Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — ESG Presentation (July 2022)
26 slides from Hong Kong Exchanges & Clearing's sustainability presentation, July 2022
Slide 1: Anti-Corruption and Ethical Business Culture – The Heart of Good Corporate Governance
Anti-Corruption and Ethical Business Culture – The Heart of Good Corporate Governance 反貪污和道德商業文化 – 良好企業管治的重心 Joe Lee 利逸修 Director of Corruption Prevention, ICAC 廉政公署防止貪污處處長
Slide 2: Outline
Outline Anti-Corruption Policy and System 1 Whistleblowing Policy 2 Ethical Business Culture 3 Corruption Prevention Advisory Service 4
Slide 3: Hong Kong's Performance
Hong Kong’s Performance = MEAN PCED LE ayal = —— RULE OF LAW INDEX 2021 —— enked the 12th least corrupt ats i Among 139 countries and territories, Hong Kong's rankings are as follows. a RULE OF LAW in East Asia & Pacific Region in the world 46 ABSENCE OF CORRUPTION in Fast Asia & Pacific Region in t
Slide 4: Requirements for Listed Entities
Requirements for Listed Entities Corporate Governance (CG) Code ESG Reporting Guide • Establish policy(ies) and system(s) • Disclose information on policies and that promote and support anti- compliance relating to bribery, extortion, corruption laws and regulations. fraud and money laundering; numb
Slide 5: Anti-Corruption Policy & System
Anti-Corruption Policy & System 5
Slide 6: Standards and Guidelines
Standards and Guidelines HKEX • Listing Rules, CG Guide for Boards and Directors International • ISO 37001, BSI 10500 • Guide supplementary to UK Bribery Act CPD/ICAC • Corruption Prevention Guide for Listed Companies • Sample Codes of Conduct, Guide on Managing Relationship with Public Servants… •
Slide 7: Key Elements
Key Elements Integrity/Conduct Requirements (Code of Conduct) • Anti-corruption requirements, e.g. acceptance / offering of advantages / gifts & entertainment • Avoidance and management of conflict of interest • Other integrity issues 7
Slide 8: Key Elements
Key Elements Training and Capacity Building • Anti-bribery law, company’s anti-corruption policy, integrity and conduct requirements and expectations, corruption pitfalls, consequence of breaches… • Managers and supervisors – corruption risk awareness, preventive & detective measures, ethical judgme
Slide 9: Key Elements
Key Elements Risk Management and Internal Control System • Corruption risk assessment • Internal controls - corruption prevention controls • Internal audit, compliance, corruption/fraud prevention • Whistle-blowing policy, disciplinary system 9
Slide 10: Anti-corruption Provisions
Anti-corruption Provisions • Prevention of Bribery Ordinance (POBO) (Cap. 201) • Corrupt transactions with agents (section 9) • Special features: “any act” & “principal’s permission” Clear Policy & Communication • Bribery of public servants (sections 4 & 8) • Legislations of other jurisdictions Anti
Slide 11: Conflict of Interest
Conflict of Interest • Conflict of interest – a form of corruption • A common misconduct, not covered by POBO • But often involves deception/fraud as a ‘side effect’ • Management of conflict of interest • Avoidance • Declaration • Mitigation 11
Slide 12: Risk Management and Internal Controls
Risk Management and Internal Controls • Risk assessment – know your corruption-prone business processes and modus operandi • purchasing, sales, maintenance, human resources management… • Corruption prevention controls • checks and balances, segregation of duties, supervision, review and approval, re
Slide 13: Whistleblowing Policy
Whistleblowing Policy 13
Slide 14: Whistleblowing Policy – Why?
Whistleblowing Policy – Why? • Requirement of the CG Code of Listing Rules • “The issuer should establish a whistleblowing policy and system for employees and those who deal with the issuer to raise concerns, in confidence and anonymity……” (CP D2.6 of CG Code) • People’s concerns about making a repo
Slide 15: Key Elements
Key Elements • Statement of intent/pledge • Reporting channels • Protection against retaliation • Consequence of false reports 15
Slide 16: Key Elements
Key Elements • Handling of reports • Centralised handling - recording and follow-up • Must not jeopardise future investigation by law enforcement agencies • Dutifully report suspected criminal conducts to relevant law enforcement agencies 16
Slide 17: Ethical Business Culture
Ethical Business Culture 17
Slide 18: Keys to Ethical Business Culture
Keys to Ethical Business Culture Tone at the top • Core values – integrity, honesty • Don’t bribe (including outside Hong Kong) • Promulgation, emphasis and implementation of Code of Conduct • Integrity requirements extended to business partners • Corporate ethical business culture – deeds not only
Slide 19: Keys to Ethical Business Culture
Keys to Ethical Business Culture Business and management practices • Ethical practices, honesty and integrity towards stakeholders • Ethical practices, fairness and integrity in internal processes • Compliance with laws and regulations • Other management practices, e.g. staff remuneration system • C
Slide 20: Keys to Ethical Business Culture
Keys to Ethical Business Culture Business and management practices • Ethical practices, honesty and integrity towards stakeholders • Ethical practices, fairness and integrity in internal processes • Compliance with laws and regulations • Other management practices, e.g. staff remuneration system • C
Slide 21: Keys to Ethical Business Culture
Keys to Ethical Business Culture Communication • Regular training (‘taught’ and self-learning) • Campaigns, newsletters… • Communication of anti-corruption policy and commitment to stakeholders • Feedback
Slide 22: Keys to Ethical Business Culture
Keys to Ethical Business Culture Reflection • Accountability • Review and reflection on decisions and actions Enforcement • No tolerance: reporting crimes to law enforcement agencies • Discipline
Slide 23: Corruption Prevention Advisory Service
Corruption Prevention Advisory Service 23
Slide 24: CPAS
CPAS Advisory services : Anti-corruption system, code of conduct Identification of risks, control measures Training for directors and staff Training services by HKBEDC Tel.：2526 6363 Email：cpas@cpd.icac.org.hk Online Service Request Form： https://cpas.icac.hk/
Slide 25: CPAS
CPAS Web Portal http://cpas.icac.hk • Guides, publications • Training videos • Case studies • Corrupt practices • Trends Subscribe • Red flags • Tips/measures 25
Slide 26: Subscr
a Subscr Bid Bs 7E A (KR eICAC Hong Kong Our advantage is you and the ICAC
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