Hong Kong companies and their top managements need to change their mindset on the issue of corporate governance to ensure better standards in the city, a veteran executive said.
Companies must realize that better corporate governance will deliver concrete value for the firms, said Wendy Yung, former executive director and company secretary at Hysan Development Co. (00014.HK).
It would be wrong to think that better practices would merely entail more costs without proper returns, she said, according to the Hong Kong economic Journal.
Corporate governance practices should be built into businesses to ensure that managements are accountable to shareholders, said Yung.
Yung last month founded Practising Governance, a platform dedicated to best corporate practices in the city, after serving Hysan for 19 years.
Good corporate governance will help companies protect their share prices on the stock market, Yung said.
She called for board diversity to equip the management with better vision and skills so as to mitigate different kinds of risks.
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