Running a company by the book

Corporate governance is very important for me. Basically, HR is a custodian of many functions including discipline, business ethics, and even ordinary HR practices. In one of my former companies, corporate governance is a given and is something which is taken very seriously and practiced throughout the organisation.

So when I had moved to a new job, I wanted to see good corporate governance practices put in place. Unfortunately in this previous company, my advice and proposal to have a governance framework was not taken seriously. When a company does not comply with the supposed practices, naturally you can sense it is not right. It made me realise something could blow up and I left shortly because of a difference in views.

After I left, there was news of fraudulence or “creative accounting” found within the company, which was a very big issue. It drove down the value of the company down and created a change in leadership and ownership.

Good corporate governance can drive up shareholders’ value. I think every company would have, at least in name, corporate governance – just whether it is put into practice or not. Invariably, when bad corporate governance takes place, it will affect the business, the morale of the employees and the attractiveness of the company.

Phak Sung Chan

Director of international HR and corporate affairs

MindChamps Holdings