more, needs to give reassurance… and tell the public the level of corporate governance practices in terms of
conflict and the level of conflicts and perspective’ (respondent no.12).
Concerning the rating, this particular respondent announced that the methodology of rating must be structured
effectively. He commented that if it is not designed properly and accurately it would impact on the reliability of
the rating. He voiced that ethics should be one of the elements in the rating format. How do the boards fuse
ethical standards in their day-to-day operation in the company as well as the board? This needs to be addressed.
This respondent suggests that the Malaysian Institute of Corporate Governance (MICG), being an independent
body, should take the responsibility as an independent body in guiding Malaysian companies towards ethical
governance. As emphasised by respondent no.12:
• ‘… the aim of the minority shareholder although long term, is important, he wants a constant flow
of dividend. That is why they query the directors, why they want to invest in certain risky projects, especially
when the majority shareholders are in a position to influence the decision. That is why we need an independent
view given by independent directors and perhaps on behalf of the minority shareholders why such investment
could be inclusive or otherwise’.
Whistle blowing custodian
Whistle blowing is a position recommended by all of the respondents. They perceived that it is very important
for corporations in this era to initiate a whistle blowing position. A whistle blowing position, such as a legal
officer, should be appointed to guide activities, such as building whistle blowing intranet facilities, imposing
whistle blowing act, and appointing officers to serve the purpose. As stated by respondent no.3
• ‘… Whistle blowing is something we are trying to initiate, enhance in this country. The general
perception of whistle blowing is if I tell upon you I will get the sack so people fear for their job…. we would not
want that to happen because the value of the company might just go down. Shareholders will loose…there must
be some system within the company that allows whistle blowing to be done without reprimanding the person or
repercussions that affect their job’.
It is important for the corporation to initiate a venue for the above to materialize. The Company Secretary (CS)
and Internal Auditor (IA) are suggested as suitable for the responsibility towards enabling the above objective.
Simply put by a respondent:
• ‘… there must be one person they can complain to…somebody appointed to be responsible, to be
the person that they can channel through and be assured that they are protected’.