Corporate Eye

Bravo — BrasilTelcom Corporate Governance

In my Internet travels, I found that BrasilTelcom has some lessons for Good Corporate Governance. For starters there is a good Organization Chart that describes the company.

To learn more about a company, simply pass your mouse over its name and a description pops up. Nice feature for share-owners to quickly learn more about the company.

Next, to enhance transparency, board meeting minutes are available.

Note that you have a choice of viewing in HTML or PDF — nice touch.

Another unique feature is that the company provides both an Economic and anIndustry overview: 

I find this not only unique for Corporate Governance sites but it is a useful and informative aspect that adds to shareowner knowledge and communications.

Yet another noteworthy feature is the section that describes Risk Factors —

Before making any investment decision, potential investors should carefully consider all of the information available on this website, in particular the risks described below. Brasil Telecom’s business, financial situation, and operating results may be adversely and materially affected by any of these risks, which in turn could have a negative impact on the securities issued by the Company. The risks described below are those known to BrasilTelecom and which it believes could have a significant impact on the Company. Additional risks that Brasil Telecom is unaware of or that it currently considers irrelevant could come to have an impact on the Company’s business.

Companies normally include such information in their regulatory filings whose readers normally include stock research analysts. To BrasilTelcom credit, they make this information clearly visible on their website for all to see.

Finally there is Feedback About the website section where the company solicits information about quality of content, navigation, loading time and other website features. They also include an open ended section where visitors can post their comments.

It is no surprise that BrasilTelcom has been recognized for their transparency.

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Ed Konczal has an MBA from New York University's Stern School of Business (with distinction). He has spent the last 10 years as an executive consultant focusing on human resources, leadership, market research, and business planning. Ed has over 10 years of top-level experience from AT&T in the areas of new ventures and business planning. He is co-author of the book "Simple Stories for Leadership Insight," published by University Press of America.