Posts Tagged 'ASEAN Corporate Governance Scorecard'

Branding corporate governance

ASIA ONE BUSINESS

It is unfortunate that not many companies capitalise on their strong corporate governance practices even though the latter should be an integral part of their overall strategy of branding and positioning.

This observation was made by John Lim at the recent launch of the ASEAN Corporate Governance Scorecard 2014 results. Mr Lim, who is Singapore’s nominated corporate governance expert to the ASEAN Scorecard expert group, said: “Many of the Singaporean companies have not scored as well as they should as they did not fully disclose their corporate governance practices. Corporate governance is like justice, it must not only be done but also be seen to be done; hence the need for good and full disclosure.”

This lack of disclosure by companies of even their laudable attributes could be one of the reasons why SGX– listed shares are under-appreciated. Currently, around half of listed companies are trading at, or below, book value.

Listed companies, especially, need to play their part in attracting the attention of investors. They need to be more focused on communicating and branding their key assets, one of which could be their corporate governance practices.

Branding is about delivering on a promise, and doing so consistently. Most directors understand the need to market their company’s products and services, and the important role that brand values play in securing and keeping customers.

What companies need to do more is to apply this thinking to their shares.

If the company’s shares are a product and investors are the customers, what is the brand value that the company stands by? What is it that the directors and management want the shares to be known for in the market? What will keep investors buying the shares, or holding onto them for a long time? Read more here.

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