Boardroom Vol 52

Page 1

Boardroom

Vo l . 5 2

Exclusively For Company Directors

Issue 03/2017 | ISSBN 1513-61755

STEERING GOVERNANCE

IN A CHANGING WORLD

Content

Boardroom

Vo l . 5 2

Exclusively For Company Directors

Issue 03/2017 | ISSBN 1513-61755

ÂŁÂŽĂˆ ŸŸº ĂŠÂź

Board of Directors

Äš ĂƒĂŒÂźĂ‰Š ŸIJĂ?̟Ă?

Prof. Hiran Radeesri

´ŸĂˆÂąĂŠ² ĂŒijijĂŒºĚÉ IJĂŒĂ

STEERING GOVERNANCE

IN A CHANGING WORLD

Äš IJŸ Ă– Ă€ĂŒ°Ä? Ă–´à ĂŠ²²°Ä?

ÂŁĂ?ÂŽĂƒŠĂŒŒ§ªĂŠ ÀÉĴ²ĚĂŒÂźĂŒ¹ŸŸº

Vol. 52 Exclusively For Company Directors

²ĂŠÂť Ă” ŸĂŒ  Ă˜ Ÿ ÄśĂ?ÂźĂˆĂ•¡°Ä?

ISSBN 1513-61755

Board Welcome CEO Reflections Cover Story Steering Governance in a Changing World !N@QC !QDHŰMF The Role of Chairman in Leading Strategic Risk Oversight Board Development 2DQUHBD 4RD NE @TCHS ŰQLR @MC CDSDQLHM@SHNM NE audit fees by Thai listed companies in 2016 From Kitchen to Mars: The Story of Ball Corporation Board Opinion Five Reasons why Board of Directors must Priorities Sustainability and how it’s Relevant to Business Strategy (Part II) Chartered Director Corner Anti-Corruption Update Anti-Corruption in Practice Board Review Board Activities Member Corner Board Success Welcome New Member

07 09 10

Vice Chairman

²ĂŠÂŚĂ‚ĂŠĂ€¡Ĝ²Ă?ÂťÄ? ¹²Ă€ÂźĂŠ²ĂŒ§

Ms. Potjanee Thanavaranit

27 33

 ŸŸº ĂŠÂź

Director

²ĂŠÂŚ Ă” ĚŸĂŠ ºÉŠ§Ă?̟Ă?

Mrs. Kesara Manchusree

Äš ¡ĂŒĂ”Ěà  ĂŒÄłĂŒ¡ŒĚÄ? Ă…Ă?Ÿ¡Ă?¡Ă‰Ĵ²¡ŒĚÄ? ²ĂŠĜŸĂ‰º¡Ÿ Ă–§ijĂŒ Ă”Ă‚ÂŻĂ?Ÿ ²ĂŠÂŚ ²Ă€ž¡ŸŸŽ žĂœÄťĂŠ¨ĝĂŠ

²ĂŠÂť ³ŸŸĜŒ ÄśĂŒijijÄ?ÕĜĊŒ

²ĂŠÂť Ă˜¡ŸĂŒ²°ŸÄ? §Ă‘Ă–§ijĂŒÂŻĂŠĂ€Âź

²ĂŠÂŚ šĂ‰°ŸĂ?Ê Ă”³ŠĜ¡ž§Ă‰Âť ²ĂŠÂť Ÿ¡Ă? Ă‚Ă?ĜŸĂŒij Ă?ž

44 48 50 54 56 60

Prof. Kitipong Urapeepatanapong Mr. Charamporn Jotikasthira Mr. Chaiwat Utaiwan

Mrs. Nualphan Lamsam

Mr. Banchong Chittchang Mr. Predee Daochai

Mr. Paiboon Kittisrikangwan Mr. Pailin Chuchottaworn

Mrs.Patareeya Benjapolchai Mr. Rapee Sucharitakul

Member Engagement Committee

(Boardroom)

Dr. Chatchavalit Saravari

Engagement Committee

²ĂŠÂť ÂŽ ¡Œà Ä? Ă‚Ă?ÂĄĂ‚ÂŚĂ€²

40

Dr. Bandid Nijathaworn

ÂŁÂŽĂˆ ŸŸº ĂŠÂź ,DLADQ

IJŸ §Ă‰§Ă€žĂŒÄł ŸÀʟĂ?

36

Mr. Weerasak Kowsurat

President & CEO

²ĂŠÂťĂ˜¡³Ă‘žÄ?  ĂŒijijĂŒ̟Ă? Ă‰ÂŚĂ€ĂŠ²

24

Mr. Prasan Chuaphanich

 ŸŸº ĂŠŸ¾Ă‘ĊÅĝÊ²Ă€ ĂŠÂź

IJŸ ³ÉŽ­ĂŒÄł ²ĂŒĜ¯ĂŠĂ€Âź

²ĂŠÂť ´ŸĂ?IJĂ? IJĂŠĂ€ĸĂŠÂť

22

Mr. Krik-Krai Jirapaet

ŸÅŒ´ŸĂˆÂąĂŠ² ŸŸº ĂŠÂź

²ĂŠÂť §Ă‰ÂťĂ€Ă‰Ĵ²Ä? Ă…Ă?°Ă‰ÂťĂ€ŸŸŽÄ?

18

Khunying Jada Wattanasiritham

Chairman

²ĂŠÂť Ă€Ă?ÂźĂˆÄšĂ‰ IJĂŒĂ Ă–ÂŁĂ€Ă‚Ă?ŸÉij²Ä?

06

Prof. Kovit Poshyanand

´ŸĂˆÂąĂŠ² ŸŸº ĂŠÂź

²ĂŠ´ŸĂˆĂ‚É²ĂƒÄ? Ă”§Ă?Ă?Ă…¡ĂŠ²ĂŒ§

Issue 03/2017

Honorary Chairman

²ĂŠÂť ÂąĂ?ÂźĂˆÂťĂ?°¹ ijɲijŸĂŠ¡ž

²ĂŠÂŚĂ‚ĂŠĂ€ šĂ‰£§Ă‰ŠŠĂŠ §Ă?ÄłĂŒÂşĂŠĂ€ÂŚÄšÄ? ²ĂŠÂť ÀÉĴ²ĂŠ ĂƒžĂŠÂťĂ”¡ĂŒĂœº¡Ă‘²

Âź Äł ° ÄšĂŒĂ€ĂˆÂźĂ‰ à Ä? ¡ĂŒ²ĂŒÄśĂŠŸºŽÄ? ¾Ě Ă…²Ă?§ĂŠ ÄśĂŒ²ij ĂŠ²²°Ä?

(Boardroom)

Mr. Norpong Suksanguan Mr. Teerayuth Tantraphon Ms. Pacchanya Chutimawong Mr. Wattana Laipermpoon Pol.Lt. Sivaraks Phinicharomna Asst.Prof. Anucha Chintakanond

²ĂŠÂť Ă…šĂŒĂ€Ă?Ä´ĂŒ ¡ĂŒºžĂ•Ă‚ÂŚĂ‚Ă?ÂźĂŒÂťĂŠ

Mr. Apiwut Pimolsaengsuriya

ÂŁÂŽĂˆÂľĂ‘ÄŠÄśĂ‰IJ°ĝĂŠ ÔĜĊʥŌ

Owner

Ă‚ÂşĂŠÂŁÂşĂ‚Ä‰ÂŚĂ”Ă‚ÂźĂŒÂşĂ‚ÂŻĂŠÂłĂ‰² ŸŸº ĂŠŸ³ŸĂŒà ° É Ă˜°

Thai Institute of Directors Association

 Ă…Œ³ŸŸŽĂŠÂąĂŒ ĂŠÂź

Editorial Team

²ĂŠÂŚĂ‚ĂŠĂ€ ÄšĂŒÂźĂŒ¡Ÿ Ă€Ă?Ä´ĂŒ Ă?ž

Ms. Siriporn Wutthigul

²ĂŠÂŚĂ‚ĂŠĂ€ Ă‚ĂŠÂźĂŒÂŽĂ? ԟĂ?Ă…ÂŚÂŁÂŚĂ” Ă?ŸijĂŒ

Ms. Sarinee Ruangkongkiat

²ĂŠÂŚ Ă€ĂŒĂ˜žŸĂ‰ij²Ä? Ă”²ÄŠ²Ă•Ă‚Œ¹ŸŸº

Mrs. Wilairat Nensaengtham

²ĂŠÂŚ Ă€Ă?ŸÀŸŸŽ ºÉ²²ĂŠšĂŒ²Ă‰²°Ä?

Mrs. Wirawan Munnapinun

²ĂŠÂŚĂ‚ÊÀÂĂ?°¹ĂŒ²Ă? Ă” ĂŒIJ§Ä‰Ă€Âť

Ms. Suthinee Kerdchuay

ÂĝÊ²Ă‰ ŒĂŠ²ijĂŒIJijĉÅ

Contact

ĂƒÂşĂ‘Ä‰ Ă–£ŸŒ ĂŠŸ²Ă…ÂźÄ?¹´ĂŠÂźÄ?ÂŁ

Northpark Project,

Ă”¡Ă?ĂœĂ…Ă”´Ä?² ĂŠÂźĂ”¾Ă•¡ŸÄ‰ÂĄÄŠĂ…ºÑž ĂŒĜ ŸŸº¥Ă…ÂŚĂ‚ÂşĂŠÂŁÂşĂ‚Ä‰ÂŚĂ”Ă‚ÂźĂŒÂşĂ‚ÂŻĂŠÂłĂ‰² ŸŸº ĂŠŸ³ŸĂŒĂ É°Ă˜°

Ă”ÂĄÄłĂƒžĂ‰ Ă‚Ă?Ăœ  ŸĂ?ÂŚĂ”°¡Ă‡

Thungsonghong, Laksi, Bangkok

Ă”¡Ă?ĂœĂ…Ă”´Ä?² ĂŠÂźĂ”¾Ă•¡ŸÄ‰³°£Ă€ĂŠÂşĂ•žĂˆ ĂŒĜ ŸŸº¥Ă…ÂŚĂ‚ÂşĂŠÂŁÂşĂ—ĂƒÄŠĂ‚ÂşĂŠ§ĂŒ ŸĂ‰³°ŸĂŠÂł

Ă–°ŸĂ‚ĂŠÂź

Tel: (66) 2-955-1155

Website : http://www.thai-iod.com

E-mail: sarinee@thai-iod.com

Ă…ĂŠÂŁĂŠÂź Ă€ij° Ă…ĂŠÂŁĂŠÂź §Ă‰Ă?²

CMA. Building 2, 3rd Floor, 2/9 Moo 4

Ă”¡Ă?ĂœĂ…Ă”´Ä?² ĂŠÂźĂ”¾Ă•¡ŸÄ‰Ă” Ă?ĂœÂťĂ€ Ă‰³ ĂŠŸ ĝĂŠ Ă‰³IJĂ‘Ă•ž ĂŒĜ ĂŠŸ°Ă?ĂœIJĂ?Ă—ĂƒÄŠ Ă‰ÂłĂ‚ºÊ§ĂŒ Ă‚ºÊ£ºÇ

¯²²Ă€ĂŒšĂŠĂ€IJĂ?ÂźĂ‰ÂŚĂ‚ĂŒÄł Ă•ÂĄĂ€ΡĂ?Ä‰ÂŚĂ‚Ă…ÂŚĂƒÄŠĂ…ÂŚ

Vibhavadi-Rangsit Road,

Ă–°ŸĚÉ¡°Ä?

10210

E-mail: sarinee@thai-iod.com

Fax: (66) 2-955-1156-57

ÀÉij¯Ă?´ŸĂˆĂ‚ÂŚÂŁÄ?

Ă—ĂƒÄŠ Ă‰ÂłĂ‚ºÊ§ĂŒ Ă‚ºÊ£ºÇ

Ă‚ÂźĂ?´´ŸĂˆĂ”IJĂ›²IJÄŠĂŠ² ªĂƒÂşĂŠÂť  ªŸĂˆĂ”ÂłĂ?³Ă—ĂƒÂşÄ‰Ăš °Ă?ĂœĂ” Ă?ĂœÂťĂ€ÂĄÄŠĂ…ÂŚÂ Ă‰³ ĂŠŸ°ĝĂŠĂƒ²ÄŠĂŠ°Ă?Ăœ ŸŸº ĂŠÂź

Website : http://www.thai-iod.com

Board Welcome

BOARD

WELCOME

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$O*<EE5T:V$TE 7 O6 ID$TELEZ==ER_6f;b;*T; ÀüÞÌïêÞÍ ÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞ ĂƒÏïòê 9Wg$G TI8X*<9<T9%O*=ER:T;$EEC$TEb; 6lT_;V;:ZE$V+CW=ER_6f;'ITC_LWgD*9Wg'5R$EEC$TE This issue of Boardroom Magazine is related cC 'IECO*% TCc6 .X*g CW<9<T9LlT'S‰b;$TE>GS$6S; the National Director Conference 2017, the bM _$V6$TE$lT$S<6[`G6 T;'ITC_LWgD*_-V*$GDZ9: annual biggest IOD activity held under the ODgT *CW=ERLV9:VBT@ `GRb;'OGS C;k ¿ÏÞïå theme “Steering Governance in A Changing à âóâÊÏíêâÍù ? TDIV+SD`GR;aD<TD Ă†ĂŒĂ c6 ;lT Worldâ€?. This year’s conference is packed with speakers from over 10 countries _L;O>G$TEJX$KT_$WgDI$S<$TEb- <EV$TELlT;S$*T; international up for giving their views and insights LO<<S‰-W`GR$TE$lTM;6' TLO<<S‰-W%O*<EVKS9 lining through different sessions held non-stop from +69R_<WD;c9D =ER+lT= ¯²²œ .Xg*_ETMIS*I T+R 7am to 7pm. Readers may catch up with all CW = ERaD-; ` $ 9 T ;>[ O T ;b;$TE_GY O $b- < EV $ TE highlights in Cover Story. LlT;S$*T;LO<<S‰-W @GT6cC c6 $S<<9LSCBTK5 6EÂŤ c@EV;9E -[a-7V8TIE b;2T;R$EEC$TEOT-W@b;9lT_;WD< Ă†ĂŒĂ ';bMC GT LZ6 .*gX 9 T;CT`< *= ;=ERL<$TE5 b;2T;R $EEC$TE @E OC_G T'ITC9 T9TDb;$TE9lTM; T9Wg %O*$EEC$TE 9S*h DS*`;R;lTI T$TE9lTM; T9W$g EEC$TE OVLEROD T*CW=ERLV9:VBT@7 O*9lTOD T*cE 9T*6h T ;'OGS C ;k žÍù̪Ă€ÏïïòíùÌÏÍ ĂŚĂŤ Ă?ĂŻĂžà ùÌà â cC ; ODM; T L *<9'ITCL;Z$e +T$M;S* 9lT_*V;DO6PV7 _EYOg * ,GT6 _$CL a$* 9;Wg Tl CT_-YOg CaD* $S<9FK0W Éòà Ìãâï Ă‚ããâà ù +RL;Z$`GRc6 % O'V6`* CZC bMC `' cM; 7 O*@GV$c=O T;.R`G I = 69 TD6 ID ¿ÏÞïå žà ùÌóÌùÌâð 9WgEI<EICBT@$V+$EEC7 T*e b; - I* ÂŻ _6YO;9Wg> T;CT 9Sh*$TE_DWgDC-CLlT;S$*T; bMC +T$O*' $E7 T*e $TE+S6 à žĂ? EZ ;9Wg ÂŻ b; =ER_9J_CWD;CTE $TE=ER-ZCLTCS‰=ER+lT= `GR *T;@V:WCO<=ER$TJ;WD<S7E%O*L8T<S;$EEC$TE <EVKS9c9D _@YgO`L6*'ITCDV;6W`$ >[ > T;MGS$L[7E à Ìïâà ùÏï Ă€âïùÌãÌà ĂžùÌÏÍ Ă?ïÏäïÞê ¼à ÀĂ?ÂŚ EZ ; ¯°°ª ¯°³¯­Ž´ b;'OGSC; ¿ÏÞïå Ă?òà à âðð 6 | Boardroom

Chairman Forum also talks about the role of chairman in business risk. Every business has risk that director cannot overlook. In Board Development column, our IOD research and policy team, writes a study on audit services and fees among Thai audit firms in 2016. We hope our study will be useful for readers to select audit firms of your choices.

Don’t miss our exclusive interview with Dr. Pailin Chuchottaworn. The newly appointed IOD chartered director shared interesting views on his work and challenges facing directors. He also gave inputs how independent director can work effectively. This month’s Anti-Corruption in Practice column presents fun, easy-to-read story about Thai box office “Bad Genius� and how the hit flick can be related to the theory of Lucifer Effect. Satisfaction guaranteed for reading. Last but not least, Board Success captures a collection of board activities throughout the past two months for example, several corporate visits to our new office. DAP Batch 2 activity held in Myanmar, Annual General Meeting and IOD Award Night organized to congratulate participants of Director Certification Program (DCP) batch 233-236/2017. We hope you enjoy reading our quality columns in this issue of Boardroom. Feel free to share with us your idea and story, news update and any privilege for other members via email: suthinee@thai-iod.com

Editorial Team

CEO Reflections

K4W ?Q_G3&O#OZ3Y? 1O_W5?O_<3X5?" Steering CG in a changing world

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Boardroom | 7

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was caused by failure of capitalism in which firms aimed for growth and profit maximization but ignored ethical aspect. In consequence, global economic and business growth in the past had created many problems including environmental degradation, highly skewed wealth and income inequality, illegal and unethical business practices.

In the keynote speech, Dr. Supachai Panitchpakdi, former Director- General of the World Trade Organization and former Secretary-General of ÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞ UNCTAD, blamed the failures on lack of moral compass that could guide the business sector The main contents of this issue come from the on the righteous path and, more generally, on IOD’s annual National Director Conference lack of corrective mechanism of capitalism. 2017 “Steering Corporate Governance in a Changing Worldâ€?, held on June 14 2017. The Second, good governance clearly has a role in event was a great success, with over 360 fixing or easing the existing problem. Companies participants, including both IOD members and need to emphasize benefits and impacts of all non-members. The success could be attributed stakeholders, not just those of their shareholders. largely to interesting topics relevant to present Fortunately, governance focus over the past 4-5 challenges, great speakers - regional and global years has gradually shifted from shareholders to stakeholders. In time, without proper support experts, and excellent organization. from stakeholders, companies will not be able The atmosphere was also heightened to enjoy sustainable growth. Therefore, good considerably by the participation of over 50 governance is crucial for all businesses in this delegates from foreign institute of directors changing world. and governance agencies from more than 20 countries, who had earlier in the week attended Third, board of directors also has essential role a network meeting of Emerging markets’ to play in this changing world. In this regard, the Institute of Directors in Bangkok. Partnership next speaker, Prof. Mervyn King, Chairman of with 16 leading Thai corporate sponsors and the King Committee on Corporate Governance Nikkei Asian Review, a global financial magazine, in South Africa and one of the world’s reputable made the conference a well and truly world- governance gurus, likened a company to an artificial person with no heart, mind, and soul. class event. The role of board is to put the heart, mind, and At the end of the conference, I delivered a soul into the company so as to create value in a closing remark in which I made three key sustainable way for benefits of both shareholders and stakeholders. He said further that the observations from the discussions. most significant soul of any company is one First, we are living in a world of uncertainty. that leads company to conduct business with The business world is a world that is volatile, ethical manner and in accordance with good uncertain, complex, and ambiguous, which governance principle. leads to greater business risks and thus higher costs. These issues are serious constraints I believe those observations are timely and that discourage the business sector from useful for directors. They are words of making new investment. The uncertainties are wisdom by the prominent delegates of partly due to unclear macro policies of major international business community, who spoke economies in solving global economic woes at the IOD’s conference in Bangkok last week. and in driving global growth. Part of the problem More details about this and other interesting issues discussed at the event can be found inside this issue of Boardroom.

8 | Boardroom

C o v e r S t o ry

¸¹ªª·®³¬ ¬´»ª·³¦³¨ª IN A CHANGING WORLD

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10 | B o a r d r o o m

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LVg*9Wg_= ;'ITC9 T9TDb;%5R;Wh$f'YOOS7ET $TE_7V<a79T*_JEK2$V+9SgIaG$OD[ b;ER6S<Â—ĂˆĂ?´$I T 9Wg'IE+R_= ; _;YgO*+T$ER6S<>G>GV79WgÂ—ĂˆĂ?´ `GR$TE 9Wg$ER`L$TEG*9Z;a6D7E*+T$7 T*=ER_9J ÂĽĂŁĂŠĂŹĂ´ ĂŹĂŁ ãÏïâÌäÍ åÌïâà ù ÌÍóâðùêâÍùŒ CTDS* âêâïäÌÍä ĂŞĂžïèâù DS*CW=EVCT5; ODOD[ _@ETR,R;Sh; MT$CW $TE=ES<=EZ*ER<<$TE$lT$S<6[`G$V+$TE9Wg6W $f+R LTCTE8- ID6X*_*V;9Z;@I$;WhbM cMG_% T=ER_9J c6 ÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞ Thai Institute of Directors (IOD) hosted the National Director Conference 2017 at Plaza Athenee Bangkok on June 14, 2017. Over 400 directors and business executives from private sector in Thailand and overseas participated in the conference. This year’s topic “Steering Governance in a Changing Worldâ€? is was filled with lecture sessions by up to 19 international experts sharing their views and insights. Dr. Supachai Panichpakdi, former secretarygeneral United Nations Conference on Trade and Development (UNCTAD) and former directorgeneral of the World Trade Organization (WTO) presided at the event to give a keynote speech on the topic “Navigating the Global Economyâ€?. Key details of the topic can be concluded that the world is always changing and full of environmental, political and social instability. No one can avoid these changes. To ensure that business sector will be able to survive in such situations, corporate governance is needed for laying out a solid business foundation. Lacking governance could lead to corporate scandals similar to Enron, Volkswagen and Wells Fargo.

B o a r d r o o m | 13

ÍÞëâé Áæðàòððæìë ÆÆ · Ðñââïæëä ¿âññâï ÄìóâïëÞëàâ æë Âêâïäæëä ÊÞïèâñð«

Σ¾ Ðâððæìë · ÊÞëÞäæëä Äïìôñå Þëá ÄìóâïëÞëàâ æë Þ ÀåÞëäæëä Ôìïéá

Êï« ÔââïÞðÞè ÈìôðòïÞñ Despite being well-established, high-caliber 4. Economics of disruption: diverse technologies or positive contribution to environment and executives of these companies unfortunately society apart from the economy. such as Internet of Things, Artificial Intelligence, chose to exploit the businesses for their Bitcoins or Blockschain all pose significant 3 Increasing hope for integrated reporting. personal benefits. Apart from financial report, relation between impact on future business and labor market. financial report and sustainability report must 5. The unequal world: without Global Governance, Dr. Supachai cites the world still lacks a be reported in order to reflect whether or not the world economic may be lost. so-called “Global Governance” that enables good business status and positive impact on each country to work together and solve the Professor Mervyn King, an expert on corporate the society and the environment remain. economic problem at the root level. The Global governance and sustainability and chairman Governance is crucial and will help the world of King Committee on Corporate Governance, Mr. Tham Sai Choy, Regional Chairman of KPMG avoid any new economic crisis. The United from South Africa said adaptation was needed Asia Pacific said the world was in the Fourth Nations has been pushing this idea for some for business making and corporate governance Industrial Revolution. The digital age connects time but has not yet come to a conclusion. methods following changing business environment. everything together be it computers, smart phones, and internet of things. We need The key trends are: The former UNCTAD and WTO head also pointed to know how to adapt these digital tools for five mega issues directors and business 1 Company should give priority to the role of economic, social and environmental benefits. executives had to understand and prepared stakeholders especially shareholder-centric for suitable solutions to challenges facing the According to Mr. Tham, three factors that model. global community. 2 Sustainable growth should be prioritized should be prioritized are: 1. Post-liberalism period that focuses on global compared to short-term benefits. Sustainability 1 Intellectual property (IP): Business survival politics and economics, making international depends on vision and understanding on can be regarded as one of the key business relations difficult. IP in a different aspect apart from IP rights. indexes essential for identifying business 2. Ethnic conflict, economic volatility, and Understanding on the clients and adaptation and financial strategies, while ensuring “Triple empires in decline. Nowadays the world of working process or looking for new Bottom Line (Economic-Social-Environment)” is facing political and economic conflicts, power change in each country, leading to conflicts. 3. The shrinking space of policy, for example a negative interest rate policy aimed at encouraging people to spend money rather than saving and Dodd Frank Act in the US that is under scrutiny and may be suspended to prevent failure in banking sector. These cases reflect that long-term benefit orientation tends to be replaced by a shortterm one. Êï« Çìåë ÐòééæóÞë Êï« Àåïæðñìíåâï ÏÞ÷ììè Áï« ÊÞïö Çì ÉÞïðìë

14 | B o a r d r o o m

Ëâñôìïèæëä ÀìàèñÞæé ¥Åìðñâá ßö Ëæèèâæ ¾ðæÞë Ïâóæâô¦ ÐíâàæÞé ÏâêÞïè ßö Êï« Èâë ÈìöÞëÞäæ

opportunities to approach new customers should also be taken into account. 2 Data analysis: Companies need to consider how to make the most use out of plenty of information available. For example, how the clients spend on the cost and what else are other related costs. Such information can help create business opportunities. 3 Cybersecurity: Companies have to consider if they are equipped with data protection system beyond the issues of hacking and changing password. Good management of useful information and IPs can help the corporate grow. Mr. Robert Gordon, CEO of Australian-based Consultancy, Board Accord, talked about proactive roles of the directors amid rapid changing situation. He shared his view on ‘Disruptive Technology’ that completely changes production process including innovation that leads to severe impact on the original product and ability to create new industry. Six years ago, most directors still lacked knowledge and readiness to safeguard their corporates from technology disruption. The obvious case is Kodak. The corporate’s sales volume drastically decreased amid an increasing number of consumers using new technology. However, he emphasized it was important for the directors to have a positive attitude. Change is the opportunity. Directors should be equipped with new ideas for business at all times. Executives’ mindsets and behaviors should be changed so that their companies can practically process based on changing technology.

Mr. Gordon also said three factors that would help develop directors to meet the changing technological tides are: 1 Self-evaluation: The directors should carry out annual cross evaluation and outsider’s evaluation so that the directors can evaluate their performances and capacities. 2 Self-development including analytical thinking and capacity to crisis management, business making attitude, soft and hard skill development and participation into IOD activities for learning about corporate governance. 3 Consultation and teaching by experts will help support and develop leading skills among directors Dr. Thitipong Nandhabiwat shared his view on the impact of digital age on Thai consumers’ behavior is similar to other countries. Therefore we have to understand business model and analyze how each business is doing. Directors overseeing the company should prioritize

Information and Communication Technology (ICT) and making sure that each company is equipped with ICT staff. Directors of several companies are not aware of the necessity and still lack ICT knowledge and expertise, unlike current business model that tends to be “real time”. New technology are brought to keep the business moving forward and that the directors have to support more personnel having ICT expertise. Mr. Paul Chan said digital changes will have a strong impact on the company. Directors therefore have a role to look forward to the future to determine changes that may happen. Strategy that is applicable to change and continuous skill development will help. According to KMPG, directors who can drive the corporate to success are those who are always looking ahead. To avoid major problems, well administration to financial resources, and good corporate strategy are essential.

Êï« ÍÞòé ÀåÞë

Êï« ¾éÞë ÁâëæÞò

Êïð« ÓÞïòëââ ÍïæáÞëìëáÞ B o a r d r o o m | 15

Êï« ËæïÞç ÄòíñÞ

Íïìã« ÇæÞëßì Ëæò

Mr. Alain Deniau, Partner, Heidrick and Struggles, said directors needed to adapt themselves to new environment, global situation that changed rapidly. Both regional and global companies need to evaluate their works for effective development. In the meantime, capacity of the directors need to be tested as part of corporate strategy.

Êï« Çòëæàåæïì ÐÞëì

Directors need to understand the overall picture of corporate governance in order to lead the company to sustainable growth despite facing these challenges. Thinking about the company’s turnover both in short and long terms is also important. Organization overseeing corporate companies need to play an proactive role to work and put in practice available corporate governance standard and guidelines Mrs. Varunee Pridanonda, Partner - Governance, and information disclosure regulation. Risk, Compliance, said the directors needed to understand the relation between corporate Mr. Gamal Khalifa Executive Director, Egyptian culture, business strategy, and risk in order to Institute of Directors, said challenge in corporate identify effective corporate strategy together governance in Egypt was business model. with effective risk management system essential Most businesses are small to medium enterprises (SMEs) and family business and for sustainable business growth. that their directors have backgrounds in private Dr. Naraj Gupta, Head of India Institute of sector. Understanding on good corporate Corporate Affairs said putting in practice governance is lacking. Profit is the first business corporate governance is a challenge due to priority compared to corporate governance as changing business environment. Law enforcement less priority. However, organization overseeing however is not stringent. Monitoring and listed companies is trying to establish corporate evaluation system is still lacking. Challenge also governance infrastructure via director training happens due to the company itself. Most Indian program. businesses are owned by families. Directors who are family members can still overpower Professor Jianbo Niu, Associate Professor at other directors in making executive decision China Academy of Corporate Governance, said whereas increasing roles of stakeholders are scandal relating to several Chinese companies over the previous years strong affected confidence evident at present. Event Supported Supported by by

Êï« ÁÞéââë Åâëëæëä among stakeholders. Hence Chinese companies give more importance and put in practice the principle of corporate governance to uplift and add value to their companies. Ms. Daleen Henning, Executive Director of IOD Southern Africa (IoDSA), said corporate governance and directors’ structure were prioritized in South Africa in order to ensure quality of registration process and diverse qualifications among directors would be beneficial for each company. However, lacking work ethics among directors is seen as the country’s challenge. Dr. John Sullivan, Member of Private Sector Advisory Group, IFC and Adjunct Professor at George Mason University, mentioned the relation between good corporate governance, economic growth rate and financial market. The country that is equipped with good corporate governance at the national and the company levels tend to have higher economic growth and more capital investment flow. Challenge at present is the world economic growth which is lower than it should be. Productivity rate is low and flow of foreign direct investment from emerging market is still scarce. Improvement of corporate governance system will attract more flow of foreign direct investment into the country. 3L<8ĊC-R 8=E;#==<L Mr. Phisanu Phromchanya

MediaPartner Partners Media

16 | B o a r d r o o m

Public Relations Consultant Thai IOD

1 B o a r d r o o m | 17

Board Briefing

THE ROLE OF CHAIRMAN IN LEADING STRATEGIC RISK OVERSIGHT

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ĂšÂ˜ ¸Ă™Ă—Ă†Ă™ĂŠĂŒĂŽĂˆ Ă—ĂŽĂ˜Ă? Ă‰ĂŽĂ—ĂŠĂˆĂ™Ă”Ă—Ă˜ Ă˜Ă?ÔÚÑÉ Ă•Ă—ĂŽĂ”Ă—ĂŽĂ™ĂŽĂ˜ĂŠ ÂŤĂ”Ă‘Ă‘Ă”ĂœĂŽĂ“ĂŒ Æ Ă˜ĂšĂ—Ă›ĂŠĂž ÇÞ ŠĂŠĂ‘ÔÎÙÙÊ ÑÔÇÆÑ ¸ĂšĂ—ÛÊÞ ÔÓ ¡ĂŠĂ•ĂšĂ™Ă†Ă™ĂŽĂ”Ă“ ¡ĂŽĂ˜Ă?– ÙÔÕ ËÎÛÊ ĂŒĂ‘Ă”Ă‡Ă†Ă‘ Ă˜Ă™Ă—Ă†Ă™ĂŠĂŒĂŽĂˆ Ă—ĂŽĂ˜Ă?Ă˜ Æ×Ê 1. Regulatory Compliance 2. Employee Misconduct 3. Executive Misconduct 4. Third-party/ Extended Enterprise Issue 5. Competitive Attacks ĂşÂ˜ ŠĂŽĂ‹Ă‹ĂŠĂ—ĂŠĂ“ĂˆĂŠ ĂŽĂ“ Ă—Ă”Ă‘ĂŠĂ˜ Ă‡ĂŠĂ™ĂœĂŠĂŠĂ“ ÇÔÆ×É ÔË ĂˆĂ?ÆÎ×ÒÆÓ ÆÓÉ ÇÔÆ×É ÔË Ă‰ĂŽĂ—ĂŠĂˆĂ™Ă”Ă—Ă˜ ĂŽĂ“ Ă˜Ă™Ă—Ă†Ă™ĂŠĂŒĂŽĂˆ Ă—ĂŽĂ˜Ă? Ă’Ă†Ă“Ă†ĂŒĂŠĂ’ĂŠĂ“Ă™ Board of directors share responsibilities in business investment plan and management, identifying strategy, human and financial resources recruitment as well as executive performance evaluation. Meanwhile, board of chairman takes a role in leading, supporting and promoting. Among the examples are leading board of directors in strategic risk management, setting meeting agenda on strategic risks, supporting organizational culture that is open to discussion about risk, effectively communicating with shareholders and ensuring all directors that information relating to strategic risks is correct, precise and up to date. ĂťÂ˜ ´Ă—ĂŒĂ†Ă“ĂŽĂ&#x;ÆÙÎÔÓÆÑ ĂˆĂšĂ‘Ă™ĂšĂ—ĂŠ ÆÓÉ Ă†ĂˆĂˆĂŠĂ•Ă™Ă†Ă‡Ă‘ĂŠ Ă—ĂŽĂ˜Ă?Ă˜ ÇÞ ÇÔÆ×É ÔË ĂˆĂ?ÆÎ×ÒÆÓ According to Dr. Jason Yap, six principles of good leaders in inventing organizational culture are 1) understanding organizational culture 2) strong desire to learn different opinions and experiences 3) capable of thinking and learning organizational culture 4) having a good team with diverse thoughts 5) willing to take action 6) daring accept probable risk that may occur in the future.

From IOD viewpoint, chairman of the board, as the company’s leader, has a crucial role in effectively putting strategic risk management into practice. Enabling directors to discuss and exchanging their views and understanding towards strategic risk management is crucial. Hence a Chairman Forum on a topic “The Role of Chairman in Leading Strategic Risk Oversight� was organized on 18 May 2017.

For panel discussion on the topic “The Role of Chairman in Leading Strategic Risk Oversight�, speakers included Mr. Naris Chaiyasoot, chairman of Banpu Power Public Company Limited; Prakit Pradipasen, chairman of the Erawan Group Public Company Limited; and Chkramon Phasukavanich, chairman of CIMB Thai Bank Public Company Limited. Dr. Tanai Charinsarn, IOD chartered director, hosted the panel and shared experiences and insights during the session as follows:

Prior to the discussion, Dr. Jason Yap, Regional Managing Partner SEA Enterprise Risk Services and Innovation Leader at Deloitte Touche Tohmatsu Jaiyos Co.,Ltd., shared his insights. Based on the topic “Global Strategic Risk in Transformation Age�, key details are as follows:

ĂšÂ˜ ÂŞĂ?Ă•ĂŠĂ—ĂŽĂŠĂ“ĂˆĂŠ Ă†Ă˜ ÇÔÆ×É ÔË ĂˆĂ?ÆÎ×ÒÆÓ ĂŽĂ“ Ă•Ă—Ă”Ă’Ă”Ă™ĂŽĂ“ĂŒ ÇÔÆ×É ÔË Ă‰ĂŽĂ—ĂŠĂˆĂ™Ă”Ă—Ă˜Ăľ Ă—Ă”Ă‘ĂŠĂ˜ ÙÔ ÑÊÆÉ Ă˜Ă™Ă—Ă†Ă™ĂŠĂŒĂŽĂˆ Ă—ĂŽĂ˜Ă? Ă’Ă†Ă“Ă†ĂŒĂŠĂ’ĂŠĂ“Ă™ ÆÓÉ ÇÔÆ×É ÔË ĂˆĂ?Ă†ĂŽĂ—Ă’Ă†Ă“ĂľĂ˜ ×ÔÑÊ ÙÔ

20 | B o a r d r o o m

ÒÆÓÆÌÊ ØÙ×ÆÙÊÌÎÈ ×ÎØÐØ ÆÓÉ ÎÓÛÊÓÙ ×ÎØÐ Ô×ÎÊÓÙÊÉ Ô×ÌÆÓÎßÆÙÎÔÓÆÑ ÈÚÑÙÚ×Ê Mr. Naris Chaiyasoot shared his experience as chairman of the board overseeing risk management that risk has to be incorporated into a company’s strategic plan at the beginning. Risk impact needed to be assessed and ranked. It is crucial to regularly monitor and assess if the company’s strategic plan is practical. These roles and responsibilities are not only of audit committee, but also of all directors particularly chairman as the middleman between shareholders and board of directors. Chairman should oversee and support “Risk Appetite” identification. Banpu gives priority to this issue and put into practice “Banpu Spirit” focusing on innovation, integrity, care and synergy as organizational culture.

situation report, financial risk management, debt, asset, liquidity ratio. He also suggested that every company should come up with Key Risk Indicator based on evaluation of former information and advice from external experts. Risks must be identified and prioritized. The board should keep asking questions i.e how often should risk be revised? Who owns the risk? Who takes responsibility in the risk? How to handle over-the-edge risk crisis? What kind of risk that needs special skills to handle? Will the company’s strategy be outdated as the global situation changes? What will be the risk affecting the business if the existing model doesn’t work? Mr. Prakit Pradipasen saw every agenda during board meeting as risk. However each agenda needs to be considered differently. Mr. Prakit said HMK King Bhumibol’s Sufficiency Economy Philosophy is crucial for the business. As a hotel business, if the board has a consensus to construct a new hotel construction during a meeting, directors should look at a project’s next step of environmental and social impact assessment and identify to what extent the company is immunized if the project failed. These are a few questions that managing department should be able to answer.

Political situation, economic and new innovation are top three strategic risks in Thailand’s business sector following Mr.Naris’ viewpoint. Meanwhile Mr.Prakit cited financial investment due to oversupply, maintaining executive loyalty and risks due to accidents and political situation top three strategic risk. Mr.Chakramon, on the other hand, viewed regulatory compliance, digitalization and reputation risk as top three strategic risks. Dr. Tanai wrapped up the session with a survey among directors attending the forum as follows: ù ¹ÔÕ ÙÍ×ÊÊ ×ÔÑÊØ ÙÍÆÙ ÇÔÆ×É ÔË ÈÍÆÎ×ÒÆÓ ÛÎÊÜ ÆØ ÎÒÕÔ×ÙÆÓÙ ËÔ× Õ×ÔÒÔÙÎÓÌ ÊËËÊÈÙÎÛÊ ØÙ×ÆÙÊÌÎÈ ×ÎØÐ ÒÆÓÆÌÊÒÊÓÙ Æ×Ê ³Ô ù Leading board of directors to effectively identify strategic risks. ³Ô ú Promoting strategic risk-prioritized organizational culture. ³Ô û Setting direction for board of directors’ meeting to include administration, monitoring and report in the agenda.

Mr. Prakit Pradipasen, chairman, the Erawan Group Public Company Limited, shared his view on how to engage directors to plan risk management. The thing is risk issue is mostly discussed only in the academic perspective and that it may ú ¹ÔÕ ÙÍ×ÊÊ ÈÍÆÑÑÊÓÌÊØ ËÆÈÎÓÌ ØÙ×ÆÙÊÌÎÈ ×ÎØÐ be difficult to grab academic information to ÒÆÓÆÌÊÒÊÓÙ ÎÓ ÇÔÆ×É ÔË ÈÍÆÎ×ÒÆÓõØ ÛÎÊÜÕÔÎÓÙ adapt and put into practice. He proposed those Æ×Ê taking care of organizational risk to come up ³Ô ù Lacking knowledge and understanding with a plan that directors can easily access. on strategic risk management. Enabling the board to understand how company ³Ô ú The board has not yet identified strategic will be affected and how each director should risk management process and its deal with different scenarios are some examples. Mr. Chakramon Phasukavanich, chairman of CIMB effectiveness. Thai Bank Public Company Limited, said One of the Erawan Group’s successful risk knowledge and imagination must go together. ³Ô û The board receives insufficient information to effectively make a decision on strategic management plans is “risk management plan From his the banking perspective, audit and _ the rally compliance team will help on operational risk risk management . in case of political rally”. Although was over, Erawan executives still revised risk and provide support on strategic risk planning. management plan twice over the past year. As New strategies should also be discussed to û ¹ÔÕ ÙÍ×ÊÊ ÒÔØÙ ÎÒÕÔ×ÙÆÓÙ ØÙ×ÆÙÊÌÎÈ ×ÎØÐØ a result, the company’s risk management plan prepare for any possible risk which could ³Ô ù Innovation, Information and Communications Technology is efficient and updated, thanks to a proactive happen in the future. ³Ô ú Changing business atmosphere role of the board in risk management planning. û µÑÊÆØÊ ÎÉÊÓÙÎËÞ ÙÔÕ ÙÍ×ÊÊ ØÙ×ÆÙÊÌÎÈ ×ÎØÐØ ³Ô û Regulatory compliance Mr. Chakramon Phasukavanich, chairman of CIMB Ë×ÔÒ ÙÍÊ ÇÔÆ×É ÔË ÈÍÆÎ×ÒÆÓ ÕÊ×ØÕÊÈÙÎÛÊ ÕÑÚØ Thai Bank Public Company Limited, viewed risk ÒÆÓÆÌÊÒÊÓÙ ÔËËÊ× as uncertainty that needed to be analyzed and -----------------------------------------------------------------------------------------------------------resilient. Everyone in the organization should participate into operational risk process whereas Event Supported by board of directors and executives are more responsible to strategic risk which external 3L"DLA23A==- factor is more involved. ú ¶ÚÊØÙÎÔÓØ ÙÍÆÙ ÒÆÓÆÌÎÓÌ ÉÊÕÆ×ÙÒÊÓÙ ØÍÔÚÑÉ ÙÆÐÊ ÎÓÙÔ ÆÈÈÔÚÓÙ ÎÓ Æ ÇÎÉ ÙÔ ÊËËÊÈÙÎÛÊÑÞ ÎÒÕÑÊÒÊÓÙ ØÙ×ÆÙÊÌÎÈ ×ÎØÐ ÒÆÓÆÌÊÒÊÓÙ During each board meeting, Mr. Naris Chaiyasoot said he would prioritize the agenda on monthly

DR=AK,3AþWBC Ms. Tanawan Surawattanavisase Senior CG Analyst Thai IOD

B o a r d r o o m | 21

Board Development

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22 | B o a r d r o o m

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Changes in the global economic environment and technological advancements are among the numerous factors that are prompting companies to change their business practices and have made business transactions more complex. Financial reports contain important data that indicate the performance of a business in the capital markets, which are designed to respond to the multiple needs of the users of financial report, including, among them, investors, creditors, employees and business owners. Therefore, the auditing systems of listed companies must be reviewed by auditing firms that apply quality control systems in accordance with the set standards. In a review of the website of the Security and Exchange Commission (SEC), the IOD Research and Policy Department found that, as of May 2017, 27 audit firms approved by the SEC, which employ196 certified approved auditors, are operating in Thailand. Fifty five percent (109) of the auditors are working for the “Big Four” auditing firms. The IOD Research and Policy Department also conducted a study on the service use of the audit firms and the setting of audit fees by Thai listed companies. The study was based on the minutes from the shareholders’ meetings of companies that participated in the corporate governance survey of listed companies (CGR) in 2016. Six hundred and one listed companies, 483 companies on Stock exchange of Thailand (SET), or 80 percent, and 118 on the Market for Alternative Investment (MAI), or 20 per cent. The findings can be summarized as follows: ù ºØÊ ÔË ÆÚÉÎÙ ËÎ×Ò ØÊ×ÛÎÈÊØ • 483 listed companies in SET - 66 percent (321 companies) used the auditing services of the Big Four - 34 percent (162 companies) used the auditing services of other firms • 118 listed companies on the MAI stock exchange - 47 percent (55 companies) used the auditing services of the Big Four - 53 percent (63 companies) used the auditing services of other firms

24 | B o a r d r o o m

Figure 1 Ratio of auditing services of audit firms used by listed companies

Ñåâ éæðñ ìã Þòáæñìïð Þííïìóâá ßö ÐÂÀ æð ÞóÞæéÞßéâ ãïìê åññí·¬¬êÞïèâñ«ðâà«ìï«ñå¬íòßéæà¬ìïÞí¬¾ÒÁÆÑÌÏ­®«Þðíõ¼éÞëäºñå

ú ¸ÍÆ×Ê ÔË ÆÚÉÎÙ ÎÓÈÔÒÊ ÔË ÙÍÊ ÆÚÉÎÙÎÓÌ ËÎ×ÒØ The audit fees of Thai listed companies of the SET and MAI are valued at 1,244,190,451 baht (US$35.6 million). The Big Four audit firms took in 72 percent, or 892,071,701 baht, of the fees. The other firms took in 28 percent, or 352,118,750 baht, of the fees. û ¦ÚÉÎÙ ËÊÊØ ÔË ÑÎØÙÊÉ ÈÔÒÕÆÓÎÊØ û ù ´ÛÊ×ÛÎÊÜ ÔË ÆÚÉÎÙ ËÊÊØ According to the survey, the median of audit fees in 2016 was 1,520,000 baht and the average was 2,070,200 baht. The listed company that paid the lowest audit fee was in the services sector (tourism and leisure business), paying, in total, 380,000 baht, while the listed company that paid the highest audit fee was in the banking sector, paying 18,310,000 baht Table 1 Audit fees of listed companies

Table 2 Overview of audit fees of listed companies classified by income levels

û ú ¨ÔÒÕÆ×ÎØÔÓ ÔË ÆÚÉÎÙ ËÊÊØ ÔË ÑÎØÙÊÉ ÈÔÒÕÆÓÎÊØ ÎÓ ÉÎËËÊ×ÊÓÙ ÇÚØÎÓÊØØ Ì×ÔÚÕØ ÆÓÉ ÎÓÈÔÒÊ ÑÊÛÊÑØ A review of the audit fees of listed companies based on the income levels of each business group showed that complex businesses and businesses with high volume of business transactions, such as financial firms, technology companies and resource groups, had higher audit fees than other businesses.

*Four companies had not yet submitted financial reports in 2016 and one company was taken over by a foreign entity, so it did not submit a financial report.

Table 3 Audit fees of listed companies in the agricultural group and food industry classified by income level

In addition, the audit fees of most listed companies increased in line with a higher level of corporate income. The study above has demonstrated that most Thai listed companies used the services of the Big Four. The audit fees for each company are different based on the complexity of the business, volume of business transactions, and income level of the company. This reflects the ability to pay for the audit, which has an effect on the selection of the audit firm, including different audit fees.

Table 4 Audit fees of listed companies in the resource group classified by income levels

*One company had not yet submitted a financial report in 2016

Table 5 Audit fees of listed companies in the technology group classified by income levels

3L"DLA;-O ;-OXD" Ms. Manee Maneesang CG Specialist Thai IOD

*One company had not yet submitted a financial report in 2016

B o a r d r o o m | 25

Table 6 Audit fees of listed companies in the financial business group classified by income levels

* One company was taken over by a foreign entity, so it did not submit a financial report

Table 7 Audit fees of listed companies of the service business group classified by income levels

Table 8 Audit fees of listed companies in the industrial product group classified by income levels

Table 9 Audit fees of listed companies in the consumption product business group classified by income levels

Table 10 Audit fees of listed companies in the real estate and construction group classified by income levels

* One company had not yet submitted a financial report in 2016.

Table 11 Audit fees of listed companies on the MAI classified by income levels

* One company had not yet submitted a financial report in 2016.

Board Development

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Several companies have been successfully growing in terms of income, production capacity, employees and branches. Employee is the key. They should be aware of and willing to work towards business sustainability seen as the ultimate goal. Vision, core value, and structure of the organization should also be resilient to rapid changes in social, environmental, political and other technical aspects affecting the business. In the competitive business world, one day you are in, next day you are out. Several entrepreneurs enjoy success of their existing product during their first years, but their businesses fail and eventually become a history in the later years. I am one of the IOD team members participating into IOD’s new course: Strategic Board Master Class organized last March. Unlike dramatic growth among start-ups, Ball Corporation is regarded as significant business that starts with household production. What makes the business stay strong 137 years on? How can the company that began with glass jar production step up its research, innovation and technology to become the leader in space venture. Five brothers founded Ball in 1880. In the beginning, they made wood-jacketed tin cans for products like paint and kerosene, but soon later expanded their business to glass jars, lids, and related products used for home canning. After Thomas Edison’s first successful light bulb, the use of gas light was gradually reduced. The Ball brothers hence switched to make glass home-canning jars previously designed by Majon Jar after his patent was expired in 1884. The glass jar, lid and related products with Ball logo has become the US household name ever since. Despite facing the Great Depression, sales volumes increased and the business grew rapidly. However Ball faced a big challenge in 1940s under the administration of Edmund Ball, one of the five Ball brothers. As a chairman, he had to make a big-impact decision on the company’s future. Production machinery was outdated and that the factory needed huge maintenance budget. The invention of refrigerator resulted in reduction of glass jars for containing food. Law implementation led B o a r d r o o m | 29

to a ban on monopoly in glassware industry and that the government’s approval was required if Ball wanted to merge glass jar companies.

©ÎÛÊ×ØÎËÎÈÆÙÎÔÓ Edmund Ball solved the problem by producing other types of containers while seeking other sources of income to maintain the business in the long run. He set up a research department. After the World War ended, then came the era of space exploration. The US fully jumped into the Space Race to compete with the Soviet Union. Edmund Ball saw the opportunity that would enable Ball to generate income. He grabbed the opportunity and expanded the business into the aerospace sector by establishing Ball Brothers Research Corporation in 1956. “We jump into this business because we see the aerospace as the starting point of the US greatest scientific research that brings us opportunity, profits and other benefits that come with the business,” says John Fisher, Edmund Ball’s successor. He said Ball produced space engineering parts, space communications, computer parts for satellite and space shuttle. Washington and National Aeronautics and Scientific Association (NASA) are Ball’s major clients. It can be said that parts manufactured by Ball would be included in all US space missions. Undeniably, aerospace business helped generate income to substitute those disappeared from glass jar New line of business was initiated. Ball branding sales. was recognized worldwide. Fisher took over The golden age of packaging industry was auto parts manufacturing and petrochemical in 1960s, particularly beverage packaging. engineering in Singapore and expand to cover Increasing consumption of beer and soft drinks this region. Its businesses included military plan among the Americans led to new packaging spare parts. Fisher even took over agricultural designs and huge profits. Ball therefore system industry to market in Libya and the stepped up to become one of players in tin can Middle East. beverage production. Ball merged other tin can manufacturers in 1969. Income from tin can A ready-to-build home for desert-covered areas products accounted for two-third of the overall known for costly construction is also owned income and slowly replacing income from glass by the company. Small computer operations jar which used to be a major income. Ball was was later merged to Ball Computer Products famous for package manufacturing and gained Division in Silicon Valley. There are other business trust from major clients i.e. PepsiCo, The Coca- lines that passed experimental period, thanks to long vision of Fisher and Ball executives in Cola Co, and Anheuser-Busch Co. terms of bringing technology to work in the It was challenging for Ball to expand its business organization. to aerospace industry. Ball under Fisher leadership during 1970-1981 had the most diverse businesses. Ball Corporation has become a listed company since 1973. Fisher, as the company’s last CEO,

sold the glass jar business to grow and become the largest tin can package manufacturer in the US and later the world’s largest beverage packaging manufacturer after merging US, European and Chinese operators in the field. Ball continues expanding its business to produce aerosol spray can. At present, there are four businesses under Ball’s arm: metal beverage package in the US and Asia, beverage packages in Europe, metal food container for households and space technology. The aeronautic business accounted for 10% of the total sales volume. In spite of stark contrast in business, Ball continues doing well in manufacturing products that meet the needs of clients, environment and society. From producer of kerosene container, to tin can and aluminum, technical and engineering capacity must be put in place. Manufacturing

_

30 | B o a r d r o o m

X; A L4=ĂžCK1#JGG #L 2R= N#6S 6?N/ A.YE? X A[5X?`A ­ĂŒĂ—Ă— [.`/G <`dLDK}?K C-c1O_W5^31O_ #.#dL G"4=ĂžCK1Z3Y!C-L1O_GG ;LZ35 Âœ¤¤Â›Ăž Z3% A"1O_4=ĂžCK1 dL?K"/ G" L=[. =K4DK}}LZ3 L= 1dLD0L3OGA LB3L3L%L/N ÂŹĂ—Ă&#x;ÓÚà ÒÓ Ă’Ă—ĂŒĂžĂž Ă•ĂŒĂ? ÔÞ ÙÚ ×ÚÙÒĂ?Ă? ĂŒ Ă˜ĂŒĂ•ĂšĂ? Ă?à ÞÔÙĂ?Þޗ ­ĂŒĂ—Ă— Ă?Ă˜Ă›Ă“ĂŒĂžĂ”ĂĽĂ?Ăž Ă”Ă&#x;Ăž Ă˜Ă?Ă˜ĂšĂ?Ă”ĂŒĂ— Ă?Ă?ĂŒĂ™Ă? Ă&#x;Ă“Ă?Úà ÒÓ ĂŒĂ?ĂĄĂ?Ă?Ă&#x;ÔÞĂ?Ă˜Ă?Ă™Ă&#x; ÔÙ Âœ¤¤Â›Ăž Ă?Ă Ă?ÔÙÒ Ă&#x;Ă“Ă? Ă&#x;Ă”Ă˜Ă? Ă&#x;Ă“ĂŒĂ&#x; ­ĂŒĂ—Ă— Ă™Ă?Ă?Ă?Ă?Ă? ĂŒ ÎÚÙĂ&#x;Ă?ĂŒĂŽĂ&#x; Ă&#x;Ăš Ă?à Ô×Ă? ÔÙĂ&#x;Ă?Ă?Ă™ĂŒĂ&#x;Ă”ĂšĂ™ĂŒĂ— ĂžĂ›ĂŒĂŽĂ? ĂžĂ&#x;ĂŒĂ&#x;ÔÚٙ

ÂĄÂłÂ&#x;ÂŠÂłÂƒ ZZZ EDOO FRP

process also needs different infrastructure. At the beginning, if Ball intended to only produce the best wooden kerosene container, opportunity might not be sought for producing glass jar and bottle. If CEOs had not thought of how to utilizing innovation into organizational development, Ball would not have had opportunity to jump start from being a household brand to aerospace industry as it is nowadays. Ball’s purpose in the 137th year is also to become the world’s best packaging company. Even space shuttle can be seen as container. Looking back at the long history of changes and innovation, Jay Billings, Vice President, Commercial Ball Beverage Packaging North & Central America gave interview that Ball was lucky that innovation was established in its

organizational culture of 45 business lines. These differences enable staff to learn to evolve seek solutions to problems as much as opportunities. Apart from producing packaging that meets clients’ needs, corporate social responsibility and environmental friendly are also prioritized. Ball innovated metal raw materials from recycling and reduce carbon footprint. Ball’s sustainability is certified by DJSI for four years in a row and will continue developing itself as a sample of organization that utilizes innovation and creativity to establish organizational culture. Undoubtedly this packaging company will bring sustainability to its business to meet consumers’ needs and step towards the new century and the new planet too.

3L"DLA=A"73 Z#D;R1= Ms. Ruangfon Jaismut Curriculum Development Thai IOD

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B o a r d r o o m | 31

DCP Residential Program @

EKAEN3

Director ©¨µ úüü ú ù Certification úû ú = (L ; úý Program

DCP

Contact:

0 2955 1155 R-DN12NBK .Nc ü sittisak@thai-iod.com

Board Opinion

Five Reasons why Board of Directors must Prioritise Sustainability and how it’s Relevant to Business Strategy (Part II) In the second and final part of this paper we will be addressing: û ¬ÊÙ ÆÍÊÆÉ ÔË ÙÍÊ ÈÍÆÑÑÊÓÌÊ ÔË ÆÉÉ×ÊØØÎÓÌ ÈÑÎÒÆÙÊ ×ÊØÎÑÎÊÓÈÊ ÆÓÉ ÆÉÆÕÙÆÙÎÔÓ ü ®ÓÈ×ÊÆØÊÉ ÆÙÙÊÓÙÎÔÓ ÔÓ ªÓÛÎ×ÔÓÒÊÓÙÆÑ ¸ÔÈÎÆÑ ¬ÔÛÊ×ÓÆÓÈÊ ª¸¬ ×ÊÕÔ×ÙÎÓÌ ý µ×ÎÛÆÙÊ ØÊÈÙÔ× ØÚÕÕÑÞ ÈÍÆÎÓØ ÒÚØÙ ÙÆÐÊ ×ÊØÕÔÓØÎÇÎÑÎÙÞ ÙÔ ÍÊÑÕ ØÔÑÛÊ ÒÔÉÊ×Ó ØÑÆÛÊ×Þ ÆÓÉ ÈÔÒÒÎÙ ÙÔ ÊÓØÚ×ÎÓÌ ÍÚÒÆÓ ×ÎÌÍÙØ Æ×Ê Õ×ÔÙÊÈÙÊÉ û ¬ÊÙ ÆÍÊÆÉ ÔË ÙÍÊ ÈÍÆÑÑÊÓÌÊ ÔË ÆÉÉ×ÊØØÎÓÌ ÈÑÎÒÆÙÊ ×ÊØÎÑÎÊÓÈÊ ÆÓÉ ÆÉÆÕÙÆÙÎÔÓ All too few boards are forcing the executive to undertake strategic planning to build climate resilience into business plans and to protect not only the ongoing viability of plant, operations and staff, but the relationship between all three and the communities where business operates. This is important as, according to the WEF 2016 Global Risk Assessment Report, climate change is the “highest impact risk to business”. Climate hazards can take many forms and together they pose a material risk for business such as global mean temperature rise and variation, extreme weather events including floods, droughts, tornadoes, tropical storms, and heat waves and changes in precipitation and distribution of water.

at climate risk by climate proofing its own operations yet overlooking the interface between its own resilience and the resilience of its supply chains and local communities. There is an imperative for companies to take a holistic approach to building climate resilience, and they can do this by identifying priorities, properly diagnosing risks, developing a robust strategy and then taking action. It will also be important to communicate their approach to internal and external stakeholders.

impacts. The Paris Agreement requires countries to engage in adaptation planning and to implement plans which are appropriate within their national context. Nearly 90% of the national climate plans submitted so far include policies to build climate resilience. The Paris Agreement also requires that each country implement appropriate adaptation plans. The agreement outlines broad actions a country can undertake to comply with this, including through economic diversification and sustainable management of resources.” It would be worth considering to what extent your board is engaging in this debate with the executive and leveraging their network of contacts in government and professional bodies to advance these critical commitments? This is particularly important for Thailand because ASEAN countries face even greater vulnerability to climate risks, and thus a laggard approach will potentially destroy value creation and have material cost implications.

Study and research in this area is accelerating. For example, BSR (Business for Social Responsibility), a global nonprofit business network and consultancy dedicated to sustainability has recently been commissioned by the Rockefeller Foundation to explore the role of the private sector in building climate resilience in Thailand and several other countries in South-East Asia. BSR will be inviting companies and a range of other stakeholders in the region to participate in this work which will include developing the case ü ®ÓÈ×ÊÆØÊÉ ÆÙÙÊÓÙÎÔÓ ÔÓ ªÓÛÎ×ÔÓÒÊÓÙÆÑ ¸ÔÈÎÆÑ for business action towards climate change. ÆÓÉ ¬ÔÛÊ×ÓÆÓÈÊ ª¸¬ ×ÊÕÔ×ÙÎÓÌ Listed companies across the region and Additionally, BSR, as secretariat for the “We internationally are increasingly being asked Mean Business” coalition, has also been to report on their ESG activities and policies. translating the implications of COP21 down to There is also a growing shift towards integrated the industry and company level in the paper reporting and the emerging role of banks “The Paris Agreement - What it means for establishing ESG performance standards Business in the past has been using a one- Business”. The paper describes the commitment ahead of their credit and profitability criteria. dimensional approach to deal with a three- by countries “to increase the resilience of In the Asia region we see incredible growth in dimensional challenge. They have been looking businesses and of communities to climate regulated reporting trends with the HKEX, SGX, B o a r d r o o m | 33

Banks are mobilising their compliance and monitoring capabilities to identity clients that are inadvertently exposed and deliberately looking the other way in their client bases. Banks are motivated to focus on this because every single dollar of the USD150 billion proceeds of the human trafficking and modern slavery business is defined as laundered money and is a crime. The UK government passed the Modern Slavery Act in 2015 which is having far reaching consequences on any company wishing to trade with or participate in the supply chain of any UK company.

Bursa Malaysia, Japan and Taiwan securities regulators’ all establishing ESG stewardship codes. Markets are getting smarter and more demanding around transparency and firms are also seeing the value of understanding their organisation’s impacts within the value chain. Being aware of potential human rights and modern slavery issues in their supply chain and addressing those proactively can save firms from material brand damage and potential loss of license to operate in heavily regulated industries. I would argue that if there are material risks you are not considering or prioritising in the business strategy, then you are not fulfilling your fiduciary duty as a director.

we all know, have changed materially for the better. Under the watchful gaze of activist NGOs, an educated customer base, ESG standards in banks and increasingly focused and responsible boards of directors’ conditions are improving for many but certainly not all. More work has to be done in this space.

There are now more slaves than in any other time in history. Of an estimated 46 million victims of modern-day slavery, seven out of ten are directly related to the private sector, making the products we buy or food harvested, exploited for labour both bonded or forced. As the main gateway through which 70% of forced labour flows, the private sector is in a unique position to turn the tide in the fight against Research by Edelman has consistently been modern-day slavery. showing how transparency is vital to building trust… Trust is the leading indicator of how Besides having a moral obligation to address stakeholders believe a business will behave this issue, businesses should also be aware in the future. Trusted organisations are given of the real economic and business benefits permission to lead and drive their agendas that spotlighting the issue of forced labour can much more freely and through collaboration, produce. Besides helping organisations avoid increasing value for all stakeholders. It is in legal and regulatory implications, investors a corporate’s best interest to be transparent and the public are increasingly questioning as well because investor analysts are also using a company’s anti-trafficking policies, giving available data to either inform investment businesses that react quickly an opportunity decisions (creating indexes or industry to strengthen their brand as a leader in human benchmarks) or make investment decisions rights issues. (e.g. decarbonizing their portfolio). Furthermore, adopting ethical practices not 5. Private sector supply chains must take only helps protect a company’s brand, it can responsibility to help solve modern slavery and also enhance staff morale and operational commit to ensuring human rights are protected effectiveness. Companies who have taken an - It was only 25 years ago that scandals started active approach in restructuring their supply to surface with US factories who had moved chain have often been surprised that, in the production to low cost locations and assumed process of uncovering forced labour, they also little or no responsibility for worker rights, discover more efficient ways to operate their conditions and health and safety. Things, as businesses.

34 | B o a r d r o o m

¨ÔÓÈÑÚØÎÔÓ 2015 was a turning point for governments, civil society and for the private sector to reflect on the direction of economies, social priorities and corporate governance with landmark commitments made during the ratification of the UN Sustainable Development Goals in August and the COP21 agreement in Paris in December. 2016 by contrast, has been marked by extraordinary political and social challenges that have resulted from emerging social, environmental and economic imbalances that require a considered reaction; “civilised capitalism” being an idea phrased at the G20 to represent a possible response. As discussed in this paper, there are powerful social, environmental and governance forces in play that boards need to engage with that will determine the winners and losers of the next few decades. Opportunities abound for brands to differentiate and lead with socially and environmentally responsible business strategies that will attract customers’ clients, attract workers and build pride and loyalty. The writer recommends that Boards put these subjects firmly on the Board agenda and consider establishing Sustainability Advisory Boards, balanced with appropriate external advisors, to help frame the discussion and provide a forum for the executive to report progress and seek guidance on appropriate actions and responses. What is exciting is the opportunity for companies to embrace these developments be a positive force for change in their respective areas of business expertise.

Mr. Mark Devadason DCP 103/2008 Senior Advisor BSR and ex CEO and NED of Standard Chartered Bank Thailand

Chartered Director Corner

©× µ¦®±®³ ¨­º¨­´¹¹¦¼´·³ Chairman of Vidyasirimedhi Institute of Science and Technology (VISTEC) Council & Kamnoetvidya Science Academy (KVIS) Executive Board

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For this Chartered Director Corner, we would

to welcome the 49th professional director Ll T MES < 'ITC9 T 9TDb;$TE9l T M; T 9Wg like to become a Charted Director, Dr. Pailin $EEC$TE 6EÂŤc@EV;9E c6 9*Vh 9 TDcI OD T*; TL;b+ 'OY Chuchottaworn, Chairman of Vidyasirimedhi 7 O *_% T b+b;<9<T9`GR`;I9T*$TE9l T *T;9Wg Institute of Science and Technology (VISTEC) 8[$7 O* a6D+R7 O*_% Tb+<9<T9I T$EEC$TE;Sh; Council and Kamnoetvidya Science Academy Executive Board. Our readers may cC b- _+ T%O*`7 _= ;';6[`G$lT$S<$TE<EVMTEa6D (KVIS) already know Dr. Pailin because he is the latest cC 7 O*c=$ TIG I*$S<? TD+S6$TE _@ETROT+9lTbM director to become a Chartered Director of IOD. _$V6$TE%S6`D *9T*>G=ERaD-; D$_I ;_M7Z$TE5 We had the opportunity to interview him for this +lT_= ;+EV*e _- ; _CYOg CW=‰ MT9W.g <S . O;9W?g T D<EVMTE column. +S6$TE`$ cC c6 $EEC$TE$f+RG*c=$lT$S< `GR šĂ?ĂŠ Ă—ĂŠĂ†Ă˜Ă”Ă“ ËÔ× Ă‡ĂŠĂˆĂ”Ă’ĂŽĂ“ĂŒ Æ ¨Ă?Æ×ÙÊ×ÊÉ $EEC$TE+R7 O*DX6CSg;`GR9lTbM c6 _@ETRCWLVg*_D T ŠĂŽĂ—ĂŠĂˆĂ™Ă”Ă— ÔË Ž´Š LVg*G OGI* CW$TEGfO<<Wh9Wg+R9lTbM $TE6lT_;V;*T; Dr. Pailin explained that he became interested serving as a Chartered Director after CW'ITCc%I _%I<V6@GVhI+T$LVg*9Wg8[$7 O*9Wg'IE+R inparticipating in one of IOD’s DCP courses and _= ; a6D_,@TR<EVKS9'EO<'ESI9Wg`7 *7Sh*9TDT9 passing the diploma examination to register as _% TES<7lT`M; *$EEC$TE .Xg*MGTD9 T;DS*cC _% Tb+ a fellow member 10 years ago. The opportunity I T+R7 O*c=9lTORcE _CYgO_% Tb+<9<T9`G I$f+R to serve as a Chartered Director came when the of IOD elected to increase the number of 7 O*9lTc=7TC'EEGO*%O*$EEC$TE9Wg6W`GR7 O* Board professional directors as a Chartered Director CW$TE@S4;T7;_O*OD[ _LCO .Xg* Ă†ĂŒĂ _= ;`MG *9Wg to allow listed companies to recruit professional bM 'ITCE[ `$ $EEC$TE `7 _CYgO$EEC$TE_MG T;Sh; directors. 9ET<`G I+R;lTc==1V<S7V7TCMEYOcC $fLZ6`G I`7 ÂŞĂ?Ă•ĂŠĂ—ĂŽĂŠĂ“ĂˆĂŠ Ă†Ă˜ Æ Ă‰ĂŽĂ—ĂŠĂˆĂ™Ă”Ă— GR<Z''G .Xg*_ETcC LTCTE8'I<'ZCc6 Dr. Pailin first became a company director 30

$TE_= ; $EEC$TE_= ; JV G =RcC b - IV9DTJTL7E _@ETR,R;Sh;$TE_= ;$EEC$TE9Wg6W;Sh; +R7 O*CW$TE? $?; CW$TE_EWD;E[ a6Db- _IGT`GR$TE LS*g LC=ERL<$TE5 $TE`7 *7S*h ';9Wcg C C=W ERL<$TE5 CT;Sg*$EEC$TE9Wg6Wc6 7Sh*`7 _EVgC7 ;8YOI T_= ;*T;9Wg DT$ `C I T+RCW7lTET CW$TELO;7 T*e MEYO`C +R LO<c6 'R`;;_7fC$f7TC $fcC c6 MCTD'ITCI T+R _= ;$EEC$TE9Wg6Wc6 _GDb;9S;9W _@ETR_= ;JVG=R _= ;_EYgO*%O*$TE? $?; 'ITC-lT;T‰ CWMGS$$TE 9lT*T;9W8g $[ 7 O* CWMGS$DX6 `GRCW'ITCCS;g '*`; I`;

years ago when he joined the Bangkok Bank Group. He was assigned to set up several new energy companies. That job mission alerted him to the question of the what are the functions of a director. He started to research deeply about company directors and sought more information on the subject matter by, for example, browsing in bookstores at Wang Burapha and Siam Square. However, he only managed to find one thin book about company directors. He also studied more about civil and commercial law pertaining to the duties of director, but found that the information available on this did not go into enough details.

ÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞÂŞ

IOD, which was established in 1997 in response to the economic crisis, began to offer a training course for directors. Dr. Pailin opted to take the course, as he understood the important role directors play with regard to corporate governance. Hence, the board of directors must have extensive knowledge and insight and work transparently. Regardless of the size of an organization, directors should supervise the operations of an organization but not actually run it.

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Dr. Pailin emphasized the importance of encouraging the Board to develop their own knowledge during the interview, by stating: “Currently, I am director at IOD, the Securities and Exchange Commission (SEC), Bangkok Bank and the Public Organization Development Board. I have noted that public organizations still have administrative problems. Many of B o a r d r o o m | 37

“To be a director is an art not science, thus being a good director involves practice and time for learning and gaining ÍàØÍÚÑÍÖËÍï

¡³ ³ KWWS ZZZ KLFODVVVRFLHW\ FRP "S them have unqualified leaders and Boards of Directors. It can be very detrimental to an organization if its directors lack the necessary knowledge to carry out their duties effectively. A director position was important and necessary and the directors needed to be well informed”

ªËËÊÈÙÎÛÊ ÎÓÉÊÕÊÓÉÊÓÙ ÉÎ×ÊÈÙÔ×

Generally, large companies have a nomination and remuneration committee whose functions include setting guidelines for recruiting directors. The Nomination Committee of IOD holds the view that director recruitment entails reviewing the expertise of each director, such as in the areas of technology government administration, marketing or law. The board matrix should be weighted equally. The composition of the Board must be diverse and complete. The recruitment process must be transparent with the scoring of candidates in accordance with the regulations. Notably, one rule commonly applied to Boards of Directors is that one third of the directors on the Board should step down every three years. However, some companies might not change their Board, but may recruit three new directors every year. This may be legal but it does not achieve the intention of having independent directors.

Regarding the duty of independent directors, Dr. Pailin explained that the subject is dynamic and the role was evolving. Independent directors are needed to protect small shareholders. So, they need to have a thorough understanding of their duties. In some other countries, a growing trend is for independent directors to be more influential by, for example, increasing the number of them on Boards of Directors. An example of this is in Singapore, apart from just requiring independent directors, these directors must serve on subcommittees, speak openly during board meetings and even sometimes lead the discussions during the meetings. This trend has ¨ÍÆÑÑÊÓÌÊØ ÔË ÉÎ×ÊÈÙÔ× ÉÚÙÎÊØ With regard to the challenges faced by not yet taken hold in Thailand. directors in carrying out their duties, Dr. Pailin ¶ÚÆÑÎËÎÈÆÙÎÔÓ ÔË ÉÎ×ÊÈÙÔ×Ø ÆÓÉ ÉÎ×ÊÈÙÔ× had an interesting comment. He said that they ÓÔÒÎÓÆÙÎÔÓ need to understand their role and the right Dr. Pailin commented that the qualifications way to work. The role of directors is not to be of the recruited directors vary in each an owner but, instead, serve as a supervisor organization. It depends on the duties, context of the organization administration without and environment of each director on the Board. intervening in the management, except in For example, directors’ requirement at state some important situations, such as when there enterprises are mandated through an act, while is a complex problem that the management is in the private sector, a framework for directors unable to solve. This is important, because set specific requirements, such as age limits if the Board members stray from that role, a and the need to work independently without conflict of interest may occur. The directors being influenced. must be determined to carry out their roles

38 | B o a r d r o o m

independently because there are many temptations and lobbies that could steer them away from serving in the best interest of an organization. This is especially prevalent in a family business that has nominated heirs to serve as directors. Thus, many directors are not clear about their roles. When they understand their roles, they need to follow the guidelines of good directors and constantly work to develop themselves. IOD is a source of knowledge for directors but it is up to the individual to follow the right path. ò¹Ô ÇÊ Æ ÉÎ×ÊÈÙÔ× ÎØ ÆÓ Æ×Ù ÓÔÙ ØÈÎÊÓÈÊ ÙÍÚØ ÇÊÎÓÌ Æ ÌÔÔÉ ÉÎ×ÊÈÙÔ× ÎÓÛÔÑÛÊØ Õ×ÆÈÙÎÈÊ ÆÓÉ ÙÎÒÊ ËÔ× ÑÊÆ×ÓÎÓÌ ÆÓÉ ÌÆÎÓÎÓÌ ÊÝÕÊ×ÎÊÓÈÊ” It is difficult to appoint an inexperienced person to be a good director, although there are books or training courses to help them. Also, it should be noted that even though a director may get a commendable score on a relevant exam, it did not necessarily mean that they would be good directors because the art of being a good director is comprised of practice, expertise, determination and following the right principles.

3L"DLADR123O W N.% A< Ms. Suthinee Kerdchuay Senior Officer-Member Relations Thai IOD

B o a r d r o o m | 39

Anti-Corruption Update

=L<"L3 AL; LAE3 L =JEA L"W.QG3 8>C:L ;±;N0R3L<3 ´·¸ú ¬ Ú×ÏÚÍÛÛ ÍØ×Úܼ Éá± ÝÖÍ ´úû¹ ­ W2@< @:4(M3J.M §ÓÐÐÉÇØÍÚÉ ¥ÇØÍÓÒ §ÓÅÐÍØÍÓÒ F!9K VF $2Z0;Y2 K<. F. K2 K<0Q"<ý. (Thai Private Sector Collective Action Coalition Against Corruption: CAC)

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40 | B o a r d r o o m

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B o a r d r o o m | 41

The Thai Private Sector Collective Action Coalition against Corruption (CAC) gave its opinion on the anti-corruption draft law in early May 2017. The Draft Act on Promotion and Protection of People in anti-Corruption and Misconduct is the result of the constitutional authority Section 63 which states: “The State shall promote and educate the public on the dangers caused by corruption and misconduct both in the public and private sector and provide effective measures and mechanisms to protect and eliminate those misconducts strictly, including mechanisms to encourage the public to meet to raising awareness about resisting or give notifications about acts of corruption by obtaining state protection as required by law. The draft law has to be completed within 260 days from the date of promulgation, which was April 6, 2017. It will give the public an opportunity to participate in the eradication of corruption through three clearly defined measures pertaining to the protection of peoples’ rights. First, it is a right to make public corruption of government officers known through a panel to be comprised of corruption clerks and board members (11 people). A greater proportion of the people serving of the panel will be members of civil society and businessmen, with less participation from government officers. Second, it is the right to be protected as a witness. Third, it is the right to disclose information about corruption involving government officers in order to protect public interest. Measures will be set to prevent the accused government officer from suing to silence the person who has disclosed the information or abnormality that may lead to corruption (Anti-SLAPP Law). The law requires that the burden of proof lie with the accuser to explain to the court how he or she has been affected. Similar laws have been promulgated in other countries because it allows the public to question the government on sensitive issues. At the same time, government agencies have to adapt in being more transparent and disclosing more information to the public and use the information to discuss common

42 | B o a r d r o o m

conclusions in formulating and implementing systems in accordance with anti-corruption actions that take into account public interests. measures through COSO disclosure channels, such as annual reports or according to the In addition, the law also requires that a fund be guidelines of information disclosure determined established to support the entity that follows up by SET or SEC. on notifications about corruption, reward the whistleblowers and pay for witness protection. At the same time, the working paper also serves Another CAC activity in this time period as a tool to help companies to manage their was seminars to explain the application for internal control systems effectively and in certification renewal. The seminars, which were accordance with international guidelines. The held on May 15, and June 7, 2017, focused joint working group of CAC and the Federation on preparation for the second phase of the of Accounting Professions has added a number certification process development plan of CAC, of details of methods and issues to review, in which will begin on January 1, 2018. Some line with international standards on anti-bribery. poignant details for certified companies The Federation of Accounting Professions will pertaining to the preparation of the documentation also organize trainings for internal auditors or for certification were provided. Moreover, interested auditors to become familiar with the seminar also clarified what was required using the working paper. It plans to launch two in the company’s working paper for better training courses by 2017 and will then continue corruption used to apply for certification, and to organize them in the following years. The recommendations were given by the Association of Inspectors will announce the experienced lecturerson how to prepare the screened internal audit offices that are eligible working paper from the experienced lecturers. to receive an audit of the internal control systems related to anti-corruption in the second half of Regarding the working paper, CAC is advising 2017. companies that are applying for certification in 2018 to attach it to the request for certification, In addition to advocating self-assessment _ but this is not obligatory. Companies can do it reviews, CAC signed a memorandum of voluntarily. However, it is recommended that agreement on May 29 with the CFA Society the company should prepare the working paper Thailand (CFAST) to establish CAC advocate, for the benefit of the company itself to develop a financial advisory group that advises an ongoing protection system. The working companies interested in applying for certification. group considers that the working paper should not be enforced at the early stage because it is Currently, there are 48 companies that have still very difficult for many companies to submit certificates that expire in three years and are references. Many companies cannot do this applying for certification renewal. For the period while others can but what they would provide from the second half of 2017 until the middle do not meet CAC’s objective. Furthermore, of 2018, 74 companies are undergoing the the working paper has to be completed after certification renewal process. the company has implemented the policy and system for a period of time. The results or CAC, anti-corruption organizations and the progress has to be sufficient to allow the Thai Foundation jointly organized “Good review process to evaluate it in accordance Society Expo: Doing Good for Good” on June with the guidelines of the working paper. At the 9-11, 2016 at Central World. At the event, there early stage, CAC will encourage companies to was an exhibition about efforts of the private initiate procedures for disclosing the progress sector and civil society to reduce corruption in and development of their internal control Thailand. The objective was to present the work

of alliance parties that share the same ideology and innovative work aimed as fighting corruption by a new generation who want to see changes in all aspects the campaign, ranging from education to information disclosure. Regarding the overview of CAC, 836 companies have already declared their intention to combat corruption. Three hundred and seventy-seven companies are listed on the stock exchange. In the first quarter of 2016, 11 companies were certified, raising the number of certified companies to 232. According to the document review of the CAC committee, most companies still need to improve their corruption risk assessments and prevention measures against those risks. It also noted that companies offer too many unnecessary exceptions, especially with regard to the policy to give or receive presents or hold or attend receptions. This is emphasized in the assessment because these activities have consistently served as a channel for giving an indirect bribery, especially to government officials. Another issue that many companies often tend to overlook is the complaint channel. Many companies have performed well with regard to this issue because it is one of the criteria for corporate governance but a number of them disregard it as an unimportant issue. They often have in place a complaint channel but do not inform staff members on which issues are open for complaints or what they should do when they notice a corrupt act begin carried out by a person or a company.

government officer xxx baht”. However, in some of the financial records, such as the market development budget or the sales promotion budget, such payment can be hidden. With regard to the prevention measures of the causes of corruption and bribery, CAC would like to recommend that companies review the procedures or processes of doing business by focusing on corruption risk and determining an appropriate internal control system. The company should not be content with having a policy, procedure and manual and informing the employees or including only financial control measures because reexamining the financial records cannot prevent bribery. It can only make it accountable. Importantly, many companies fail to set up a complaint channel for employees or public to give noticed about act of corruption as it is considered to be an unnecessary measure. However, to effectively fight corruption, the company must encourage its employees to note acts of corruption, including those carried out by a government officer or an executive that violate the anti-corruption policy. This would show that the company system works without focusing on a particular person or position.

Finally, it should be emphasized again that certification of a company is not a guarantee that the company would commit bribery, but it is starting point for companies to clear up misunderstandings and be on track for pursuing good practices. The seventy-one points of an anti-bribery system would be just a paper if the company only writes them down and does not take action by making them a part of the organization and build awareness about corruption There is no fixed formula for a company that among the employees in the organization. would like to pass the certification process because it all begins with the results of the You can follow the activities of CAC such as company’s corruption risk cause assessment attending a seminar or training course “Antiand the design of prevention measures as part Corruption: The Practical Guide (ACPG)” and of its financial control system. For example, “Ethical Leadership Program (ELP)” at www. if a company’s receipts are complete, it is thai-cac.com or contact Khun Pataraporn assumed that the following will not be written 02-955-1155 ext 216 on the receipt: “the money is for facilitation of -------------------------------------------------------

CAC Seminar

CFA Society Thailand

Good Society Expo

3L< N/NW.% $K31K" S? Mr. Kitidej Chantangkul

Project Manager Thai IOD

B o a r d r o o m | 43

Anti-Corruption in Practice

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ÂĄÂłÂ&#x;ÂŠÂłÂƒ KWWS ZZZ LPGE FRP WLWOH WW I recently had the opportunity to see an interesting Thai movie. It has received overwhelming praise from critics, social media and my peers. The movie, “Bad Geniusâ€? (Chalard Games Goeng), was really enjoyable. I would like to give a round of applause to the movies production term, ranging from the director to the actors, for their effort in making a movie that effectively reflects an ethical problem in Thai society,

committed by high school students. As the theme is semi-universal, it is also being released in Laos, Singapore, Malaysia, Vietnam, Indonesia, Cambodia and Brunei.

In addition to being fun and full of good effects, the movie inspires the audience to seriously consider the consequences associated with cheating and look back and revise their own ethical standard. I am not surprised that this movie has taken in proceeds that exceed 100 million baht after being released for only two weeks. The movie content is about fraud being

The story was about Lin a typical nerd who maintained a 4.0 GPA 4.00 throughout high school. Lin was raised by her father, a hardworking teacher who earned a middle-income but was constantly under financial stress. She helped a close friend by sharing answers during an exam and was not caught. So, she continued to do it. The cheating expanded to

I am sure that many of the readers have already seen the movie, but those of you haven’t, let me talk about it without giving away too much of the storyline.

B o a r d r o o m | 45

ÂĄÂłÂ&#x;ÂŠÂłÂƒ KWWS ZZZ LPGE FRP WLWOH WW a wider circle within the school. After a while, a close friend asked her to cheat on a STIC exam, which is used for admission to top universities. Students take this exam at the same time. Lin agreed to take a risk for a million baht. She flew to Australia to take the exam because it is in an earlier time zone and would, be able to see the exam and send the answers back to her customers in Thailand. However, she needed another top student to help her in this mission. Her accomplice ended up being Bank, one of her competitors for scholarships, who hated to cheat, but was coerced into participating in the scheme.

police exam. A university professor, who had built a solid reputation for decades, cheated the university cooperative out of a billion baht. A high-ranking officer who has never had a history of corruption stole pictures from a hotel aboard. Philip Zimbardo, an American psychologist, tried to explain the causes behind why good people turned bad in a book titled “Lucifer Effect�. He stated that no matter how good a person is, he/she could do something bad _ that is beyond our imagination. It depends on the situation and influences and his/her power to resist. The story of Lucifer is interesting because he was a handsome angel who had been driven out of heaven by God because There are many aspects of this movie that I of his arrogance. He then became Satan who find interesting. Sometimes, the actors asked deceived people into being sinful and carrying questions directly or indirectly that made the out evil deeds. viewers ask themselves how much could be called cheating and at what level could cheating If we apply this theory with Lin, we will see that be accepted. If it is a win-win case, nobody will the exceptional circumstance and prodding be hurt, will you choose to do it? If the system from her close friend swayed the excellent is not fair, why then do we need to be a good student, who had never cheated before, to do person in the system. it for a friend. Then, because of her distressed financial situation and other oppressive However, the most interesting question for me conditions, she expanded this action from the is why such a good person who has been a local school to the global level. good person throughout her life would resort to cheating. The question of “how does a good This is similar to Bank’s case. He turned from guy turn bad� is very important because if we being very ethical person who was not willing look at our society today, we notice that this to join the cheating group. He even could not occurs repeatedly. Medical and engineering let the cheating occur by informing the school students helped potential recruits cheat on the director when there was a reason to believe

46 | B o a r d r o o m

that someone copied Lin’s exam. However, when he was faced with the situation that hurt him, he felt that being a good person did not produce good results and that he was the victim of injustice, while those who were involved in the cheating were rewarded for their bad behavior. He then linked up with the group involved in the cheating. In conclusion, in some circumstances with favorable conditions, no matter how good people are, they still could commit fraud. However, ethics and careful consideration about the bad consequences of corruption could prevent well-intentioned people from doing the wrong thing. There are many lessons to be learned from this movie. In real life, no matter how tempting the reward from a bad action may be, it cannot be compared with the unexpected results that may occur later. Let’s see if people who commit corrupt acts and then flee their countries and live in exile abroad of the members of high society who eventually end up in prison for misdeed that carried out server as example for others to remain ethical.

3L<8ÄŠC-R 8=E;#==<L Mr. Phisanu Phromchanya Public Relations Consultant Thai IOD

B o a r d r o o m | 47

Board Review

b;_CYgO ¿ÏÞïåïÏÏê ,<S<;WhCTb;:WC Ă?ùââïÌÍä Ă„ÏóâïÍĂžÍà â ĂŚĂŤ Ăž ÀüÞÍäÌÍä ÔÏïÊå 'OGSC; ;Wh+X*%O`;R;lTM;S*LYO; TO T; ÂŻ _G C 9Wg_%WD;_$WgDI$S<$TE_=GWgD;`=G*%O*aG$b;_-V*:ZE$V+ The Upstarts: How Uber, Airbnb, and the Killer Companies of the New Silicon Valley Are Changing the World by Brad Stone _CYOg Ž­ = 9`gW G I 'ITC'V6b;_EYOg *;S*g E8';`=G$M; T MEYO$TE_6V;_% Tc=b;< T;';OY;g 9Wcg C E+ [ $S _= ; _EYOg *9W6g `[ =G$=ERMGT6`GROS;7ETD `7 b;= ++Z<;S $GS<_= ;_EYOg *:EEC6T_MCYO;$TE+O*OO;cG; 9IgS c= 9Sh* Ă’Ă&#x;âï `GR žÌïĂ&#x;ĂŤĂ&#x; .Xg*:ZE$V+;Wh_= ;'ITC9 T9TD7 O$0ER_<WD<%O*ES2 `GR_= ;$TE_=GWgD;IV8W$TE _6V;9T*OD T*CT$ 9T*6 T;;S$@S4;T+T$.VG'V O;ISG_G D OD T*L7WA + O<L ÂĽĂ?ùâóâ ÇÏĂ&#x;Ă°ÂŚ `GR<VGG _$7L ¼¿ÌÊÊ Ă„ĂžùâðŒ .X*g _= ;>[= ER$O<$TEEZ; bMC 9+gW 6Z =ER$TDbM _$V6$TE_=GWDg ;`=G*OD T*EZ;`E*> T;_9'a;aGDW @I$_' T _= ;;S$:ZE$V+EZ ;bMC9Wg'V67 T*OD T*cE % O+lT$S6b;$TE%S<_'GYgO; @E OC'ITCCSg;b+b;7SI_O* @I$_' T c6 ,W$$0:ZE$V+`<<_$ Te _=GWgD;IV8W-WIV7_6VCe `GRCS$+R@<OZ=LEE'ERMI T*9T* 9Sh*6 T;JWG:EEC `GR$0MCTD+T$$TE'V67 T*%O*@I$_' T Ă‘üâ ÒíðùÞïùð 'YO;VDTC'ITCCZ* CS;g cC DO 9 O $TE'V69W`g 7$7 T*+T$EZ; _$ T CW'ITC'V6LE T*LEE' .Xg*CT@E OC'ITCCSg*'Sg*%O*;S$:ZE$V+EZ ;bMC cA`E* LVg*_MG T;Wh ¿ïÞå Ă?ùÏÍâ ÂĽ>[ _%WD;ÂŚ 'T6MIS*I T +R+Z6=ER$TDbM _$V6:ZE$V+bMC e -WhbM _Mf;$TE_EVgC7 ;%O*:ZE$V+_MG T;Sh; `GRaG$+R_=GWgD;`=G* c=+T$ Ž­ = 9Wg`G Ic6 OD T*cE 9 T;LTCTE8MT'lT7O<c6 b;M;S*LYO_G C;Wh As “Steering Governance in a Changing Worldâ€? is a theme for this edition of Boardroom, this column recommends two interesting books that cover that topic. šĂ?ĂŠ ÂşĂ•Ă˜Ă™Ă†Ă—Ă™Ă˜Â&#x; ­Ă”Ăœ ºÇÊז ŒÎ×ÇÓǖ ÆÓÉ Ă™Ă?ĂŠ °ĂŽĂ‘Ă‘ĂŠĂ— ¨Ă”Ă’Ă•Ă†Ă“ĂŽĂŠĂ˜ ÔË Ă™Ă?ĂŠ ÂłĂŠĂœ ¸ĂŽĂ‘ĂŽĂˆĂ”Ă“ ÆÑÑÊÞ ÂŚĂ—ĂŠ ¨Ă?Ă†Ă“ĂŒĂŽĂ“ĂŒ Ă™Ă?ĂŠ ŸÔ×ÑÉ ÇÞ §Ă—ÆÉ ¸Ă™Ă”Ă“ĂŠ Ten years ago, the idea of getting into a stranger’s car, or walking into a stranger’s home seemed bizarre, as well as dangerous, but today it’s as common as ordering a book online. Uber and Airbnb are household names: redefining neighborhoods, challenging the way governments regulate business and changing the way we travel. In the spirit of iconic Silicon Valley renegades, such as Steve Jobs and Bill Gates, a new generation of entrepreneurs is sparking yet another cultural upheaval through technology. They are among the upstarts, idiosyncratic founders with limitless drive and an abundance of selfconfidence. Young, hungry and brilliant, they are rewriting the traditional rules of business, changing our day-to-day lives and often sidestepping serious ethical and legal obstacles in the process. The Upstarts is the definitive account of a dawning age of tenacity, creativity, conflict and wealth. In Brad Stone’s highly anticipated and riveting account of the most radical companies of the new Silicon Valley, we find out how it all started, and how the world has changed significantly over the past ten years

šĂ?ĂŠ ÂąĂ”Ă“ĂŒ šĂ†ĂŽĂ‘Â&#x; ÂźĂ?Ăž Ă™Ă?ĂŠ ÚÙÚ×Ê ÔË §ĂšĂ˜ĂŽĂ“ĂŠĂ˜Ă˜ ĂŽĂ˜ ¸ĂŠĂ‘Ă‘ĂŽĂ“ĂŒ ÂąĂŠĂ˜Ă˜ ÔË ²Ă”Ă—ĂŠ ÇÞ ¨Ă?Ă—ĂŽĂ˜ ÂŚĂ“Ă‰ĂŠĂ—Ă˜Ă”Ă“

M;S*LYO_G C;W_h G T8X*$GDZ9: GO*_9G+T$$TELS*_$7_Mf;=ET$1$TE5 9$gW Tl GS*_=GWDg ;c=%O*aG$ `M *% O+lT$S6b<_6VC_= ;aG$`M *aO$TL9Wcg E %O +lT$S6b<bMC .X*g c6 J$X KT EI<EIC% OC[G IV_'ETRM OD T* G*GX$ `GRLEZ=_= ;$09W;g T L;b+DV*g cC b- `7 _@WD*CZCCO*b;_-V*_JEK2JTL7E _9 T;S;h `7 _= ;CZCCO* 9WLg * >G$ER9<7 O9Z$';b;`I6I*aG$OO;cG; aG$_LCYO;+EV*9WCg 9W T*_GYO$CT$CTD`GR9ES@DT$E9Wg CWOD T*cC +Tl $S6 _;YOh MTb;M;S*LYO+X*9lTbM >O [ T ; a6D_,@TROD T*DV*g >[9 OgW D[b ;`I6I*$TE<EVMTE:ZE$V+ `GR$TE' T _$V6$TE_EWD;E[` GRLTCTE8=ES<7SI_'GYOg ;c=OD T*_9 T9S;_@YOg LE T*'ITCOD[E O6`GR$TE _7V<a7OD T*DS*g DY;7 Oc= ÀüïÌð žÍåâïðÏÍ ÂĽ>[_ %WD;ÂŚ c6 O:V<TD'ITC_=GWDg ;c=%O*aG$= ++Z<;S ;Wch I c6 OD T*; TL;b+I T IS4;:EECb;O;T'7cC b- aG$%O*LV;' TDO6;VDCOW$7 Oc= `7 +R7$OD[b ;CYO%O*LV;' T9W_g 'D8[$CO*I T %TDcC OO$ @E OC$S<CW$TEb- $GDZ9: MGS$e ÂŻ % O 'YO _L;O9Z$LV*g 9Z$OD T*bM G$[ ' T_GYO$ `GR- ID @I$_%TMTLV*g 9W7g O *$TEbM @< BTDb7 ;DV TC Æù Ă&#x;âÊÏÍäð ĂŹĂŤ ùüâ ðüâÊã Ă&#x;âùôââÍ Ă‘üâ Ă‘ÌííÌÍä Ă?ĂŹĂŚĂŤĂą ÞÍå ĂƒïâĂžèÏÍÏêÌà ð This book involves a discussion of the long tail strategy for dealing with the change in the world as it has evolved from being limited to offering unlimited opportunities. The author, Chris Anderson, collected and analyzed data to inform the readers of many choices and unlimited resources available to those active in the online world. The book will educate its readers, especially business owners, on how to more effectively adept to and adjust themselves to grow their businesses. Chris Anderson shows how the future of commerce and culture isn’t in hits, the highvolume head of a traditional demand curve, but in what used to be regarded as misses, the endlessly long tail of that same curve. “It belongs on the shelf between The Tipping Point and Freakonomics.â€?

48 | B o a r d r o o m

Board Activities

§ĂšĂ—Ă’ĂŠĂ˜ĂŠ ¨Ă”ÒÕÆÓÞ ÂťĂŽĂ˜ĂŽĂ™

_CYOg IS;9W g ¯´ _CKTD; ¯²³­ 9T* ÑüÞÌ Ă†ĂŒĂ c6 7O ;ES< '5R >[ <EVMTE $ÂŤGÂŤ7ÂŤ 7GT6MGS$9ES@D D T*$Z * <EVKS9MGS$9ES@D `GR <EVK9S 9W_g 7EWDC_% T+69R_<WD; +T$LT:TE5ES2`M *LMBT@_CWD;CTE 9WCg T_DWDg C-C JX$KT @E OC6[$TE6lT_;V;*T; 5 LlT;S$*T;bMC %O* ÑüÞÌ Ă†ĂŒĂ a6DCW>_ [ DWDg C-C$I T ¹­ 9 T; @E OCES<A *$TE<EEDTD+T$ ÑüÞÌ Ă†ĂŒĂ `GR LCT'C<EVK9S MGS$9ES@D c9D ¼žĂ?Ă€ĂŒÂŚ A group of 40 members of Yangon Securities Executive Committee and representatives of listed companies from the Republic of Myanmar recently visited Thai IOD and participated in lecture sessions by Thai IOD and ASCO.

Š¨¾ ´Ă—ÎÊÓÙÆÙÎÔÓ úÝž—úßš

7 ;_6YO;@FKBT'C Ă†ĂŒĂ c6 +S6 à ÀĂ? ĂŒïÌâÍùĂžùÌÏÍ ¯°œª¯¹­ .Xg*_= ; à ÀĂ? EZ ;9Wg ´ `GR Âľ %O*= ;Wh _@YgObM >[ _% TO<ECc6 9lT'ITCE[ +S$_@YgO;E ICEZ ; EIC9Sh* IV9DT$E @E OCES<E[ 8X*$0_$53 % O<S*'S<7 T*e b;$TEO<ECMGS$L[7E;Wh a6DLO* EZ ;;WhCWOTDZ_,GWgD%O*>[ _% TO<ECOD[ 9Wg ¹¾ = ;S<I T; OD9WgLZ6b;9Z$EZ ;9Wg> T;CT 9T* Ă†ĂŒĂ E[ LX$=GT<=GYhC9WgCW$EEC$TEEZ ;bMC _$V6%Xh;_= ;+lT;I;CT$ `GR à ÀĂ? EZ ;9Wg ¯°œ CW$EEC$TE9Wg_= ;>[ M‰V*CT$9WgLZ68X* ÂŽÂŽ 9 T; .Xg*`L6*8X*'ITCMGT$MGTD `GR+RL *>G6Wb;$TEO<EC 9Wg+RLTCTE8`< *= ;=ERL<$TE5 `GRCZCCO*9Wg`7$ 7 T*$S;CT$DVg*%Xh; The orientation sessions for batch 7 and 8 were held in early May. Participants had an opportunity to know each other as well as rules and regulations of the training. The average age of participants is 48 years which was considered the youngest compared to previous batches. The institute is proud that up to 11 female directors joined DCP batch 239. It was the highest amount of female directors, reflecting gender diversity.

50 | B o a r d r o o m

ÂŤĂ†ĂˆĂŽĂ‘ĂŽĂ™Ă†Ă™Ă”Ă— ŠĂ†Ăž ĂşÂšĂšÂœ

b;IS;9Wg Ž² @FKBT'C 9Wg> T;CT 9T* Ă†ĂŒĂ c6 +S6 ĂƒĂžĂ ĂŚĂŠĂŚĂąĂžùÏï à ÞÜ Ž¯­Ž´ _@YgObM 9 T;IV9DT$Eb;9Z$MGS$L[7E $I T ¹­ 9 T; c6 @<=R @[6'ZD 9lT'ITCE[ +S$$S; _@YgO`G$_=GWgD;'ITCE[ =ERL<$TE5 `;I'V6 @E OC9Sh*9lT ôÏïèðüÏí _$WgDI$S<_EYgO* ÀÏïíÏïÞùâ Ă„ÏóâïÍĂžÍà â Ă€Ïåâ bMC %O*c9D @E OCES<A * $TE<EEDTDb;_EYgO* Ă„ÏóâïÍĂžÍà â Ă‘ïâÍåð ĂŚĂŤ žòðùïÞÊÌÞ a6D ĂŠĂžïà âÊ ĂŠÏʊ Ă„âÍâïÞÊ ÊÞÍÞäâïŠ žòðùïÞÊÌÞÍ ÆÍðùÌùòùâ ĂŹĂŁ ÀÏêíÞÍÜ à Ìïâà ùÏï𠼞ÆÀà Œ `GR à ÌäÌùÞÊ Ă&#x;òðÌÍâðð ùïÞÍðãÏïêÞùÌÏÍ ĂžĂŤĂĄ óÞÊòâ à ïâĂžùÌÏÍ a6D 6EÂŤC;[ OE6W6G_-K2 =ER:T;$V77VCJS$6V k LCT'COZLTM$EEC _9'a;aGDWLTEL;_9Jc9D ¼žĂ‘Àƌ Held in mid-May, the program was aimed at enabling over 40 trainers to meet and share knowledge among one another. During a workshop on the amended Corporate Governance Act, Australian Institute of Company Directors (AICD) general manager Macel Mol gave a lecture on governance trends in Australia while honorary president ATCI Dr. Manoo Ordeedolchest gave participants a lecture on digital business transformation and value creation.

²ĂžĂ†Ă“ÒÆ× ŠĂŽĂ—ĂŠĂˆĂ™Ă”Ă— ÂŚĂˆĂˆĂ—ĂŠĂ‰ĂŽĂ™Ă†Ă™ĂŽĂ”Ă“ ÂľĂ—Ă”ĂŒĂ—Ă†Ă’ Â’²ŠŒ¾Â“

b;IS;9Wg ÂŻÂł @FKBT'C ¯­Ž´ 9Wg> T;CT ÑüÞÌ Ă†ĂŒĂ c6 ES<_-V‰bM +S6O<ECMGS$L[7E ÊÜÞÍêÞï à Ìïâà ùÏï žà à ïâåÌùĂžùÌÏÍ Ă?ïÏäïÞê ÂĽĂŠà žĂ?ÂŚ EZ ; ¯¯­Ž´ OW$'ESh* `<< Ă‚þà ÊòðÌóâ ÀÊÞðð 9WgL8T;9[7OS*$FK bM $S<$GZ C=ER:T;$EEC$TE $EEC$TE `GR >[ <EVMTEER6S<L[*b;=ER_9J@C T _@YgOLE T*'ITC_% Tb+_$WgDI$S<'ITCLlT'S‰%O* $TE$lT$S<6[`G$V+$TE MGS$$TE$lT$S<6[`G$V+$TE9Wg6W `GR<9<T9%O*$EEC$TEb;$TE $lT$S<6[`G$V+$TE9Wg6W .Xg*$ER`L7O<ES<DS*'*6W_- ;_6VC ;O$+T$;Wh Ă†ĂŒĂ DS*c6 ES<$TE _-V‰+T$ ÆÍùâïÍĂžùÌÏÍÞÊ ĂƒĂŚĂŤĂžÍà â ÀÏïíÏïÞùÌÏÍ ÂĽĂ†ĂƒĂ€ÂŚ bM c=_% TE IC*T;OW$ ÂŻ *T;b; IS;_6WDI$S; c6 `$ Ă?ùÞèâüÏÊåâï Ă?ÏòÍåùĂžĂ&#x;Êâ ĂƒĂŹĂŻĂŞĂžÊÌáÌÍä Ăž ÊÜÞÍêÞï ÌÍðùÌùòùâ ĂŹĂŁ Ă ĂŹĂŻĂ­ĂŹĂŻĂžùâ äÏóâïÍĂžÍà â _@YgO=EX$KTMTEYO_$WgDI$S<$TE+R+S67Sh*L8T<S; ÀÄ _- ; _6WDI$S< ÑüÞÌ Ă†ĂŒĂ %Xh;b;=ER_9J@C T `GR Ă€Ïà èùÞÌÊ ïâà âíùÌÏÍ ôÌùü ĂŠà žĂ? ĂžÊòêÍÌ _@YgOLE T*_'EYO% TDERMI T*>[ _EWD;MGS$L[7E ĂŠà žĂ? EZ ;9Wg> T;CT ;S$:ZE$V+ `GR<Z''G -Sh;;lTb;=ER_9J@C T Thai IOD organized a training program on Myanmar Director Accreditation Program (MDAP) at British Embassy on May 26, 2017. This batch two of executive directors, board of directors had an opportunity to learn the importance of corporate governance, good governance, and the role of directors in good governance. The exclusive class once again received a good response from the participants. IOD was also invited by International Finance Corporation (IFC) to participate in Stakeholder Roundtable – Formalizing a Myanmar Institute of Corporate Governance to provide consultation on setting at similar organization to the Thai IOD. Cocktail reception was also organized for MDAP alumni to create a network of directors, executives and social leaders in Myanmar.

B o a r d r o o m | 51

Œ²¡´ ÆÙ ¸ĂŽĂ“ĂŒĂ†Ă•Ă”Ă—ĂŠ ÂťĂŽĂ˜ĂŽĂ™

_CYgOIS;9Wg Âś CV8Z;TD; ¯²³­ Ă ĂŻÂŤ Ă…Ïâ Ă‚â ĂˆüÏïŠ Ă€üÌâã Ă‚Ă ĂŹĂŤĂŹĂŞĂŚĂ°Ăą +T$ žĂ?Ă‚žĂ‹ ¨° ĂŠĂžà ïÏâà ÏÍÏêÌà Ă?âðâÞïà ü ĂŒããÌà â ¼žĂŠĂ?ĂŒÂŚ 9WgLV*'a=E ;lT9WC_% TMTEYO$S< 6EÂŤ <S53V7 ;V+8TIE $EEC$TE>[ OlT;ID$TEL8T<S; ÑüÞÌ Ă†ĂŒĂ _EYgO*_JEK2$V+`GR$TE$lT$S<6[`G$V+$TEb; =ER_9JB[CVBT' @E OC_DWgDC-CLlT;S$*T;bMC %O* ÑüÞÌ Ă†ĂŒĂ Dr. Hoe Ee Khor, Chief Economist from ASEAN +3 Macroeconomic Research Office (AMRO) in Singapore, visited Thai IOD office and led a team to meet Dr. Bundid Nijathaworn, president and CEO of the Thai Institute of Directors and discussed on economy and corporate governance

Ž´Š Œ² ÆÓÉ ŠĂŽĂ“Ă“ĂŠĂ— šĂ†Ă‘Ă?

_CYgOIS;9Wg ÂŻÂś @FKBT'C9Wg> T;CT Ă†ĂŒĂ c6 +S6$TE=ER-ZCbM‰ LTCS‰=ER+lT= ¯²³­ 5 aE*`EC`$E;6 cP`O9 _OETIS5 b;= ;ChW LW CT-V$bM 'ITCL;b+_% TE IC$TE=ER-ZC $I T Ž²­ '; `GRG*'R`;;_LWD*7TCITER$TE=ER-ZC_= ;c=7TCER_<WD<=1V<S7V a6D b;ITER9Wg Âł _EYgO*$TE_GYO$7Sh*$EEC$TE`9;$EEC$TE9WgOO$7TCITER CWC7V_GYO$ JTL7ET+TED @_V JK $V7@V *J OZE@W@4S ;@*J ;TD+ESC@E a-7V$_L8WDE `GR;T*LTI@+;WD :;IET;V- _= ;$EEC$TEbMC Ă†ĂŒĂ %O`L6*'ITCDV;6W$S<$EEC$TEbMC 9Sh*LTC9 T;CT 5 aO$TL;Wh BTDMGS*$TE=ER-ZCbM‰ Q _LEf+LVh;G* Ă†ĂŒĂ c6 CWaO$TL7 O;ES< 6EÂŤ IVEc9 LS;7V=ERB@ >[I T $TE:;T'TE`M *=ER_9Jc9D b;$TE$G TI=T2$8T@V_JK b;*T; à ÌÍÍâï Ă‘ĂžÊè MSI% O '5R$EEC$TE<EVKS9$S<$TEE IC%S<_'GYgO;=ER_9Jc9D a6DCW=ER_6f;LlT'S‰ 9Wg; TL;b+MGTD=ER_6f; 9Sh*;Wh 9 T;>[ O T; LTCTE86TI; aMG6'lT$G TI%O*9 T;>[ I T$TEQ c6 9_gW If<c.6 %O* Ă†ĂŒà ¼üùùí¡ùüĂž̪ÌÏåà Ïêâ͏ðâêÌÍĂžïªâóâÍùðªåâùÞÌʍÞðíŸÌ庰¾¯Œ %O%O<'Z5<EVKS9 =[;.V_C;7 c9D +lT$S6 ÂĽCMT-;ÂŚ `GR<EVKS9 c9DOODG +lT$S6 ÂĽCMT-;ÂŚ 9WgbM $TEL;S<L;Z;*T;'ESh*;Wh IOD held the Annual General Meeting on May 29 at Grand Hyatt Erawan. More than 150 members participated and voted for Professor Kitipong Urapeepatanapong, Mr. Charamporn Jotikasthira and Ms. Potjanee Thanavaranit to be new directors. Congratulations!

ĂŠĂŻÂŤ Ă“ââïĂžùüÞÌ Ă?ĂžÍùÌíïĂžĂ&#x;ĂĽĂŹĂ&#x;

52 | B o a r d r o o m

After the AGM, IOD welcomed Dr. Veerathai Santiprabhob, Bangkok Bank Governor, speaking on the topic “Role of Director in Driving Thailand Forward�. His speech can be downloaded on website http://thai-iod.com/en/seminarevents-detail.asp?id=382. Thank you to the Siam Cement Public Company Limited and Thai Oil Plc for your support.

Member Corner

MEMBER CORNER MEMBERCORNER b;'OGSC; ;Wh ¿ÏÞïåïÏÏê %O`L6*'ITCDV;6W `$ _@YgO;LCT-V$`GRJVKD _$ T Ă†ĂŒĂ 9Sh*MGTD9Wgc6 ES<ET*ISG+T$L8T<S;7 T*e _EVgC+T$ ;TD;TIV; OV;9ELC<S7V ¼ÀÄ ¯¯­Ž¹Œ EO*$EEC$TE>[ +S6$TE `GR=ER:T;<EVMTE$TEG*9Z;7 T*=ER_9J <G+ÂŤ $LV$Ec9D c6 _% TES<ET*ISGb;*T; ¿âðù ĂŹĂŁ ùüâ ¿âðù žôÞïåð ¯­Ž´ 8X* ÂŻ ET*ISG c6 `$ ET*ISG ¿âðù Ă?âÍðÌÏÍ ĂƒòÍå ÊÞÍÞäâï ¼ÑüÞÌÊÞÍåŒ .Xg*c6 ES< _= ;= 9 gW ÂŻ 7V67 O$S; @E OC6 IDET*ISG ĂŠĂŹĂ°Ăą ÆÍÍÏóÞùÌóâ Ă?ïÏåòà ù ¼ÑüÞÌÊÞÍåŒ +T$;V7DLTE žðÌĂž žððâù ÊÞÍÞäâêâÍù 5 aE*`EC ĂƒÏòï Ă?âÞðÏÍð =ER_9J P O*$* ;T*LTILZIEE5T +S$ETIEIZ: ¼à žĂ? ŽŽ³¯­Ž²Œ >[ - ID$EEC$TE>[ +S6$TE >[ <EVMTELTD *T;=1V<S7V$TE $EZ*JEW 'O;.[C_COE c6 ES<ET*ISG ÑüÞÌÊÞÍå ÆÀÑ Ă‚þà âÊÊâÍà â žôÞïåð ¯­Ž´ LT%T a'E*$TE@S4;T$ER<I;$TEMGS$BTDb; ÂĽĂ€Ïïâ Ă?ïÏà âðð ÆêíïÏóâêâÍù Ă?ïÏçâà ùðŒ b;$TE_= ; O*' $E`M *;IS7$EEC @S;_O$ LEE@-SD MZIR;S;9; ¼à ÀĂ? Ž²³¯­Ž¯Œ $EEC$TE>[ +S6$TEbM‰ <EVKS9 $L9 a9E'C;T'C +lT$S6 ÂĽCMT-;ÂŚ MEYO Ă€žĂ‘ c6 ES<_% TES<CO<ET*ISG >[ bM <EV$TEES$KT'ITC =GO6BSD_9'a;aGDWLTEL;_9JDO6_DWgDC`M *= ¯­Ž´ ĂƒĂŻĂŹĂ°Ăą ÂŁ Ă?òÊÊÌóÞÍ ÊÞÍÞäâå Ă?âà òïÌùÜ Ă?âïóÌà â Ă?ïÏóÌåâï ĂŹĂŁ ùüâ Ă–âÞï _= ;= 9Wg ÂŻ 7V67 O$S; +S6a6D AEOL7 `O;6 .SGGV`I; O*' $EbM 'lT=EX$KT`GR IV+SDER6S<aG$ ;T*LTI+EW@E +TEZ$EL$ZG ¼à ÀĂ? ¯Ž­¯­Ž²Œ =ER:T;_+ TM; T9Wg<EVMTE$GZ C <EVKS9 6S<<GVI_O-_O 'OE =O_E-Sg; +lT$S6 ÂĽCMT-;ÂŚ _= ; 7SI`9;ES<CO<ET*ISG ĂƒĂŻĂŹĂ°Ăą ÂŁ Ă?òÊÊÌóÞÍ ¯­Ž´ ÑüÞÌÊÞÍå Ă‚þà âÊÊâÍà â žôÞïå b;LT%T O*' $E6W_6 ; 6 T;$TE@S4;T'GS*LV;' Tb;=ER_9Jc9D 7 O_;YgO* _= ;= 9WgLO* _@YgO;LCT-V$ LTCTE8L *% TI'ETI cC I T+Rc6 _GYgO;7lT`M; * ES<ET*ISG7 T*e MEYO_EYgO* OYg;e CTc6 9Wg? TDLCT-V$LSC@S;: c6 9WgMCTD_G% ­¯ªœ²²ªŽŽ²² 7 O ¹­¹ MEYO ðòùüÌÍââ½ùüÞ̪ÌÏå Ă ĂŹĂŞ In this column, Boardroom would like to congratulate all fellow members and IOD alumni who have received awards from various institutes. First, Mr. Navin Intharasombat (CGE 2/2014), Deputy Managing Director and Chief Executive Officer of Kasikorn Asset Management. Thai (left) has won two awards from “Best of the Best Awards 2017â€?, namely, Best Pension Fund Manager (Thailand), which he was won the award for the second consecutive year and the Most Innovative Product (Thailand) Award from Asia Asset Management Magazine at the Four Seasons Hotel, Hong Kong. Second,

54 | B o a r d r o o m

Mr. Navin Intharasombat (Left)

Dr.Kasem Wattanachai& Mr. Chaiwat Utaiwan

Dr.Kasem Wattanachai & Mr. Vipon Vorasowharid

Miss Suwanna Jakraworavudh

Colonel Sanpachai Huvanandana

Miss Jareeporn Jarukornsakul

• Miss Suwanna Jakraworavudh (DAP 116/2015) • Miss Jareeporn Jarukornsakul (DCP 210/2015), Assistant Managing Director, Executive of Operating Department of Krungsri Consumer Group received the Thailand ICT Excellence Awards 2017 for their Core Process Improvement Projects for being an innovative organization. • Colonel Sanpachai Huvanandana (DCP 156/2012), President of CAT Telecom Public Company Limited or CAT received the award “Frost & Sullivan’s Managed Security Service Provider of the Year 2017â€? for the second consecutive year held by Frost & Sullivan, a global consulting and research organization.

Chief Executive Officer of WHA Corporation Company Limited received the Frost & Sullivan 2017 Thailand Excellence Award for “Excellent Organization in warehouse Development in Thailandâ€? which was awarded for the second consecutive year. • You can send your news or update to IOD for publication in Boardroom whether you are promoted, awarded or other via Member Relation Department at 02-955-1155 ext. 404 or suthinee@thai-iod.com -------------------------------------------------------

Board Success

CONGRATULATIONS ‹Ă&#x;Ă‰ĂšĂŒ šÚĂ?Ă›Ă?Ă–ĂœĂ‰ĂœĂ‘Ă—Ă– ÂŽÂ?š ´¾¾¹´¾¸³´úݚ ÂŞ ÂŽĂ‘Ă˜Ă”Ă—Ă•Ă‰ ¡œ³´úݸ¹¡¡³´úݚ Thai Institute of Directors’ award presentation night was held on April 21 at Renaissance Hotel to congratulate all participants who passed the Director Certification Program (DCP) batch 233-236/2017 and Director Diploma Examination Batch 54/2016. Guests of honor presided at the event included Dr. Bandid Nijathaworn, Mr. Banjong Chittchang and Mr. Chusak Direkwattanachai It was a night of bonding, fun, good food and entertainment. Participants from different batches and programs got to know each other and learned about their roads to success through video presentation Dr. Bandid, and Mr. Banjong presented each participant a certificate and a token of appreciation to Mr. Vites Ratanakorn ranked the top 4 in the class. Special of the night is performance by Myanmar participants dressing in national costume. The night ended with a speech by Dr. Ellen Ryan, First EVP Group Risk Strategy, SCB Asset Management PCL and DCP batch 235 representative, followed by group photo session Readers can browse photos and a list of participants of DCP 233-236/2017 and diploma 54/2016 – 55/2017 in this column. ----------------------------------------------------------------------------------------------------

Director Diploma Examination 54/2016

Director Diploma Examination 55/2016

Mr.Marc Spiegel Mr.Michel Roeffaers Mr.Subin Bhatia Mr.Sutas Kongdumrongkiat Mrs.Tania Donoghue

Dr.Boonyarit Phongmekhin Mr.Piyawat Jriyasetapong Mr.Supachai Sukhanindr Dr.Sutapa Amornvivat

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56 | B o a r d r o o m

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233-236 DCP President, Dr. Ellen Ryan, Dr. Bandid Nijathaworn

Director Certification Program 234/2017 ;@«.YgO7E* _+WDC+EEDT ;T*2V7T@E :TET$V+ ;TD_6-<6V;9E _MEWD 9ES@D 6W ;TD3S7-SD =1VaB'LZ9:Vk ;TD9VIS78 JVEV-SD_9IV;9E ;TD:ET:V= :TET:EECES7; ;TD=1V'C I*K LZIEE5 ;«L«=5V-T @*K JVITBSD ;T*= DRBT +*_L8WDE

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Director Certification Program 235/2017 Êï«¿ïæÞë ÁâéÞëâö Êï«ÅéÞ Êæë Êïð«Åëæë Åëæë ¾òëä Êð«ÇÞðêæëâ ÑåÞ÷æë ¾òëä Êð«Èåæë ÐÞëáÞ Ôæë Êï«ÈöÞô Êöì Åñòë Êï«ÊÞõôâéé Ãâáâïßòðå Êï«Êæë ×âöÞï ÅéÞæëä Êï«ËÞññÞíåìé ÓæêìéàåÞéÞì

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58 | B o a r d r o o m

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Welcome New Member

ŽÓÉÎÛÎÉÚÆÑ ²ĂŠĂ’ÇÊ× | Name

D;L%N DL;K}4R ?

Position

Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Ms. Mr. Mr. Mr. Mr. Mrs. Mr. Dr. Mr. Mr. Mrs.

Derek Jan Jayanta Jean-Boris Jean-Pierre John Jorma Michel Nishant Orayaporn Paul Piyawat Puttipong Siew Pong Tania Thura Vincent Vishal Wayne Zarchi

Van Pelt Rosemeyer Chakraborty Roux Bienfait Stevens Manninen Roeffaers Grover Karnchanachari Hayes Jriyasetapong Prasarttong-osoth Leong Donoghue Ko Aloysius Kedia Williams Tin

Executive Director Director VP - Finance Executive Director CEO Makro International Managing Partner Executive Director Chief Executive Officer Executive Director Advisor of Board Exective Director Executive Director Executive Director Chief Operating Officer Executive Director Executive Director CEO Executive Director Sonior Vice President Executive Director

Mr.

Zhisheng

Xu

SEVP

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60 | B o a r d r o o m

Company Smiling Albino Co.,Ltd Bsmc (Thailand) Co.,Ltd Tata Steel (Thailand) Public Company Limited RMA Group Co.,Ltd. Siam Makro Public Company Limtied Stonelotus Ventures LTD. PDI-CRT Co., Ltd Cobra International Company Limited Asset World Company Limited NEP Realty and Industry Public Company Limited Siam City Cement Public Company Limited Lao Communication Company Bangkok Airways Public Company Limited Siam Food Services Limited FOBISIA Myanmar Distillery Company Limited INSEE Ecocycle Co.,Ltd. Unique Enterprises Holdings Company Limited Minor Hotel Group Public Company Limited Yoma Bank Ltd. Industrial and Commercial Bank of China (Thai) Public Company Limited 4=ĂžCK1 ;L?O =R 5 #dL K. ÂŹ;EL%3­ 4=ĂžCK1 [1<GODW1N= 3 [4YG 8LAWAG= #dL K. 4=ĂžCK1 .O.O ;L= 1 YH?.NÄ?" #dL K. 4=ĂžCK1 G3AS. #dL K. 23L L= =R"[1< #dL K. ÂŹ;EL%3­ 4=ĂžCK1 &N"W NÄ?? 8G<1 8L= 1 ÂŹ5=JW1B[1<­ #dL K. ÂŹ;EL%3­ 4=ĂžCK1 .O.O ;L= 1 YH?.NÄ?" #dL K. 4=ĂžCK1 W182L3O =Ăż+L #dL K. ÂŹ;EL%3­ 4=ĂžCK1 WG4O4O #dL K. 4=ĂžCK1 WG3W3G= <O_ G;W8?^ & #dL K. 4=ĂžCK1 8Ä‹8Ä‹ GG3[1; #dL K. 4=ĂžCK1 WG^3&ND #dL K. 4=ĂžCK1 [1<.=Ăž`". #dL K. 4=ĂžCK1 WGO_<A3 dLYGD0 #dL K. 4=ĂžCK1 1=Ăž8W8ÄŠ? [G ;L=Ăž[1; WGW<3&OD #dL K. 4=ĂžCK1 4L" G WGAĂžWG%K_3 W&^3W/G= #dL K. 4=ĂžCK1 8> CL W=Ăż<?WGDW/1 #dL K. ÂŹ;EL%3­ 4=ĂžCK1 W;QG"[1< ?ND&NÄŽ" #dL K. ÂŹ;EL%3­ 4=ĂžCK1 GL= WGD WGD ´úݸ #dL K. 4=ĂžCK1 WG^; WGD [G #O 5=J K3:K< ÂŹ[1<­ #dL K. ÂŹ;EL%3­ 4=ĂžCK1 YGW%O_<3 G;W;N=% #dL K. ÂŹ;EL%3­ 4=ĂžCK1 W C=YH?.NÄ?" #dL K. 4=ĂžCK1 XD"1G"YH;;L= 1 #dL K. 4=ĂžCK1 [1<= A;Z#3 Ld ;K38Ä?% #dL K. L=5=J5LD A3:S;N:L 4=ĂžCK1 =Ăż`. W1=.W.^ & #dL K. 4=ĂžCK1 W#;D 8LAĂž?W?O_<3 #dL K.

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B o a r d r o o m | 61

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Bullabh Amaro de oliveira Boarotto <L4R%N/J /K`" L=A RX# "G=R;S?<J;S? :K1=W;2L R? 8?5 08Ä‹ BR:A==23J R? W?LEAĂžY=#3 W8Ä‹<=:K-+A-N% 4R33L

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==; L=GND=J 5=J2L3W# LE3 L1O_4=ĂžEL= =G"5=J2L3W# LE3 L1O_4=ĂžEL= ==; L=GND=J Business Development Director Managing Director Managing Director W? L3R L=4=ĂžCK1 ==; L=23L L= ==; L= ==; L= ==; L= ==; L= ==; L= ==; L= ==; L= ==; L=

Food & Beverage Manager Chief Commercial Officer GL#L=< 5=J#dL Executive Management training 6S #K. L=1K_A[57 L</=A#DG4:L<Z3 6S #K. L=D A3"L31=K8<L =4R ?X?J8K,3L 1L<L12R= N#X?JER 3D A3 6S % A<6S #K. L=ZE} DL<4=ĂžEL="L3 ?L" =G"6S #K. L=ZE} GLARYD =K CL L=6S #K. L=ZE} 6S % A<6S #K. L=ZE} DL< L=6?N/ 6S % A<W? L3R L=4=ĂžCK1 HR Group Manager W? L3R L= ==; L=/=A#DG4Âł 6S % A< ==; L=6S GdL3A< L=ZE} Secretary of the Executive Committee W? L3R L=4=ĂžCK1 Senior Vice President Vice President, Corporate Governance and Corporate Secretary =G"6S GdL3A< L=7 L<4K}%OÂą L=W"Ăž3 6S % A< ==; L=6S #K. L= ?R ;2R= N#?S L4R ? X?JD0L4K3 6S #K. L=D A3

Company Anantara Riverside Resort Siam Makro Public Company Limtied -J8L-N%< BLD/= X?J L=4K}%O ;ELAĂž1<L?K<2==;BLD/= 4=ĂžCK1 1O W WGD W ;N G? ÂŹ5=JW1B[1<­ #dL K. 4=ĂžCK1 #O D/O? #dL K. ÂŹ;EL%3­ 4=ĂžCK1 #O W# D/O? #dL K. ÂŹ;EL%3­ 4=ĂžCK1 :K1=W;2L N# #dL K. 4=ĂžCK1 .G< dL6?N/:K-+ GLEL= #dL K. 4=ĂžCK1 6?N/[99 LX?J3 Ld W<^3 #dL K. 4=ĂžCK1 .G< dL6?N/:K-+ GLEL= #dL K. 4=ĂžC1K [GWG9WGD X 55 /G? ÂŹ5=JW1B[1<­ #dL K. ÂŹ;EL%3­ 4=ĂžCK1 #O D/O? #dL K. ÂŹ;EL%3­ 4=ĂžCK1 =0[99 L =²9²1² #dL K. 4=ĂžCK1 W 8Ä‹ WG^3 =Ăż3 WG^3W3G#O Y&?S%K_3 #dL K. 4=ĂžCK1 &LY39ăĆ 5LDW/G= #dL K. 4=ĂžCK1 =R"[1< G;8ÄŠAW/G= W&G= AĂžDW&D #dL K. 4=ĂžCK1 8Ä‹1O1O Y ?4G? W ;N G? #dL K. ÂŹ;EL%3­ 4=ĂžCK1 WH"?ND&NÄŽ" #dL K. 4=ĂžCK1 E?K 1=K8< #K. L= G"1R3 [1<8L-N%< #dL K.

4=ĂžCK1 6?N/:K-+ /=LW8%= #dL K. ÂŹ;EL%3­ 4=ĂžCK1 W%G= AS . W ;N G? #dL K. ÂŹ;EL%3­ Corporate vice president 4=ĂžCK1 6LX."GN3.KD1=Ăż #dL K. ÂŹ;EL%3­ 6S % A<6S #K. L=ZE} DL<8K,3L2R= N#GLARYD 4=ĂžCK1 .G< dL6?N/:K-+ GLEL= #dL K. =G"6S GdL3A< L=7 L< 7 L< [G1O 4=ĂžCK1 WH"?ND&NÄŽ" #dL K. 6S % A< ==; L=6S #K. L=ZE} DL<4=ĂžEL= L=W"Ăž3 23L L=&O[GWG^;4O [1< #dL K. ÂŹ;EL%3­ EKAE3 L7 L<W? L3R L= G"1R3 L=GG;XE "%L/N =G"5=J2L3W# LE3 L1O_ ?R ;"L3Y =" L= 4=ĂžCK1 G=DN=Ăž3 YH?.NÄ?" #dL K. 6S % A<6S #K. L=ZE} DL<2R= N# L5?O 4=ĂžCK1 .G< dL6?N/:K-+ GLEL= #dL K.

ASEAN’s Leader in Sustainable Energy

Myanmar Exploration & Production / Petroleum / Café Amazon

Laos Petroleum / Lubricants / Service Station / Café Amazon / Jiffy

Vietnam Lubricants / Chemicals / Exploration & Production

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Indonesia Lubricants / Coal Mining

Malaysia

Philippines

Gas Pipelines / Lubricants

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Brunei Lubricants

Service Station / Lubricants / Café Amazon

Throughout our rigorous history, PTT Group’s determination and outstanding achievements in developing new technologies and innovations result in sustainable energy across the ASEAN community. With our trust in the people’s ability to push the boundary of innovation, our continuous exploration, business expansion as well as energy creation are the main drive for the economy, the society and the environment. By staying true to our belief in inclusive and sustainable approach, a greater collective benefit that will successfully further the ASEAN community’s growth can be achieved.

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