Building up good governance starts with understanding

In light of recent high profile scandals such as Enron, WorldCom and the expropriation of the funds of various companies, good corporate governance has obtained an increasing focus in the corporate world. In Thailand, the Stock Exchange has continuously promoted implementation of policies to raise the standards of corporate governance, including establishment of the Corporate Governance Center to assist companies.

Good corporate governance helps build market confidence, integrity and efficiency, which translates to growth and financial stability. It also promotes efficient use of resources, attracting capital, ensuring regulatory compliance and guarding against managerial complacency. These benefits translate into the willingness of investors to pay significant premiums for organisations with good corporate governance.

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