Commercial firms should adopt codes of good governance to bring integrity and success to their businesses, a key insider said at the ‘Case Study on Corporate Governance’ event yesterday.
Corporate governance is generally the purview of large or listed companies, but a growing number of advocates are pushing for its implementation also among small and medium enterprises (SMEs) and other businesses.
Preap Kol, executive director of Transparency International, said practicing good governance is helpful for commercial companies who wish to see better growth, adding that it can attract new investors.
According to TI, who conducted a case study on corporations here, good governance among Cambodia firms is lower compared to other countries like Thailand and Vietnam.
The case study showed how companies choosing voluntary adoption of corporate governance can benefit in terms of performance and growth.
“TI has contributed in boosting the private sector’s adoption of good governance and this may attract investment in their ventures while building confidence among the public.
“Practicing good governance will also help the private sector in preparing for listing in the stock market, which can boost their profitability,” Mr Kol said.
Or Saovanna, general manager of Forte Insurance, echoed the remarks from Mr Kol, attributing the healthy growth of his company to good governance.
“Good governance is the core of our entire operation and has contributed a lot to the company’s success,” Mr Saovanna said.
Lem Chansamrach, managing director of Cambodia Investment Club, said investors, both local and foreign, care about good governance, and consider it before making an investment decision.
“Although we may look at investment in some companies that do not practice good governance, it eventually becomes a necessity for companies to adopt these practices once we invest in them.
“Investors will not take too much time to study a company’s background before they invest if they have good governance,” Mr Chansamrach said.