Corporate Eye

Li and Fung — Corporate Governance On One Page

During my online journeys I’ve visited some interesting Corporate Governance sites. I found that too often I make quick judgments and that I need to take more time to assess the attributes of a visited site.

This was put in play when I observed the Corporate Governance page of Li & Fung Ltd an export trading company that manages supply chains. My immediate reaction was somewhat negative since the design wasn’t glitzy —

Also, as indicated in this visual, I found that the topline navigation was the beginning of a very long page.

However, then I looked further and found out just how much information was available. First, just look at the menu–

This is one of the most comprehensive list of Corporate Governance topics I have seen. It is a good indicator of the company’s transparency. Some observations…

An effective use of visuals to explain Board composition, Risk Management and Board meetings

Li & Fung Board Composition
Li & Fung Board Committees

An outline of internal communications

Senior executives also travel frequently to different country offices to reinforce staff commitment to Li & Fung’s business culture and the Group’s established corporate initiatives. Under the supervision of our Group Chief Compliance Officer, members of the Corporate Compliance Group conduct regular interactive forums with staff members in Hong Kong and overseas to ensure that good corporate governance and company practices are reinforced and embedded in the Group’s operations.

Commitment to Ethics

The Group’s reputation capital is built on its long-established standards of ethics in conducting business. Guidelines of the Group’s core business ethical practices as endorsed by the Board are set out in the Company’s Code of Conduct and Business Ethics for all Directors and staff. All the newly-joined staff are briefed and requested to acknowledge the understanding of the Code. For ease of reference and as a constant reminder, a copy of the latest guidelines is posted in the Company’s internal electronic portal for reference by all staff.

A visual outlining awards won in various categories such as Corporate Governance, Best Managed and Top Companies

All of Corporate Governance on one page, yes, but a page packed with information depicting corporate 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.