Seang Sopagna, President of CAM-ASEAN: Owners of companies should pay more attention to corporate governance
Seang Sopagna, the President of CAM-ASEAN International Institute, shared some knowledge related to the governance of company at a conference under the theme "Assurance and Control in Business Entity" organized by CamEd Audit Club.
Have you ever wondered how big companies with thousands of employees are still able to manage its human resources and run the companies smoothly even when the CEOs do not have the time for such management? Why are some companies which run smoothly suddenly collapse? Some of these companies do not even have that many employees. What are the causes of these problems?
To answer these questions, Mr. Sopagna stated that they are all related to the corporate governance . He brought up that if you want a company to run smoothly, make everyone happy and acquire the shareholders’ trust that the business has a bright future, there must be a well-organized corporate governance.
He explained that corporate governance refers to the system or operating structure and processes for managing the company’s operation towards delivering the best results in the interests of the stakeholders. These processes are meant to protect the business and keep it running smoothly.
He continued that the three most important players in a company include shareholders, director, and manager. So, how do these three figures split up their responsibilities in a way that prevent overlap?
Mr. Sopagna stated that in order to organize the operation of corporate governance, there are 4 essential pillars:
- Accountability: This is to ensure detailed and effective documentation of the company’s costs.
- Fairness: This ensures that there is integrity within the company even if the company is small. Without fairness, shareholders will have doubts about where and how their money are being spent on the company, which may lead them to lose confidence in the company’s management.
- Transparency: This ensures that communications are transparent. If the money is misused, it can result in the loss of transparency within the company.
- Independence: The leader’s independence is incredibly important for corporate governance. However, just because they have the most shares, they must not abuse their power by interfering with other parts of the company and/or practice nepotism.
By: San Seiha