jo iwasaki's presentation, 6 januari 2014

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 1/22

BUSINESS WITH CONFIDENCE icaew.com

Jo Iwasaki, Head of Corporate Governance, ICAEW

What are the overarching principles ofcorporate governance?

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 2/22

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 3/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

OFFICESUK

BeijingBrusselsDubaiHong KongKuala LumpurSingapore

ACA TRAININGUKBangladeshChinaCyprusGibraltarGreeceIndiaKenyaMalaysiaMaltaMauritius

Middle EastPakistanRomaniaRussiaSingaporeSri Lanka

A WORLD LEADER IN ACCOUNTANCY AND FINANCE

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 4/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

The ICAEW members in business

55% of FTSE 100 companies have an ICAEW

Chartered Accountant as chairman, CEOor CFO

80% of FTSE 100 company boards include atleast one ICAEW member.

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 5/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Publicinterest

Memberinterests

The ICAEW charter

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 6/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

SustainableBusiness

ICAEW thought leadership

re:Assurance

Dialogue inCorporate

Governance

FinancingChange

FinanceInnovation

Lab

InspiringConfidencein Financial

ServicesMarket

Foundations

CrisisWithout aLegacy?

Informationfor BetterMarkets

AuditQualityForum

FinanceDirection

Towards aBetter Tax

System

MakingInformation

SystemsWork

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 7/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Dialogue in corporate governance

Project process

• ICAEW Corporate Governance Committee:including board members, investors,

practitioners• Engaging wider stakeholders, such as

academics and regulators•

Facilitating on-going debate with other interestedparties

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 8/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Dialogue in corporate governance

Five questions: New challenges

• What should companies be responsible for?• What are the overarching principles of

corporate governance?• When is comply or explain the right approach?• How diverse should boards be?• Who should be covered by codes?

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 9/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Dialogue in corporate governance

Five questions: New challenges

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 10/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Background

Why are these questions important?

• Recent events triggered by financial crisis

• Changes in capital markets

• Challenges to companies

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 11/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

What should good corporate governanceachieve?

‘… the boards must be free to drive theircompanies forward, but exercise that

freedom within a framework of effectiveaccountability. This is the essence of anysystem of good corporate governance.’

(from Cadbury Report, 1992)

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 12/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

What are the overarching principles of corporate governance?

Four fundamental responsibilities

• Achieving a business purpose

• Behaving in a socially acceptable way• Meeting legal and regulatory requirements

• Stating how responsibilities are met

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 13/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

What are the overarching principles of corporate governance?

How can these responsibilities help companies?

• To be agile and adaptable to their environment

• To identify new opportunities

• To rebuild public trust

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 14/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

What are the overarching principles of corporate governance?

Examples

• Executive remuneration

• Bank bailouts

• Short termism• Aggressive tax avoidance

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 15/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

What are the overarching principles of corporate governance?

How should the board lead the company?

• Satisfying a range of responsibilities

• Decisions to facilitate long-term success

• Developing a sustainable business model

• Going beyond compliance

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 16/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

What are the overarching principles of corporate governance?

Overarching principles

• Leadership

• Capability

• Accountability• Sustainability

•

Integrity

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 17/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Characteristics of overarching principles

•

Linked to business purpose• Related to outcomes• Focused on what is most important• Clear and concise• Durable•

Widely accepted

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 18/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

What are the overarching principles of corporate governance?

Guiding companies in the time of crisis

• Having guidelines for difficult governance issues

• Open and dynamic board processes

• Using judgement appropriately

• Promote a robust corporate culture

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 19/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Challenges to overarching principles

Following principles is not always easybecause:• Subjectivity in concepts

– Need to use judgement – Explain why judgement is appropriate

• Aspirational – Intended to continue improving governance

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 20/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Corporate Governance:

New ChallengesGo to: icaew.com/newchallenges

Thought Leadership Go to: icaew.com/thoughtleadership

For more information

ICAEW Go to: icaew.com

SEA Region OfficeGo to:

icaew.com/en/about-icaew/where-we-are/south-east-asia

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 21/22

BUSINESS WITH CONFIDENCE icaew.com

© ICAEW 2013

Questions?

8/11/2019 Jo Iwasaki's Presentation, 6 Januari 2014

http://slidepdf.com/reader/full/jo-iwasakis-presentation-6-januari-2014 22/22

A world leaderof the accountancy

and finance profession

BUSINESS WITH CONFIDENCE icaew.com