Corporate
misconduct is unacceptable, say ICC leaders
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| The
board room - where the crucial decisions are made |
Paris, 16
December 2002 - Proclaiming
ICC's support for the highest standards of corporate governance throughout the
world, the ICC leadership has emphasized that the chief responsibility for good
behaviour rests with business itself.
A statement issued on behalf
of the ICC Chairmanship, headed by President Richard D. McCormick, added: "The
long-term interests of shareowners - and business's commitment to an ethical
society - must be paramount."
The other Chairmanship members
are Vice-Chairman Jean-René Fourtou, Chairman and Chief Executive Officer
of Vivendi Universal, and Immediate Past Chairman Adnan Kassar, Chief Executive
Officer, Fransabank, Lebanon.
The statement, said: "Corporate
misconduct is unacceptable. It can wreck companies, destroy jobs and pensions,
undermine confidence in business and stifle economic growth."
It went on to set out five
basic principles of corporate governance:
- Government should rigorously
enforce existing laws, and should encourage business self-regulation.
- Lawmakers and accounting
boards should clarify and simplify existing procedures, so concealing the
truth would be more difficult.
- Any new laws should be
considered carefully, to avoid creating roadblocks to business growth.
- Corporate boards must
insist on ethical behaviour and diligent self-regulation.
- Executives must not allow
short-term market pressures to lead to unethical behaviour or distorted reports.
The statement concluded:
"The chief responsibility for good behaviour rests with business itself.
The long-term interests of shareowners - and business's commitment to an ethical
society -- must be paramount."
The ICC leaders drew attention
to the corporate governance section of ICC's website, which provides basic guidance
on corporate governance practice for companies of all sizes, sectors and regions.
Corporate
governance website
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