Wednesday, October 14, 2009
PFS Program’s 13th Regional Survey – Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in 11 CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its 13th semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. PFS Program Interns Kamila Andrukiewicz (Poland), Aleksa Mihajlovic (Serbia), Irena Petkovska (Macedonia) and Anna Wolska (Poland) conducted the survey, under the supervision of PFS Program Director Geoffrey Mazullo, from August 1 through September 30, 2009.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the 13th time; companies in Hungary and Poland were surveyed for the 12th time; and companies in Bulgaria, Croatia and Romania were surveyed for the 11th time. Moreover, a seventh analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for ongoing benchmarking with these emerging market peers.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period August 1 – September 16, 2009 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is September 16, 2009.
On September 16, 2009 all ten companies surveyed in all CEE countries except Croatia, Romania and Slovenia have an English-language website. 96% of the 110 CEE companies surveyed have a 2008 or 2007 English-language annual report online on the same record date.
In marked contrast to all 12 previous surveys, this edition of the survey documents increased disclosure in almost all areas analyzed. In 27 of the 30 categories surveyed, disclosure increased. In some categories, the increase was significant. Disclosure of information on shareholder rights increased in the annual report to 69%, from 47% in April 2009 and on company websites to 64%, from 51% in April 2009. Disclosure of information on environmental considerations in supply chain management increased in the annual report to 24%, from 19% in April 2009 and on company websites to 39%, from 30% in April 2009. In these and many other categories, new thresholds were attained. In three categories of social policy, disclosure in the annual report decreased.
45 of the 110 CEE companies surveyed (41%) issue a stand-alone English-language environmental, social and governance (ESG) report, compared with 41 companies (37%) in April 2009 and 28 companies (25%) in September 2008. This is the first time that the 40% threshold has been exceeded, and represents continuation of an ongoing trend during the past two years.
It also demonstrates that gap between best-practice in extra-financial reporting in CEE blue-chip companies is closing vis-à-vis peers in Brazil, Russia, India and China (BRIC). In BRIC, 19 companies (47.5%) issue a stand-alone English-language ESG report in September 2009. The number is unchanged since April 2009, and represents a slight increase vis-à-vis 18 companies in September 2008. As a group, BRIC blue-chips generally outperform CEE peers; however, the gap continues to narrow and a few CEE countries approach the disclosure levels found in BRIC. One Ukrainian company issues a stand-alone English-language ESG report in September 2009.
Survey findings include the following:
- 97% of the 110 CEE companies surveyed have an English-language website on the record date of September 16, 2009, compared with 95% in April 2009, 96% in September 2008, 96% in April 2008, 94.5 % in September 2007, 94% in April 2007, 94% in September 2006, 87% in April 2006, 89% in September 2005 and 82% in April 2005. In comparison, 100% of the BRIC companies surveyed and 60% of the Ukrainian companies surveyed have an English-language website.
- 96% of the 110 CEE companies surveyed have either a 2008 or 2007 English-language annual report online on the record date of September 16, 2009 compared with 92% in April 2009, 94% in September 2008, 87% in April 2008, 81% in September 2007, 84% in April 2007, 71% in September 2006, % in April 2006 and % in September 2005. In comparison, 100% of companies in BRIC and 20% in Ukraine have a 2008 or 2007 English-language annual report available online.
- 79% of the 110 CEE companies surveyed disclose employee development/benefits policies in the (2008 or 2007) annual report available online on September 16, 2009. This is the highest percentage recorded since the first survey was conducted in August 2003 and the first time that the 75% threshold was exceeded.
- 77 of the 110 CEE companies surveyed (70%) disclose implementation of a corporate governance code in the (2008 or 2007) annual report available online as of September 16, 2009, compared with 57 companies (52%) in April 2009 and 60 companies (54.5%) in September 2008. This is the first time since the survey was first conducted that disclosure of information regarding compliance with a corporate governance code in the annual report available online reached the 70% threshold.
- 55% of the CEE companies surveyed disclose information on compliance with a corporate governance code on their website, compared with 41% in April 2009 and 42% in September 2008. This is the first time since the survey was first conducted that more than 50% of the CEE companies surveyed disclose information regarding compliance with a corporate governance code on their website.
- 53% of the 110 CEE companies surveyed report on environmental performance in the (2007 or 2008) annual report available online on September 16, 2009. This is the highest percentage recorded since the first survey was conducted in August 2003 and the first time that the 50% threshold was exceeded. The percentage was 43% in April 2009, 34.5% in September 2008, 30% in April 2008, 33% in September 2007, 14% in April 2007, 25% in September 2006, 18% in April 2006 and 22% in September 2005.
- 45 of the 110 CEE companies surveyed (41%) issue a stand-alone English-language environmental, social and governance (ESG) report, compared with 41 companies (37%) in April 2009 and 28 companies (25%) in September 2008. This is the first time that the 40% threshold has been exceeded, and represents continuation of an ongoing trend during the past two years.
Note: The survey consists of the following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine.
A list of companies with stand-alone English-language ESG reports is an appendix to the survey and is published here as a separate document.
To download the survey, the databases and a separate list of companies that publish a stand-alone English-language ESG report, please click on the links below:
Wednesday, October 7, 2009 - Thursday, October 8, 2009
Regional Workshop on Insurance Supervision
Ljubljana, Slovenia
On Wednesday, October 7 and Thursday, October 8, 2009 the Center of Excellence in Finance (CEF) and the PFS Program held a fourth annual Regional Workshop on Insurance Supervision at the CEF in Ljubljana, Slovenia. The title of the event was: Regional Workshop on Insurance Supervision: Financial Crime Utilizing the Insurance Industry and Insurance Products - Practical Experiences in the European Union (EU), South East Europe (SEE) and the United States of America (USA).
This event was a follow-up to Regional Workshops on the same topic organized by the CEF and the PFS Program in October 2008, October 2007 and October 2006. Through this now ongoing regional initiative, both co-sponsors and all participating institutions aim to raise awareness about insurance fraud / the use of insurance products to launder money and share practical experiences through the analysis of case studies from a number of jurisdictions. Both the PFS Program and the CEF emphasize the case-study methodology and peer-based learning in their respective training programs.
At the outset of the Workshop, each of the participants introduced her/himself and provided information about her/his respective institution that was requested in a questionnaire distributed beforehand. 13 persons representing the following institutions participated in the Regional Workshop: Albanian Financial Supervisory Authority; Croatian Financial Services Supervisory Agency; Center for Combating Economic Crimes – Moldova; National Commission for Financial Market – Moldova; Romanian Insurance Supervisory Commission; Office for Money Laundering Prevention – Slovenia; Tax Administration – Slovenia; and State Committee for Financial Monitoring – Ukraine.
During the first session, participants analyzed and discussed two sanitized case studies based on real situations, one involving automobile insurance fraud and one involving life insurance fraud. The case studies were drafted by Agnieszka Cenzartowicz, Program Manager, PFS Program and the discussion was moderated by Geoffrey Mazullo, Director, PFS Program. During the second session, Boris Persak, Head, Investigation Department, Zavarovalnica Maribor d.d., delivered two case studies of insurance fraud in Slovenia. On the afternoon of the first day of the workshop, Cindy Schmell, Insurance Fraud Bureau Chief, Iowa Insurance Division, presented several case studies from the United States, interwoven with practical strategies for the analysis, investigation and prosecution of insurance fraud. She also showed participants a short film about staged vehicle collisions in the United States.
During session five, Workshop Dariusz Parzyszek, Ministry of Finance, Poland, presented a practical overview of the use of insurance products to launder money, including an exhaustive list of examples/typologies and a detailed list of red flags. At the end of his presentation, he described two case studies of the use of insurance products to launder money. During session six, Tomasz Gulla, Printpol.pl, presented the results of his comprehensive survey of Polish social attitudes towards insurance fraud. During session seven, Harry Filon, Director, Insurance Bureau for Vehicle Crime, The Netherlands, presented several cases of insurance fraud from the Netherlands, many of which include cross-border elements. During session eight, Mr. Mazullo presented a case study about a company, whose internal controls and corporate governance oversight collapsed, thereby allowing excessive and unauthorized executive compensation.
Like its predecessors, this fourth annual Regional Workshop was also successful, both conceptually and practically. During each session, speakers and participants engaged in discussions regarding the specific case(s) as well as strategies for investigating fraud.
Thus, the event achieved its goals of: raising awareness about the issues of insurance fraud and the use of insurance products to launder money; and promoting best practice and international standards in detecting, preventing and combating insurance fraud as well as the use of insurance products to launder money.
The PFS Program appreciates the contribution of speakers from The Netherlands, Poland, Slovenia and the United States to this Regional Workshop, part of an ongoing PFS Program regional initiative in the area of financial crime, insurance supervision and prevention of money laundering. The current mandate of the PFS Program is to engage financial sector institutions in SEE target countries in programs that help promote the identification of best practice and the adoption of international standards. Within this mandate, one important element of each PFS Program activity is the exchange of experience of the new member states of the EU with EU accession countries in SEE.
To download the Workshop materials, please click on the links below:
 | Agenda - Regional Workshop - Insurance Supervision - CEF - PFS Program - October 7-8, 2009.pdf - 15 KB |
| Outline - Regional Workshop - Insurance Supervision - CEF - PFS Program - October 7-8, 2009.pdf - 210 KB |
| Questionnaire - Workshop on Insurance Supervision - October 7-8, 2009.pdf - 11 KB |
| Opening Presentation - PFS Program - October 7, 2009.pdf - 376 KB |
| Presentation - Session 1 - Case Study - Automobile Insurance Fraud - October 7, 2009.pdf - 11 KB |
| Presentation - Session 1 - Case Study - Life Insurance Fraud - October 7, 2009.pdf - 12 KB |
| Presentation - Session 2 - Zavarovalnica Maribor - October 7, 2009.pdf - 51 KB |
| Brief Bio - Boris Persak - October 2009.pdf - 11 KB |
| Presentation - Sessions 3 and 4 - US - October 7-8, 2009.pdf - 954 KB |
| Brief Bio - Cindy Schmell - October 2009.pdf - 11 KB |
| Presentation - Session 5 - MOF Poland - October 8, 2009.pdf - 110 KB |
| Brief Bio - Dariusz Parzyszek - October 2009.pdf - 11 KB |
| Presentation - Session 6 - Printpol Poland - October 8, 2009.pdf - 3,283 KB |
| Brief Bio - Tomasz Gulla - October 2009.pdf - 13 KB |
| Presentation - Session 7 - The Netherlands - October 8, 2009.pdf - 345 KB |
| Brief Bio - Harry Filon - October 2009.pdf - 19 KB |
| Presentation - Session 8 - Case in Point - October 8, 2009.pdf - 573 KB |
| Brief Bio - Geoffrey Mazullo - October 2009.pdf - 16 KB |
| List of Participants - Regional Workshop - Insurance Supervision - CEF - PFS Program - October 7-8, 2009.xls - 33 KB |
Wednesday, September 9, 2009
PFS Program’s 17th Regional Survey - Investor Relations Online: Survey of Websites of the Ten Largest Listed Companies in 11 CEE Countries
Today, the PFS Program publishes its 17th semi-annual regional survey: Investor Relations Online - Survey of Websites of the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) countries. PFS Program Interns Piotr Liberski (Poland) and Irena Petkovska (Macedonia) as well as PFS Program Research Assistant Igor Solodovnik conducted the survey from July 1 through August 17, 2009.
In this edition of the survey, disclosure of detailed governance information increased in all categories surveyed, except in the local-language website category, where a slight decrease was recorded.
91% of the companies surveyed provide a list of management online. This is the largest percentage recorded since the surveys began in 2001 and represents a slight increase vis-à-vis 84% in February 2009, 88% in August 2008 and 90% in February 2008. 68% of the companies surveyed provide additional information about management online; this is also the largest percentage recorded since the first survey, representing an increase vis-à-vis 61% in February 2009, 64% in August 2008 and 63% in February 2008. 89% of the companies surveyed provide a list of board members online, compared with 85% in February 2009, 91% in August 2008 and 87% in February 2008. 64% of the companies surveyed provide additional information about board members online; this is also a record high percentage, compared with 56% in February 2009, 61% in August 2008 and 52% in February 2008.
Investor Relations Online: Survey of Websites of the Ten Largest Listed Companies in 11 CEE Countries analyzes the websites of the ten largest listed companies in Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. For the seventh time, the survey also analyzes companies in BRIC (Brazil, Russia, India and China) as well as Ukraine in order to compare the online disclosure practices of CEE listed companies with peers in other emerging markets.
The survey analyzes the English-language websites and annual reports of the ten largest listed companies in the above-mentioned CEE countries in order to document the current disclosure practices of this ‘blue-chip’ peer group. Although the market capitalization of companies changes over time, the semi-annual surveys represent a snapshot of disclosure practices of the blue-chip peer group on a given day twice a year. Since the definition of the survey universe has remained the same since the first survey, the surveys provide time-series data for CEE blue-chip companies and thus enable the identification of online disclosure trends as well as best practice within the peer group.
The survey provides current data as of August 17, 2009 and comparisons with the 16 previous surveys, conducted in February 2009, August 2008, February 2008, August 2007, February 2007, August 2006, February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
The survey contains information compiled in the following groups and sub-groups:
- Current data on 110 companies in 11 CEE countries;
- Separate data on 80 companies in eight CEE countries that joined the European Union (EU) on May 1, 2004;
- Separate data on 30 companies in Bulgaria, Croatia and Romania;
- Comparisons of the data from this current survey with data from the previous 16 conducted every August and February since August 2001; and
- Separate data on 40 companies in Brazil, Russia, India and China (BRIC) as well as 10 companies in Ukraine.
Survey results include the following:
Websites: In eight of the 11 CEE countries surveyed, each of the ten largest listed companies has a local-language website. In Estonia and Slovakia, nine of the ten companies surveyed and in Czech Republic seven of the ten companies surveyed have a local-language website. The three listed companies in the Czech Republic that do not have a local-language website are “foreign” companies listed on the Prague Stock Exchange. Each of the ten companies surveyed in Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia has an English-language website. 90% of the companies surveyed in Bulgaria, Romania and Slovenia as well as 80% of the companies surveyed in Croatia have an English-language website.
Information on Management: As noted above, 91% of the companies surveyed provide a list of management online. This is the largest percentage recorded since the surveys began in 2001 and represents a slight increase vis-à-vis 84% in February 2009, 88% in August 2008 and 90% in February 2008. 68% of the companies surveyed provide additional information about management online; this is also the largest percentage recorded since the first survey, representing an increase vis-à-vis 61% in February 2009, 64% in August 2008 and 63% in February 2008.
Information on Board Members: 89% of the companies surveyed provide a list of board members online, compared with 85% in February 2009, 91% in August 2008 and 87% in February 2008. 64% of the companies surveyed provide additional information about board members online; this also represents a record high percentage and a significant increase, compared with 56% in February 2009, 61% in August 2008 and 52% in February 2008.
Best Practice: Since 2004, the survey includes recommendations on the ideal corporate website and compares CEE companies with the parameters of this ideal. On August 17, 2009 64 of the 110 companies surveyed in CEE (58%) disclose information in all of the categories analyzed in the basic PFS Program survey: local-language website; English-language website; list of management; list of board members; additional information on management; and additional information on board members. These 64 companies were examined according to best practice parameters. (In February 2009 52 of the 110 companies surveyed (47%) disclosed the above-mentioned basic information, compared with 56 of the 110 companies surveyed (51%) in August 2008.) On August 17, 2009 29 of the 110 companies surveyed in CEE (26%) provide all of the “ideal” recommended information: Five companies provide information directly on their company website; and 24 companies provide information indirectly through an annual report available online.
Comparisons with BRIC and Ukraine: The largest listed companies in BRIC disclose more information in this survey than in the previous survey. In all categories surveyed, companies in BRIC outperform peers in the eight CEE countries that joined the EU in 2004. The largest gaps exist in providing additional information on management and on board members. However, in contrast, the most transparent of the largest listed companies in CEE slightly outperform their peers in BRIC in terms of providing detailed governance information online, either on the company website or in an annual report available online. Also, in several CEE markets the results are impressive. In August 2009 all ten companies surveyed in Poland provide information in each category surveyed; in February 2009 all ten companies surveyed in Hungary provided information in each category surveyed. These are the first such cases since the first survey was conducted in 2001.
- Each of the companies surveyed in BRIC (100%) has a local-language website. In the CEE-11 countries, 95% of the companies surveyed have a local-language website. (In eight of the 11 CEE countries surveyed, each of the 10 companies surveyed has a local- language website. In Estonia and Slovakia, nine of the ten companies surveyed have a local-language website. In the Czech Republic, seven of the ten companies surveyed have a local-language website.) In Ukraine, eight of the ten companies surveyed have a local-language website.
- Each of the companies surveyed in BRIC (100%) has an English website, compared with 95.5% in CEE-11, 99% in the eight CEE countries that joined the EU in 2004 and 50% in Ukraine.
- 97.5% of the companies surveyed in BRIC provide a list of management online, compared with 91% in the CEE-11 and 94% in the eight CEE countries that joined the EU in 2004. In Ukraine 20% of the companies surveyed provide a list of management online.
- 90% of the companies surveyed in BRIC provide additional information on management online, compared with 68% in the CEE-11, 76% in the eight CEE countries that joined the EU in 2004 and 10% in Ukraine.
- 100% of the companies surveyed in BRIC provide a list of board members online, compared with 89% in the CEE, 92.5% in the eight CEE countries that joined the EU in 2004 and 20% in Ukraine.
- 95% of the companies surveyed in BRIC provide additional information on board members online, compared with 64.5% in CEE-11, 74% in the eight CEE countries that joined the EU in 2004 and 10% in Ukraine.
To download the survey, a presentation of survey results and the company database, please click on the links below:
Friday, May 8, 2009
PFS Program’s 12th Regional Survey – Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in 11 CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its 12th semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. PFS Program Intern Rafal Nagadowski (Poland) and PFS Program Research Assistant Igor Solodovnik conducted the survey from February 16 through April 15, 2009.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the 12th time; companies in Hungary and Poland were surveyed for the 11th time; and companies in Bulgaria, Croatia and Romania were surveyed for the tenth time. Moreover, a sixth analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for ongoing benchmarking with these emerging market peers.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period February 16 – April 15, 2009 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is April 15, 2009.
This edition of the survey documents a significant increase in the number of CEE blue chip companies issuing stand-alone English-language environmental, social and governance (ESG) reports; 41 companies now issue such a report, compared with 28 companies in September 2008. In marked contrast to all 11 of the previous surveys, disclosure of corporate governance information remained relatively stable whereas disclosure of environmental and social data increased, reflecting incremental increases in almost all countries. More companies provide information on supply chain management both in annual reports and on company websites, compared with the previous survey published in October 2008. Disclosure of information about compliance with labor standards, health and safety policy and listed employment policy also increased; here too the increase in disclosure in both annual reports and company websites was seen in companies in almost all countries.
In BRIC, 19 companies issued a stand-alone English-language ESG report in April 2009, compared with 17 in September 2008. In particular, there was more disclosure of information about compliance with a corporate governance code and employment policy. In other areas, disclosures remained roughly the same or decreased slightly. As a group, BRIC blue-chips generally outperform CEE peers; however, the gap continues to narrow and a few CEE countries approach the disclosure levels found in BRIC.
Survey findings include the following:
- 95% of the 110 CEE companies surveyed have an English-language website on the record date of April 15, 2009, compared with 96% in September 2008, 96% in April 2008, 94.5 % in September 2007, 94% in April 2007, 94% in September 2006, 87% in April 2006, 89% in September 2005 and 82% in April 2005. In comparison, 100% of the BRIC companies surveyed and 90% of the Ukrainian companies surveyed have an English-language website.
- 92% of the 110 CEE companies surveyed have either a 2008 or 2007 English-language annual report online on the record date of April 15, 2009 compared with 94% in September 2008, 93% in April 2008, 89% in September 2007, 85% in April 2007, 71% in September 2006, 78% in September 2005 and 65% in August 2004. In comparison, 100% of companies in BRIC and 30% in Ukraine have a 2008 or 2007 English-language annual report available online.
- 56% of the 110 CEE companies surveyed disclose information on employment policy in the annual report available online on April 15, 2009, compared with 27% in September 2008. 45% of the companies surveyed disclose this information on their website in April 2009; compared with 25% in September and April 2008.
- 55 of the 110 CEE companies surveyed (50%) disclose their health and safety policy in the (2007 or 2008) annual report available online on April 15, 2009, compared with 38 companies (35%) in September 2008. 41 of the companies surveyed (37.2%) disclose this information on the company website in April 2009, compared with 36% in September 2008.
- 45% of the 110 CEE companies surveyed disclose the information about labor standards in the annual report available online on April 15, 2009. This is a significant improvement compared with 19% in September 2008, 11% in April 2008, 9% in September 2007, 15% in April 2007 and 14% in September 2006. 32% of the companies surveyed disclose compliance with labor standards on their website in April 2008, whereas 22-23% of companies disclosed this information on the company website in September 2008, April 2008 and September 2007. In April 2007 only 15% of companies disclosed this information online.
- 41 of the 110 CEE companies surveyed (37%) publish an English-language stand-alone ESG report online on the record date of April 15, 2009. This is a significant improvement vis-à-vis 28 companies (26%) in September 2008.
- 21 of the 110 CEE companies surveyed (19%) disclose information on the integration of environmental considerations in supply chain management in the annual report available online on April 15, 2009, whereas on September 15 2008 only six (5%) did so. 33 of the companies surveyed (30%) disclose this information on their website in April 2009, compared with 15.4% in September 2008, 17% in April 2008, 16% in September 2007 and 26% in April 2007.
Note: The survey consists of the following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine.
A list of companies with stand-alone English-language ESG reports is an appendix to the survey and is published as a separate document.
To download the survey, the databases and a separate list of companies that publish a stand-alone English-language ESG report, please click on the links below:
Tuesday, March 3, 2009
PFS Program’s 16th Regional Survey - Investor Relations Online: Survey of Websites of the Ten Largest Listed Companies in 11 CEE Countries
Today, the PFS Program publishes its 16th semi-annual regional survey: Investor Relations Online - Survey of Websites of the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) countries. PFS Program Research Assistant Igor Solodovnik conducted the survey from January 15 through February 28, 2009.
In this edition of the survey, disclosure of detailed governance information decreased slightly in all categories surveyed. Thus, the positive trends observed in 2008 have not been sustained.
84% of the companies surveyed provide a list of management online, compared with 88% in August 2008 and 90% in February 2008. 61% of the companies surveyed provide additional information about management online, compared with 64% in August 2008 and 63% in February 2008. 85.5% of the companies surveyed provide a list of board members online, compared with 91% in August 2008 and 87% in February 2008. 56% of the companies surveyed provide additional information about board members online, compared with 61% in August 2008 and 52% in February 2008.
Investor Relations Online: Survey of Websites of the Ten Largest Listed Companies in 11 CEE Countries analyzes the websites of the ten largest listed companies in Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. For the sixth time, the survey also analyzes companies in BRIC (Brazil, Russia, India and China) as well as Ukraine in order to compare the online disclosure practices of CEE listed companies with peers in other emerging markets.
The survey analyzes the English-language websites and annual reports of the ten largest listed companies in the above-mentioned CEE countries in order to document the current disclosure practices of this ‘blue-chip’ peer group. Although the market capitalization of companies changes over time, the semi-annual surveys represent a snapshot of disclosure practices of the blue-chip peer group on a given day twice a year. Since the definition of the survey universe has remained the same since the first survey, the surveys provide time-series data for CEE blue-chip companies and thus enable the identification of online disclosure trends as well as best practice within the peer group.
The survey provides current data as of February 15, 2009 and comparisons with the 15 previous surveys, conducted in August 2008, February 2008, August 2007, February 2007, August 2006, February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
The survey contains information compiled in the following groups and sub-groups:
- Current data on 110 companies in 11 CEE countries;
- Separate data on 80 companies in eight CEE countries that joined the European Union (EU) on May 1, 2004;
- Separate data on 30 companies in Bulgaria, Croatia and Romania;
- Comparisons of the data from this current survey with data from the previous 15 conducted every August and February since August 2001; and
- Separate data on 40 companies in Brazil, Russia, India and China (BRIC) as well as 10 companies in Ukraine.
Survey results include the following:
Websites: In ten of the 11 CEE countries surveyed, each of the ten largest listed companies has a local-language website. In Czech Republic eight of the ten companies surveyed have a local-language website. Each of the ten companies surveyed in Czech Republic, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia has an English-language website. 90% of the companies surveyed in Bulgaria and Estonia, 80% in Croatia and 70% in Romania have an English-language website.
Information on Management: As noted above, the percentage of companies surveyed that provide a list of management online decreased to 84% in February 2009, from 88% in August 2008 and 90% in February 2008. 61% of the companies surveyed provide additional information about management online. This represents a slight decrease from the August 2008 survey when 64% of the companies surveyed disclosed this information, the largest percentage recorded since the surveys began in 2001. 63% of the companies surveyed disclosed this information in February 2008, compared with 59% in August 2007 and 53% in February 2007.
Information on Board Members: 85% of the companies surveyed provide a list of board members online, compared with 91% in August 2008 and 87% in February 2008. 56% of the companies surveyed provide additional information about board members online, compared with 61% in August 2008 and 52% in February 2008.
Best Practice: Since 2004, the survey includes recommendations on the ideal corporate website and compares CEE companies with the parameters of this ideal. On February 16, 2009 52 of the 110 companies surveyed in CEE (47%) disclose information in all of the categories analyzed in the basic PFS Program survey: local-language website; English-language website; list of management; list of board members; additional information on management; and additional information on board members. These 52 companies were examined according to best practice parameters. (In August 2008 56 of the 110 companies surveyed (51%) disclosed the above-mentioned basic information.)
Comparisons with BRIC and Ukraine: The largest listed companies in BRIC also disclose slightly less information in this survey than in the previous survey. Companies in BRIC generally outperform peers in the eight CEE countries that joined the EU in 2004; however, in two categories (English-language website and list of supervisory board members) companies in the eight CEE countries outperform peers in BRIC. The Ukrainian companies surveyed disclose less information than their peers in both BRIC and CEE; however, a slight improvement was recorded vis-à-vis the previous survey.
- Each of the companies surveyed in BRIC (100%) has a local language website. In the CEE-11 countries, 98% of the companies surveyed have a local language website. (In ten of the 11 CEE countries surveyed, each of the 10 companies surveyed has a local language website. In Czech Republic, eight of the ten companies surveyed have a local language website.) In Ukraine, each of the ten companies surveyed has a local language website.
- 95% of the companies surveyed in BRIC have an English website, compared with 94% in CEE-11, 99% in the eight CEE countries that joined the EU in 2004 and 70% in Ukraine.
- 98% of the companies surveyed in BRIC provide a list of management online, compared with 84% in the CEE-11, 86% in the eight CEE countries that joined the EU in 2004 and 40% in Ukraine.
- 87.5% of the companies surveyed in BRIC provide additional information on management online, compared with 61% in the CEE-11, 67.5% in the eight CEE countries that joined the EU in 2004 and 20% in Ukraine.
- 90% of the companies surveyed in BRIC provide a list of board members online, compared with 85.5% in the CEE-11, 91% in the eight CEE countries that joined the EU in 2004 and 40% in Ukraine.
- 85% of the companies surveyed in BRIC provide additional information on board members online, compared with 56% in CEE-11, 65% in the eight CEE countries that joined the EU in 2004 and 20% in Ukraine.
To download the survey, a presentation of survey results and the company database, please click on the links below:
Wednesday, October 22, 2008 - Thursday, October 23, 2008
Regional Workshop on Insurance Supervision
Ljubljana, Slovenia
On Wednesday, October 22 and Thursday, October 23, 2008 the Center of Excellence in Finance (CEF) and the PFS Program held a third annual Regional Workshop on Insurance Supervision at the CEF in Ljubljana, Slovenia. The title of the event was: Regional Workshop on Insurance Supervision: Financial Crime Utilizing the Insurance Industry and Insurance Products - Practical Experiences in the European Union (EU), South East Europe (SEE) and the United States of America (USA).
This event was a follow-up to Regional Workshops on the same topic organized by the CEF and the PFS Program in October 2007 and October 2006. Through this now ongoing regional initiative, both co-sponsors and all participating institutions aim to raise awareness about insurance fraud and share practical experiences through the presentation of case studies from a number of jurisdictions. Both the PFS Program and the CEF emphasize peer-based learning in their respective training programs.
At the outset of the Workshop, each of the participants introduced her/himself and provided information about her/his respective institution that was requested in a questionnaire distributed beforehand. 15 persons representing the following institutions participated in the Workshop: Insurance Agency of Bosnia and Herzegovina; Bulgarian Financial Supervision Commission; Lithuanian Insurance Supervision Commission; Office for Prevention of Money Laundering – Macedonia; Insurance Supervision Department, Ministry of Finance, Macedonia; Center for Combating Economic Crimes –Moldova; National Commission for Financial Market – Moldova; National Office for Prevention of Money Laundering – Romania; Romanian Insurance Supervisory Commission; National Bank of Serbia; and Office for Money Laundering Prevention, Ministry of Finance – Slovenia.
On the first day of the Workshop, three presentations were delivered and participants watched a short film about staged automobile accidents in the United States. Geoffrey Mazullo, Director, PFS Program, presented a case study about a company whose internal controls and corporate governance oversight collapsed, thereby allowing excessive and unauthorized executive compensation. Judge Dariusz Sielicki presented a Polish case study and extrapolated from it Polish social attitudes towards insurance fraud. Cindy Schmell, Insurance Fraud Bureau Chief, Iowa Insurance Division, presented several case studies from the United States, interwoven with practical strategies for the analysis, investigation and prosecution of insurance fraud. Unfortunately Ms. Schmell was unable to travel to Ljubljana; therefore, her presentation was delivered via Skype.
The second day of the Workshop was devoted largely to automobile insurance fraud. Boris Persak, Head, Investigation Department, Zavarovalnica Maribor d.d., delivered a case study and outlined investigate approaches to cross-border automobile insurance fraud committed by international organized crime groups. Harry Filon, Director, Insurance Bureau Vehicle Crime, The Netherlands, presented several cases of insurance fraud from the Netherlands, many of which include cross-border elements.
Like its predecessors, this third annual Regional Workshop was also successful, both conceptually and practically. During each session, speakers and participants engaged in discussions regarding the specific case(s) as well as strategies for investigating fraud. The Workshop achieved its stated objectives of: sharing practical information about real cases; and raising awareness about insurance fraud as well as the use of insurance products to launder money.
The PFS Program appreciates the contribution of speakers from The Netherlands, Poland, Slovenia and the US to this Workshop, part of an ongoing PFS Program regional initiative in the area of financial crime, insurance supervision and prevention of money laundering. The current mandate of the PFS Program is to engage financial sector institutions in SEE target countries in programs that help promote the identification of best practice and the adoption of international standards. Within this mandate, one important element of each PFS Program activity is the exchange of experience of the new member states of the EU with EU accession countries in SEE.
The Workshop materials may be found on this event’s subpage on the CEF website. To download the Workshop materials here from the PFS Program website, please click on the links below:
| Agenda - Regional Workshop - Insurance Supervision - CEF - PFS Program - October 22-23, 2008.pdf - 14 KB |
| Outline - Regional Workshop - Insurance Supervision - CEF - PFS Program - October 22-23, 2008.pdf - 232 KB |
| Questionnaire - Workshop on Insurance Supervision - October 22-23, 2008.pdf - 11 KB |
| Opening Presentation - CEF - October 22, 2008.pdf - 412 KB |
| Opening Presentation - PFS Program - October 22, 2008.pdf - 222 KB |
| Presentation - Session 1 - PFS Program - Case in Point - Regional Workshop on Insurance Supervision - October 22, 2008.pdf - 504 KB |
| Brief Bio - Geoffrey Mazullo - October 2008.pdf - 16 KB |
| Presentation - Session 2 - Poland - Regional Workshop on Insurance Supervision - October 22, 2008.pdf - 890 KB |
| Brief Bio - Judge Dariusz Sielicki - October 2008.pdf - 67 KB |
| Presentation - Sessions 3 and 4 - USA - Regional Workshop on Insurance Supervision - October 22, 2008.pdf - 2,270 KB |
| Brief Bio - Cindy Schmell - October 2008.pdf - 11 KB |
| Presentation - Session 5 - Slovenia - Regional Workshop on Insurance Supervision - October 23, 2008.pdf - 66 KB |
| Brief Bio - Boris Persak - October 2008.pdf - 11 KB |
| Presentation - Session 6 - The Netherlands - Regional Workshop on Insurance Supervision - October 23, 2008.pdf - 1,081 KB |
| Brief Bio - Harry Filon - October 2008.pdf - 19 KB |
| List of Participants - Regional Workshop on Insurance Supervision - October 22-23, 2008.pdf - 171 KB |
Thursday, October 9, 2008
PFS Program’s 11th Regional Survey – Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its 11th semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. This edition of the survey was co-financed by DWS Investments (Deutsche Bank Group). PFS Program Assistant Magdalena Grabowska, PFS Program Intern Tomasz Pieczyk (Poland), PFS Program Intern Nikola Smolcic (Croatia) and PFS Program Research Assistant Igor Solodovnik conducted the survey from July 1 through September 30, 2008.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the 11th time; companies in Hungary and Poland were surveyed for the tenth time; and companies in Bulgaria, Croatia and Romania were surveyed for the ninth time. Moreover, a fifth analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for ongoing benchmarking with these emerging market peers.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period July 1 – September 15, 2008 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is September 15, 2008.
This edition of the survey documents a higher level of online disclosure of corporate governance information, continuing the trend over the past five years. More information is also disclosed in the area of social policy, compared with the previous survey published in April 2008. Disclosure of information about environmental performance and environmental standards as well as energy and water use increased, albeit from still low levels; significant progress remains to be made by most companies in disclosing detailed environmental data.
Overall, companies in BRIC outperform CEE peers in terms of the availability of English-language websites and annual reports as well as specific disclosures in all three areas. For example, 80% of the BRIC companies surveyed disclose compliance with a corporate governance code in the annual report, compared with 54% in CEE. 65% of the BRIC companies surveyed disclose information about company-specific code of business conduct/code of ethics in the annual report, compared with 16% in CEE. In general, BRIC companies also provide more information on social policy and environmental policy. However, the gap in all three areas is narrowing. Due to the lack of a number of drivers, Ukrainian companies lag behind both BRIC and CEE peers in all areas. However, the number of Ukrainian companies with English-language annual reports and websites continues to increase as does the amount of information disclosed in all three categories.
Survey findings include the following:
- 96% of the 110 CEE companies surveyed have an English-language website on the record date of September 15, 2008, compared with 96% in April 2008, 94.5 % in September 2007, 94% in April 2007, 94% in September 2006, 87% in April 2006, 89% in September 2005 and 82% in April 2005. In comparison, 100% of the BRIC companies surveyed and 70% of the Ukrainian companies surveyed have an English-language website.
- 94% of the 110 CEE companies surveyed have a 2006/2007 English-language annual report online on the record date of September 15, 2008 compared with 100% in BRIC and 30% in Ukraine.
- 71% of the 110 CEE companies surveyed disclose information on employee development/benefits in their annual reports available online. This is a significant increase over the 64% recorded in the previous four surveys.
- Nine Polish, eight Slovene, eight Hungarian, six Estonian, five Czech, four Latvian, three Bulgarian companies, one Croatian, one Lithuanian and one Romanian company disclose information regarding compliance with a corporate governance code on the company website. Ten Estonian, nine Slovene, seven Polish, seven Czech, seven Lithuanian, six Slovak, five Bulgarian, four Hungarian, three Croatian and two Romanian companies disclose this information in the annual report. This is the first time since the survey was first conducted that more than 50% of the CEE companies surveyed disclose information regarding compliance with a corporate governance code in the annual report.
- 36% of the 110 CEE companies surveyed disclose information on listed health and safety policy on their website as of September 15, 2008, compared with 32% in April 2008, 30% in September 2007, 26% in April 2007, 21% in September 2006 and 12% in April 2006.
- 34% of the 110 CEE companies surveyed disclose information on environmental performance in annual reports available on their website on September 15, 2008 compared with 30% in April 2008, 33% in September 2007, 13% in April 2007, 25% in September 2006 and 18% in April 2006, 22% in September 2005, 24% in April 2005 and 27% in August 2004.
- 28 of the 110 CEE companies surveyed (26%) publish a stand-alone English-language ESG report as of September 15, 2008. (This represents the same percentage as in the most recent survey, conducted in April 2008.) Of the 28 reports published in CEE on the current record day, 25 (89%) use recognized standards and eight (28%) include a third-party assurance statement. A list of companies that publish a stand-alone environmental, social and governance (ESG) report online in English may be found as a separate document below.
- 17 of the 40 BRIC companies surveyed (42.5%) publish a stand-alone English-language ESG report. Of the 17 reports published in BRIC, 15 (88%) use recognized standards and ten (59%) provide a third-party assurance. No Ukrainian company produces such a report as of the record date of September 15, 2008.
Note: The survey consists of the three following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine.
To download the survey, the database and a separate list of companies that publish an English-language stand-alone ESG report, please click on the links below:
Tuesday, September 9, 2008
PFS Program’s 15th Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its 15th semi-annual Survey of Online Investor Relations of the Ten Largest Listed Companies (by market capitalization) in eleven Central and Eastern European (CEE) countries.” PFS Program Assistant Magdalena Grabowska and PFS Program Intern Nikola Smolcic (Croatia) conducted the survey from July 1 through August 31, 2008.
In this edition of the survey, disclosure of detailed govenance information in almost all categories remains at or reaches its highest level since the first survey was conducted in August 2001. This trend has been observed since February 2006 and may be viewed as sustainable.
91% of the companies surveyed provide a list of board members online, compared with 87% in February 2008, 82% in August 2007 and 81% in February 2007 as well as August 2006. This is the largest percentage recorded since the first survey and the first time that more than 90% of the companies surveyed provide a list of board members online. 61% of the companies surveyed provide additional information about board members online. This is also the largest percentage recorded since the first survey and the first time that more than 60% of the companies surveyed provide this information online. It represents a significant increase over the most recent survey (52% in August 2007) and previous surveys (51% in August 2007 and 40% in February 2007).
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies in Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. For the fifth time, the survey also analyzes companies in BRIC (Brazil, Russia, India and China) as well as Ukraine in order to compare the online disclosure practices of CEE listed companies with peers in other emerging markets.
The survey analyzes the English-language websites and annual reports of the ten largest listed companies in the above-mentioned CEE countries in order to document the current disclosure practices of this ‘blue-chip’ peer group. Although the market capitalization of companies changes over time, the semi-annual surveys represent a snapshot of disclosure practices of the blue-chip peer group on a given day twice a year. Since the definition of the survey universe has remained the same since the first survey, the surveys provide time-series data for CEE blue-chip companies and thus enable the identification of online disclosure trends as well as best practice within the peer group.
The survey provides current data as of August 15, 2008 and comparisons with the 14 previous surveys, conducted in February 2008, August 2007, February 2007, August 2006, February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
Survey results include the following:
Websites: In ten of the 11 CEE countries surveyed, each of the ten largest listed companies has a local-language website. In Czech Republic eight of the ten companies surveyed have a local-language website. Each of the ten companies surveyed in Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia has an English-language website. 80% of the companies surveyed in Croatia and 70% in Romania have an English-language website.
Information on Management: 88% of the companies surveyed provide a list of management online; 64.5% provide additional information on management. Disclosure in the former category decreased slightly (2%) since the last survey whereas the latter represents a record high since the first survey was conducted and a slight increase vis-à-vis February 2008 (63%) and August 2007 (59%).
Information on Board Members: 91% of the companies surveyed provide a list of board members online and 61% provide additional information on board members. Each category increased to a higher new record since the first survey was conducted and to new thresholds above 90% and 60% respectively. Disclosure in the latter category represents a significant increase from 52% in February 2008, 51% in August 2007, 40% in February 2007, 36% in August 2006 and 41% in February 2006.
Best Practice: Since 2004, the survey includes recommendations on the ideal corporate website and compares CEE companies with the parameters of this ideal. This component of the survey identifies best practice and enables CEE companies to benchmark their disclosure against peers in the region, other emerging markets and industry best practice. Here also, the time-series data identifies online disclosure trends.
On August 15, 2008 56 of the 110 companies surveyed in CEE (51%) disclose information in all of the categories analyzed in the basic PFS Program survey: local-language website; English-language website; list of management; list of board members; additional information on management; and additional information on board members. This is the first survey in which over 50% of the companies surveyed provide all of the basic information analyzed. On February 15, 2008 51 of the 110 companies surveyed in CEE (46%) disclosed information in all of the basic categories analyzed in the survey. On August 15, 2007 47 of the 110 CEE companies surveyed (43%) disclosed information in all of the basic categories analyzed in the survey. Therefore, over the past year a slight improvement has been documented in each edition of the survey.
Comparisons with BRIC and Ukraine: The largest listed companies in BRIC equal or outperform their CEE peers in every category. However, the gap continues to narrow. Furthermore, when companies in BRIC are compared with peers in the eight CEE countries that joined the EU in 2004, the difference between the peer groups is much smaller. The Ukrainian companies surveyed disclose less information than their peers in both BRIC and CEE; however, improvements are discernible over time. Detailed comparisons include the following:
- Each of the companies surveyed in BRIC has a local language website. In ten of the 11 CEE countries surveyed, each of the companies surveyed has a local language website. In Czech Republic, eight of the ten companies surveyed have a local language website. In Ukraine, nine of the ten companies surveyed have a local language website.
- In BRIC, all of the companies surveyed have an English website, compared with 95.5% in CEE-11, 100% in the eight CEE countries that joined the EU in 2004 and 70% in Ukraine.
- 97.5% of the companies surveyed in BRIC provide a list of management online, compared with 88% in the CEE-11 and 91% in the eight CEE countries that joined the EU in 2004. In Ukraine 40% of the companies surveyed provide a list of management online.
- 87.5% of the companies surveyed in BRIC provide additional information on management online, compared with 64.5% in the CEE-11, 70% in the eight CEE countries that joined the EU in 2004 and 50% in Ukraine.
- All of the companies surveyed in BRIC provide a list of board members online, compared with 91% in the CEE-11, 97.5% in the eight CEE countries that joined the EU in 2004 and 30% in Ukraine.
- 95% of the companies surveyed in BRIC provide additional information on board members online, compared with 61% in CEE-11, 70% in the eight CEE countries that joined the EU in 2004 and 10% in Ukraine.
The survey contains information compiled in the following groups and sub-groups:
- Current data on 110 companies in eleven CEE countries;
- Separate data on 80 companies in eight CEE countries that joined the European Union (EU) on May 1, 2004;
- Separate data on 30 companies in Bulgaria, Croatia and Romania;
- Comparisons of the data from this current survey with data from the previous 14 conducted every August and February since August 2001; and
- Separate data on 40 companies in Brazil, Russia, India and China (BRIC) as well as 10 companies in Ukraine.
To download the survey, a presentation of survey results and the company database, please click on the links below:
Thursday, May 8, 2008
PFS Program’s tenth Regional Survey – Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its tenth semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. This edition of the survey was co-financed by DWS Investments (Deutsche Bank Group). PFS Program Intern Dominik Grodzki (Poland), PFS Program Assistant Magdalena Grabowska and PFS Program Research Assistant Igor Solodovnik conducted the survey from March 1 through April 30, 2008.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the tenth time; companies in Hungary and Poland were surveyed for the ninth time; and companies in Bulgaria, Croatia and Romania were surveyed for the eighth time. Moreover, a fourth analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for ongoing benchmarking with these emerging market peers.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period March – April 2008 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is April 15, 2008.
This edition of the survey documents a generally higher level of online disclosure of corporate governance information, continuing the trend over the past five years. Slightly more information is also disclosed in the area of social policy, compared with the previous survey published in September 2007. Disclosure of information about environmental policy has increased on company websites; however, significant progress remains to be made in disclosing information on environmental policy in the annual report.
Overall, companies in BRIC outperform CEE peers in terms of the availability of English-language websites and annual reports as well as specific disclosures in all three areas. In the field of corporate governance, the most significant difference concerns disclosure of information regarding compliance with a corporate governance code and a company-specific code of business conduct/code of ethics in both the website and annual report. In general, BRIC companies also provide more information on social policy and environmental policy. Due to the lack of a number of drivers, Ukrainian companies lag behind both BRIC and CEE peers in all areas. However, the number of Ukrainian companies with English-language websites has increased steadily over the past two years.
29 of the 110 CEE companies surveyed (26%) provide a stand-alone environmental, social and governance (ESG) report online in English on the record date of April 15, 2008. This represents a significant improvement over the most recent survey and continuation of an ongoing trend: 22 of the companies surveyed (20%) published such a report in September 2007, compared with 19 companies (17%) in April 2007 and 17 companies (15%) in September 2006. A list of companies that publish a stand-alone environmental, social and governance (ESG) report online in English may be found as a separate document below.
Survey findings include the following:
• 96% of the 110 CEE companies surveyed have an English-language website on the record date of April 15, 2008, compared with 94.5 % in September 2007, 94% in April 2007, 94% in September 2006, 87% in April 2006, 89% in September 2005 and 82% in April 2005. In comparison, 100% of the BRIC companies surveyed and 70% of the Ukrainian companies surveyed have an English-language website.
• 87% of the 110 CEE companies surveyed have a 2006/2007 English-language annual report online on the record date of April 15, 2008 compared with 100% in BRIC and 30% in Ukraine.
• Nine Slovene, eight Polish, eight Hungarian, seven Estonian, four Bulgarian, four Czech, four Latvian companies, one Croatian, one Lithuanian and one Romanian company disclose information regarding compliance with a corporate governance code on the company website. Nine Slovene, eight Estonian, seven Polish, six Czech, six Lithuanian, four Croatian, four Hungarian, three Bulgarian, three Slovak, two Romanian and one Latvian company disclose this information in the annual report.
• 64% of the 110 CEE companies surveyed disclose information on employee development/benefits on their website. This result has remained constant at 64% for the past four surveys.
• 24% of the 110 CEE companies surveyed disclose information on energy and water use on their website, compared with 17% in September 2007, 17% in April 2007, 21% in September 2006, 18% in April 2006, 20% in September 2005, 20% in April 2005 and 23% in August 2004.
• 29 of the 110 CEE companies surveyed (26%) publish a stand-alone English-language ESG report as of April 15, 2008. Of the 29 reports published in CEE, 27 (93%) use recognized standards and eight (28%) include a third-party assurance statement.
• 17 of the 40 BRIC companies surveyed (42.5%) publish a stand-alone English-language ESG report. Of the 17 reports published in BRIC, 14 (82%) use recognized standards and ten (59%) provide a third-party assurance. No Ukrainian company produces such a report as of the record date of April 15, 2008.
Note: The survey consists of the three following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine. This edition of the survey includes a newly-designed and more user-friendly database which lists the companies surveyd in the first spreadsheet, entitled, „Table of Contents (LOC).”
To download the survey, the database and a separate list of companies that publish an English-language stand-alone ESG report, please click on the links below:
Tuesday, March 4, 2008
PFS Program’s 14th Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its 14th semi-annual Survey of Online Investor Relations of the Ten Largest Listed Companies (by market capitalization) in eleven Central and Eastern European (CEE) countries. PFS Program Assistant Magdalena Grabowska and PFS Program Intern Lukasz Gilewicz conducted the survey from February 1 through February 29, 2008.
In this edition of the survey, disclosure in almost all categories remains at or reaches its highest level since the first survey was conducted in August 2001. This trend has been observed since February 2006 and may be viewed as sustainable. This edition of the survey documents an ongoing increase in disclosure of detailed governance information.
90% of the companies surveyed provide a list of management online, compared with 86% in August 2007. This is the largest percentage recorded since the surveys began in 2001. 63% of the companies surveyed provide additional information about management online, compared with 59% in August 2007 and 53% in February 2007. This is also the largest percentage recorded since the surveys began in 2001.
87% of the companies surveyed provide a list of board members online and 52% provide additional information on board members. The former category increased to a new record since the first survey was conducted, from 82% in August 2007. Disclosure in the latter category also reached a new record, posting a slight increase from 51% in August 2007 and a significant increase over 40% in February 2007.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies in Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. For the fourth time, the survey also analyzes companies in BRIC (Brazil, Russia, India and China) as well as Ukraine in order to compare the online disclosure practices of CEE listed companies with peers in other emerging markets.
The survey analyzes the English-language websites and annual reports of the ten largest listed companies in the above-mentioned CEE countries in order to document the current disclosure practices of this ‘blue-chip’ peer group. Although the market capitalization of companies changes over time, the semi-annual surveys represent a snapshot of disclosure practices of the blue-chip peer group on a given day twice a year. Since the definition of the survey universe has remained the same since the first survey, the surveys provide time-series data for CEE blue-chip companies and thus enable the identification of online disclosure trends as well as best practice within the peer group.
The survey provides current data as of February 15, 2008 and comparisons with the 13 previous surveys, conducted in August 2007, February 2007, August 2006, February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
Since 2004, the survey includes recommendations on the ideal corporate website and compares CEE companies with the parameters of this ideal. This component of the survey identifies best practice and enables CEE companies to benchmark their disclosure against peers in the region, other emerging markets and industry best practice. Here also, the time-series data identifies online disclosure trends.
Survey results include the following:
Websites: In nine of the 11 CEE countries surveyed, each of the ten largest listed companies has a local-language website on February 15, 2008. In Bulgaria and Lithuania, nine of the ten companies surveyed have a local-language website. In the previous survey, 109 companies surveyed had a local-language website. One of the ten Bulgarian companies surveyed did not have a local-language website.
94.5% of the companies surveyed have an English-language website; the percentage increased from 93% in August 2007.
Information on Management: 90% of the companies surveyed provide a list of management online; 63% provide additional information on management. As noted above, in each category the results represent a new record high since the first survey was conducted in 2001.
Information on Board Members: 87% of the companies surveyed provide a list of board members online and 52% provide additional information on board members. The former category increased to a new record since the first survey was conducted, from 82% in August 2007. Disclosure in the latter category also reached a new record, posting a slight increase from 51% in August 2007 and a significant increase over 40% in February 2007.
Comparisons with BRIC and Ukraine: The largest listed companies in BRIC equal or outperform their CEE peers in every category. However, the gap continues to narrow. Furthermore, when companies in BRIC are compared with peers in the eight CEE countries that joined the EU in 2004, the difference between the peer groups is much smaller. The Ukrainian companies surveyed disclose less information than their peers in both BRIC and CEE. However, the disclosures made by the Ukrainian companies improved vis-à-vis the previous survey. Detailed comparisons include the following:
- Each of the companies surveyed in BRIC has a local language website. In nine of the 11 CEE countries surveyed, each of the companies surveyed has a local language website. In Bulgaria and Lithuania, nine of the ten companies surveyed have a local language website. In Ukraine, nine of the ten companies surveyed have a local language website.
- 100% of the companies surveyed in BRIC have an English website, compared with 94.5% in CEE-11, 99% in the eight CEE countries that joined the EU in 2004 and 70% in Ukraine.
- 100% of the companies surveyed in BRIC provide a list of management online, compared with 90% in the CEE-11 and 94% in the eight CEE countries that joined the EU in 2004. In Ukraine 30% of the companies surveyed provide a list of management online.
- 87.5% of the companies surveyed in BRIC provide additional information on management online, compared with 63% in the CEE-11, 71% in the eight CEE countries that joined the EU in 2004 and 20% in Ukraine.
- 100% of the companies surveyed in BRIC provide a list of board members online, compared with 87% in the CEE-11, 91% in the eight CEE countries that joined the EU in 2004 and 20% in Ukraine.
- 87.5% of the companies surveyed in BRIC provide additional information on board members online, compared with 52% in CEE-11, 64% in the eight CEE countries that joined the EU in 2004 and 10% in Ukraine.
The survey contains information compiled in the following groups and sub-groups:
- Current data on 110 companies in eleven CEE countries;
- Separate data on 80 companies in eight CEE countries that joined the European Union (EU) on May 1, 2004;
- Separate data on 30 companies in Bulgaria, Croatia and Romania;
- Comparisons of the data from this current survey with data from the previous 13 surveys conducted every August and February since August 2001; and
- Separate data on 50 companies in Brazil, Russia, India and China (BRIC) as well as Ukraine.
To download the survey, a presentation of survey results and the company database, please click on the links below:
Wednesday, October 17, 2007 - Thursday, October 18, 2007
Regional Workshop on Insurance Supervision
Ljubljana, Slovenia
On Wednesday, October 17 and Thursday, October 18, 2007 the Center of Excellence in Finance (CEF) and the PFS Program held a second annual Regional Workshop on Insurance Supervision at the CEF in Ljubljana, Slovenia. The title of the interdisciplinary workshop was: Regional Workshop on Insurance Supervision: Financial Crime Utilizing the Insurance Industry and Insurance Products - Practical Experiences in the European Union (EU), South East Europe (SEE) and the United States of America (US).
This event was a follow-up to an inaugural Regional Workshop organized by the CEF and the PFS Program in October 2006. Through this now ongoing regional initiative, both co-sponsors and all participating institutions aim to raise consciousness about these issues and share practical experiences through the presentation of case studies. Both the PFS Program and the CEF emphasize peer based learning in their respective training programs.
At the outset of the Workshop, each of the participants introduced her/himself and provided information about her/his respective institution that was requested in a questionnaire distributed beforehand. 12 persons representing the following institutions participated in the Workshop: Financial Supervisory Authority - Albania; Insurance Agency of Bosnia and Herzegovina; Insurance Agency of Republika Srpska, Bosnia and Herzegovina; Center for Combating Economic Crimes – Moldova; National Commission for Financial Market – Moldova; Insurance Supervisory Commission - Romania; National Office for Prevention of Money Laundering – Romania; National Bank of Serbia; Commission for the Prevention of Corruption – Slovenia; and Office for the Prevention of Money Laundering – Slovenia.
Boris Persak, Zavarovalnica Maribor d.d., provided insights into how criminal organizations used staged accidents to defraud insurance companies. Pawel Dudzicz, Polish Financial Supervision Authority, shared the Polish experience in regulating and supervising the activities of an insurance company acting in a manner contrary to policies and procedures. The PFS Program presented a case of a Swedish insurer whose corporate governance system collapsed, thereby allowing excessive and unauthorized executive compensation. Cindy Schmell, Iowa Insurance Division, presented cases from the US and practical strategies for the analysis, investigation and prosecution of insurance fraud. J. Joseph Cohen, United States Department of Treasury, Office of Technical Assistance, presented a number of Financial Action Task Force (FATF) typologies and case studies, related to insurance fraud and the use of insurance to launder money.
The Workshop was successful, both conceptually and practically. Each participant found numerous opportunities to ask questions, answer questions posed by the speakers and comment on the current situation in her/his country. During each session, speakers and participants engaged in discussions regarding the specific cases as well as practical strategies for investigating fraud and money laundering.
The PFS Program appreciates the contribution of speakers from Poland, Slovenia and the US to this Workshop, part of an ongoing PFS Program regional initiative in the area of financial crime, insurance supervision and prevention of money laundering. The current mandate of the PFS Program is to engage financial sector institutions in SEE target countries in programs that help promote the identification of best practice and the adoption of international standards. Within this mandate, one important element of each PFS Program activity is the exchange of experience of the new member states of the EU with EU accession countries in SEE.
To download the Workshop agenda, a brief biography of each speaker, the presentations, the questionnaire sent to participants prior to the Workshop and the list of participants, please click on the links below:
Tuesday, October 9, 2007
PFS Program’s ninth Regional Survey – Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its ninth semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. This edition of the survey was co-financed by DWS Investments (Deutsche Bank Group). PFS Program Interns Martin Masse (Canada), Ivan Sentevski (Serbia) and Emilia Swiatczak (Poland) as well as PFS Program Assistant Magdalena Grabowska conducted the survey from August through October 2007. Additional co-financing for the Canadian intern was provided by MBAs Without Borders, whose mission is to contribute to the business and social development of transition economies through work rotations of MBA professionals.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the ninth time; companies in Hungary and Poland were surveyed for the eighth time; and companies in Bulgaria, Croatia and Romania were surveyed for the seventh time. Moreover, a third-time analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for benchmarking with these emerging market peers for the third time.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period August - September 2007 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is September 15, 2007.
This edition of the survey documents a generally higher level of online disclosure of corporate governance information, continuing the trend over the past four years. Slightly more information is also disclosed in the area of social policy, compared with the previous survey published in May 2007. Significant progress remains to be made in disclosing information on environmental policy.
Overall, companies in BRIC outperform CEE peers in terms of the availability of English-language websites and annual reports as well as specific disclosures in all three areas. With regards to corporate governance, the most significant difference concerns compliance with a corporate governance code and disclosure of a code of business conduct/code of ethics in both the website and annual report. In general, BRIC companies also provide more information on social policy and environmental policy. Due to the lack of a number of drivers, Ukrainian companies lag behind both BRIC and CEE peers in all areas
22 of the 110 CEE companies surveyed (20%) provide a stand-alone environmental, social and governance (ESG) report online in English on the record date of September 15, 2007. This demonstrates continuation of an ongoing trend: 19 of the 110 companies surveyed (17%) published such a report in April 2007, compared with 17 companies (15%) in September 2006.
Survey findings include the following:
• 94.5% of the 110 CEE companies surveyed have an English-language website on the record date of September 15, 2007, compared with 94% in April 2007, 94% in September 2006, 87% in April 2006, 89% in September 2005 and 82% in April 2005. In comparison, 97.5% of the BRIC companies surveyed and 60% of the Ukrainian companies surveyed have an English-language website.
• 82% of the 110 CEE companies surveyed have a 2006 English-language annual report online on the same record date of September 15, 2007 compared with 90% in BRIC and 20% in Ukraine.
• Nine Polish, eight Slovene, six Hungarian, five Estonian, four Czech and four Latvian companies disclose information regarding compliance with a corporate governance code on the company website. Eight Polish, eight Slovene, seven Lithuanian, six Estonian, five Czech and four Hungarian companies disclose this information in the annual report.
• 33% of the 110 CEE companies surveyed disclose information on environmental performance on their website, compared with 20% in April 2007, 28% in September 2006, 19% in April 2006, 29% in September 2005, 26% in April 2005 and 24% in August 2004.
• 53% of the 110 CEE companies surveyed disclose information on sponsorships on their website, compared with 44% in April 2007, 44% in September 2006, 37% in April 2006, 47% in September 2005, 37% in April 2005 and 33% in August 2004.
• 22 of the 110 CEE companies surveyed (20%) publish a stand-alone English-language ESG report as of September 15, 2007. Of the 22 reports published in CEE, 20 (91%) use recognized standards and seven (32%) provide a third-party assurance statement.
• 15 of the 40 BRIC companies surveyed (38%) publish a stand-alone English-language ESG report. Of the 15 reports published in BRIC, 14 (93%) use recognized standards and nine (60) % provide a third-party assurance. No Ukrainian company produces such a report as of the record date of September 15, 2007.
Note: The survey consists of the three following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine.
To download the survey and the two company databases, please click on the links below:
Tuesday, September 4, 2007
PFS Program’s 13th Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its 13th semi-annual Survey of Online Investor Relations of the Ten Largest Listed Companies (by market capitalization) in eleven Central and Eastern European (CEE) countries. PFS Program Assistant Magdalena Grabowska and PFS Program Intern Dagmara Lubczynska conducted the survey from July 2 through September 3, 2007.
In this edition of the survey, disclosure in almost all categories remains at or reaches its highest level since the first survey was conducted in August 2001. This trend has been observed since February 2006 and may be viewed as sustainable. In particular, this edition of the survey documents a dramatic increase in disclosure of detailed governance information. 59% of the companies surveyed provide additional information about management online, compared with 53% in February 2007 and 45% in August 2006. This is the largest percentage recorded since the surveys began in 2001. Furthermore, 51% of the companies surveyed provide additional information about board members online. This is also the largest percentage recorded since the first survey and represents a significant increase over previous surveys: 40% in February 2007 and 37% in August 2006.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies in Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. For the third time, the survey also analyzes companies in BRIC (Brazil, Russia, India and China) as well as Ukraine in order to compare the online disclosure practices of CEE listed companies with peers in other emerging markets.
The survey analyzes the English-language websites and annual reports of the ten largest listed companies in the above-mentioned CEE countries in order to document the current disclosure practices of this ‘blue-chip’ peer group. Although the market capitalization of companies changes over time, the semi-annual surveys represent a snapshot of disclosure practices of the blue-chip peer group on a given day twice a year. Since the definition of the survey universe has remained the same since the first survey, the surveys provide time-series data for CEE blue-chip companies and thus enable the identification of online disclosure trends as well as best practice within the peer group.
The survey provides current data as of August 15, 2007 and comparisons with the 12 previous surveys, conducted in February 2007, August 2006, February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
Since 2004, the survey includes recommendations on the ideal corporate website and compares CEE companies with the parameters of this ideal. This component of the survey identifies best practice and enables CEE companies to benchmark their disclosure against peers in the region, other emerging markets and industry best practice. Here also, the time-series data identifies online disclosure trends.
Survey results include the following:
Websites: In ten of the 11 CEE countries surveyed, each of the ten largest listed companies has a local-language website on August 15, 2007. In Bulgaria, nine of the ten companies surveyed have a local-language website. In the previous two surveys, each of the 110 CEE companies surveyed had a local-language website on the record date. 93% of the companies surveyed have an English-language website; the percentage has remained constant for the past 18 months.
Information on Management: 86% of the companies surveyed provide a list of management online; 59% provide additional information on management. Disclosure in the former category increased slightly (4%) since the last survey whereas the latter represents a record high since the first survey was conducted and a significant increase vis-à-vis February 2007 (53%) and August 2006 (45%).
Information on Board Members: 82% of the companies surveyed provide a list of board members online and 51% provide additional information on board members. The former category increased to a slightly higher new record since the first survey was conducted, from 81% in February 2007. Disclosure in the latter category also represents a new record high and a significant increase from 40% in February 2007, 36% in August 2006 and 41% in February 2006.
Comparisons with BRIC and Ukraine: The largest listed companies in BRIC equal or outperform their CEE peers in every category. However, the gap continues to narrow. Furthermore, when companies in BRIC are compared with peers in the eight CEE countries that joined the EU in 2004, the difference between the peer groups is much smaller. The Ukrainian companies surveyed disclose less information than their peers in both BRIC and CEE. Detailed comparisons include the following:
- Each of the companies surveyed in BRIC has a local language website. In ten of the 11 CEE countries surveyed, each of the companies surveyed has a local language website. In Bulgaria, nine of the ten companies surveyed have a local language website. In Ukraine, seven of the ten companies surveyed have a local language website.
- 98% of the companies surveyed in BRIC have an English website, compared with 93% in CEE-11, 99% in the eight CEE countries that joined the EU in 2004 and 60% in Ukraine.
- 95% of the companies surveyed in BRIC provide a list of management online, compared with 86% in the CEE-11 and 92% in the eight CEE countries that joined the EU in 2004. In Ukraine 40% of the companies surveyed provide a list of management online.
- 90% of the companies surveyed in BRIC provide additional information on management online, compared with 59% in the CEE-11, 71% in the eight CEE countries that joined the EU in 2004 and 30% in Ukraine.
- 95% of the companies surveyed in BRIC provide a list of board members online, compared with 82% in the CEE-11, 87% in the eight CEE countries that joined the EU in 2004 and 30% in Ukraine.
- 93% of the companies surveyed in BRIC provide additional information on board members online, compared with 51% in CEE-11, 64% in the eight CEE countries that joined the EU in 2004 and 20% in Ukraine.
The survey contains information compiled in the following groups and sub-groups:
- Current data on 110 companies in eleven CEE countries;
- Separate data on 80 companies in eight CEE countries that joined the European Union (EU) on May 1, 2004;
- Separate data on 30 companies in Bulgaria, Croatia and Romania;
- Comparisons of the data from this current survey with data from the previous 12 conducted every August and February since August 2001; and
- Separate data on 50 companies in Brazil, Russia, India and China (BRIC) as well as Ukraine.
To download the survey, a presentation of survey results and the company database, please click on the links below:
Monday, May 7, 2007
PFS Program’s eighth Regional Survey – Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its eighth semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. This edition of the survey was co-financed by DWS Investments (Deutsche Bank Group). PFS Program Interns Magdalena Grabowska and Wojciech Stec as well as PFS Program Research Assistant Igor Solodovnik conducted the survey from March through May 2007.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the eighth time; companies in Hungary and Poland were surveyed for the seventh time; and companies in Bulgaria, Croatia and Romania were surveyed for the sixth time. Moreover, a second-time analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for benchmarking with these emerging market peers for the second time.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period March – April 2007 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is April 15, 2007.
In Czech Republic, Estonia, Hungary, Latvia, Lithuania and Poland all 10 of the companies surveyed in each country have an English-language website. 94% of the 110 CEE companies surveyed have an English-language website. 85% of the 110 CEE companies surveyed have either a 2004, 2005 or 2006 English-language annual report online by April 15, 2007. (Comparison of disclosures in annual reports is not as relevant in the spring edition of this semi-annual survey, since as of April 15 many companies have not yet published their 2005 annual report online.) In general, companies in Czech Republic, Hungary, Poland and Slovenia disclose the most information online.
This eighth semi-annual regional survey demonstrates a generally similar level of disclosure on company websites to that observed during the past four years across all three information categories analyzed: corporate governance, environmental policy and social policy. In general, companies provide more information on corporate governance than on environmental or social policy. Also, corporate governance codes continue to significantly impact reporting on corporate governance issues in certain countries. Several companies now issue separate/stand-alone reports on environmental, social and/or governance (ESG) issues. Of the 110 CEE companies surveyed, 19 (17%) have an English-language ESG report available online on April 15, 2007. This represents a significant increase (21%) since September 2006, when only 15% of the companies surveyed published such a report. In comparison, five Chinese, four Russian, four Brazilian and two Indian companies have English-language ESG reports available online.
Survey findings include the following:
• 94% of the CEE companies surveyed have an English-language website on the record date of April 15, 2007 compared with 94% in September 2006, 87% in April 2006, 89% in September 2005 and 81% in April 2005. In contrast, 100% of the surveyed companies in BRIC and 60% of the Ukrainian companies surveyed have an English-language website.
• Nine Polish, seven Czech and seven Slovene companies disclose implementation of a corporate governance code in their annual report.
• 69% of the CEE companies surveyed disclose information on their governance structure in the company's annual report, compared with 75% in September 2006, 62% in April 2006 and 68% in September 2005. 88% of the BRIC companies surveyed and 20% of the Ukrainian companies surveyed provide this information.
• 65% of the CEE companies surveyed disclose employee benefits or development policies in the (2004, 2005 or 2006) annual report currently available online, compared with 64% in September 2006, 42% in April 2006, 48% in September 2005, 37% in April 2005 and 42% in August 2004.
• 49% of the CEE companies surveyed disclose information on compliance with environmental standards on their website, compared with 45% in September 2006, 37% in April 2006, 48% in September 2005, 41% in April 2005 and 37% in August 2004.
• 26% of the CEE companies surveyed report on supply chain management on their website; this is the highest percentage recorded since the first survey conducted in summer 2003. In September 2006, only 10% of the companies surveyed provided this information online.
Note: The survey consists of the three following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine.
To download the survey and the two company databases, please click on the links below:
Tuesday, April 24, 2007 - Wednesday, April 25, 2007
Regional Workshop on Information Technology (IT) Audit in Central Banks: Best Practice and International Standards
Ljubljana, Slovenia
On Tuesday, April 24 and Wednesday, April 25, 2007 the Center of Excellence in Finance (CEF) and the PFS Program held an inaugural Regional Workshop on Information Technology (IT) Audit of Central Banks at the CEF in Ljubljana, Slovenia.
This Regional Workshop is part of an ongoing PFS Program initiative to improve internal audit capacity in central banks, financial sector regulatory authorities and other public sector institutions.
IT auditors from the following institutions presented their respective IT audit operations, policies and practices during the Workshop: National Bank of Poland; Bank of Slovenia; and Federal Reserve Bank of Philadelphia. In addition, the General Secretary of XBRL Polska delivered a presentation entitled, “Impact of XBRL Implementation on Internal Processes.”
A total of 14 IT auditors and specialist from the following 11 institutions participated in the Regional Workshop: Bank of Albania; Bulgarian National Bank; Croatian National Bank; Ministry of Economy and Finance of Kosovo; Office of Auditor General of Kosovo; Bank of Latvia; Bank of Lithuania; National Bank of Moldova; Central Bank of Montenegro; National Bank of Romania and National Bank of Serbia.
Both the CEF and the PFS Program emphasize peer based learning in their respective training programs. During the Workshop participants and speakers analyzed case studies based on real audits conducted; debated strategies for developing audit plans and policies; and exchanged experiences related to the implementation of international standards and best practices in their respective institutions.
To download the Workshop agenda, presentations, speaker biographies, the questionnaire sent to participants prior to the Workshop and the list of participants, please click on the links below:
Monday, March 5, 2007
PFS Program’s 12th Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its 12th semi-annual Survey of Online Investor Relations of the Ten Largest Listed Companies (by market capitalization) in eleven Central and Eastern European (CEE) countries. PFS Program Manager Agnieszka Cenzartowicz, PFS Program Research Assistant Igor Solodovnik and Catherine Sykes, East-West Management Institute (EWMI) New York conducted the survey from January 2 through March 2, 2007.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies in Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. For the second time, the survey provides comparisons with BRIC (Brazil, Russia, India and China) and Ukraine in order to compare online disclosure practices with peers in other emerging markets.
This survey analyzes the English-language websites and annual reports of the 10 largest listed companies in the aforementioned CEE countries in order to document the current disclosure practices of this ‘blue-chip’ peer group. Although the market capitalization of companies changes over time, these semi-annual surveys represent a snapshot of disclosure practices of the blue-chip peer group on a given day twice a year. Since the definition of the survey universe has remained the same since the first survey, the surveys provide time-series data for CEE blue-chip companies and thus enable the identification of online disclosure trends.
The survey provides current data as of February 15, 2007 and comparisons with the 11 previous surveys, published in August 2006, February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
In this survey, disclosure in almost all categories remained at or reached its highest level since the first survey was conducted in August 2001. This trend has been observed since February 2006 and may be viewed as sustainable. As of February 15, 2007 all companies surveyed in all 11 countries have a local language website. A large majority have an English-language website: including all 10 companies in surveyed in Czech Republic, Estonia, Hungary Latvia, Lithuania, and Poland. However, while basic information about management and boards is now generally available online, detailed information is still lacking in many markets.
Beginning in 2004, the survey includes recommendations on the ideal corporate website and compares CEE companies to this ideal. This component of the survey is designed to help identify best practice and enables CEE companies to benchmark their disclosure against peers in the region against other emerging markets and against industry best practice according to standardized parameters. Here also, the time-series data permits identification of trends.
Survey results include the following:
• Websites: Each of the 110 CEE companies surveyed has a local-language website. This is the third consecutive time since the first survey was conducted in August 2001 that each CEE company surveyed has a local-language website. 94% of the companies surveyed have an English-language website; the percentage has remained constant for the past 18 months.
• Information on Management: 82% of the companies surveyed provide a list of management online; 53% provide additional information on management. The former category decreased slightly (5%) whereas the later increased significantly (15%) vis-à-vis August 2006.
• Information on Board Members: 81% of the companies surveyed provide a list of board members online, whereas 40% provide additional information on their board members. The former category remained at the highest level reported since the first survey and the latter increased 7.5% to a level comparable to the highest level reported (41% in February 2006).
• Comparisons with BRIC and Ukraine: On average, the largest listed companies in the BRIC countries equal or outperform their CEE peers in every category. However, in several categories the difference is minimal. In Ukraine, in contrast, the companies surveyed disclose less information in English than their peers in both BRIC and CEE.
The PFS Program surveys analyze the websites of the ten largest listed companies in the above-mentioned eleven CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the ongoing surveys represent a snapshot of this peer group’s disclosure practices on a given day twice a year and thereby provide insights into blue-chip companies’ corporate governance and investor relations practices. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
Comparative survey findings include the following:
• Each of the 40 companies surveyed in BRIC and each of the 110 CEE companies has a local-language website. In Ukraine, seven out of ten companies have a local-language website.
• 100% of the 40 companies surveyed in BRIC, 94% of the 110 CEE companies surveyed and 50% of the companies surveyed in Ukraine have an English-language website.
• 95% of the 40 companies surveyed in BRIC, 82% of the 110 CEE companies surveyed and 40% of the companies surveyed in Ukraine provide a list of management online.
• 78% of the 40 companies surveyed in BRIC, 53% of the 110 CEE companies surveyed and 30% of the companies surveyed in Ukraine provide additional information on management online.
• 92% of the 40 companies surveyed in BRIC, 81% of the 110 CEE companies surveyed and 20% of the companies surveyed in Ukraine provide a list of board members online.
• 70% of the 40 companies surveyed in BRIC, 40% of the 110 CEE companies surveyed and 20% of the companies surveyed in Ukraine provide additional information on board members online.
This survey presents data aggregated in the following groupings to enable different types of comparison:
• Combined data on the 10 largest-listed companies in each of the 11 CEE countries;
• Separate data on the eight new member states of the EU admitted on May 1, 2004;
• Separate data on Bulgaria, Croatia and Romania;
• Comparisons of the data from the current survey with data from the previous 11 surveys conducted since August 2001; and
• Separate data on Brazil, Russia India, China (BRIC) and Ukraine.
To download the survey, a presentation of survey results and the two company databases, please click on the links below:
Wednesday, October 25, 2006 - Thursday, October 26, 2006
Regional Workshop on Insurance Supervision
Ljubljana, Slovenia
On Wednesday, October 25 and Thursday, October 26, 2006 the Center of Excellence in Finance (CEF) and the PFS Program held a Workshop on Insurance Supervision at the CEF in Ljubljana, Slovenia. The title of the interdisciplinary workshop was: Regional Workshop on Insurance Supervision: Financial Crime Utilizing the Insurance Industry and Insurance Products - Practical Experiences in the European Union (EU), Israel, South East Europe (SEE) and the United States of America (USA).
Experts with a variety of specialized expertise from the following institutions presented information about the regulatory environment and/or specific case studies related to insurance fraud: Ministry of Finance (Israel); De Nederlandsche Bank (The Netherlands); Insurance Supervision Agency (Slovenia); Office for the Prevention of Money Laundering, Ministry of Finance (Slovenia); and National Association of Insurance Commissioners (USA). An invited speaker from the United Kingdom was unable to attend the Workshop; however she sent a synopsis of her case study. An invited speaker from Poland was also unable to attend the Workshop; in order to compensate the PFS Program prepared some statistics about financial crime in Poland.
17 participants representing the following institutions participated in the seminar: Insurance Supervision Agency – Bosnia and Herzegovina; Administration for the Prevention of Money Laundering – Montenegro; Insurance Supervisory Commission - Romania; Ministry of Public Finance – Romania; National Office for Prevention of Money Laundering – Romania; Administration for the Prevention of Money Laundering – Serbia; Office for the Prevention of Money Laundering – Slovenia; and Tax Administration – Slovenia.
This Regional Workshop on insurance fraud and financial crime utilizing the insurance industry was the first event of its kind organized by the CEF and the PFS Program. Through it, both co-sponsors and all participating institutions aimed to raise consciousness about these issues and share practical experiences through the presentation of case studies. The workshop provided an excellent opportunity for speakers and participants to: analyze case studies based on real situations; identify international standards in this field; exchange/share experiences with colleagues; and discuss strategies for implementing best practices. Both the CEF and the PFS Program emphasize peer based learning in their respective training programs.
To download the Workshop agenda, a brief biography of each speaker, the presentations, the questionnaire sent to participants prior to the Workshop and the list of participants, please click on the links below:
| Agenda - Regional Workshop - Insurance Supervision - CEF - PFS Program - October 25-26, 2006.pdf - 14 KB |
| Brief Bio - Jernej Merhar - October 2006.pdf - 12 KB |
| Presentation - Insurance Supervision Agency - Slovenia - October 25, 2006.pdf - 72 KB |
| Brief Bio - Andrej Plausteiner - October 2006.pdf - 12 KB |
| Presentation - Agency for ML Prevention - Slovenia - October 25, 2006.pdf - 147 KB |
| Brief Bio - Veronique Hijl - October 2006.pdf - 11 KB |
| Presentation - De Nederlandsche Bank - The Netherlands - October 25, 2006.pdf - 1,720 KB |
| Brief Bio - Teddy Lin - October 2006.pdf - 12 KB |
| Presentation - Ministry of Finance - Israel - October 26, 2006.pdf - 67 KB |
| Brief Bio - Alan Haskins - October 2006.pdf - 14 KB |
| Presentation - NAIC - USA - October 26, 2006.pdf - 590 KB |
| Synopsis - Royal&SunAlliance Insurance - October 25, 2006.pdf - 13 KB |
| Presentation - PFS Program - October 25-26, 2006.pdf - 57 KB |
| Questionnaire - Workshop on Insurance Supervision - October 25-26, 2006.pdf - 11 KB |
| List of Participants - Insurance Supervision Workshop - October 25-26, 2006.pdf - 51 KB |
Thursday, October 12, 2006
Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven Central and Eastern European (CEE) Countries; First-Time Comparison with Peers in BRIC and Ukraine
Today, the Partners for Financial Stability (PFS) Program publishes its seventh semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. This edition of the survey was co-financed by DWS Investments (Deutsche Bank Group). DWS Investments provided funding for PFS Program interns Dana Krechowicz (Canada) and Plamena Spassova (Bulgaria), who conducted the survey together with PFS Program Research Assistant Michal Slawinski from August 14 through September 30, 2006. Additional co-financing for the Canadian intern was provided by MBAs Without Borders.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the seventh time; companies in Hungary and Poland were surveyed for the sixth time; and companies in Bulgaria, Croatia and Romania were surveyed for the fifth time. Moreover, an inaugural analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for benchmarking with these emerging market peers for the first time.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period August – September 2006 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is September 15, 2006.
In Croatia, Czech Republic, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia all 10 of the companies surveyed in each country have an English-language website. 94% of the 110 CEE companies surveyed have an English-language website. 71% of the 100 CEE companies surveyed had released their 2005 annual report online by September 15, 2006. In general, companies in Czech Republic, Hungary, Poland and Slovenia disclose the most information online.
This seventh semi-annual regional survey demonstrates a generally similar level of disclosure on company websites to that observed during the past three years across all three information categories analyzed: corporate governance, environmental policy and social policy. In general, companies provide more information on corporate governance than on environmental or social policy. Also, corporate governance codes continue to significantly impact reporting on corporate governance issues in certain countries. Several companies now issue separate/stand-alone reports on environmental, social and/or governance (ESG) issues. Of the 110 CEE companies surveyed, 14 (13%) have English-language ESG reports available online on September 15, 2006. Five companies (4.5%) produce the report in accordance with recognized standards, such as Global Reporting Initiative (GRI) guidelines. Five Brazilian companies, four Russian companies, two Indian companies and two Chinese companies have English-language ESG reports available online. In comparison, a July 2006 research survey conducted by Social Investment Research Analysts Network noted that 34 S&P 100 companies (34%) produce an ESG report in compliance with GRI guidelines.
Survey findings include the following:
• 94% of the CEE companies surveyed have an English-language website on the record date of September 15, 2006 compared with 87% in April 2006, 89% in September 2005 and 81% in April 2005. In contrast, 100% of the surveyed companies in BRIC and 50% of the Ukrainian companies surveyed have an English-language website.
• 71% of the CEE companies surveyed have an English-language 2005 annual report available online on the record date of September 15, 2006 compared with 78% on September 15, 2005 and 65% on August 15, 2004.
• Nine Slovene, eight Polish, six Czech and six Hungarian companies disclose implementation of a corporate governance code in their annual report.
• 75% of the CEE companies surveyed disclose information on their governance structure in the company's annual report, compared with 62% in April 2006 and 68% in September 2005. 45% of the BRIC companies surveyed and 20% of the Ukrainian companies surveyed provide this information.
• 64% of the CEE companies surveyed disclose employee benefits or development policies in the (2003, 2004 or 2005) annual report currently available online, compared with 42% in April 2006, 48% in September 2005, 37% in April 2005 and 42% in August 2004
• 45% of the CEE companies surveyed disclose information on compliance with environmental standards on their website, compared with 37% in April 2006, 48% in September 2005, 41% in April 2005 and 37% in August 2004.
• 25% of the CEE companies surveyed report on environmental performance in their annual report, compared with 48% of the BRIC companies surveyed.
Note: The survey consists of the following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine.
To download the survey and the background databases, please click on the links below:
Friday, September 8, 2006
PFS Program’s Eleventh Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its eleventh semi-annual survey of online investor relations of the ten largest listed companies (by market capitalization) in eleven Central and Eastern European (CEE) countries. PFS Program Interns Harald Lang and Sergei Leonov as well as PFS Program Research Assistant Michal Slawinski conducted the survey from June through August 2006.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies (by market capitalization) in Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia for the tenth time and in Bulgaria, Croatia and Romania for the fifth time. The survey provides current data as of August 15, 2006 and comparisons with the ten previous surveys, published in February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001. Moreover, the survey includes for the first time an analysis of the websites of the ten largest listed companies (by market capitalization) in the BRIC countries (Brazil, Russia, India and China) as well as Ukraine.
Overall, online disclosure by CEE listed companies increased since the last survey. In all categories surveyed but two, disclosure remained at or reached the highest level recorded since the survey was first conducted in August 2001. This suggests that the high levels of disclosure in most categories are sustainable. Only in two categories were declines observed; however, one of these was insignificant (1%). Improvement remains to be made in online disclosure of additional information about management and board members.
Survey results include the following:
• All of the CEE companies surveyed have a local-language website. This is the second consecutive time since the first survey was conducted in August 2001 that all CEE companies surveyed have a local-language website.
• 93% of the CEE companies surveyed have an English website compared with 94% in February 2006.
• 86% of the CEE companies surveyed provide a list of management online; this is the highest percentage recorded since the first survey. 81% of companies provided this information in February 2006 compared with 78% in August 2005. 45% of companies provide additional information on management online, the same percentage as in February 2006.
• 81% of the CEE companies surveyed provide a list of board members online; this is also the highest percentage recorded since the first survey. 75% of companies provided this information in February 2006 compared with 69% in August 2005. 37% of companies provide additional information on board members online, compared with 41% in February 2006 and 29% in August 2005.
• Not surprisingly, when analyzed separately the eight new Member States of the European Union outperform the eleven CEE countries (eight new EU Member States plus Bulgaria, Croatia and Romania) in all categories surveyed. Nevertheless, online disclosure also improved in Bulgaria, Croatia and Romania since the last survey.
The PFS Program surveys analyze the websites of the ten largest listed companies in the above-mentioned eleven CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the ongoing surveys represent a snapshot of this peer group’s disclosure practices on a given day twice a year and thereby provide insights into blue-chip companies’ corporate governance and investor relations practices. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This first-time survey of the largest listed companies in BRIC and Ukraine also allows the CEE companies to benchmark against peers in other emerging markets. On average, the largest listed companies in the BRIC countries equal or outperform their CEE peers in every category, although in several categories the difference is minimal. Comparative survey findings include the following:
• All of the companies surveyed in BRIC and in the eleven CEE countries have a local-language website, whereas in Ukraine nine out of ten companies have a local-language website.
• 100% of the companies surveyed in BRIC, 93% of the companies surveyed in the eleven CEE countries and 40% of the companies surveyed in Ukraine have an English-language website.
• 87% of companies surveyed in BRIC, 86% of the companies surveyed in the eleven CEE countries and 30% of the companies surveyed in Ukraine provide a list of management online.
• 73% of the companies surveyed in BRIC, 46% of the companies surveyed in the eleven CEE countries and 10% of the companies surveyed in Ukraine provide additional information on management online.
• 90% of the companies surveyed in BRIC, 81% of the companies surveyed in the eleven CEE countries and 20% of the companies surveyed in Ukraine provide a list of board members online.
• 60% of the companies surveyed in BRIC, 37% of the companies surveyed in the eleven CEE countries and 10% of the companies surveyed in Ukraine provide additional information on board members online.
Note: The survey, consisting of databases of results by company and a presentation of the results by country, contains the following information: current data as of August 15, 2006 on companies in all eleven CEE countries; comparisons of the data from August 2006 with data from the ten previous surveys conducted in February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001; and separate data as of August 15, 2006 on companies in BRIC and Ukraine.
To download the survey and the background databases, please click on the links below:
Friday, May 5, 2006
PFS Program’s Sixth Semi-Annual Regional Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its sixth semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the sixth time; companies in Hungary and Poland were surveyed for the fifth time; and companies in Bulgaria, Croatia and Romania were surveyed for the fourth time.
Moreover, an analysis of CSR disclosures by the ten largest listed companies (by market capitalization) in Portugal and Spain is included in the survey for the first time.
PFS Program interns Pawel Dziedzic, Ewa Haratym, Anita Keringer and Anna Pogorzelska conducted the survey from March 1 through May 4, 2006.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period March – April 2005 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is April 15, 2006.
In the Czech Republic, Latvia, Poland and Slovenia all 10 of the companies surveyed have an English-language website. In Hungary and Lithuania, nine of the 10 companies have an English-language website. In general, companies in Czech Republic, Hungary, Poland and Slovenia disclose the most information online.
This sixth semi-annual survey notes a generally similar level of disclosure on company websites to that observed during the past three years across all three information categories analyzed – corporate governance, environmental policy and social policy. In general, companies provide more information on corporate governance than on environmental policy or social policy. Also, corporate governance codes continue to significantly impact reporting on corporate governance issues in certain countries. One trend can be observed. Several companies now issue separate/stand-alone reports on environmental, social and/or governance (ESG) issues. Of the 110 CEE companies surveyed, 15 have English-language ESG reports available on their websites as of April 15, 2006. In contrast, eight Spanish companies and seven Portuguese companies have ESG reports.
Survey findings include the following:
• 87% of the companies surveyed have an English-language website, compared with 89% in September 2005, 83% in April 2005 and 84% in August 2004.
• 69% of the companies surveyed disclose information about their governance structure on their website, compared with 79% in September 2005, 71% in April 2005 and 69% in August 2004).
• Seven Slovene companies disclose implementation of a corporate governance code in the annual report, compared with one in April 2005. Six Czech companies, six Polish companies and five Hungarian companies now disclose implementation of a corporate governance code in the annual report.
• Nine Polish companies, six Hungarian companies, four Czech companies and four Slovene companies report on implementation of a corporate governance code on the company website.
• 28 companies (25%) now disclose compliance with a corporate governance code on their website, compared with 20 companies (18%) in September 2005 and 19 companies (17%) in April 2005.
• 37% of the companies surveyed mention compliance with environmental standards on their website, compared with 48% in September 2005, 41% in April 2005 and 37% in August 2004.
• 37% of the companies surveyed disclose community, patronage and/or sponsorship programs in the (2003, 2004 or 2005) annual reports currently available online, compared with 36% in September 2005, 28% in April 2005 and 30% in August 2004.
• 37% of the companies surveyed disclose community, patronage and/or sponsorship programs on their website, compared with 47% in September 2005, 37% in April 2005 and 32% in August 2004.
Comparisons of disclosures in annual reports is not as relevant in the spring edition of the semi-annual survey, since as of April 15, 2006 many companies have not yet published their 2005 annual report online. However, it should be noted that Estonia is the clear exception in the region. By April 15, 2006 nine of the 10 Estonian companies surveyed had published an English-language version of their annual report online. However, it should be noted that in many cases the annual report is only available on the website of the Tallinn Stock Exchange. Nevertheless, in each of the five previous surveys, all 10 Estonian companies provided electronic versions of their annual report online and in this survey nine of the 10 Estonian companies did so. This was not the case in any of the other 10 countries.
The PFS Program’s seventh regional survey, to be conducted in September 2006, will compare in greater detail disclosure in annual reports with disclosures made in September 2005. It will also continue analyze reporting on company websites and compare the results with the previous surveys. For the second time, the survey will track the number of CEE countries that publish stand-alone ESG reports in English.
The September 2006 edition of the survey will include a first-time comparison with the largest listed companies in the BRIC countries – Brazil, Russia, India and China – with the aim of comparing CEE listed companies’ reporting with that of peers in other emerging markets.
Note: The survey consists of the following documents: a presentation of data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in Portugal and Spain.
To download the survey and the background databases, please click on the links below:
Wednesday, April 5, 2006 - Thursday, April 6, 2006
Workshop on Internal Audit in Central Banks
Ljubljana, Slovenia
On Wednesday, April 5 and Thursday, April 6, 2006 the Center of Excellence in Finance (CEF) and the PFS Program held a second annual Workshop on Internal Audit of Central Banks at the CEF in Ljubljana, Slovenia.
Internal auditors from the following institutions presented their respective internal audit operations, policies and practices: Bank of Slovenia; Estonian Financial Supervision Authority; Federal Reserve Bank of Philadelphia; Financial Services Authority of the United Kingdom; and National Bank of Poland. In addition, a sixth speaker spoke on broader issues related to accounting standards, audit standards and the change in paradigm for internal audit and financial sector supervision due to Basle II, Solvency 2 and other elements of risk-based supervision.
11 internal auditors representing the following seven institutions participated in the seminar: Bank of Albania; Bank of Slovenia; Ministry of Labor and Social Solidarity of Romania; National Bank of Macedonia; National Bank of Romania; National Bank of Serbia; and the Office of the Auditor General of Kosovo .
The workshop provided an excellent opportunity for internal auditors from the above-mentioned countries/institutions to: analyze case studies based on real situations; identify international standards in public sector audit; exchange/share experiences with colleagues and discuss strategies for implementing best practices. Both the CEF and the PFS Program emphasize peer based learning in their respective training programs.
This workshop is part of an ongoing PFS Program initiative to improve internal audit capacity in central banks, financial sector regulatory authorities and other public sector institutions.
To download the workshop agenda, presentations, speaker CVs the questionnaire sent to participants prior to the seminar and the list of participants, please click on the links below:
Thursday, March 2, 2006
PFS Program’s Tenth Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its tenth semi-annual survey of online investor relations of the ten largest listed companies (by market capitalization) in eleven Central and Eastern European (CEE) countries. PFS Program intern Pawel Dziedzic conducted the survey in February 2006.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies (by market capitalization) in Czech Republic Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia for the tenth time and in Bulgaria, Croatia and Romania for the fourth time. The survey provides current data as of February 15, 2006 and comparisons with the nine previous surveys, published in August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001. Moreover, the survey includes for the first time an analysis of the websites of the ten largest listed companies (by market capitalization) in Portugal and Spain.
The survey demonstrates that online disclosure by CEE listed companies has improved since the last survey, conducted in August 2005. In particular, the number of companies with local-language and English-language websites has increased to the highest levels recorded since the PFS Program launched its surveys in August 2001. In February 2006, all of the companies surveyed have a local-language website. This is the first time since August 2001 that the PFS Program has observed existence of a local-language website at each of the companies surveyed. Also, the number of companies that provide additional information on supervisory board members (which is traditionally the category with the poorest survey results) increased significantly.
Survey results include the following:
• In February 2006, all of the CEE companies surveyed have a local-language website. As noted above, this is the first time that all CEE companies surveyed have a local-language website since the first survey was conducted in August 2001. In August 2005, 97% of the companies surveyed had a local-language website.
• In February 2006, 94% of the CEE companies surveyed have an English-language website. This is also the highest percentage recorded since the first survey. In August 2005, 87% of the companies surveyed had an English-language website. . Now, in one country, seven of the ten companies surveyed have an English-language website; in four countries, nine of the ten companies surveyed have an English-language website; and in six countries, all ten companies have an English-language website. This represents an improvement since the last survey. In August 2005, in two countries, seven of the ten companies surveyed had an English-language website; in two countries, eight of the ten companies surveyed had an English-language website; in four countries, nine of the ten companies surveyed had an English-language website; and in three countries, all ten companies surveyed had and English-language website.
The PFS Program surveys analyze the websites of the ten largest listed companies in the above-mentioned eleven CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the ongoing surveys represent a snapshot of this peer group’s disclosure practices on a given day twice a year and thereby provide insights into blue-chip companies’ corporate governance and investor relations practices.
A comparison of the results of the tenth survey of the largest listed companies in eleven CEE countries and the first survey of peers in Portugal and Spain includes the following:
• All of the companies surveyed in the eleven CEE countries and in Portugal and Spain have a local-language website;
• 94% of the companies surveyed in the eleven CEE countries (and 97.5% of the companies surveyed in the eight new member states of the European Union [EU]) have an English-language website, compared with 90% in Portugal and 100% in Spain;
• 81% of the companies surveyed in the eleven CEE countries provide a list of management online compared with 90% in Portugal and 100% in Spain;
• 46% of the companies surveyed in the eleven CEE countries provide additional information on management online compared with 90% in Portugal and 100% in Spain;
• 76% of the companies surveyed in the eleven CEE countries provide a list of board members online compared with 90% in Portugal and 100% in Spain; and
• 41% of the companies surveyed in the eleven CEE countries provide additional information on board members online compared with 90% in Portugal and 100% in Spain.
The first-time survey of Portugal and Spain enables the comparison of the disclosure practices of the CEE blue-chip peer group with peers in the EU.
Note: The survey, consisting of databases of results by company and a presentation of the results by country, contains the following information: current data as of February 15, 2006 on companies in all eleven CEE countries; comparisons of the data from February 2006 with data from the previous surveys conducted in August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001; and separate data as of February 15, 2006 on companies in Portugal and Spain.
To download the survey and the background databases, please click on the links below:
Tuesday, October 4, 2005
PFS Program’s Fifth Semi-Annual Regional Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its fifth semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the fifth time; companies in Hungary and Poland were surveyed for the fourth time; and companies in Bulgaria, Croatia and Romania were surveyed for the third time.
Moreover, in response to a request from the Federation of Euro-Asian Stock Exchanges, an analysis of CSR disclosures by the ten largest listed companies (by market capitalization) in Greece and Turkey is included in the survey for the first time.
PFS Program interns Joanna Karnat, Janis Oskajs and Tomasz Zych conducted the survey from July through September 2005.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period July - September 2005 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is September 15, 2005.
This survey demonstrates a general increase in the amount of information disclosed in the English-language on a range of issues since the last surveys, conducted in April 2005 and August 2004. In several areas, no significant change was observed; only in a few areas was a slight decrease in the amount of information disclosed observed.
In Latvia, Lithuania, Poland and Slovenia all ten of the companies surveyed have an English-language website; however, companies in Latvia and Lithuania generally do not disclose information on all three topics surveyed. In Hungary, nine of the ten companies have an English-language website. In general, companies in Hungary, Poland and Slovenia are the leaders in disclosing CSR information among the 11 CEE countries surveyed. The level of disclosure among companies in the three non-European Union (EU) member countries (Bulgaria, Croatia and Romania) increased slightly or remained unchanged since the last survey conducted in April 2005.
Survey findings include the following:
· 89% of the companies surveyed have an English-language website (compared with 83% in April 2005 and 84% in August 2004);
· 78% of the companies surveyed have an English-language annual report (compared with 65% in August 2004);
· 79% of the companies surveyed disclose information about their governance structure on their website (compared with 71% in April 2005 and 69% in August 2004);
· 68% of the companies surveyed disclose information about their governance structure in their annual report (compared with 52% in August 2004);
· 48% of the companies surveyed disclose information about their shareholder rights policy on their website (compared with 35% in April 2005 and 46% in August 2004);
· 41% of the companies surveyed disclose information about their shareholder rights policy in their annual report (compared with 44% in August 2004);
· 48% of the companies surveyed mention compliance with environmental standards on their website (compared with 41% in April 2005 and 37% in August 2004);
· 27% of the companies surveyed mention compliance with environmental standards in their annual report (compared with 28% in August 2004);
· 42% of the companies surveyed disclose employee development/benefit policies on their website (compared with 36% in April 2005 and 28% in August 2004); and
· 48% of the companies surveyed disclose employee development/benefit policies in their annual report (compared with 42% in August 2004).
Note: The survey consists of a presentation of data aggregated by country and two separate databases of individual data by company - one database for the ten largest listed companies in each of the 11 CEE countries and a separate database for the ten largest listed companies in Greece as well as Turkey.
To download the survey and the background databases, please click on the links below:
Tuesday, September 6, 2005
PFS Program’s Ninth Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its ninth semi-annual survey of online investor relations of the ten largest listed companies (by market capitalization) in eleven Central and Eastern European (CEE) countries. PFS Program interns Joanna Karnat and Tomasz Zych conducted the survey in July and August 2005.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyses the websites of the ten largest listed companies (by market capitalization) in Czech Republic Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia for the ninth time and in Bulgaria, Croatia and Romania for the third time. The survey provides current data as of August 15, 2005 and comparisons with the eight previous surveys, published in February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001. Moreover, in response to a request from the Federation of Euro-Asian Stock Exchanges, a first survey of websites of the ten largest listed companies (by market capitalization) in Greece and Turkey is also published.
The survey demonstrates that online disclosure in CEE has improved since the last survey, conducted in February 2005. In particular, the number of companies with local-language and English-language websites has increased to the highest levels recorded since the PFS Program began its surveys in August 2001.
Survey results include the following:
· In August 2005, 97% of the CEE companies surveyed have a local-language website. This is the highest percentage recorded since the first survey, conducted in August 2001. In February 2005, 95% of the companies surveyed had a local-language website.
· In August 2005, 87% of the CEE companies surveyed have an English-language website. This is also the highest percentage recorded since the first survey. In February 2005, 82% of the companies surveyed had an English-language website. Furthermore, there has been improvement in the underperformers; now, in each of the 11 countries at least 7 of the 10 companies surveyed have an English-language website. In February 2005, in two countries only 6 of the 10 companies surveyed had an English-language website.
The PFS Program surveys analyze the websites of the ten largest listed companies in the above-mentioned eleven CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the ongoing surveys represent a snapshot of this peer group’s disclosure practices on a given day twice a year and thereby provide insights into blue-chip companies’ corporate governance and investor relations practices.
A comparison of the results of the ninth survey of the eleven CEE countries and the first survey of Greece and Turkey includes the following:
· 97% of the companies surveyed in the eleven CEE countries have a local-language website compared with 90% in Greece and 90% in Turkey;
· 87% of the companies surveyed in the eleven CEE countries have an English-language website compared with 90% in Greece and 90% in Turkey;
· 78% of the companies surveyed in the eleven CEE countries provide a list of management online compared with 70% in Greece and 70% in Turkey;
· 40% of the companies surveyed in the eleven CEE countries provide additional information on management online compared with 50% in Greece and 50% in Turkey;
· 69% of the companies surveyed in the eleven CEE countries provide a list of board members online compared with 90% in Greece and 80% in Turkey; and
· 29% of the companies surveyed in the eleven CEE countries provide additional information on board members online compared with 60% in Greece and 50% in Turkey.
The first-time survey of Greece and Turkey enables the comparison of the disclosure practices of the CEE blue-chip peer group with peers in neighboring countries, one an EU member state and the other a neighboring emerging market.
Note: The survey, consisting of databases of results by company and a presentation of the results by country, contains the following information: current data on companies in all eleven CEE countries; separate data on companies in the Eight New Member States of the European Union (EU); separate data on companies in Bulgaria, Croatia and Romania; comparisons of the data from August 2005 with data from the previous surveys conducted in February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001; and separate data on companies in Greece and Turkey.
To download the survey and the background databases, please click on the links below:
Wednesday, May 18, 2005 - Thursday, May 19, 2005
Seminar on Internal Audit of Central Banks
Ljubljana, Slovenia
On Wednesday, May 18 and Thursday, May 19, 2005 the Center of Excellence in Finance (CEF) and the PFS Program held a Seminar on Internal Audit of Central Banks at the CEF in Ljubljana, Slovenia.
Internal auditors from the following institutions presented their respective internal audit operations, policies and practices: Bank of Slovenia; National Bank of Poland; Office of the City Controller - City of Philadelphia; and Office of the Inspector General of the Board of Governors of the Federal Reserve System.
Seven internal auditors representing the following institutions participated in the seminar: Banking and Payments Authority of Kosovo, Bulgarian National Bank, Central Bank of Montenegro, Croatian National Bank and National Bank of Serbia.
The seminar provided an excellent opportunity for internal auditors from the above-mentioned countries/institutions to identify international standards, exchange/share experiences and discuss strategies for implementing best practices.
To download the seminar agenda, presentations and speaker CVs, please click on the links below:
Tuesday, May 10, 2005
Fourth Semi-Annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe
Budapest, Hungary
Today, the Partners for Financial Stability (PFS) Program publishes its fourth semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the 10 Largest Listed Companies (by market capitalization) in eleven Central and Eastern European (CEE) countries. Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the fourth time; companies in Hungary and Poland were surveyed for the third time; and companies in Bulgaria, Croatia and Romania were surveyed for the second time.
The survey was conducted by PFS Program interns Szymon Gawel, Monika Sowinska and Dominika Sipowicz.
The survey analyzes companies’ disclosures in English on the English-language company website and in the English-language annual report during April 2005. It documents a generally similar level of disclosure on company websites to that observed in August 2004 across all three information categories analyzed – corporate governance, environmental policy and social policy. However, in certain countries, availability of English-language websites has increased. Also, corporate governance codes significantly impact reporting on corporate governance issues in certain countries.
In Latvia, Lithuania and Slovenia all 10 of the companies surveyed have an English-language website; however, companies in Latvia and Lithuania generally did not disclose information on all three categories surveyed. In Hungary, nine of the 10 companies have an English-language website. In general, companies in Hungary, Poland and Slovenia disclosed the most information online. The level of disclosure decreased in Bulgaria and Romania, perhaps due to the fact that due to changes in market capitalization the universe of companies surveyed changed significantly. Approximately half of the companies in each country were surveyed for the first time. By contrast, the level of disclosure improved in Croatia.
Survey findings include the following:
· 83% of the companies surveyed have an English language website (compared with 86% in August 2004 and 85% in April 2003);
· 71% of the companies surveyed disclose information about their governance structure on their websites (compared with 69% in August 2004 and 50% in April 2004);
· 41% of the companies surveyed mention compliance with environmental standards on their websites (compared with 37% in August 2004 and 28% in April 2004);
· 37% of the companies surveyed disclose information about sponsorships on their websites (compared with 28% in August 2004 and 31% in April 2004); and
· 20% of the companies surveyed note compliance with a corporate governance code on their websites (whereas in August 2004 the percentage was 7%).
Comparisons with disclosure in annual reports is not as relevant in this survey, since as of April 15, 2005 many companies have not yet published their 2004 annual report online. However, it should be noted that Estonia is the clear exception in the region. By April 15, 2005 each of the 10 Estonian companies surveyed had published an English-language version of their annual report online. However, it should be noted that in many cases the annual report is only available on the website of the Tallinn Stock Exchange. Nevertheless, in each of the four surveys to date, all 10 Estonian companies provided electronic versions of their annual report online. This was not the case in any of the other 10 countries.
The fifth survey, to be published in August 2005, will compare disclosure in annual reports with disclosures made in August 2004. It will also continue to track trends in reporting on company websites.
To download the background database and the survey, please click on the links below:
Wednesday, March 2, 2005
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE
PFS Program Intern Szymon Gawel conducted the PFS Program’s eighth semi-annual survey of online investor relations of the 10 largest listed companies (by market capitalization) in Central and Eastern European (CEE) countries. In addition to Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia this survey includes Bulgaria, Croatia and Romania for the second time.
The survey demonstrates slightly improved online disclosure by the largest listed companies in the eight new member states of the European Union (EU) and slightly poorer yet generally stable second time survey results in the three EU-accession countries.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyses the websites of the ten largest listed companies (by market capitalization) in each of the following CEE countries: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. The survey provides current data as of February 21, 2005 and comparisons with the seven previous surveys, published in August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
As in the most recent survey, the percentage of companies with a local-language website remains at 95%. In August 2004, 95% of the companies surveyed had a website.
In February 2005, 82% of the companies surveyed have an English-language website, in comparison with 84% in August 2004.
When taken as a group of eleven countries, the results in all categories surveyed remained relatively stable. However, when analyzing the eight new member states of the European Union (EU) separately, a slightly improved disclosure policy can be observed.
Survey findings of the eight new member states of the EU include the following:
97% of the companies surveyed have a local language website (compared with 95% in August 2004);
87% have an English-language website (compared with 84% in August 2004);
80% provide a list of management online (compared with 84% in August 2004);
43% provide additional information on management online (compared with 38% in August 2004);
70% provide a list of board members online (compared with 70% in August 2004); and
29% provide additional information on board members online (compared with 23% in August 2004).
Three of the 110 companies surveyed provide information about the number of shares owned by each member of management and the supervisory board.
The findings of this second survey of companies in Bulgaria, Croatia and Romania show a slight decease in online disclosure in comparison with August 2004; however, in general the thresholds are rather stable.
The PFS Program hopes that the surveys represent an ongoing contribution towards independent research in these eleven CEE countries. A research paper produced by the working group Independent Research Think Tank and published on February 11, 2005 called for more independent research in the EU. George Möller, chief executive of Robeco, and leader of the working group, opines, “Independent research is an important element in the maintenance of integrity in the marketplace, as it offers investors a neutral analysis of a company’s prospects.”
To download the survey and the background database, please click on the links below:
Wednesday, November 10, 2004
Seminar on International Financial Reporting Standards (IFRS) and Reporting on Corporate Social Responsibility (CSR)
Ljubljana, Slovenia
On Wednesday, November 10, 2004 EWMI/PFS Program and the Ljubljana Stock Exchange held a seminar on International Financial Reporting Standards (IFRS) and Reporting on Corporate Social Responsibility (CSR). 76 persons attended the seminar. Participants included representatives of companies listed on the Official Market and the Free Market of the Ljubljana Stock Exchange; representatives of other Slovene companies and financial institutions; representatives of the Securities Market Agency of Slovenia; representatives of the Economics Faculty of Ljubljana University; a representative of the Bulgarian Stock Exchange – Sofia; a representative of the Macedonian Stock Exchange; and representatives of the Varazdin Stock Exchange.
At the seminar, speakers from Slovenia, the UK and the US presented current best practices in various aspects of financial reporting (International Financial Reporting Standards – IFRS) and non-financial reporting, including reporting on corporate governance corporate and corporate social responsibility (CSR). The Ljubljana Stock Exchange presented data regarding the first set of comply and explain statements of Slovene listed companies published on September 30, 2004 in compliance with the Corporate Governance Code implemented on March 18, 2004.
To download the agenda and presentations in English and in Slovene as well as a list of participants, please click on the links below:
| Agenda - Seminar - November 10, 2004.doc - 13 KB |
| IFRS Presentation - November 10, 2004.ppt - 224 KB |
| Session 1 IFRS Current Status - November 10, 2004.pdf - 136 KB |
| Session 1A IFRS Glossary - November 10, 2004.pdf - 96 KB |
| David Cairns - biographical note 2004.pdf - 45 KB |
| Presentation - PFS Program - November 10, 2004 - Part I.ppt - 1,140 KB |
| Presentation - PFS Program - November 10, 2004 - Part II.ppt - 1,223 KB |
| Presentation - PFS Program - November 10, 2004 - Part III.ppt - 1,035 KB |
| Presentation - PFS Program - November 10, 2004 - Part IV.ppt - 459 KB |
| Presentation - PFS Program - November 10, 2004.ppt - 3,737 KB |
| Presentation - PFS Program - November 10, 2004.zip - 3,293 KB |
| Presentation - Economics Faculty - November 10, 2004 - Slovene .ppt - 226 KB |
| Presentation - Ljubljana Stock Exchange - November 10, 2004 - Slovene.ppt - 296 KB |
| List of Participants - Seminar - November 10, 2004.doc - 50 KB |
Tuesday, September 28, 2004
Third Semi-Annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe
Budapest, Hungary
Today, the PFS Program publishes its third semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the 10 Largest Listed Companies (by Market Capitalization) in Central and Eastern Europe. Companies in Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia were surveyed for the third time. Bulgaria, Croatia and Romania were included in the survey for the first time. The survey was conducted by PFS Program Interns Marek Korycki, Izabela Samson, Zuzana Schwartzova and Adam Szymasiuk.
The survey provides current data concerning companies’ disclosures on a range of CSR issues in annual reports and on websites as of August 15, 2004. For the companies from the eight new member states of the European Union (EU), comparative data from the previous surveys conducted in April 2004 and August 2003 is presented
In general, disclosures on CSR issues were similar to those observed in the survey conducted in April 2004. However, the survey demonstrates improvement in the quality and quantity of disclosures about corporate governance issues. As noted in the survey conducted in spring 2004, EU accession and adoption of corporate governance codes in several countries in 2003/2004 are two factors influencing broader and deeper reporting.
Survey findings include the following:
· 86% of the companies surveyed have an English language website (compared with 85% in April 2004 and 85% in August 2003);
· 74% of the companies surveyed provide an electronic version of the English-language annual report for 2003 (compared with 76% of the companies who provided a 2002 or 2003 annual report in April 2004);
· 99% of the companies surveyed disclose information about their governance structure in their annual report (compared with 59% in April 2004 and 40% in August 2003);
· 35% of the companies surveyed note compliance with environmental standards in their annual report (the same percentage as in April 2004 whereas in Augsut 2003 the percentage was 19%); and
· 51% of the companies surveyed mention employee development or benefits policy in their annual report (compared with 49% in April 2004 and 34% in August 2003).
In terms of disclosures made on company websites, other comparative findings include the following:
· In August 2004, 53% of the companies surveyed disclosed information about their shareholder rights policy; in April 2004, 51% of companies disclosed this information; and in August 2003, 14% of companies disclosed this information.
· In August 2004, 31% of the companies surveyed provided information about their environmental performance; in April 2004, 28% of companies provided this information; and in August 2003, 14% of companies surveyed provided this information;
· In August 2004, 17% of companies provided information about compliance with labor standards; in April 2004, 21% of companies provided this information; and in August 2004 only 3% of companies provided this information.
The first time results for Bulgaria, Croatia and Romania are positive; whereas few companies disclose complete information in English on all three information categories surveyed, at least one company from each country disclosed information on each of the five questions in each of the three categories. This demonstrates an awareness of these issues in each country.
To download the survey and the background databases, please click on the links below:
Wednesday, May 5, 2004
Second Semi-Annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe
Budapest, Hungary
Today, the PFS Program publishes its second semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the 10 Largest Listed Companies (by Market Capitalization) in Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia. The survey was conducted by PFS Program Interns Katarzyna Hanula and Marek Korycki.
The survey provides current data concerning companies’ disclosures on a range of CSR issues as of April 15, 2004 and a comparison with the previous survey conducted in August 2003. Comparative data from the previous year is not available for Hungarian and Polish companies, since the surveys conducted in those countries in 2003 analyzed information provided in Hungarian and Polish respectively. Additionally this survey analyzes disclosures related to corporate governance codes in those countries with such a code, i.e. Czech Republic, Hungary, Poland, Slovakia and Slovenia. The survey conducted in 2003 did not analyze such disclosures, because a corporate governance code either did not yet exist or had only recently been issued in the respective country.
The survey demonstrates that disclosures on CSR issues increased significantly over the past six months. Survey findings include the following:
-85% of the companies surveyed have an English language website;
-76% of the companies surveyed provide an English-language annual report for 2002 or 2003;
-59% of the companies surveyed mention employee development or benefits policy;
-51% of the companies surveyed note compliance with environmental standards; and
-20% of the companies surveyed disclose information regarding compliance with a Corporate Governance Code.
Comparative findings include the following:
-In April 2004, 40% of the companies surveyed disclosed information regarding the environmental impact of their operations; in August 2003, only 22% of companies surveyed provided this information.
-In April 2004, 36% of the companies surveyed provided audit-related information on their website; in August 2003 only 13% of companies surveyed provided this information;
Two significant factors influenced the improved results observed in this survey. First, several stock exchanges implemented corporate governance codes in 2003 and 2004. These codes provide an additional impetus/pressure to disclose a variety of data. Second, Hungary and Poland are covered by this regional survey for the first time and the above-average disclosures of Hungarian and Polish companies improved the general (regional) averages. For example, excluding Hungary and Poland, the above-mentioned averages decline to 30% (environmental impact) and 35% (audit-related information) respectively. Nevertheless, even without including these countries, a marked improvement can be observed.
The PFS Program will continue to analyze this issue; we will conduct a third semi-annual Survey in August 2004.
To download the background database and a presentation of the survey results, please click on the links below:
Friday, March 26, 2004 - Saturday, March 27, 2004
Workshop on Banking and Financial Sector Privatization: Experiences in Hungary and Other Central and Eastern European (CEE) Countries
Ljubljana, Slovenia
On March 26-27, 2004 the Center of Excellence in Finance held a Workshop on Banking and Financial Sector Privatization: Experiences in Hungary and Other CEE Countries.
The main objective of the workshop was to provide an overview of financial sector privatization in post-communist transition countries, with special emphasise on the privatization of banks and the experiences in Hungary and Slovenia. Furthermore, the role of foreign banks in CEE countries was presented. The workshop’s program also included the importance of corporate governance in the privatization process, as well as latest developments in corporate governance through which greater efficiency and corporate social responsibility are promoted.
13 participants from six Stability Pact member countries attended the workshop: Two from Bosnia and Herzegovina, two from Croatia (Central Bank), two from Kosovo, three from Macedonia, two from Romania and two from Slovenia. In covering the above-mentioned issues, lecturers discussed with participants the situation in their respective countries.
The lecturers were: Geoffrey Mazullo, Director, PFS Program, EWMI; Dr. Peter Mihalyi, Director, Banking Programs, PFS Program, EWMI; and Professor Dr. Ivan Ribnikar, Faculty of Economics, University of Ljubljana, Slovenia.
To download the workshop agenda and presentations, please click on the links below:
| Agenda - CEF Workshop - March 26-27, 2004.doc - 27 KB |
| Presentation - The Economic Rationale - March 26-27, 2004.ppt - 74 KB |
| Presentation - Privatization of the Hungarian Banking and Insurance Sector _ March 26-27, 2004.ppt - 47 KB |
| Presentation - Slovene Experience - Professor Ribnikar - March 26-27, 2004.doc - 34 KB |
| Presentation - PFS Program - Comparative Analysis of Corporate Governance - March 26-27, 2004.ppt - 308 KB |
| Presentation - PFS Program - Transparency and Corporate Disclosure - March 26 - 27, 2004.ppt - 1,942 KB |
| Presentation - PFS Program - Latest Developments in Corporate Governance - March 26-27, 2004.ppt - 336 KB |
| Presentation - PFS Program - The Role of Foreign Banks in CEE Countries - March 26-27, 2004.ppt - 94 KB |
| Report - Banking and Financial Sector Privatization Workshop - March 26-27, 2004.doc - 145 KB |
| List of Participants - CEF Workshop - March 26-27, 2004.xls - 21 KB |
Monday, March 1, 2004
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE
PFS Program Intern Katarzyna Hanula conducted the PFS Program’s sixth semi-annual survey of online investor relations of the 10 largest listed companies (by market capitalization) in each of the following countries: Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia. The survey provides current data and comparisons with the five previous surveys, completed in August 2003, February 2003, August 2002, February 2002 and August 2001.
The survey demonstrates that a majority of the largest listed in the region communicate with shareholders and potential investors via the Internet, in local language and in English. Nevertheless, comparison of this survey with the two surveys conducted in 2003 indicates that certain thresholds have been reached, and further improvements above these thresholds have not been made. For example: in February 2004, 95% of the companies surveyed have a website (in comparison with 96% in August 2003 and 95% in February 2003) and 75% have an English-language website (in comparison with 83% in August 2003 and 80% in February 2003).
Furthermore, as noted in previous surveys, many companies still do not provide additional information in English about management and supervisory board members. The survey suggests that “best practice” would include a separate page of the website dedicated to investor relations, including a photo and short biography of each senior manager and each member of the board of directors/supervisory board.
To download the survey and the background database, please click on the links below:
Wednesday, December 31, 2003
Conclusion of PFS Program Regional Activities in Five Central and Eastern European Countries
Budapest, Hungary
On December 31, 2003 EWMI concluded PFS Program regional activities in Czech Republic, Hungary, Poland, Slovak Republic and Slovenia. From 2000 through 2003, the PFS Program (active in the above countries as well as in Estonia, Latvia and Lithuania) was funded under a cooperative agreement between the United States Agency for International Development (USAID) and EWMI.
Beginning January 1, 2004 EWMI will continue to cooperate on specific financial sector reform initiatives in the five above-mentioned Central and Eastern European countries on a case-by-case basis.
Under a new grant from the US Department of State, EWMI will continue PFS Program activities in Estonia, Latvia and Lithuania through June 30, 2004.
Thursday, September 4, 2003
Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe
Intern Amanda Schneier conducted the PFS Program’s first Survey of Reporting on Corporate Social Responsibility (CSR) by the 10 Largest Listed Companies (by market capitalization) in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia. The survey investigates companies’ disclosures on a range of CSR issues as of August 15, 2003.
Encompassing accounting standards, corporate governance, environmental policies and social policies, the survey analyzes corporate reporting on matters that previously might not have been considered essential. However, as the above-mentioned countries enter the European Union (EU), listed companies will come under the tighter scrutiny of EU disclosure requirements about these issues. Also, in a more global marketplace, listed companies will face more CSR-conscious investors and consumers.
This inaugural survey is designed to inform investors, listed companies, the public-at-large and regulators by providing a regional overview of current disclosure practices and facilitating an easy comparison of best practices. Via hyperlinks, a reader can move from the database directly into a company’s website and/or annual report to see how and where the specific information is disclosed. The survey should also enable the benchmarking of reporting in these countries against other countries in the EU and elsewhere.
Hungary and Poland are not covered in this survey. PFS Program grants to research institutions in those countries are currently co-financing similar surveys of all listed companies in those countries. That research, and a similar survey of all Czech listed companies, also co-financed by a PFS Program grant, will be published on this page in autumn 2003.
To download the survey and the background database, please click on the links below:
Wednesday, March 26, 2003
Corporate Governance Roundtable
Ljubljana, Slovenia
On March 26, 2003 the PFS Program and the Ljubljana Stock Exchange held a Corporate Governance Roundtable in Ljubljana. 50 participants representing Slovene listed companies and representatives of Slovene capital markets institutions, the information technology officer of the National Stock Exchange of Lithuania as well as representatives of several South Eastern European stock exchanges attended the roundtable.
To download the agenda, presentations and a list of participants, please click on the links below.
Thursday, November 7, 2002 - Friday, November 8, 2002
Third CEE Regional INPRS Private Pension Seminar on Pension Fund Governance
Ljubljana, Slovenia
On November 7-8, 2002 the International Network of Pension Regulators and Supervisors (INPRS), the Organisation for Economic Co-operation and Development (OECD) and the PFS Program of the East-West Management Institute, Inc. (EWMI) organized an International Seminar on Pension Fund Governance. The seminar was hosted by the Securities Market Agency and The Insurance Supervision Agency of the Republic of Slovenia.
The objective of the seminar was to raise the visibility and awareness of the key role of pension fund governance in the successful development of private pension systems. More than 100 participants from 16 countries attended the seminar.
To download the agenda, presentations and list of participants, please click on the links below. You can also obtain information on the event by visiting the INPRS Central and Eastern European Regional Network, events section.
Thursday, September 26, 2002 - Friday, September 27, 2002
Regional Workshop on Prevention of Money Laundering and Seizure/Confiscation of Assets
Portoroz, Slovenia
On September 26-27, 2002 the PFS Program, in cooperation with the Office for Money Laundering Prevention of the Republic of Slovenia, the Ministry of Justice of the Republic of Slovenia, the State Prosecutor’s Office of the Republic of Slovenia and the Supreme Court of the Republic of Slovenia conducted a Regional Workshop on Prevention of Money Laundering and Seizure/Confiscation of Assets. The target audience consisted of financial police, judges and prosecutors from three Central European countries. Six participants from Hungary, five from Poland and 35 from Slovenia attended the workshop. On the first day, specialists from the UK, the US and Slovenia presented their experiences in combating money laundering. A range of strategies were discussed, among them seizure and confiscation of assets. On the second day, participants debated case studies presented by judges and prosecutors from Hungary, Poland and Slovenia. In-depth discussion of real life situations from the three jurisdictions, complemented by insights offered by UK and US practitioners, proved to be an extremely fruitful exercise, enabling the exchange of lessons learned and identification of best practices.
To download the agenda and presentations, please click on the links below:
| Agenda - Prevention of Money Laundering Workshop - September 26-27, 2002.rtf - 20 KB |
| Welcome - Zdenka Cerar, General State Prosecutor - September 26, 2002.doc - 28 KB |
| Opening Remarks - Ambassador Young - September 26, 2002.doc - 32 KB |
| Presentation - Office for Money Laundering Prevention of the Republic of Slovenia - September 26, 2002.ppt - 164 KB |
| Presentation - Andreja Lang - Ministry of Justice - September 26, 2002.doc - 29 KB |
| Presentation - Janko Marinko, Secretary General, Supreme Court- September 26, 2002.doc - 46 KB |
| Presentation - PricewaterhouseCoopers - September 26, 2002.ppt - 1,269 KB |
| Roger Stanley - CV.doc - 21 KB |
| Presentation - Furnival Chambers - September 26, 2002.ppt - 412 KB |
| Christopher Convey - CV.doc - 20 KB |
| Outline - Richard T. Preiss - September 26, 2002.doc - 62 KB |
| Richard T. Preiss - Financial Privacy Paper 1996.doc - 105 KB |
| Richard T. Preiss - Anonymous Access Paper 1997.doc - 42 KB |
| Richard T. Preiss - CV.doc - 31 KB |
| Outline - Richard N. Seaman - September 26, 2002.doc - 50 KB |
| Richard N. Seaman - CV.doc - 22 KB |
| Presentation - Judge Dennis E. Milton - September 26, 2002.doc - 62 KB |
| Judge Dennis E. Milton - CV.doc - 22 KB |
| John Howell - CV.doc - 22 KB |
| List of Participants - Portoroz, Slovenia - September 26-27, 2002.doc - 34 KB |
Friday, May 17, 2002
Investor Relations Seminar
Portoroz, Slovenia
On Friday, May 17, 2002 the PFS Program, in cooperation with the Ljubljana Stock Exchange organized a seminar entitled, "Best Practices for Investor Relations Professionals" in Portoroz, Slovenia. 25 participants representing Slovene listed companies, the investment community and regulatory authorities attended the seminar, which was held in conjunction with the Ljubljana Stock Exchange’s 19th Annual Capital Markets Conference.
This seminar was the ninth in a series of investor relations seminars the PFS Program is conducting in cooperation with eight Central and Eastern European Stock Exchanges throughout 2001 and 2002. A total of 424 participants attended the following seminars: Tallinn (June 19, 2001); Riga (October 3, 2001); Budapest (October 10, 2001); Vilnius (November 14, 2001); Prague (December 5, 2001); Warsaw (February 27, 2002); Bratislava (March 26, 2002); Budapest (May 8, 2002); and Portoroz (May 17, 2002).
To download the agenda and presentations, please click on the links below:
Wednesday, March 28, 2001
UK Investor Relations Society - 2001 Annual Conference
London, United Kingdom
In March 2001, PFS sponsored the participation of the Ljubljana Stock Exchange in the 2001 annual conference of the Investor Relations Society in London, UK. Representatives of five other Central and Eastern European (CEE) stock exchanges participated in this PFS-sponsored initiative to promote awareness of and launch training on investor relations for CEE issuers.
Thursday, February 1, 2001
Comparative Analysis of Corporate Governance and Shareholders Rights in Central and Eastern Europe
In February 2001, the Securities Market Agency of Slovenia provided PFS with data for the PFS comparative study of corporate governance and shareholders' rights in Central and Eastern Europe.
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