A greater emphasis on enforcement as well as consistency of local regulation across Asia are at the top of the corporate wishlist, panelists said at the Asia Ethics Summit in Hong Kong.
Owen Jones, Asia-Pacific general counsel at Hitachi Data Systems, one of the panelists, said that local governments need to ramp up enforcement efforts. “We would like to see more enforcement because we want to see consistency across the different countries where we operate,” he said.
“Law enforcement agencies in some countries are doing a better job than others. Consistency is important for companies doing business in the region, and it is also for the good of the country as a whole.”
Panellists agreed that governments in Asia are making a concerted effort to align their local regulation with global standards. “Governments in many countries are encouraging local companies to follow the rules,” said Jean Luc Gustave, head of screening solutions at Thomson Reuters Risk.
“More local companies want to conduct business abroad. If they do this, they have to show those overseas markets that they are following the rules.”
Jones added that the discrepancy of legal and compliance requirements between international and local companies is one challenge of conducting business in certain Asian jurisdictions. “We are not dealing with a level playing field here, because many local competitors, who are not subject to the Foreign Corrupt Practices Act and the UK Bribery Act for example, have an edge,” said Jones.
While transparency and consistency of policy are vital, the perception of corruption in a country is a huge issue, said Tan Sri Abu Kassim bin Mohamed, chief commissioner at the Malaysia Anti-Corruption Commission.
“I have a dialogue going with many companies in Malaysia, and I often find that the big issue is that of perception. There is a perception of corruption in the country, and businesses and individuals can use that perception as a reason to cheat companies,” said the chief commissioner.
“When companies come to Malaysia, it is crucial for investors and companies to ensure that they understand the legal framework and are well informed before deciding where to allocate their money.”
The Asia Ethics Summit, jointly organised by the Ethisphere Institute and Asian Legal Business, is being held on Dec. 4 and 5 at the Renaissance Harbourview Hotel in Hong Kong.
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