(live-PR.com) - CIMA is proud to be associated with the SAARC APEX BODY Conference 2008. The solemnization and sublimity of the occasion is a pledge, a promise, a prostration to Governance, Justice and Law.
CIMA presence is in almost all industries, and public enterprises. Our members are transforming organisations at the helm, putting place systems to groom talent and
skill in generations of young professionals. CIMA drives right into the heart of the enterprise’s policy issues and leading into new strategic directions.
CIMA has made tremendous contributions to the development of the EMERGING CONCEPT OF Enterprise Governance and Social Responsibility. CIMA provides continuous support to its members and Private and Public Enterprises all over the world by offering useful insight, on how to relate to the science of management accountancy to the real business world. CIMA has a special responsibility for driving home the messages of good corporate governance, accountability and transparency, and for both promulgating and ensuring the adoption of best practices
The Enterprise Governance Forum today provides a platform that enables emminent speakers and delegates to exchange ideas and experience, as well as to explore the way forward in implementing Enterprise Governance within the SAARC region.
It is our mission to maintain and enhance SAARC Region's competitiveness as a leading international business, financial and capital formation centre in the region. We cannot be complacent. We cannot plunge into incomprehension of the emerging dynamics within the region, neither loose centrality of our challenges and opportunities the Open Economy has created, or be blind or to be blinded by interiority of politics and war. By being alert of the The Rapid Economic Growth witnessed within our region we must dare to strengthen Governance – ….Enterprise Governance and a passionate will for justice and truth to rise above the cloud of ignorance
Let our Laws and principles of Governance and changeless Justice promise the human race to blott out Organisational and political bullies and pledge security and protection to the public, the human race. Our task today is to advocate and administer absolute and robust system which commands a willing obedience to the mandates of Laws and resolutions of the Accounting bodies, to protect the oppressed from the oppressors, to administer absolute principles of Governance binding sin and sufferers of the Economic wheel.
I believe the new framework, Enterprise Governance, which is being explored in this forum, can help provide an environment for sustainable growth of our economy.
As a region we had pulled through several difficult years, unfolding drama and disasters. Now the economy is setting foot into a new dimension, the momentum has accelerated. We enter an era of promising growth and job creation.
One key reason is globalisation. Our region is plugged into the global grid, linked to all the major economies, and drawing capital, enterprise and talent from all over the world. We are well-placed at the heart of a rising Asia. China and India are powering ahead, and Japan’s economy has revived after a decade of deflation. South Asia is not without problems, but this wider Asian tide is carrying along our neighbours too, and Sri Lanka is benefiting from that.
Globalisation to work….. in our favour we must strive doing the right things. The Governments of the SAARC must pursue and mediate sound policies to create an environment that is secure, competitive and pro-growth. Keeping our region safe and salubrious in a turbulent and uncertain world We need to upgrade the economy, streamline regulations to foster enterprise, and promote flourishing new industries.
The private sector will continue to take advantage of stable and business-friendly conditions created within the region to generate wealth and prosperity. We should be in the lead in transforming ourselves, outperforming bigger and better endowed competitors.
For example Singapore has established a good brand name, and enhanced its reputation for sound government and an excellent public service. International agencies consistently rate Singapore highly. The recent PERC Comparative Country Risk Report ranked Singapore the least risky country in Asia, especially in the measures of governance, such as the quality of the civil service, the effectiveness of government and policies, responsible enterprises, and the lack of corruption.
Globalisation and our advancing economies put even greater demands on high-quality governance and social responsibility. Paradoxically, every success makes our task harder.
In a rapidly changing world, efficiency, flexibility and speed are at a premium. Governments need to be small and lean, but good governance is more essential than ever, especially for a tiny country like Sri Lanka. We are no longer competing in a small pond; like it or not, we are swimming in the wide blue ocean. Our economy works on free market principles, ….our society prizes self-reliance…. but for both to thrive, we need an active, inspired and capable government, robust and impenetrable legislative and regulatory systems.
The Government cannot just follow, time-honoured rules and administer existing systems. It must question old assumptions, review long-standing policies, and come up not only with new ideas but also new ambitions. As our population and our economy grows, we need innovative… sustainable…. development strategies to integrate our green spaces and waterways, and make our region a truly blessed place to live, work and play….. we need a clear appreciation of the changing strategic landscape… agile responses to emerging trends, so that the major powers will find it in their interest, that… our Region survives, and our neighbours will want to cooperate with us for mutual benefit.
CIMA President presented the corporate scandals such as Enron in Houston, USA; Daewoo in South Korea; LERNOUT & HAUSPIE SPEECH PRODUCTS the Belgian maker of speech-recognition technology; HIH an insuarence firm in Australia; Vivendi Universal in France; WorldCom Telecommunications giant in USA.
She further discussed CEOs who led the organizations to bankruptcy such as Founder of HIH Ray William, Jean-Marie Messier, head of Vivendi Universal, Bernie Ebbers CEO of WorldCom Telecommunication giant
The size and scope of the Enron disaster is simply too huge to ignore
Even after the flameout of Enron, Industry leaders AND FINANCIAL GURUS AND RESEARCH ENGINES CONCLUDED that rather than an audit failure, Enron "at its core was a business failure."
Enterprise Governance constitutes the entire accountability framework of the organization. It is The set of responsibilities and practices exercised by the Board and Executive Management with the Goal of providing strategic direction, ensuring objectives are achieved, ascertaining that risks are managed appropriately and verifying that the organisation’s resources are used responsibly.
The two dimensions of the Enterprise Governance – conformance and performance
This reflects the dual role of the Board of Directors in both monitoring and strategy, acknowledging the inherent short term tensions between Governance and Value Creation
It Emphasise the role of the VALUE CREATION TEAM – EXECUTIVE MANAGEMENT TEAM
It covers the internal working of the organizations as well external, outward aspects
It demonstrates the differing emphasis placed on the role of the CHAIRMAN and the Chief Executive Officer and why they need to be differing roles. One in judgement and the other in execution. It demonstrates the importance of SUBSTANCE OVER FORM.
Enterprise Governance is a model of our brain whilst the left brain governs our logical, orderly, and analytical function reflecting CONFORMANCE while the right brain symbolizes intuitive, holistic and creative thinking- PEROFRMANCE through STRATEGY AND VALUE CREATION.
A pragmatic approach for enterprises facing strategic oversight is the Strategic Scorecard which assists the Board in the oversight of strategic process, is able to deal with strategic choice and transformational change, giving a true and fair view of a company’s strategic position and progress. The Strategic Implementation supports the Conformance – how well is the strategy implemented. Board needs to be aware where the breakpoints, irregular interventions, sticking rigidly to plans and dogmatically following internal controls.
It is only through dedicated efforts that we'll be successful in protecting the interests of investors, shareholders and public at large. With your help, we can raise the standards for the protection of market participants, and at the same time be confident that we are truly making our markets more efficient.
The marathon effort demonstrated by our Professionals in participating and contributing in this Conference is noble, virtous and commendable. In particular, our reverence to you for your devotion of time and energy towards the Summit. SAARC regions’ investors can be grateful for your devotion to the cause of sound corporate and business governance and for responsible development. I wish you success in your journey. And in that endeavor, we at CIMA are proud to be your partners.
