Often, in the constant pursuit for higher profits and better returns to shareholders, businesses tend to lose sight of balancing the interest of corporate bottom lines against the needs of other stakeholders such as employees, customers, suppliers, society and the communities in which the companies conduct their business.
However, this may be counterproductive as good corporate governance could be crucial to the achievement of a competitive advantage and profitability based on long-term thinking. The accumulated evidence globally is that improved profits and performance follow the pursuit of purpose – the clearly articulated and self-conscious insistence, shared by managers and owners alike – that a company first exists to promote societal and human betterment.*
The Securities Commission Malaysia (SC) released the new Malaysian Code on Corporate Governance (MCCG) in April 2017 in which it defined corporate governance as “the process and structure used to direct and manage the business and affairs of the company towards promoting business prosperity and corporate accountability with the ultimate objective of realising long-term shareholder value while taking into account the interest of other stakeholders." Continue reading >>>