There is an ever-growing expectation of companies around the world to raise their standards of corporate governance and compliance. While European and US companies tend to have taken significant steps in the right direction, it has become increasingly apparent that their counterparts in Asia are not at the same level of development.
There are several reasons why a below-par approach to corporate governance and compliance is unsustainable. Primary among these is the fact that investors are becoming increasingly savvy about the corporate governance and compliance standards of the companies in which they invest. Given the recent prevalence of corporate scandals and the gravity of their impact on capital markets, investors have become far more demanding in terms transparency, ethics and integrity. Furthermore, the emergence of ESG (environmental, social and governance) conscious investors has given companies an additional incentive to bolster their corporate governance and compliance procedures.