SINGAPORE - Singapore firms have improved markedly over the past two years in disclosing issues surrounding corporate governance but more needs to be done, a report said yesterday.
It noted that such disclosures are even more vital now as companies must highlight their corporate responses to the pandemic such as work-from-home procedures, improved workplace initiatives, donations and supply chain measures.
The report studied the largest 50 listed firms in Singapore, Indonesia, Malaysia, Philippines and Thailand and scored them on their internal commitment to anti-corruption, such as training programmes and leadership support.
They were also assessed in external areas, such as whether they had codes of conduct for agents and suppliers, if they disclosed political contributions and on reporting and monitoring, such as if they had a whistleblowing channel.
Singapore ranked third, behind Thailand, while Malaysia topped the study, which was conducted by the Securities Investors Association (Singapore), or Sias, the National University of Singapore's Centre for Governance, Institutions and Organisations (CGIO) and the Asean CSR Network.
It noted: "The majority of Singapore-listed companies recognised the necessity of making statements on their commitment to anti-corruption and law compliance.
"The awareness of upholding business integrity standards was enhanced by regular training and communications. A growing number of employers provided compulsory training sessions to their new employees on anti-corruption.
"It is also observed that all assessed companies have put in place a whistleblowing channel for internal and external stakeholders, most of which prohibit retaliation against the whistleblowers acting in good faith."
It added that there has been significant progress over the past two years by firms disclosing their commitment to anti-corruption, such as implementing ethics policies for suppliers and agents and communicating these measures to the public.
"About half of the assessed listed companies stated their policy on gifts, hospitality and expenses, to offer guidance on giving and receiving gifts when their staff socialised with external parties," the report said.
It added that the Singapore Exchange's amended listing requirements requiring sustainability reporting in annual statements also pushed firms to analyse the impact of environmental, social and governance (ESG) risks on their business.
But firms here have to do more: "At present, the disclosures on the ethics code applied to agents, the policy on facilitation payment and political contribution are limited.
"More companies should establish a regular monitoring mechanism of anti-corruption programmes. Instead of making vague promises in corporate announcements, the corporates need to get more incentives to strengthen business ethical standards in practice and make them visible to the public."
Sias president David Gerald told a briefing: "Many companies see compliance of corporate governance as a set of rules that one must 'tick the box'. However, corporate governance is a journey and not a destination.
"Business integrity has been an essential element to enhance corporate competitiveness in the current business environment, where greater transparency and stronger sense of corporate responsibility are demanded."
Mr Gerald urged firms to lift their game in this area: "Boilerplate reporting must stop and firms have to go beyond such statements. If they want to attract investors to their firms, they have to report much more than they are doing now."
He noted that incidents like corruption, bribery and fraud can cause losses to reputation and operations, and even huge economic consequences. Unethical business scandals may even trigger public distrust or market disruption.
CGIO director Professor Lawrence Loh added: "There seems to be inertia among firms here in relation to disclosures. When in doubt, they should always disclose.
"Singapore ranks highly in terms of national reputation for anti-corruption, but at the corporation level, some things seem to be missing."
