CorporateGovernance

Miryam Ompusunggu (1506809721)Nadia Nur Fadilla (1506809785)

Salsa Andiani (1506809873)Sindy Millatina Putri (1506809910)

Zaki Tanrere (1506809980)

ScandalPoor management

practicesFraudulent

financial reporting

Corporate

governance

WHO?

Process by which

organizations are directed &

controlled

Managers/OwnersHire professional managers

Development of a separate corporate entity allowed organization to raise funds from individual shareholders to enlarge their operations

- Is concerned w/how well organizations meet their obligations- Underpinning the integrity & efficiency of financial markets

Governance of the Modern Corporation

OwnersPublic shareholders

Institutional invertorsOther corporations

CEO, CFO, COO

StakeholdersCostumers, vendor partners, state & local entities, community partners

CreditorFinancial institution

Bondholder

Managers, employees

Audit committee

Compensation committee

Corporate governance committee

Board of directors

Represent their interest in the effective running

of the corporations, appointed for specific

periods of time

Oversee the financial reporting process, monitor internal

controls, monitor the choices of accounting policies & procedures, oversee the hiring & performance of external auditor in producing

the company’s financial statement

Oversee compensation packages for the senior

executives of the corporation

Monitors the ethical performance of the

corporation & oversees compliance

w/the company’s internal code of ethics,

federal, & state regulations

To be truly effective, boardsshould follow these six steps•Create a climate of trust and candor•Foster a culture of open dissent•Mix up roles•Ensure individual accountability•Let the board assess leadership talent•Evaluate the board’s performance

QUESTIONS FORDIAGNOSING YOUR

BOARD• If you answer yes to all

questions, you have an exemplary board.• Even with a board that

passes all the tests and meets all the established criteria, ethical misconduct can still come down to the individual personalities involved

Fiduciary Responsibilities

Based on trust

“Corporate Governance is about managers fulfilling a fiduciary responsibilities to the owners of their company”

Agency Theory Conflict of interest Shareholders VS Managers

Oversight Process and Machanism Check and Balance

To support

Prinsip DasarPedoman Good Corporate Governance Indonesia

Perbankan

Transparansi Disclosure Tepat waktu, memadai, jelas, akurat

Akuntabilitas Kejelasan Fungsi dan cara mempertanggungjawabkannya

Responsibilitas Compliance Undang-undang dan peraturan lainnya

Independensi No other party intervention Objektif

Kewajaran dan Kesetaraan Adil Stakeholders

Asas Good Corporate Governance

Mencapai suntainabilitas usaha dengan memperhatian kepentingan Shareholder, nasabah, dan stakeholders lainnya

Good Corporate Governance Payoff

More attractive to investor and lenders• Purchase from firms with strongest shareholder rights• Sell the stocks from firm with weakest shareholder rights

More profitable

Faster Sales GrowthResearch from Harvard – Warthon and Deuthce Bank Study

Research from McKinsey

Institutional investors would pay Premiums to well governed companies

• 30% Eastern Companies• 22% Asia and Latin America

OFF LABEL MARKETING

Case Study: Off- Label Marketing

Bextra Pain Killer

Meningkatkan risiko serangan jantung dan stroke

Depakote

Dementia & Schizophrenia

• Unawful promotion of drug’s prescription

• Failure to report safety data

• False price reportingPaxil Wellburtin

Epilepsi, Bipolar, dan Migrain

Off- Label DrugsTidak sesuai indikasi atau tidak sesuai dengan

“Label” yang ditetapkan oleh FDA atau BPPOM

LEGAL?Hak Prerogatif Dokter

Doctors must inform the patients

Evil Doctors

Revenue and Profit<Fines

Case Study: Off- Label Marketing

Millions $$ VS Billions $$

Lanjoooooooot!!!

Case Study: Off- Label Marketing

Internal Control

Board of Diretors’ Responsibility

Firm Corporate Governance

DOJ/Government Firms, Doctors, Drugstores

Maximizing Profits supported by inffective sanctions or fines

Unlawful and Unethical Practices

Why would illegal marketing activities feature so frequently in the pharmaceutical industry?At what point they be considered endemic?

Illegal marketing sudah tidak dapat dipungkiri Meningkatkan profit Pengguna tidak mengetahui, tetapi membutuhkan obatnya dan dijual bebas Sanksi dirasa tidak berat

Endemik: Praktik terus dilakukan tanpa adanya tindakan hukum yang efektif Dilakukan masal. Dianggap wajar untuk menghasilkan profit besar tanpa perlu biaya yang tinggi

Leading Organizational

Change

4. Critics argue that fines are too affordable. In other words, a $1 billion fine for activities that generate several billions of dollars in illegal sales simply becomes a cost of doing business. Should fines be more punitive? How much would be enough?✖ Pemberian denda dapat menjadi salah satu cara meminimalisir praktik ilegal.✖ angka denda tersebut dapat ditinggikan dengan misalnya hitungan denda ialah sebesar cost

sekian tahun ke depan

5. Is the payment of a monetary fine sufficient restitution for these offenses? Why or why not?

✖ sanksi denda kami anggap tidak dapat mewakili tindak illegal yang dilakukan oleh perusahaan✖ Bisa diberikan sanksi yang lebih lagi misalnya memberikan skorsing produksi, atau melarang

penjualan produk tersebut.

6. How could this apparently endemic problem be approached differently?

✖ seharusnya sanksi yang diberikan bukan hanya denda.✖ Pemerintah juga dapat melakukan pendekatan tidak hanya ke perusahaan farmasi, namun

juga ke dokter-dokter dan rumah sakit dengan menetapkan peraturan agar para dokter memberikan resep obat-obat yang hanya dibutuhkan sesuai dengan indikasi penyakit pasien saja

✖ pemerintah dapat memperketat peraturan terhadap distributor obat-obatan✖ Untuk pencegahannya, pihak manajemen perusahaan seharusnya membuat kontrol internal

perusahaan✖ membentuk corporate governance committee