Survey of Reporting on Corporate Governance and Corporate Social Responsibility

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Survey of Reporting on Corporate Governance and
Corporate Social Responsibility

• Survey of the 43 Leading Croatian Companies

January 29, 2004
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Agenda

• Why did we conduct the survey?
• Survey results
• Comparison of Croatia to CEE countries
• Conclusions

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Why did we conduct the survey?

• Determine if companies provide needed information
  to potential investors
• Promote good investment climate in Croatia
• Compare results to CEE countries

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Survey Results

• Reporting on Corporate Governance and Corporate
  Social Responsibility

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Survey Results

• Corporate Governance
• Environmental Policy
• Social Policy

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Comparison of Croatia to CEE Countries
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Poland
Slovak Repulic
Slovenia
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Corporate Governance

• Disclosure of governance structure management,
  supervisory board, ownership
• Disclosure of audit information
• Disclosure of the companys shareholder rights
  policy

• Disclosure of compliance with a Corporate
  Governance Code
• Disclosure of companys internal Code of Business
  Conduct / Code of Ethics

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Corporate Governance
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Corporate Governance
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Corporate Governance
Time Series Data
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Corporate Governance
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Corporate Governance
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Corporate Governance
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Corporate Governance
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Corporate Governance
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Corporate Governance
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Corporate Governance
Time Series Data
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Comparison with Bulgaria and Romania - August
2004Corporate Governance
Website
Annual Report
Audit Information
Governance Structure
Code of Business Conduct / Code of Ethics
Shareholder Rights Policy
Corporate Governance Code
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Environmental Policy

• Data concerning environmental performance
• Data concerning water and energy use

• Compliance with environmental standards (national
  or international)
• A department or executive in charge of
  environmental policy
• Environmental considerations concerning
  supply-chain management

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Environmental Policies
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Environmental Policies
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Environmental Policies
Time Series Data
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Environmental Policies
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Environmental Policies
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Environmental Policies
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Environmental Policies
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Comparison with Bulgaria and Romania - August
2004 Environmental Policy
Website
Annual Report
Listed Departments for Environment
Report on Environmental Performance
Environmental Considerations with Supply Chain
Management
Compliance with Environmental Standards
Report on Energy Water Use
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Social Policy

• Stated compliance with industry- specific
  national / international regulations regarding
  human rights, labor standards and labor
  legislation
• Disclose health and safety policy
• Disclose employee development or employee benefit
  policies
• Disclose employment policy
• Disclose community patronage/sponsorship programs

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Social Policy
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Social Policy
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Social Policy
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Social Policy
Time Series Data
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Social Policy
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Social Policy
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Comparison with Bulgaria and Romania August
2004 Social Policy
Annual Report
Website
Compliance with Labor Standards
Listed Employment Policy
Listed Health and Safety Policy
Listed Employee Development/Benefits
Sponsorships
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Conclusions

• Corporate Governance
• Environmental Policy
• Social Policy

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Conclusions

• Corporate Governance
• Companies disclose mainly when they must
• Very few companies have codes of conduct, ethics,
  or corporate governance

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Conclusions

• Environmental Policy
• Public reporting on environmental policies by
  Croatian companies is weak
• Social Policy
• Croatian companies need to improve reporting on
  labor standards, employment policies, etc.

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Conclusions

• General
• In comparison with Bulgaria and Romania, Croatian
  companies disclosures are better
• In comparison with Central Europe, Croatias
  reporting lags in all categories
• Regional experience shows that better reporting
  (and actions?) can be expected over the next few
  years

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• Thank You.
• Leslie Matthews ulenta
• 385 98 355 258
• leslie.sulenta_at_zsem.hr