Institute of Directors takes on new tasks
The Thai Institute of Directors vows to be the voice of the business sector in the economic-reform process as well as to equip listed companies with more qualified directors, in its bid to help elevate the quality of governance in the public and private s
According to Bandid Nijathaworn, president of the institute, aside from ongoing tasks such as director and executive training and anti-corruption campaigns, this year’s focus will be on three key areas.
As Thailand is entering a reform mode, new laws will be enacted, expected to number at least 40. In this regard, the institute positions itself as a central unit to voice the opinions of the business sector to lawmakers.
"This could present a win-win situation. We can advocate feedback to the proposed laws and issues affecting directors," he said.
Having the private sector spearhead the anti-corruption campaign is the next. Aside from strengthening the private-sector-initiated Collective Action Coalition against Corruption (CAC), it will put more focus on government procurement projects and state enterprises’ good governance.
The institute recently announced a plan to raise the number of private companies participating in the CAC from 416 last year to 600 this year.
Bandid acknowledged that only 78 companies, including 28 listed firms, among the current 416 members have been certified for an anti-corruption approach. However, they control 69 per cent of the combined market capitalisation of all members.
Last but not least, it will engage in enhancing professional directorship in Thailand.
Some 35 individuals have been trained by the institute to become professional directors, with help from the members that provided peer reviews on their ability. The chartered directors are required to have at least five years of experience in business. This is on top of about 80 classes hosted annually for listed companies’ directors.
"In light of high business complexity, we need more people with ability," Bandid said. "This will be a pool of resources for listed companies."
Bandid was ranked 47th among the world’s "100 Most Influential People in Business Ethics" in 2014 by Ethisphere, an international organisation dedicated to best ethical practices.
Bandid, who became president of the Thai Institute of Directors in 2013, said this country’s private sector had shown sufficient progress in terms of corporate governance.
Under the Asean Corporate Governance Scorecard 2013-2014, Thailand’s overall mean score was the highest among the participating countries. It scored highest in two of the five parts – rights of shareholders and equitable treatment of shareholders – while Singapore scored highest in disclosure and transparency and responsibilities of the board. Malaysia had the top score in the role of stakeholders.
"The trend is bright, judging from the quality of people attending our training classes. Our seminars [devoted to promote corporate governance] also attract a large number of family businesses," Bandid said.
"We’re responding to the needs of the private sector and are spreading these practices to the public sector."
