Many large Chinese businesses, especially those of deemed strategic importance to the Government and Chinese Communist Party, are required have a representative or representatives of the Chinese Communist Party working inside the organisation to ensure compliance with appropriate culture and social responsibility obligations. Here is one example. Here is another. And yet one more.
In Australia, our intellectual leaders have followed these best practice examples through:
- The ASX Corporate Governance Council has proposed that ASX listed companies demonstrate and maintain their “social licence to operate”.
- The Commonwealth Government has empowered and funded ASIC to embed ASIC officers inside private companies to ensure that they behave and comply with government policies.
- The Commonwealth Productivity Commission has recommended that all banks should appoint a Principal Integrity Officer (PIO) obliged by law to report directly to their board on the alignment of any payments made by the institution with the new customer best interest duty.
In the mean time, the US has cut taxes and undertake a serious business deregulation exercise and has just recorded an annualized 4.1% growth.
Oh yes. Australia is heading in the right direction.