dan kemandirian masing-masing organ perusahaan. Organ yang dimaksud
ialah dewan komisaris, direksi, dan Rapat Umum Pemegang Saham.

 Mendorong timbulnya kesadaran dan tanggung jawab sosial perusahaan terhadap  masyarakat dan kelestarian
lingkungan, terutama di sekitar perusahaan.

 Mengoptimalkan nilai perusahaan bagi pemegang saham dengan tetap memperhatikan  pemangku kepentingan
lainnya.

 Meningkatkan daya saing perusahaan secara nasional maupun internasional sehingga  meningkatkan kepercayaan
pasar yang dapat mendorong arus investasi dan  pertumbuhan ekonomi nasional yang berkesinambungan.

 Mendorong pemegang saham, anggota dewan komisaris dan anggota direksi agar  dalam membuat keputusan dan
menjalankan tindakannya dilandasi oleh nilai moral  yang tinggi dan kepatuhan terhadap peraturan perundang-
undangan.