Code of Ethics and Whistle-Blowing Policy Should be More Widely Adopted by Hong Kong Listed Companies
HONG KONG, Sept. 13 /Xinhua-PRNewswire/ -- The Hong Kong Institute of Chartered Secretaries (HKICS) and The Enterprise and Social Development Research Centre, Hong Kong Shue Yan University jointly launched a research report on ‘Business Ethics’ (The Report) today at a press conference at The Foreign Correspondents’ Club in Central.
The Report shows that the listed companies in Hong Kong have generally recognised the importance of business ethics and believe them to be essential for running a successful business. However, there is a great gap between belief and practice.
The survey shows that only 59% of the respondents have provided ethics training to their staff and only 52% of the respondents have put a code of ethics in place in their companies. Further, only 51% of the respondents have put a whistle-blowing policy in place. The lack of whistle-blowing statute and the low adoption of whistle-blowing policy indicate that Hong Kong lags behind other major jurisdictions in providing protection to whistle-blowers.
"Business ethics is an integral part of a company’s internal controls and risk management system," said Mrs. Natalia Seng, HKICS President, "not only does it enhance corporate governance, it is essential for running a successful business. Directors and senior management should provide full support and ethical leadership in the promotion of business ethics in a company."
"Issuing a code of ethics and a whistle-blowing policy are key tools in promoting business ethics and combating corporate malpractice," Dr. Ricky Szeto, Director, The Enterprise and Social Development Research Centre, Hong Kong Shue Yan University, "However, the survey shows that this good practice is not as widely adopted as it should be in Hong Kong, so there is a vast room for improvement."
Some Top line results*
-- 94% of respondents indicate that they have integrated business ethics
into their company’s goals, missions and strategies
-- 96% of respondents agree that good business ethics is important and
essential for running a successful business
-- 83% of respondents indicate that "enhancement of corporate
governance" is a main driver for running business in an ethical manner
-- 91% of respondents agree that the issue of a code of ethics should be
made a recommended best practice for listed companies
-- 74% of respondents agree that the issue of a code of ethics should be
made a Code Provision for listed companies
* Data was collected from 63 companies listed in Hong Kong.
About The Hong Kong Institute of Chartered Secretaries
Good Governance Comes with Membership
The Hong Kong Institute of Chartered Secretaries is an independent professional body with approximately 4,900 members and 2,700 students. It is dedicated to the promotion of its members’ role in the formulation and effective implementation of good corporate governance policies in Hong Kong and throughout China as well as the development of the profession of Chartered Secretary.
The Institute was first established in 1949 as an association of Hong Kong members of the Institute of Chartered Secretaries and Administrators (ICSA) of London. It became a branch of ICSA in 1990 before gaining local status in 1994.
About Hong Kong Shue Yan University and the Enterprise and Social Development Research Centre
Hong Kong Shue Yan College, the predecessor of Hong Kong Shue Yan University was founded in 1971. The idea of an independent liberal arts college was first conceived in the spring of that year when Dr. Henry H.L. Hu, a then Legislative Councillor, and Dr. Chung Chi Yung, a prominent educationist, concerned over the acute shortage of college places for the local Form VI students aspiring after university education, made up their minds to establish an institution of higher learning for the benefit of the youths and in the interests of our society as a whole.
The College was approved to register under the Post Secondary College Ordinance in 1976 and its diploma has since been recognized by the Government as a qualification for appointment to the civil service.
On 19 December 2006, pursuant to the Post Secondary Ordinance (cap.320) approval was given by the Chief Executive in Council for Hong Kong Shue Yan College to change its title to "Hong Kong Shue Yan University" with immediate effect.
The Enterprise and Social Development Research Centre was established in January, 2004 as a major external research centre in the Hong Kong Shue Yan University. Their mission is to promote applied research activities related to business management, economics and social development, in collaboration with various departments and professionals. They also provide business consultancy and training programmes for commercial or non-profit making organizations.
For enquiries, please contact:
Ms Elaine Cheung
Tel: +852-2881-6177
Fax: +852-2881-5050
Email: elaine@hkics.org.hk
Website: www.hkics.org.hk
