Singapore-listed companies’ codes of conduct least effective compared to global peers: LRN report
SINGAPORE-LISTED companies’ codes of conduct are the least effective compared to their global counterparts, said ethics and compliance company LRN in a report on Wednesday (Jul 26).
The report, which covered 200 of the top-traded companies in Asia, Europe and North America, included findings from Japan and Singapore for the first time.
The study found that companies included in the Straits Times Index (STI) generally had the lowest code-effectiveness scores. The STI is a market capitalisation-weighted index tracking the performance of the Singapore Exchange’s top 30 companies.
The poorer score for STI companies contrasts with companies in the US S&P 100, where codes outperformed those in other indices overall.
Globally, the codes of conduct of only 43 per cent of companies studied were deemed “effective”, even if they met the minimum standards. Around 40 per cent were scored as “less effective”, falling below expectations of a code counted as effective.
Notably, about 64 per cent of codes of conduct reviewed had a section on speaking up, but only 57 per cent had a strong non-retaliation policy for employees who whistle-blow about misconduct. Just 17 per cent had explanations on procedures on the investigation of misconduct.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
LRN noted that 17 per cent of codes reviewed exceeded the minimum expectations. It said that companies with more effective codes are 10 times more likely to include hotline or helpline details.
LRN added that only 48 per cent of codes extended to a company’s contractors, agents and other third parties who worked on their behalf.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
HSBC asked by US$890 billion investor group to set new energy goal
Stocks to watch: DBS, KIT, Clint, Elite Commercial Reit
Booking says room reservations to slow amid Middle-East conflict
CapitaLand India Trust to acquire 2.5 million sq ft of IT buildings in Hyderabad
Block raises annual forecast on resilient consumer spending
Live Nation’s revenue beats estimates as boom in concerts drive ticket sales