ASEAN CG Scorecard
Dow Jones Sustainability Indices
Channel NewsAsia Sustainability Ranking
Corruption Perception Index: CPI
ASEAN CG Scorecard
ASEAN CG Scorecard is a tool for assessing corporate governance practices of listed companies in the region. It aims to raise corporate governance standards of regional listed companies to be in line with international counterparts, and to support the launch of the ASEAN Economic Community and the recognition of ASEAN capital markets among global investors.
Based on the principles of the Organisation for Economic Co-operation and Development (OECD), the World Bank, the International Corporate Governance Network, the Asian Corporate Governance Association and the Codes of Corporate Governance of some countries, e.g., Australia and the United Kingdom. The assessors are CG experts from each country. The Thai Institute of Directors (IOD) takes the role for Thailand. The Assessment is based on publicly disclosed information in English through various channels, e.g., shareholders’ meeting notices and the minutes thereof, annual reports, companies’ press releases and information on their websites. The Assessors take into consideration both CG policies and practices of the assessees.
The Report on the Observance of Standards and Codes: Corporate Governance Country Assessment (CG-ROSC) is an assessment of CG policy framework and compliance with international standards of capital markets by the World Bank.
As participation in this program is voluntary, frequency of assessment may vary. The participating countries can also choose whether or not to disclose the assessment results. CG-ROSC participants are not required to pay any expenses but to facilitate the assessment process by providing information and coordinating with related entities in their country for the World Bank’s officers to be able to collect information for the assessment. Thailand first joined the program in 2005.
The World Bank has assessed corporate governance policy framework of the Thai capital market based on the Corporate Governance Principles of the Organisation for Economic Co-operation and Development (OECD), which cover six areas as follows:
1. Enforcement and CG framework
2. Rights of shareholders
3. Equitable treatment of shareholders
4. Roles of stakeholders in CG
5. Disclosure and transparency
6. Responsibilities of the Board
CG Watch is an assessment on corporate governance of Asian capital markets conducted by the Asian Corporate Governance Association and CLSA Asia-Pacific Markets. The assessment covers the following areas:
1. CG rules and practices
3. Political & Regulatory environment
4. IGAAP (International Generally Accepted Accounting Principles)
5. CG Culture
Doing Business Report is the research ranking on the ease of doing business across countries conducted by the World Bank. The research covers areas such as procedures, time, facilities, costs and public regulations affecting the life of business. Research also focuses on small-and medium-sized enterprises (SMEs) with 10 areas of indicators, covering the life of business from starting a company to resolving insolvency.
1. Measurement on procedures in doing business (Easier)
2. Measurement on the time in starting a business (Faster)
3. Measurement on the cost in doing a business (Cheaper)
4. Measurement on the friendliness of regulations (Smarter regulations)
Dow Jones Sustainability Indices (“DJSI”) are a family of indices tracking the stock performance of the world's leading companies in terms of economic, environmental and social criteria. The indices serve as benchmarks for institutional investors who integrate sustainability considerations into their portfolios. The indices comprise 24 major industries, covering 60 sub-industries and attract a combined investment fund over 5 billion USD. The indices will be annually reviewed and announced in September.
Selection processes for the members of DJSI World and DJSI Emerging Markets.
STEP 1: Selection of world’s large companies in terms of free float adjusted market capitalization in previous year
STEP 2: Selection of top 10% of each industry in terms of sustainability performance. Scoring will be based on an assessment on company’s sustainability performance or publicly disclosure information.
STEP 3: Selected companies must represent the industry or the selected companies must have a combined free float adjusted market capitalization not less than 15% of such industry.
DJSI Emerging Markets
STEP 1: Selection of large companies from emerging markets in terms of free float adjusted market capitalization in the previous year
STEP 2: Selection of top 10% in terms of sustainability performance of each industry. Scoring will be based on an assessment on company’s sustainability performance or publicly disclosure information.
On September 16, 2014, Channel NewsAsia announced its Sustainability Ranking of leading companies in Asia for the first time, or “Channel NewsAsia Sustainability Ranking,” which assessed listed companies from 10 Asian countries, i.e., China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
Four Thai listed companies among the Top 100 are:
- PTT Global Chemical Plc.
- Thai Oil Plc.
- IRPC Plc.
- The Siam Cement Plc.
Corruption Perception Index (CPI) is conducted by Transparency International (TI), an independent organization established with an aim to fight against corruption, having 120 countries network worldwide. Transparency International in collaboration with Gottingen University, Germany has conducted CPI across countries annually since 1995.
CPI survey is conducted on the sampling group’s perception toward corruption issue in their country. Information contributed to Corruption Perception Index is from the survey of sources such as research polls, well-accepted international independent entities, e.g., Economist Intelligence Unit, Gallup Poll, International Institute for Management Development, Adviser on Business and Political Risk, the World Bank, the World Economic Forum, the United Nations’ units. CPI indicates the perceived level of public sector corruption on a scale of 0 (highly corrupt) to 100 (very clean).