Corporate Governance

Prof. Akhmad Syakhroza,CA,PhD.

Professor in Corporate
Governance

DEPARTEMEN AKUNTANSI
FAKULTAS EKONOMI DAN BISNIS
UNIVERSITAS INDONESIA

I am worried that the term corporate governance itself has become

highly fashionable and is, therefore, likely to become devalued rapidly
by overuse. It is todays hot topicin 1995 the phrase corporate
governance was not in common use. Now you cannot avoid it, and it is
danger of being seen as the silver-bullet answer to all public and private
policy and strategic problems. Inevitable it is not a universal panacea and
it may eventually be thrown aside(Bob Garrat, 2003)

Adopting Western codes of CG without understanding the underlying

differences in market structures, types of ownership and culture may lead
to unexpected problems in implementation within the board in many Asian
markets (John Zinkin, 2010).

Go
o

Co
m

Da
ya
Sa
in
g

pa
ny

Improved
Performance

Efficient
Resource
Allocation

Reduce
Conflict
of Interest

Economic
Growth

Good
Governance

Means of
Achieving
Governance
Result

End Result
Of
Governance
Process
3

Five Reasons for Board Failure

1.

A dominant CEO who intimidates the directors.

2.

A weak Chair who is unable to fulll the role properly.

3.

Dysfunctional board dynamics (usually a consequence of the rst two).

4.

5.

Mission, vision and values are misunderstood

Lack of trust between board and management and within the board

Conicts of interest and personal agendas

Dysfunctional processes.

Lack of transparency and information

Poor planning of meetings

Poor meeting management

Poor decision - making

No follow-through, monitoring and control

Inadequate understanding of risk dynamics.

The problems of implementing

Good Corporate Governance
come in two distinct parts

The rst is caused by the adoption of codes from jurisdictions

that are culturally different and built on a different
underlying stock market structure and assumptions about
how boards are supposed to work based on different ownership
structures and levels of market sophistication.

The second is created by the generic difculties boards have

in translating conformance or compliance (which is what
regulators look at) into good performance (which is what
concerns shareholders).

Corporation
dalam Perspektif Governance
Monks and Minow (2003)
1.Corporation as a Person
2.Corporation as a Adaptive System
3.Corporation as a Moral System
4.Corporation in Society in Market Place.
Bainbridge (2008)
1.Corporation as Person

(in the eyes of the law, the corporation is an entity wholly

separate from the people who own it and work for it)

2.Corporation

as Entity

3.Corporation

as Nexus of Contract

(stock ownership is no different than any other

species of private property; in a free enterprise, private-property system, a corporate
executive is an employee of the owners of the business. He has a direct responsibility
to his employers)
(contractual relations with employees,
suppliers, customers, creditors, and others are an essential aspect of the firm)
8

Board is a Actors
Hot Topics
1.

Size

2.

Inside/Outside mix

3.

Diversity

4.

Meeting frequency

5.

Ownership

Conguration of Actors and Institutions

Congurations of Power/Knowledge
the conguration of power/knowledge.
It
explores
the
processes
and
techniques by which power and
knowledge
contribute
to
the
transformation of actors, institutions
and the discourses, narratives and
ideologies they shape and are shaped
by.

elaborates on the congurations

of actors and institutions. It
explores how the conguration of
actors and institutions creates
dependencies in governance and
therewith rigidities and exibility
in its evolution.
The different contributions draw
on social systems theory and
institutional
and
development
economics, but do so from an EGT
perspective. Actors are analyzed
as agents of change, but also as
constrained in various ways, by
other actors, by institutions, by
their own understanding of self
and others, and by their image as
constructed by others.

DEFINISI GOOD GOVERNANCE

1. Corporate Governance is the system by which business

corporations
are directed and controlled.

2. The Corporate Governance structure species the distribution

10
of the
right dan responsibilities among different participants in
the

CORPORATE GOVERNANCE
Tak ada sistim governance spesific dan sesuai (best suited) lintas organisasi
maupun negara (OECD, 1999 dan Turmbull, 1997)

Structur ekonomi dan regulasi (mayer, 1997)

Sejarah perkembangan dunia usaha dan hub dunia usaha dan pemerintah
(Whitley, 1990)

Struktur sosial dan perkembangan ekonomi suatu negara (Cadbury, 1999)

Aspek Budaya sebagai penyebab berbedanya sistem governance

Corporate Culture is the Key to Corporate Governance (Lipman and Lipman, 2006).

11

DEFINISI GOOD GOVERNANCE

World Bank
Corporate Governance is a blend of law, regulation and appropriate voluntary
private sector practises which enable a corporation to attract financial and
human capital, perform efficiently and thereby perpetuate itself by generating
long term economic value for its shareholders and society as a whole.

Malaysian Finance Committee on Corporate Governance

Corporate Governance is the process and structure used to direct and manage
the business and affairs of the company towards enhancing business prosperity
and corporate accountability with the ultimate objective of realizing long term
shareholder value; whilst taking into account the interests of other
stakeholders.
Shann Turnbull, 1997
Adalah sistem tata kelola yang diselenggarakan dengan mempertimbangkan
semua pihak-pihak yang mempengaruhi proses institusional, termasuk
penunjukkan pengawas dan regulator, keterlibatan dalam proses organisasi

12

DEFINISI GOOD GOVERNANCE

Kantor Meneg PMPBUMN
Corporate Governance berkaitan dengan proses pengambilan keputusan yang efektif yang
bersumber dari budaya perusahaan, etika, nilai, sistem, proses bisnis, kebijakan dan
struktur organisasi, yang bertujuan untuk mendorong dan mendukung pengembangan
perusahaan; pengelolaan sumber daya dan risiko secara lebih efisien dan efektif;
pertanggungjawaban perusahaan kepada Pemegang Saham dan stakeholders lainnya.
Forum for Corporate Governance in Indonesia (FCGI)
Seperangkat peraturan yang menetapkan hubungan antara Pemegang Saham, Pengurus,
Kreditur, pemerintah, Karyawan serta para Pemegang Kepentingan Intern dan Ekstern
lainnya sehubungan dengan hak-hak dan kewajiban mereka, atau dengan kata lain sistem
yang mengarahkan dan mengendalikan perusahaan. Tujuan corporate governance ialah
untuk menciptakan pertambahan nilai bagi pihak pemegang kepentingan.

13

Good corporate governance holds the balance between economic and

social growth.

Good Corporate Governance matters because investors are

vulnerable to conicts of interest and managerial incompetence.
They are not well protected by contract and so have to rely on the law
to protect them from conicts of interest and on good Corporate
Governance to protect them from managerial incompetence

If good Corporate Governance protects shareholders from

managerial incompetence, it should lead to better performance,
justifying any interest third parties have in how the company is run.

Only with good governance can companies create wealth and ensure
the management of such wealth in a sustainable manner for its
shareholders and other stakeholders.

14

Governance Model
Anglo-Saxon

RUPS
Board of
Director
CEO

Penyesuaian

Continental
European
RUPS
Board of
Commissioner
Board of
Director
Management
15

Governance Theory:

Shareholder vs Stakeholders

CORPORATE GOVERNANCE FRAMEWORK

Shareholder
Stakeholder
Penyesuaian

Stakeholder
Theory

Finance theory

Trust
relationship

Stewardship
theory

Business
ethics

Myopic market
theory

Shareholder
Theory

Political theory

1.
2.
3.
(Van den Berghe and Leafrau, 2001)

Cybernetic theory

Governance and
interorganizational partnerships
to deliver public services
Governance of contractual
relationships
Governance of
interorganizational networks
16

Sistim Governance
Market dominated
(Anglo Saxon)

Menyandarkan pada kekuatan

pasar sebagai pengendalian
perusahaan:
Capital

market
Labor market
Product market

Outsider control system

Bank dominated
(European Continental)

Keterlibatan pemerintah dalam memberikan

arahan ekonomi melalui kebijakan
perencanaan dan industri adalah masih kuat
dan dibutuhkan.

Kompetisi penting tetapi belum dapat

mengandalkan pasar itu sendiri untuk
menciptakan lingkungan perusahaan yang
lebih efisien, peran Pemerintah masih penting

Peran bank dalam melakukan pengawasan

thd internal manajemen krediturnya adalah

sangat kuat.

Insider dominated control

For a long time, a central concern of corporate governance literature has been a comparative
evaluation of two different systems prevailing in industrialized countries: the market or outsider
oriented system, well represented by the Anglo Saxon economies, and the insider-bank oriented
17
system, mainly typied by the European Continental countries (Aras and Crowther, 2010)

Link between Private and Public Governance

Internal

Corporate Governance Mechanism :

The Internal and External Architecture
External
Private

Pemegang Saham
RUPS

Dewan Komisaris

Stakeholders
Employees
Customers
Suppliers
Creditors
Society
Reputational agents

Dewan Direksi
Management
Internal Auditor
Accounting

Accountants
Lawyers
Credit rating
Investment bankers
Financial media
Investment advisors
Research
Corporate Governance
analyst

Regulatory
Standards
(for example, accounting
and auditing)

Laws
Regulations

Bank

Markets
Capital market
Labor market
Product market

Source : Modification from Corporate Governance : A Framework for Implementation, Cadburry, 1999
& Corporate Governance, Kim & Nofsinger, 2004

Penguatan Governance harus melibatkan berbagai pihak baik internal perusahaan maupun eksternal dalam
konteks pengendalian Board sehingga pencapaian tujuan perusahaan tetap konsisten.

18

Who Should be Involved in Corporate

Governance?
Conflicts of corporate governance can probably only be solved with
the intervention of a wide range of stakeholders.
A number of players are already involved in corporate regulation, and these
eight categories of agency are listed below:
1.Supranational

organisations, for example, EU, UN;

2.National Governments, for example, UK;
3.Self-Regulation by the corporations themselves, to ensure a good image
and so more sales;
4.Shareholders;
5.Employees;
6.Suppliers;
7.Customers;
8.Indirect
Participants, for example, public/media/Non-Government
Organisations (NGOs). This category comprises parties not part of the
corporate supply chain and with no formal legal regulatory influence over
the corporation. However they may well be affected by externalities caused
by corporate activities.
19

Areas of Regulation of Corporate

Governance

20

Bagaimana Posisi Profesi Akuntan dalam

Good Governance
ProfesiAkuntan(baikinternalorganisasimaupuneksternalorganisasi)berperan
besardalamterwujudnyaGoodGovernance.
Ada dua hal pokok dimana akuntan berperan dalam terciptanya good
governance, baik peran akuntan di internal organisasi maupun di external
organisasiyaitu:
1.PengungkapanPenuh*Fulldisclosure*
2.Tercipatanya data dan atau laporan keuangan dan laporan manajemen yang

datanya/laporannyadisajikansecarabenar*true*dandinyatakansecara
fair*fairlystated*.Dengankatalaintidakadamanipulasidata.

The End