Responsible Business, Sustainable Value

Corporate Responsibility in Asia

Following corporate exposures in both the USA and Europe, the new legal requirements for corporate governance extend to the identification and management of business risks beyond the core of financial control and protection of physical assets.

 

The recognition of intangible assets, such as brand value, human resources and intellectual capital, has been accompanied by a realisation that business activities up and down the supply chain, from raw material sourcing to product use and disposal, can involve business risks.

 

A wide range of non-financial issues is now recognised as part of corporate responsibility for western companies:

 

 

 

 Occupational Health and safety

 Environmental Management

 Human Rights

 Wages and Working Conditions

 Discrimination

 Child and Forced Labour

 Intellectual Property Rights

 Business Ethics and Governance.

 

The quest for cheaper sourcing is driving manufacturing and services to Asia. The challenge of managing and providing assurance on corporate responsibility is becoming more complex and onerous. And as Asian consumer buying power grows, new market opportunities emerge for western brands, for retailers, service providers and investors. With the opportunities come risks.

Corporate responsibility in Asia will soon close the loop:

 Who are you buying from and selling to?

 Who made your product, how?

 How will it be used, by whom?

 Who and what are you investing in?

 Whose money are you investing and what was its origin?

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