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Overview of ASEAN CG Scorecard
Overview of ASEAN CG Scorecard
ASEAN CG Scorecard
GOVERNANCE (CG) DISCLOSURE POLICY
AND PRACTICE
BASED ON ASEAN CG SCORECARD
Module Content
Background and the need for ASEAN CG
Scorecard
Overview of OECD CG Principles
Structure of the ASEAN CG Scorecard
Scoring methodology the ASEAN CG
Scorecard
Overall evidences of CG Practices based on
the ASEAN CG Scorecard
Implementing ASEAN CG Scorecard
Please do not distribute without
IICD's permission
2
Module Objectives
• By this module’s end, participants will be able to:
– Describe the background and the need for ASEAN CG
Scorecard,
– Explain OECD CG Principles,
– Explain the structure of the ASEAN CG Scorecard
– Understand the scoring methodology of the ASEAN CG
Scorecard,
– Understand the overall evidences of CG practices of PT
Matahari and large Indonesian PLCs based on the
Scorecard,
– Explain the strategy and steps to strengthen the
implemention of ASEAN CG Scorecard.
Please do not distribute without
IICD's permission
3
IICD's permission
4
Please do not distribute without
• ASEAN CG Scorecard released to public in March 2012
• Assessment of 100 PLCs in 6 ASEAN Countries: 2012 , 2013, 2014, 2015
• Release of domestic top 50 PLCs in Feb 2013, March 2014, Dec 2014, Nov 2015 Progress
• ACMF: Create a universal CG Scorecard containing key elements of good CG
• Devise a scoring methodology
• Validate and publish ASEAN CG Scorecard Approach
• Assess ASEAN PLCs identifying top 50 PLCs in each jurisdiction and top 50 PLCs
regionally
• Raise CG standards and practices of ASEAN
Objectives
• Showcase and enhance visibility and investability of well-governed ASEAN PLCs
• Complement other ACMF initiatives and promote ASEAN as an asset class
ASEAN Corporate Governance ranking - Background
OECD Principles of Corporate Governance
Ensuring the basis of corporate governance framework
ASEAN CG
Scorecard
Improving Encouraging
Enhancing CG
Compliance with Voluntary Adoption
Rules/Standards
Rules/Standards of CG Practices
Level 1
Has five major sections that corresponds
to the OECD Principles Level 2
Two additional Sections
Bonus & Penalty
Part A: Right of Shareholders (25)
Part B: Equitable Treatment (18) (11) Bonus items for companies
Part C: Role of Stakeholders (21) that go beyond minimum standards (26)
Part D: Disclosure & Transparency (41) (22) Penalty items for companies with
Part E: Responsibilities of the Board (74) poor practices (-59)
Total no. of items /descriptors (179) Total bonus and penalty items (33)
Total no of items/ descriptors (185) Total bonus and penalty items (34)TToo
Total 100%
10
IICD’s Interpretation of the Findings
CG Score Category Interpretation
(In Point)
<60.00 Inappropriate Poor, below minimum
requirements
60.00 – 69.99 Level 1 Meet minimum requirements as
stated by laws and regulations
70.00 – 79.99 Level 2 Fair, aware of international
standards, but no adoption
80.00 – 89.99 Level 3 Good, partly adopt international
standards
90.00 – 99.00 Level 4 Very Good, fully adopt
international standards
> = 100 Level 5 Leadership in corporate
governance
Sources of Information
Annual Report
Website
Press Release/Corporate announcements
Notice of Meeting of Shareholders
Resolutions of Meeting of Shareholders
Minutes of Meeting of Shareholders
Board manual/charter
Code of conduct/ethics
Sustainability/CSR Report
Media coverage
Any other easily accessible public information
Language: English
Assessment
Second Round of
Justification
Domestic Review
72.37
67.91
62.68
57.27
25.91
23.77
19.04
18.17
20.2
20.99
16.2817.5
9.539.66
6.8 7.24 7.7 7.739.16 6.826.967.777.98
4.59
22.93
21.01
16.24 16.93
9.09 9.01
6.54 6.45 6.55 7.03
84.27
66.84 68.48
62.19
FINANCIAL NON-FINANCIAL
Top-50 ASEAN PLCs:
A Challenge for Indonesia
Number of Companies
23
11
8
6
2
0
Indonesia Malaysia Philippines Singapore Thailand Vietnam
OJK Regulatory Reform
ACMF Initiatives
World Bank
ACGS ACGA/CLSA
ROSC
Law, Rules
and
Regulations
CG
Articles of Board Codes of Policies CG
Association Charter Ethics and Implementation
Procedures
International
CG Codes
25
Governance Processes, Risk and Compliance
CG Policies and
Procedures
Implementation The Role of
Internal
Evaluation Audit, Risk
Managemen
t and
Disclosure Compliance
Performance