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Is corporate governance in South Asia a case of putting the cart before the cow? All of us that live in the region know that things are different in South Asia. To being with most of us know carts and have a lot of respect for cows – although we murder them and eat them - but are less familiar with horses.
It’s pretty much the same when it comes to codes of conduct for local businesses, say a congregation of accountants from all parts of South Asia.
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The accountants are in Colombo for a conference on corporate governance, organised by the South Asian Federation of Accountants and hosted by the Institute of Chartered Accountants of Sri Lanka.
They point out that corporate codes of conduct make sense for economies that are largely made up of private enterprises with large public participation through stock markets.
Whereas in South Asian countries a major portion of the economy is controlled by State owned enterprises and most of the balance is made up of family owned businesses. <