Leaders from six Asian countries met in Bangkok, Thailand on September 12 - 14 to discuss ways to improve corporate governance throughout Asia. The unprecedented gathering brought together more than 40 top representatives of companies, business associations, and think tanks with a view to establishing new "rules of the game" for doing business in the region.
The event was part of CIPE's ongoing commitment to encourage better corporate governance practices around the world. A CIPE Board Member, Stanton Anderson, delivered the opening address at the conference. (See blue box in the article CIPE Board Member Says Corporate Governance Reform is Key to Attracting Capital)
"The Asian Economic Crisis and Corporate Governance Reform" conference was sponsored by CIPE, the Thai Federation of Industries, the Thai Chamber of Commerce, and the Institute for Management Education for Thailand (IMET) Foundation. Conference participants represented Indonesia, Malaysia, Philippines, Singapore, South Korea, and Thailand several of which were hit hard by the Asian economic crisis.
The Bangkok Conference broke new ground in a variety of ways. Participants called for:
The inclusion of corporate governance standards into the Inter-national Standards Organization (ISO) system;
Establishing awards for private firms in the region that best incorporate the principles of transparency and accountability into their management structures;
Implementation of a corporate governance action plan that focused on four key constituencies - the business community, government, media, and the general public. (Some of the action items are highlighted in At a Glance: Corporate Governance)
Representatives at the conference agreed that the business community in Asia must play a lead role in encouraging greater transparency in interaction between the public and private sectors. Corporations, business associations, and think tanks in the region are well positioned to recommend structural and democratic reforms intended to strengthen investor confidence and prevent a recurrence of the economic debacle in Asia that began in 1997.
The gathering in Thailand built on progress achieved at three recent conferences in which CIPE played a leading role. The first of these, held in the Philippines in 1997, focused on the causes of the Asian economic crisis, particularly the lack of transparency and limited access to economic data. The second conference, "The Role of the Corporation in Today's Society," which took place in Romania, highlighted the vital leadership that business communities are providing to improve corporate governance and to curb corruption. The third conference, "Building a Worldwide Movement for Democracy," held in India in February 1999, concentrated on building democratic and market institutions through better corporate governance. (See Issue 6 of Overseas Report for further details.)
John Sullivan, CIPE's Executive Director, describes the Bangkok meeting as "the best forum yet for shedding light on the critical role that companies are poised to play in holding public and private sector leaders accountable. Encouraging better corporate governance through our partner organizations worldwide is one of CIPE's highest priorities, and the meeting in Bangkok represented an important step forward in this effort."