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Corporate Governance

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Following the scandal of Gome Electrical Appliances where involvement of the CEO on bribery cases, controlling of executive management and shareholders, and manipulation of stocks which made the business bankrupt (Poza, 2013); and the Toshiba Scandal wherein the management used accounting malpractices to inflate its profit by $1.2 billion for a period of over 7 years (Chhabara, 2015). Most businesses are encouraged to adapt the practice of corporate governance in order to protect the interest of stakeholders and the businesses. Though not new, the adaptation of corporate governance in East Asian and South East Asian companies was widely spread to mitigate potential the risks in terms of prioritization of personal interests and conflict of …show more content…

Sustainability does not only include the measure of financial, environment, social, and governance but also the importance of the key stakeholders of the organization (Eccles, Ioannou & Serafeim, 2012). As presented by Cheung and Chan (n.d.), Singapore and Malaysia adopted the sustainability concept for the implementation of its corporate governance. As an example of the implementation of sustainability concept, organizations can recognize the environment and social issue and have a deeper understanding on how it is capable to positively affect the society they belong in (Aras & Crowther, …show more content…

Ntongho (2016) states that implementation of corporate governance ignores the cultural differences in countries. Moreover, Bhasin (2010) states that even the adaptation of corporate governance differs from one country to another, each country can learn from one another in terms of enforcement and implementation. It was also mentioned that a country that practices good corporate increases its attractiveness towards investors due to the transparency, accountability, and business ethics. Every year a monitoring and rating of implementation of Corporate Governance in Asia is conducted by the CLSA Asia Pacific Markets and Asian Corporate Governance Association (ACGA). The monitoring covers the market categories of Corporate Governance rules and practices, Enforcement, Political and regulatory, Accounting and auditing, and Corporate Governance culture. Based on rating released in 2016, the East Asian and South East Asian countries was benchmarked with Australia as it has been the regulatory model of Asian Markets and has the coincides the US and UK components in terms of Corporate Governance. Australia attained an average rating of 78 while 67 for Singapore, 65 for Hong Kong, 63 for Japan, 60 for Taiwan, 58 for Thailand, 56 for Malaysia, 55 for India, 52 for Korea, 43 for China, 38 for Philippines, and 36 for Indonesia. With these scores, it clearly

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