Saturday, December 16, 2006
Regional Workshop – How to Write A Case Study
Zagreb, Croatia
On Saturday, December 16, 2006 Business College VERN’ and the Partners for Financial Stability (PFS) Program held a Workshop entitled, “How to Write a Case Study.” 18 VERN’ faculty members and representatives of two Croatian NGOs participated in the Workshop that took place at VERN’. Unfortunately, representatives of educational institutions in Bosnia and Herzegovina, Poland, Serbia, Slovenia and the United States who were invited to participate in the Regional Workshop were unable to do so for a variety of reasons.
The purpose of the Workshop was to present faculty a wide range of analytical, conceptual, presentation, research and writing skills necessary to write a high-quality, professional case study to be used in teaching university-level students. During the course of the Workshop, participants were presented a wide range of case studies, ranging from brief “cases in point” to full-blown case studies. The Workshop explained in practical terms how a case study should present in-depth material; note comparisons; pose a range of questions; and demonstrate numerous issues. It was also explained that successful in-depth cases also discuss whether the specific situation leads to extrapolation from the specific to the general or whether the general framework leads to identification of a specific particular example. In other words, a case study should explain the relationship of the particular situation to a wider framework such as benchmarks, best practice, international standards, etc.
At the outset of the Workshop, the PFS Program presented the rationale behind launching its surveys: Investor Relations Online and Surveys of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in 11 Central and Eastern European (CEE) countries. Thereafter, participants discussed the methodology for the surveys and a wealth of data from the surveys as well as other sources. At the end of Session 1, the PFS Program described the use of the surveys and their impact.
During Sessions 2, 3 and 4 participants analyzed a number of case studies regarding particular issues in corporate governance and/or CSR that the PFS Program uses in its training programs. The case studies discussed concern companies listed and/or operating in Germany, the Netherlands/the United Kingdom, Poland, Sweden and the United States.
During Session 5, the PFS Program presented step by step the mechanics of writing a case study about an assigned topic.
Each of the Workshop participants was instructed to write two case studies by March 15, 2007: one short case study on the topic assigned to all Workshop participants; and one short case study on a Croatian company or business issue of each participant’s choice.
Assigned moderators will read the case studies during the second half of April 2007. The group will meet again in April 2007 to present, analyze and critique the two sets of case studies.
Through the Workshop, the participants were introduced to valuable case study writing skills that they can immediate apply in practice at VERN’. As a side benefit, they gained insights into the current status of corporate reporting in Croatia as well as other CEE and South East European (SEE) countries.
To download the Workshop agenda, complete Workshop materials, individual presentations, speaker biographies and list of participants, please click on the links below:
 | Agenda - Case Study Workshop - VERN - December 16, 2006.pdf - 45 KB |
| Workshop Manual - December 16, 2006.pdf - 1,378 KB |
| Session 1 - PFS Program Surveys - December 16, 2006.pdf - 1,252 KB |
| Session 2 - Cases in Point - December 16, 2006.pdf - 173 KB |
| Session 3 - Case in Point - December 16, 2006.pdf - 107 KB |
| Session 4 - Case Study - Labor Relations - Poland - December 16, 2006.pdf - 183 KB |
| Session 5 - How to Write a Case Study - December 16, 2006.pdf - 211 KB |
| Geoffrey Mazullo - Brief Bio - December 2006.pdf - 16 KB |
| Agnieszka Cenzartowicz - Brief Bio - December 2006.pdf - 11 KB |
| List of Participants - December 16, 2006.pdf - 76 KB |
Thursday, December 7, 2006
The Baltic Market Awards Ceremony
Tallinn, Estonia; Riga, Latvia; and Vilnius, Lithuania
On Thursday, December 7, 2006 OMX’s exchanges in Riga, Tallinn and Vilnius held a joint ceremony to present the winners of The Baltic Market Awards, the mission of which is to identify the best Baltic market participants as well as to increase listed companies’ awareness of the significance of disclosure quality, good investor relations and best practice in corporate governance.
The awards were unveiled at a special prize-giving ceremony with a video link-up among the Riga, Tallinn and Vilnius stock exchanges, enabling all audiences to simultaneously see the event and congratulate the winners.
The main award presented was for the Best Investor Relations in the Baltic Countries. Other awards were presented for:
• Member of the Year;
• The Best Investor Relations Among Small Cap (market capitalization under EUR 50 million);
• The Best Company (of each exchange – Riga, Tallinn and Vilnius); and
• The Best Investor Relations Webpage.
Beginning in 2007 an award will be presented annually to the company demonstrating the Most Visible Improvement Over The Year.
Johan Rudén, President of the Baltic Market business unit at OMX, noted: “The companies involved in the project benefit from increased awareness of the importance of disclosure quality, good investor relations and corporate governance practices. Each company was presented an analysis of its performance measured against the evaluation criteria and the best in the category, and now can work towards the necessary enhancements.”
The Baltic Market Awards Evaluation Committee is responsible for development of the criteria and for approval of the results. The members of the Committee represent academia, investors, media and the stock exchanges. The Committee is chaired by Geoffrey Mazullo, Director, PFS Program, an independent representative. On Thursday, December 7, 2006 Mr. Mazullo attended the awards ceremony in Tallinn, Estonia.
Please visit the websites of the Riga Stock Exchange, Tallinn Stock Exchange and Vilnius Stock Exchange for detailed information, including a list of the winners and photos from the inaugural Baltic Markets Awards ceremony.
Wednesday, December 6, 2006
DSW's Fifth International Investors' Conference 2006
Wiesbaden, Germany
On Wednesday, December 6, 2006 the German Shareholders’ Association DSW (Deutsche Schutzvereinigung fuer Wertpapierbesitz e.V.) organized its Fifth International Investors` Conference in Wiesbaden, Germany.
The conference entitled, “Who is responsible? Shareholder Responsibility vs. Corporate Responsibility” covered recent developments in the fields of corporate social responsibility (CSR)/corporate responsibility and socially responsible investing (SRI)/ responsible investing in Germany and abroad.
This was the DSW’s fifth international conference bringing together German, European and international corporate governance experts to discuss recent events, trends and best practice.
Geoffrey Mazullo, PFS Program Director presented PFS Program surveys in a session entitled, “Corporate Responsibility – What is it good for?” Also, the PFS Program co-financed the participation of representatives of the Securities Commission of Republika Srpska (Bosnia and Herzegovina) and the Bucharest Stock Exchange (Romania) in the conference.
The PFS Program and/or PFS Program counterparts have participated in each of the DSW’s International Investor’s Conferences. Participation in this year’s conference contributed to the PFS Program’s ongoing regional initiative in the field of corporate governance. Through it, the PFS Program exposed representatives of the above-mentioned institutions to a wide range of governance issues and increased awareness among conference participants about corporate governance in South East Europe as well as Central Europe. The conference also provided an excellent opportunity to network with German, European and international governance experts.
The conference agenda and presentations as well as additional information about the conference may be found on the Corporate Governance Events page of the DSW website.
Tuesday, November 28, 2006
Roundtable “Responsible Investment: Sustainable Corporate Governance”
Warsaw, Poland
On Tuesday, November 28, 2006 the European Social Investment Forum (Eurosif), the Warsaw Institute of Banking, the Polish Bank Association, the Polish Institute of Directors and the Partners for Financial Stability (PFS) Program organized a roundtable entitled, “Responsible Investment: Sustainable Corporate Governance.”
The aim of the event was to promote greater practical understanding of the impact on investments of corporate Environmental, Social and Governance (ESG) issues. This includes the relationship between these ESG issues and elements ranging from fiduciary duty to extra-financial analysis.
With the growing institutionalization of financial markets in Central, Southern and Eastern Europe, the organizing partners believe that this is the right time to create an opportunity to advance the discussion on the relevance of ESG issues for financial markets and in particular for long-term institutional investors.
There is now increasing consensus that ESG issues affect financial markets, and are particularly relevant for long-term investors. In fact, “Socially Responsible” investors have been developing corresponding expertise for many years now. Various approaches they have taken encompass:
• including ESG issues in financial analysis and stock selection;
• being an “active owner” of stock, meaning establishing a dialogue with investee companies on ESG issues; and
• actively voting shares at AGMs and proposing resolutions when required.
There is also a growing acceptance that it is part of investors’ fiduciary duty to take these issues into account when they could materially affect investment performance.
High-level speakers and expert panelists were invited to the roundtable to present their views and experience in order to raise awareness and spark discussions among participants.
The PFS Program co-financed the participation of representatives of the State Commission for Regulation of Financial Services Markets of Ukraine and the State Securities and Stock Market Commission of Ukraine in the roundtable.
Please visit the Events page of the Eurosif website to learn more about the event and download the agenda as well as roundtable presentations.
Thursday, November 9, 2006 - Friday, November 10, 2006
Triple Bottom Line Investing (TBLI) 2006 Europe Conference
Paris, France
On Thursday, November 9 and Friday, November 10, 2006 Brooklyn Bridge – TBLI Group organized TBLI 2006 Europe. This was the seventh annual conference Brooklyn Bridge – TBLI Group organized in Europe on socially responsible investment (SRI). According to the organizers, “the event attracted over 550 total participants, 120 speakers and the most diverse mix of regional and industry segment participation in its seven-year history.”
Geoffrey Mazullo, PFS Program Director presented PFS Program surveys in a workshop entitled “TBLI Research“ on Thursday afternoon, November 9, 2006. Also, the PFS Program co-financed the conference participation of representatives of the following institutions: Bulgarian Stock Exchange – Sofia (Bulgaria); Varazdin Stock Exchange (Croatia); Bucharest Stock Exchange (Romania); Belgrade Stock Exchange (Serbia); and State Securities and Stock Market Commission of Ukraine (Ukraine).
Participation in this conference significantly contributed to the PFS Program’s ongoing regional initiative in the field of SRI. Through it, the PFS Program exposed representatives of the above-mentioned institutions to a wide range of SRI issues and increased awareness among investors about opportunities for SRI in South East Europe as well as Ukraine. The conference also provided an excellent opportunity to network with a cross section of the SRI community of analysts, asset managers, investors, researchers and trustees.
The conference program and additional information about the conference may be found on the TBLI 2006 Europe website.
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:
Thursday, September 21, 2006 - Friday, September 22, 2006
IIRF Annual Conference – Attracting Capital to Growth Markets and Companies
Warsaw, Poland
On Thursday, September 21 and Friday, September 22, 2006 the International Investor Relations Federation (IIRF) held its annual conference in Warsaw, Poland. The title of this year’s conference was, “Attracting Capital to Growth Markets and Companies.” The event marked the first time that the IIRF held its annual conference outside one of the major financial centers in Western Europe and North America.
The conference program included more than 40 moderators/speakers representing Poland and other European emerging markets as well as other countries worldwide. More than 150 delegates from a wide range of European and other countries participated in the conference. Geoffrey Mazullo, Director, PFS Program presented PFS Program surveys in a breakout session entitled, “Reaching Investors.“
Please click on the following hyperlink to visit the conference website, where you will find the program, information on speakers and sponsors as well as each presentation: IIRF Conference – Warsaw – 2006.
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:
Monday, July 17, 2006
Publication of Issue Four of the Quarterly Monitor of Economic Trends and Policies in Serbia – Co-financed by a PFS Program Grant
On Monday, July 17, 2006 the Foundation for the Advancement of Economics (FREN) published the English-language edition of Issue Four of the Quarterly Monitor of Economic Trends and Policies in Serbia. An abstract of the issue may be found on the following sub-page of FREN’s website: http://www.fren.org.yu/en/qm4.htm Visitors may download the complete publication or separate chapters of the document from the above-mentioned page. To download the entire publication, please click on the following link: http://www.fren.org.yu/docs/qm4/QM4_complete_en.pdf
Issue Four of the Quarterly Monitor was co-financed by the following institutions: Fund for an Open Society – Serbia; PFS Program and the Royal Government of the Netherland.
Wednesday, July 12, 2006
Closure of East-West Management Institute’s Budapest Representative Office
Budapest, Hungary
On Wednesday, July 12, 2006 East-West Management Institute (EWMI) closed its Budapest Representative Office. EWMI would like to take this opportunity to thank Hungarian colleagues and counterparts for their assistance and cooperation during the past years.
As of July 12, 2006 EWMI is temporarily administering the Partners for Financial Stability (PFS) Program from EWMI headquarters in New York. A new EWMI/PFS Program office will open shortly in Central Europe. We will keep you informed.
Tuesday, July 4, 2006
Roundtable on Responsible Investment
Budapest, Hungary
On Tuesday, July 4, 2006 OTP Fund Management, the Budapest Stock Exchange and the British Embassy Budapest organized a Roundtable Discussion on Responsible Investment with Hungarian Pension Fund Trustees. The purpose of the event was to raise awareness, and stimulate discussion, amongst Hungarian pension fund trustees about long-term investment responsibilities in the 21st century. The roundtable format encouraged an open discussion among Hungarian institutional investors and their UK counterparts about a wide range of responsible investment issues. Geoffrey Mazullo, Director, PFS Program, participated in the event.
To download the roundtable description and agenda as well as a press release distributed after the roundtable, please click on the links below:
Monday, June 19, 2006 - Tuesday, June 20, 2006
Responsible Investing Forum
Vienna, Austria
On Monday, June 19 and Tuesday, June 20, 2006 Austrian Development Cooperation, the United Nations Development Program (UNDP) and the United Nations Industrial Development Organization (UNIDO) held Responsible Investing – A forum to promote corporate social responsibility and facilitate multi-stakeholder partnerships in Southeast Europe, the New EU Member States and the Commonwealth of Independent States.
Participants representing a wide range of institutions from across the above-mentioned regions attended the forum, held at the Vienna International Center. Geoffrey Mazullo, Director, PFS Program, participated in a Break-out Session on Anti-Corruption and Corporate Governance. The session was moderated by John Sullivan, Executive Director of the Center for International Private Enterprise (CIPE). Other speakers in the session represented the following organizations: Bulgarian International Business Association; SAP AG, Germany; and Transparency International Latvia.
Please click on the following hyperlink to visit the forum website, where you will find an outline of the forum issues, the agenda, speaker biographies, speaker presentations, conference photos and press information: Responsible Investing – Vienna Forum – June 19-20, 2006.
To download the report published after the conference, please click on the link below:
Friday, June 16, 2006
Official Opening of the Trading Session of the Bucharest Stock Exchange
On Friday, June 16, 2006 Geoffrey Mazullo, Director, PFS Program and Dr. Ashraf Gamal, Director, The Egyptian Institute of Directors, Egypt, officially opened the trading session of the Bucharest Stock Exchange.
At the beginning of the official opening ceremony, Septimiu Stoica, Chairman, Bucharest Stock Exchange Board of Governors, welcomed guests and media representatives to the exchange. He explained that a day earlier, the Bucharest Stock Exchange – Corporate Governance Institute and the PFS Program had held a seminar entitled, “The Role of the Company Director within a Listed Company.”
Thereafter, Stere Farmache, Chief Executive Officer (CEO), Bucharest Stock Exchange, introduced Mr. Mazullo and Dr. Ashraf Gamal. At 10:15, Mr. Mazullo pressed an electronic sensor and Dr. Gamal rang a bell to to launch the ARENA trading system and thereby officially open the day’s trading session at the Bucharest Stock Exchange. Then, Mr. Mazullo introduced the PFS Program to guests and media representatives. In his brief speech, he provided a resume of the above-mentioned seminar held the day before.
At the conclusion of the ceremony, Mr. Mazullo and Dr. Gamal signed the Bucharest Stock Exchange’s Book of Honor in commemoration of the official opening. Mr. Farmache and Mr. Mazullo answered journalists’ questions about the Bucharest Stock Exchange and the capital markets in Romania.
Thursday, June 15, 2006
Corporate Governance Seminar: The Role of the Company Director within a Listed Company
Bucharest, Romania
On Thursday, June 15, 2006 the Bucharest Stock Exchange – Corporate Governance Institute and the PFS Program organized a Corporate Governance Seminar: The Role of the Company Director within a Listed Company.
The seminar was the first joint activity of the Bucharest Stock Exchange – Corporate Governance Institute and the PFS Program. It provided an excellent opportunity for experts from Romania, neighboring South East European countries and other countries to share their practical experiences in this field.
Some 40 participants representing Romanian listed companies, capital market institutions and other organizations as well as representatives of the following institutions attended the: Albania - Tirana Stock Exchange; Bosnia and Herzegovina – Securities Commission of Republika Srpska; Bulgaria – Bulgarian Investor Relations Society and Bulgarian Stock Exchange - Sofia; The Egyptian Institute of Directors; Turkey – Istanbul Stock Exchange; and Ukraine – Financial Services Regulator; and Securities and Stock Market State Commission.
Directors of two listed Romanian companies presented case studies demonstrating best practice in practice. Foreign speakers from Estonia, Sweden, Turkey, the United Kingdom and the United States covered topics including: corporate governance; disclosure; financial reporting; internal control systems; and risk management – managing financial and non-financial risks.
To download the seminar agenda, presentations, speaker biographies and list of participants, please click on the links below:
Monday, June 5, 2006 - Wednesday, June 7, 2006
Environment for Europe – Second Regional Conference
Belgrade, Serbia
From Monday, June 5 through Wednesday, June 7, 2006 Environment for Europe - Second Regional Conference took place in Belgrade, Serbia and Montenegro. The conference was organized by the following institutions: Environmental Ambassadors; Serbian Chamber of Commerce; Secretariat for Environmental Protection – City of Belgrade; Faculty of Technical Sciences, University of Novi Sad; Institute for Standardization of Serbia and Montenegro; and Regional Chamber of Commerce – Novi Sad. The conference was supported by a number of Serbian institutions – government agencies, private companies and professional associations – as well as the United Nations Environment Program.
Environmental specialists from a wide range of disciplines presented papers at the conference covering diverse topics. Most of the presentations related primarily to Serbia and Montenegro; however many also covered the wider region of South East Europe. Geoffrey Mazullo, Director, PFS Program, presented data from the PFS Program regional surveys (Investor Relations Online and Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe – 2001-2006) and from a March 2006 survey of reporting on the same topics by the companies with the largest volume of continuous trading on the Belgrade Stock Exchange.
For more information, please visit the conference website - http://www.ambassadors-env.org/eng/index.php?option=com_content&task=view&id=27&Itemid=30
Thursday, May 25, 2006 - Friday, May 26, 2006
Regional Workshop on Prevention of Money Laundering
Belgrade, Serbia
On May 25-26, 2006 the PFS Program, in cooperation with the Financial Intelligence Unit, Ministry of Finance, Republic of Serbia, conducted a Regional Workshop on Prevention of Money Laundering. This was the eighth in a series of case-study based regional workshops organized by the PFS Program and partner organizations that bring together law enforcement experts from across new and old member states of the European Union (EU), other countries in Central and Eastern Europe (CEE), South East Europe (SEE) and the US.
The participant breakdown was as follows: Montenegro – two judges and two representatives of the Administration for the Prevention of Money Laundering; and Serbia – 11 representatives of the Financial Intelligence Unit; two representatives of district courts; four representatives of district prosecutor’s offices; two representatives of the special prosecutor’s office for organized crime; and one representative of the tax police. In addition, staff of USAID and the US Department of Treasury participated in the Regional Workshop.
Speakers included the following: Estonia – one analyst of the Financial Intelligence Unit and one judge; Poland – one judge and one prosecutor; United Kingdom – one barrister; and the United States – the assistant attorney general of the state of Illinois.
On the first day of the Regional Workshop, each of the above-mentioned experts from Estonia, Poland, the UK and the US presented a real case study of a money laundering investigation/prosecution from his/her respective jurisdiction. Following each presentation, participants engaged the speaker in an interactive discussion about the case. On the second day, participants presented and debated case studies presented by participants from Montenegro, Poland and Serbia.
The Regional Workshop succeeded in achieving its aims and the overall goal of this ongoing PFS Program regional initiative, namely:
1. To provide a venue for representatives of various institutions from several countries to discuss real case studies from several jurisdictions;
2. To brainstorm and share experiences in order to develop the most effective strategies to be applied in the respective jurisdiction;
3. To promote in each jurisdiction the implementation of best practice and international standards in combating money laundering; and
4. To establish and strengthen inter-agency relationships on a national level as well as regionally and globally.
To download the agenda, presentations, speaker CVs and list of participants, please click on the links below:
Thursday, May 18, 2006 - Friday, May 19, 2006
First International Conference of the Banja Luka Stock Exchange: Corporate Governance and Capital Market Development – Five Years of the Banja Luka Stock Exchange
Banja Vrucica, Bosnia and Herzegovina
On Thursday, May 18 and Friday, May 19, 2006 the Banja Luka Stock Exchange organized its First International Conference: Corporate Governance and Capital Market Development – Five Years of the Banja Luka Stock Exchange.
More than 320 participants representing numerous institutions from across Bosnia and Herzegovina, South East Europe (SEE) as well as Central and Eastern Europe participated in the conference. The two-day conference covered a wide range of practical issues related primarily to the Banja Luka Stock Exchange Bosnia and Herzegovina; however, many speakers reported on developments in neighboring SEE countries as well. Presentations included the following: the current status of corporate governance in Bosnia and Herzegovina as well as across SEE – from a variety of perspectives; the legal framework for the capital markets and steps towards harmonization with European Union (EU) legislation; future developments in institutional investment; the current status, trends and future prospects on SEE stock exchanges; and a number of presentations of companies listed on the Banja Luka Stock Exchange. Geoffrey Mazullo, Director, PFS Program, presented data from the PFS Program regional surveys: Investor Relations Online and Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe.
Please click on the following hyperlink to visit the conference website, where you will find (in English and in Serbian): the conference agenda; presentations; biographies of the speakers; a list of participants, commentaries from participants and speakers; and a description of the conclusions drawn from the respective sessions: http://www.blse.ba/
Thursday, May 11, 2006 - Saturday, May 13, 2006
Crans Montana High Level Experts Forum
Tirana, Albania
From Thursday, May 11, 2006 through Saturday, May 13, 2006 the Crans Montana Forum held an inaugural High Level Experts Forum in Tirana, Albania entitled, “Albania – In the Crossroad of East-West Europe: The Investment Framework.”
A wide range of institutions from Albania, South East Europe, the European Union and other countries participated in the Forum, exchanging information and views related to topics including: education, energy, financial sector development, foreign direct investment, infrastructure and rule of law. Regional cooperation, integration of South East European (SEE) markets and the integration of the Albanian economy into the European economy were underlying themes of all the sessions.
Geoffrey Mazullo, Director, PFS Program, co-chaired a session entitled, “Modernization of the Legal Foreign Investment Framework: A Basic Requirement.”
To learn more about the Forum, please visit the Forum website: Crans Montana High Level Experts Forum - Tirana, Albania – May 11-13, 2006.
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, May 3, 2006
PFS Program joins the CSRwire syndication network
CSRwire, the corporate social responsibility (CSR) newswire service, and the PFS Program are pleased to announce the launch of a live news feed on the PFS Program website. CSRwire is a specialized newswire service designed to reach key audiences with corporate social responsibility announcements. Recognizing the multidimensional audience for sustainability, corporate citizenship and social responsibility news, CSRwire has developed a multi-tiered distribution strategy. CSRwire combines delivery to media contacts with reach to investment analysts and research firms, institutional and individual investors, NGOs and nonprofits, CSR organizations and corporate CSR officers and staff.
Please visit the CSRwire page by clicking on the link – CSRwire newsfeed.
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:
Monday, April 3, 2006
Conference: Responsible Reporting - Recent Trends Towards CSR Accountability
Brussels, Belgium
On Monday, April 3, 2006 the Employment, Social Affairs and Equal Opportunities Directorate General of the European Commission organized a pan-European conference entitled, “Responsible Reporting – Recent Trends Towards CSR Accountability.”
More than 300 participants representing a wide range of institutions from across Europe attended the conference, held at the European Commission in Brussels. Geoffrey Mazullo, Director, PFS Program, presented data from the PFS Program regional surveys: Investor Relations Online and Survey of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Central and Eastern Europe.
Please click on the following hyperlink to visit the conference website, where you will find the agenda, presentations and an audio of the proceedings: Conference: Responsible Reporting - Recent Trends Towards CSR Accountability - Monday, April 3, 2006.
Friday, March 31, 2006
PFS Program Grant to CEVES
Belgrade, Serbia
The PFS Program awarded a PFS Program Grant to the Center for Advanced Economic Studies (CEVES), Belgrade, Serbia to co-finance the publication of the fourth issue of the Quarterly Monitor of Economic Trends and Policies in Serbia.
Thursday, March 16, 2006
Conference: Best Practices in Good Governance: Experiences from the Public, Non-Profit and Private Sectors
Zagreb, Croatia
On Thursday, March 16, 2006 the Croatian consulting firm MAP Savjetovanja (MAP Consulting), in cooperation with the Croatian Chamber of Commerce and business.hr organized a multi-sectoral conference entitled, “Best Practices in Good Governance: Experiences from the Public, Non-Profit and Private Sectors.” The conference was supported financially by the Charles S. Mott Foundation and World Learning / USAID.
More than 95 persons from a wide range of Croatian institutions, representing the non-profit, private and public sectors, as well as institutions from neighboring countries, participated in the conference, held at the Croatian Chamber of Commerce.
Geoffrey Mazullo, Director, PFS Program, presented data from five years of PFS Program regional surveys: Investor Relations Online and Survey of Reporting on Corporate Social Responsibility CSR) by the Largest Listed Companies in Central and Eastern Europe. Two representatives of the Zagreb School of Economics and Management presented the 2004 and 2005 versions of two Croatian surveys they conducted on the same subjects.
To download the conference agenda, please click on this hyperlink: Agenda - Conference: Best Practices in Good Governance: Experiences from the Public, Non-Profit and Private Sectors – March 16, 2006.
A special edition of business.hr reported on the event. To read the special edition (in Croatian) – please click on the link below:
Wednesday, March 15, 2006
Launch of The Baltic Market Awards
On Wednesday, March 15, 2006 OMX’s exchanges in Tallinn, Riga and Vilnius launched The Baltic Market Awards. The annual contest will identify and rank the best Baltic market participants. The contest runs during 2006 and assesses all listed Main and I-list Baltic companies’ investor relations and member trading activities. The winners are awarded at a prize ceremony held at the end of the year.
Johan Rudén, President of the Baltic Market business unit at OMX, notes: “The Baltic Market Awards project will be a good encouragement for Baltic listed companies to have top international disclosure practices. This will, with the many excellent companies in the Baltic market, undeniably increase its visibility and trust in the eyes of investors. The companies will have the opportunity to compare themselves with their peers, in order to measure against the best, and to improve over time.”
The mission of The Baltic Market Awards, apart from identifying the best Baltic market participants, is to increase listed companies’ awareness of the significance of disclosure quality, good investor relations and corporate governance practices. In particular, the Awards will identify best practice in organizing websites, drafting reports and preparing corporate disclosures. Though only the best will be singled out and awarded, all companies involved will benefit.
The main award will be for The Best Investor Relations in the Baltic Countries. Other awards are: The Best Investor Relations Among Small Cap (market capitalization under EUR 50 million), The Best Company (of each exchange – Riga, Tallinn and Vilnius), The Best Investor Relations Webpage and, starting in 2007, The Most Visible Improvement Over The Year.
The Baltic Market Awards Evaluation Committee is responsible for development of the criteria and for approval of the results. The members of the Committee represent media (Bonnier Business Press), academic circles, investors and the stock exchanges. The Committee is chaired by Geoffrey Mazullo, Director, PFS Program, an independent representative.
Please click on the following link to read a press release regarding the launch of the Baltic Market Awards: Press Release – March 15, 2006.
Thursday, March 9, 2006
Second Annual Croatian Surveys: Investor Relations Online of Leading Croatian Companies - 2005 and Survey of Reporting on Corporate Social Responsibility (CSR) by Leading Croatian Companies - 2005
Zagreb, Croatia
On Thursday, March 9, 2006 the Zagreb School of Economics and Management published the second annual edition of two research surveys: Investor Relations Online of Leading Croatian Companies - 2005; and Survey of Reporting on Corporate Social Responsibility (SR) by Leading Croatian Companies - 2005.
The surveys were co-financed by a PFS Program Grant and are part of a wider regional initiative organized by the PFS Program. Each survey was conducted employing the same methodology used in the PFS Program regional surveys conducted semi-annually since 2001 and in country surveys conducted in Czech Republic, Hungary and Poland in 2001-2004.
The second annual edition of Investor Relations Online was conducted in autumn 2005. It investigates Croatian- and English-language information available on the websites of 48 leading Croatian companies.
The second annual edition of the Survey of Reporting on CSR by Leading Croatian Companies was also conducted in autumn 2005. It investigates Croatian-language information available in the 2004 annual reports, prospectuses and websites of 48 leading Croatian companies.
The companies included in the 2005 surveys account for 81% of the total market capitalization and 66% of the total turnover on the two Croatian stock exchanges, Varazdin Stock Exchange and Zagreb Stock Exchange.
The main conclusions of Investor Relations Online - 2005 are:
• The trend is positive: Overall, companies are making better use of their websites as an investor relations tool.
• A small number of companies stand out: These top companies exemplify good practices.
• There is still plenty of room for improvement: About half of the companies still do not provide the basic information which potential investors need.
• Compared with peers in other Central and Eastern European (CEE) companies, Croatian companies still lag.
The main conclusions of Reporting on CSR – 2005 are:
• On average, companies provide most information in the area of social policy, as opposed to environmental policy or corporate governance.
• Regarding corporate governance, most companies still report only the bare essentials.
• Environmental policy reporting improved slightly from a low base.
• In CSR reporting, a few top companies shine above the others.
• In comparison with peers in other CEE countries, again, Croatia still lags.
Survey findings include the following:
• A high percentage (92%) of companies has a local-language website. 83% of the firms have websites in English.
• Fifty-six percent of companies provide a list of the names of their management, up from 53% last year.
• The number of companies providing background information on management increased from 9% last year to 21% this year. This is a significant improvement.
• Only 33% of companies provided the names of their supervisory board members and only 7% disclosed any type of additional information on them.
• Only 42% of the companies provided their annual financial reports on their websites. However, this represents a slight increase from 40% last year.
• In CSR reporting, 38% of companies disclose their corporate sponsorships and donations whereas 13% of companies disclose the level of their energy and water use.
To download the surveys, in Croatian and in English, and three English-language publications of the survey results, 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, February 28, 2006
Presentation of Second Annual Croatian Surveys: Investor Relations Online of Leading Croatian Companies – 2005 and Survey of Reporting on Corporate Social Responsibility (CSR) by Leading Croatian Companies - 2005
Zagreb, Croatia
On Tuesday, February 28, 2006 the Zagreb School of Economics and Management organized a press conference to present the second annual edition of two research surveys: Investor Relations Online of Leading Croatian Companies - 2005; and Survey of Reporting on Corporate Social Responsibility (SR) by Leading Croatian Companies - 2005. The surveys were co-financed by a PFS Program Grant and conducted employing the same methodology used in the PFS Program regional surveys (ongoing since 2001) and country surveys conducted in Czech Republic, Hungary and Poland (2001 – 2004).
Approximately 45 persons attended the conference, representing the following institutions: business associations, consulting firms, educational institutions, financial institutions, listed companies, media, non-governmental organizations (NGOs) and research institutions.
To download the presentations, in Croatian and English, please click on the links below:
Thursday, February 16, 2006
Presentation – Reporting on Corporate Governance and Corporate Social Responsibility (CSR) by Listed Companies in Poland and other Central and Eastern European (CEE) Countries
Warsaw, Poland
On Thursday, February 16, 2006 Geoffrey Mazullo, Director, PFS Program gave a presentation on reporting on corporate governance and CSR by listed companies in Poland and other CEE countries to faculty and students of the Leon Kozminski Academy of Entrepreneurship and Management in Warsaw, Poland. The presentation took place at the Academy.
The group engaged in a discussion of the corporate governance case study and data from the PFS Program’s regional surveys of reporting on CSR by listed companies in CEE.
To download the presentations, please click on the links below:
Tuesday, February 14, 2006 - Wednesday, February 15, 2006
Study Visit to Warsaw, Poland for Representatives of South East European Bank Associations / Bank Training Institutes
Warsaw, Poland
On February 14-15, 2006 the PFS Program, the Warsaw Institute of Banking and The Gdansk Academy of Banking organized a Study Visit to Warsaw, Poland for Representatives of South East European (SEE) Bank Associations / Bank Training Institutes.
Representatives of the following institutions participated in the Study Visit: Association of Montenegrin Banks; Association of Serbian Banks; Kosovo Bankers’ Association; and the National Bank of Serbia.
During the Study Visit, representatives of the above-mentioned SEE institutions met representatives of the Warsaw Institute of Banking on February 14 and The Gdansk Academy of Banking on February 15, 2006.
The purpose of the Study Visit was two-fold:
1. Each of the two Polish institutions shared with colleagues from SEE institutions their respective experience/expertise in: establishing a self sustaining bank training institute; designing and conducting training for bankers; participating in European Union (EU) and international banking networks; and cooperating with foreign partners on specific projects.
2. The representatives of the SEE institutions had the opportunity to: (a) ask questions regarding the experience of the two Polish counterparts; and (b) brainstorm with the two Polish counterparts and other SEE institutions about potential future joint activities.
The Study Visit also facilitated informal discussions and an exchange of ideas among the SEE institutions for effective ways to cooperate.
Based on the interest and needs of the participating SEE institutions, a possible outcome of the Study Visit could be the submission of one or more joint SEE/Polish applications for a PFS Program Grant to co-finance institutional development, research and/or training.
Thursday, February 2, 2006 - Friday, February 3, 2006
Seminar on Internal Audit of Unified Financial Sector Supervisory and Regulatory Authorities
London, UK
The Business Review and Audit Department of the Financial Services Authority (FSA) of the United Kingdom (UK) held an International Seminar on Internal Audit of Unified Financial Sector Supervisory and Regulatory Authorities on February 2-3, 2006. The seminar took place at the UK FSA in London.
The seminar brought together internal auditors and related staff from regulatory authorities in Belgium, Bulgaria, Canada, Estonia, Ireland, Jersey, Kosovo, the Netherlands, Singapore, Spain, the UK and Ukraine.
The seminar provided an excellent opportunity for internal auditors from the above-mentioned countries/institutions to discuss strategies for implementing best practices, exchange/share experiences, identify international standards and network with colleagues in similar positions at regulatory institutions in other countries.
Speakers from the UK FSA and the private sector covered issues including: information system (IS) security; risk-based supervision; and a variety of topics related to internal audit practice, standards and strategy. On the second day of the seminar, the Business Review and Audit Department of the UK FSA facilitated a roundtable discussion regarding effective internal audit.
The PFS Program co-sponsored the participation of internal audit and related staff of unified financial sector regulators in Bulgaria, Kosovo and Ukraine in the seminar. The PFS Program also sponsored the participation of two private-sector speakers: the Chief Financial Officer of Bank BPH (Warsaw, Poland) spoke about implementation of Basle II; and a UK barrister presented a case study about cross-border financial crime/prevention of money laundering.
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