HKICPA’s 20th annual awards once again looks to recognise companies for their best practices
- The Best Corporate Governance Awards help Hong Kong reinforce its competitive edge by promoting high standards of corporate governance and sustainability
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The popular competition is open to listed companies, public-sector entities and not-for-profit organisations to showcase their corporate governance and sustainability credentials. The awards were created to promote the values of good corporate governance in the community and reflect expectations among stakeholders.
“Over the past 20 years, the awards have become a recognised and respected yardstick of Hong Kong’s current governance standards and, more recently, of sustainability and social responsibility reporting standards,” added Patrick Law, president, HKICPA.
“A culture that supports a long-term focus and a purpose that goes beyond making money is the key to good corporate governance,” said David Simmonds, group general counsel and chief administrative officer of CLP Holdings, which has won awards 19 years in a row.
According to Simmonds, this culture should always “start with the board of directors and senior management and must be reinforced with corporate policies and procedures that are implemented through effective monitoring and reporting systems”.
And this is where the awards can step in to help with accountability.
“They are a great acknowledgement of the hard work and dedication of so many people across the organisation in ensuring our high standards of corporate governance, which is part of our culture and something we are very proud of,” he said.
Only for the true winners
This year, the awards fall into seven categories: Hang Seng Index- (HSI) constituent companies; non-HSI-constituent companies (with large, medium and small market capitalisation – one category for each); H-share companies and other mainland China enterprises; large organisations in the public and not-for-profit sector; and small- and medium-sized organisations in that sector.
Within each category there are Diamond, Platinum and Gold awards, while other awards cover sustainability and social responsibility reporting. Special mentions and commendations for other good disclosures and practices are also awarded where appropriate.
Smaller listed companies, with a market capitalisation of no more than HK$6 billion as at 30 April 2019, and public sector/ not-for profit organisations, are invited to apply to be considered for the Self-nomination Awards for Good Corporate Governance Practices. This particular award focuses on sectors where, experience shows, greater effort is still needed to promote effective corporate governance.
The HKICPA stresses that encouraging companies to take a good, hard look at their own practices is a key part of the programme. There’s a clear message here: Candidates shouldn’t rest on their laurels – even if they’re recognised industry leaders.
Beyond the minimum
“Governance is not just a box-ticking exercise,” said a representative from another HKICPA BCGA award winner, The Hong Kong & Shanghai Hotels. “Our people are genuinely committed to exhibiting a strong sense of responsibility, a high level of consciousness and integrity in all that we do.”
This year’s awards will be slightly different from previous years. For starters, the playing field has changed, with further amendments introduced to the Stock Exchange of Hong Kong’s Corporate Governance Code and Related Listing Rules, which took effect on January 1 this year.
The revisions to the code are in line with the thinking behind the HKICPA awards, especially with regards to the quality of board operations, diversity of membership and the appointment of independent non-executive directors who can challenge other board members when needs be. It is expected that these amendments will be reflected in some of the annual reports submitted for this year’s awards.
No stone left unturned
Entries for this year’s awards will be subject to a two-level review with final determinations carried out by a judging panel comprising financial market regulators, representatives of the HKSAR Government, investors, members of professional associations and academics, as well as prominent individuals in the field of corporate governance.
The winners will be announced in early December, followed by a presentation ceremony that’s expected to draw plenty of media attention, as was the case with last year’s event. Whether your company or organisation is big or small, this is your chance to take part in a programme aimed at fostering, promoting and strengthening effective corporate governance and sustainability in Hong Kong.
