Thursday, January 13, 2011
ISTANBUL- Hürriyet Daily News
Capital flows toward well-governed companies and countries in a crisis-hit business environment, which today asks for strong principles rather than rules, Professor Mervyn King, chairman of Global Reporting Initiative, told the Hürriyet Daily News & Economic Review.
“The business environment today faces many challenges all at once, such as a financial crisis and climate change,” said King, who attended the 4th International Corporate Governance Summit on Thursday.
King, who also chairs the United Nations Global Corporate Governance Committee, told the Daily News that the most forward-thinking companies have begun implementing far-reaching and long-term sustainability initiatives that address these problems.
Noting that the governance of the institutions, companies, countries, families and schools is very important to reach sustainability, King said, “The world is physically round, but from a business point of view, the world is flat, borderless and electronic.
“The money just flies away with a click of a mouse from one country to another even while we are asleep,” he said. According to the professor, capital resources became scarce after the global crisis and governance became crucially important from capital's point of view.
“Sustainability has to be endorsed and driven at the highest level and then embedded through the organization,” said King adding, that the organizations should adapt and internalize “intellectual principles” that are in the best interest of the company voluntarily.
According to King, first principle of the corporate governance is the acting in the best interest of the company and secondly is identifying the stakeholders by learning their needs, interests and expectations. “In the decision taking processes, one has to make sure that the needs, interests and expectations of all met efficiently in order to create sustainability within the company,” added King.
A Senior Counsel and former Judge of the Supreme Court of South Africa, he has consulted, advised and spoken on legal, business, advertising, sustainability and corporate governance issues in many countries and received many awards
Rating agencies need regulation
The president of Turkey’s leading business association has called for the a regulatory body over international rating agencies calling the grading by the agencies as “grave moral flaw.”
Talking to Hürriyet Daily News & Economic Review at the 4th International Corporate Governance Summit held in Istanbul on Thursday, Ümit Boyner, head of the Turkish Industry and Business Association, or TÜSİAD, said that an alternative international body should regulate the international rating agencies.
“Unfortunately Europe seem to have a shield of agencies that would secure the countries having lower rating.”
Agreeing Boyner, King said, the international rating agencies deserve to be regulated by an international body. “Just as the banks are regulated in normal conditions, these agencies shall be regulated since their decisions affect millions of people’s investments.”
“The business environment today faces many challenges all at once, such as a financial crisis and climate change,” said King, who attended the 4th International Corporate Governance Summit on Thursday.
King, who also chairs the United Nations Global Corporate Governance Committee, told the Daily News that the most forward-thinking companies have begun implementing far-reaching and long-term sustainability initiatives that address these problems.
Noting that the governance of the institutions, companies, countries, families and schools is very important to reach sustainability, King said, “The world is physically round, but from a business point of view, the world is flat, borderless and electronic.
“The money just flies away with a click of a mouse from one country to another even while we are asleep,” he said. According to the professor, capital resources became scarce after the global crisis and governance became crucially important from capital's point of view.
“Sustainability has to be endorsed and driven at the highest level and then embedded through the organization,” said King adding, that the organizations should adapt and internalize “intellectual principles” that are in the best interest of the company voluntarily.
According to King, first principle of the corporate governance is the acting in the best interest of the company and secondly is identifying the stakeholders by learning their needs, interests and expectations. “In the decision taking processes, one has to make sure that the needs, interests and expectations of all met efficiently in order to create sustainability within the company,” added King.
A Senior Counsel and former Judge of the Supreme Court of South Africa, he has consulted, advised and spoken on legal, business, advertising, sustainability and corporate governance issues in many countries and received many awards
Rating agencies need regulation
The president of Turkey’s leading business association has called for the a regulatory body over international rating agencies calling the grading by the agencies as “grave moral flaw.”
Talking to Hürriyet Daily News & Economic Review at the 4th International Corporate Governance Summit held in Istanbul on Thursday, Ümit Boyner, head of the Turkish Industry and Business Association, or TÜSİAD, said that an alternative international body should regulate the international rating agencies.
“Unfortunately Europe seem to have a shield of agencies that would secure the countries having lower rating.”
Agreeing Boyner, King said, the international rating agencies deserve to be regulated by an international body. “Just as the banks are regulated in normal conditions, these agencies shall be regulated since their decisions affect millions of people’s investments.”
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