Hong Kong S.A.R:
The Red Flag Group, a global professional services firm in the areas of
corporate governance and compliance, today releases a report which
provides a detailed insight into the publicised approaches to corporate
governance and compliance by listed companies in Hong Kong. This report
is the result of an extensive study on publically-projected governance
and compliance programmes and codes of conduct.
The study looks at 150 of the leading public companies in Hong Kong, and
uses their publically-available material to ascertain how seriously
corporate governance and compliance measures are being addressed.
Divided into two parts, the report firstly looks at overall approaches
to governance and compliance issues, and secondly provides a thorough
assessment of publically-available codes of conduct.
Michael Woodward, Consultant at The Red Flag Group, says, “One of the
more evident and concerning results found was the distinct lack of
companies that publicise their code of conduct. Only 21 out of the 150
companies examined made their code of conduct (or similar document)
“The results indicate that there is reluctance amongst Hong Kong listed
companies to divulge their efforts in mitigating the risks that they
face. This means that stakeholders are not fully informed of how
governance and compliance measures are benefitting the organisation.”
The results from the study show that, overall, publically-listed
companies in Hong Kong are not doing enough in terms of providing a
transparent approach to their risk-mitigation efforts.
Scott Lane, CEO of The Red Flag Group, says, “We have seen a growing
trend of investors becoming more and more welcoming of a company making
its operations transparent. Being open about internal programmes helps
attract investors, and gives businesses a competitive advantage by being
able to sooner identify the deficiencies in its risk-management
practices. Companies need to go beyond simply doing as the law states if
they are to be seen as conducting business ethically.”
for the Corporate Governance and Compliance Study 2012 – Hong Kong.
Notes to editors:
The Red Flag Group is a world-leading independent corporate
governance and compliance firm, providing competitive advantage to
Fortune 1000 companies through its range of advanced compliance and
anti-corruption advisory services and technology solutions.
The Red Flag Group
Jenna Kim, +82 70 4106 7743
Director of Corporate Marketing