Partners for Financial Stability Program website

Friday, December 18, 2009
Closure of East-West Management Institute’s Representative Office in Poland
Warsaw, Poland

East-West Management Institute (EWMI) will close its Representative Office in Poland on Friday, December 18, 2009. EWMI would like to take this opportunity to thank Polish colleagues and counterparts for their assistance and cooperation during the past years.

Upon completion of its ten-year mandate, the current phase of the PFS Program will end on December 31, 2009. USAID has issued a request for proposals for a follow-on project. More information will be posted here on the PFS Program website in due course.

Friday, December 11, 2009
Lecture: Corporate Social Responsibility - Analysis and Management of Internal and External Factors that Impact a Corporation
Riga, Latvia

On Friday, December 11, 2009 Geoffrey Mazullo, Director, PFS Program, delivered an Open Lecture at the Stockholm School of Economics in Riga. The lecture was organized by the Stockholm School of Economics in Riga, in cooperation with NASDAQ OMX Riga.

In the lecture, Mr. Mazullo, Director defined Corporate Social Responsibility (CSR) and explained the relationship between it and related topics, including: compliance; corporate governance; disclosure; environmental, social and governance (ESG) reporting; socially responsible investment (SRI); sustainability; and triple bottom line investing. The lecture then charted the development of CSR as a concept and a phenomenon, by presenting mini-case studies about a number of companies’ CSR experiences. By analyzing its constituent elements, the lecture aimed to dispel a commonly-held misconception/misperception that CSR is philanthropy. The lecture explained that CSR is in fact a phenomenon involving both internalities within and externalities surrounding a corporation. The careful analysis and effective management of these internalities and externalities brings both internal and external benefits to the corporation. Some statistics about reporting on CSR by the largest listed companies in Central and Eastern Europe (CEE) were presented; comparisons with peers in other regions, including other emerging markets, were made. At the end of the lecture, public policy choices and public policy implications of CSR were debated/discussed.

To open the presentation, please click on the link below:

CSR Lecture - Geoffrey Mazullo - Director, PFS Program - December 11, 2009.pdf - 2,219 KB

Thursday, December 10, 2009
NASDAQ OMX Baltic announces winners of The Baltic Market Awards
Tallinn, Estonia; Riga, Latvia; and Vilnius, Lithuania

At the Baltic Market Awards ceremony on Thursday, December 10, 2009 NASDAQ OMX Baltic, part of the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), announced the companies from the NASDAQ OMX Baltic market awarded the best Investor Relations (IR) in 2009, as well as the Member of the Year.

TEO LT was awarded the Best Investor Relations in the Baltic Countries. This was the third time the company won this award. The company scored 98 points out of 100 possible. The other candidates for this award were Tallinna Vesi and SAF Tehnika. Apart from being awarded the Best Investor Relations in the Baltic countries, TEO LT was also awarded the Best Investor Relations in NASDAQ OMX Vilnius.

Tallinna Vesi was awarded for the Best Annual Report. In addition, the company had the highest overall score among Estonian companies and received the award for the Best Investor Relations in NASDAQ OMX Tallinn.

SAF Tehnika was awarded for the Best Investor Relations among Small Cap Companies and for the Best Investor Relations in NASDAQ OMX Riga. This was the fourth consecutive year that the company received both awards, thanks to its continuous efforts and focus on investor relations.

The Most Visible Improvement over the year in Investor Relations in the Baltic Countries was made by City Service from Lithuania, which increased its score by 19%.

For the award Best Investor Relations Online, four companies had the maximum score. The Baltic Market Awards evaluation committee therefore decided to award all four companies – Grindeks, SAF Tehnika, TEO LT and VST.

Since the market quality is driven not only by issuers but also by exchange members, The Member of the Year in the Baltic countries award was given to AB SEB bankas from Lithuania, acknowledging its trading activity, commitment to market development and strong customer focus.

“The Baltic Market Awards is not just about the progress made by the winning companies. The average score for the Baltic companies has increased by almost 6 percent since last year, thus making a remarkable 50 percent progress since 2006, when the Baltic Market Awards was introduced. We strongly believe that the way a company is doing its business and communicating with its shareholders matters. It is about ethics, transparency and governance. Investor Relations is an asset that plays an important role in companies’ sustainability and its ability to raise additional capital for growth,” said Henrik Elfving, NASDAQ OMX Vice President / Baltic market.

The Baltic Market Awards was introduced in 2006. The aim of the project is to highlight the best achievements in IR among listed companies and motivate companies to focus on investor relations and adapt best practices, as well provide companies with individual evaluation and consultancy advice from the exchange side. Each company is evaluated by more than 100 criteria, including the quality of annual and interim reports, disclosures, web page and analysts’ opinions. This year 58 companies were evaluated.

The members of the Evaluation Committee represent academics, investors and representatives of the Baltic Stock exchanges; it was chaired by Geoffrey Mazullo, Director of the Partners for Financial Stability (PFS) Program, East-West Management Institute. The company analysis was conducted by students from the Stockholm School of Economics in Riga, under the supervision of the evaluation committee and the NASDAQ OMX Baltic exchanges.

The list of winners:

The Best Investor Relations in the Baltic Countries – TEO LT

The Best Investor Relations in NASDAQ OMX Tallinn – Tallinna Vesi

The Best Investor Relations in NASDAQ OMX Riga – SAF Tehnika

The Best Investor Relations in NASDAQ OMX Vilnius – TEO LT

The Best Investor Relations among Small Cap Companies – SAF Tehnika

The Best Annual Report – Tallinna Vesi

The Best Investor Relations Online - Grindeks, SAF Tehnika, TEO LT, VST

The Most Visible Improvement over the Year – City Service

The Member of the Year in the Baltic countries - AB SEB bankas

Tuesday, December 1, 2009
Updated Database of Contacts in the Field of Socially Responsible Investment (SRI) - December 2009

From mid-October until mid-November 2009, PFS Program Intern Krzysztof Wasilewski (Poland) updated the PFS Program’s Database of Contacts in the field of Socially Responsible Investment (SRI).

The initial database was published on this page of the PFS Program website on October 25, 2002. It contained contact information about more than 275 organizations whose SRI activities were reported online and/or in the financial press.

Since then, the database has been updated eight times. A second edition of the database was published on February 16, 2005; it contained 726 organizations divided among ten categories. A third edition of the database was published on October 7, 2005; it contained 709 organizations divided among ten categories. A fourth edition of the database was published on July 27, 2007; it contained 793 organizations divided among ten categories. A fifth edition of the database was published on December 17, 2007; it contained 799 organizations divided among ten categories. A sixth edition of the database was published on August 1, 2008; it contained 854 organizations divided among 11 categories. A seventh edition of the database was published on December 16, 2008; it contained 920 organizations divided among 12 categories. An eighth edition of the database was published on July 1, 2009; it contained 1,176 organizations divided among 12 categories.

This ninth edition of the database, with current information as of November 30, 2009, contains 1,335 organizations divided among the following 13 categories: Academia (40 institutions); Awards and Prizes (17); Companies – Listed Companies (388); Conferences and Events (232); Financial Institutions (157); Governmental Organizations (53); Indices (32), Media (62); Networks (23); Non-Governmental Organizations (217); Professional Associations (43); Public-Private Partnerships (9); and Rating and Research (62). It includes institutions from 55 countries in Africa, Asia, Australia, Europe, North America and South America.

In the eighth edition of the database, published in July 2009, we noted that the number of conferences and events on SRI topics and the number of companies worldwide that publish a stand-alone English-language Corporate Social Responsibility (CSR) report increased significantly during the first half of 2009.

These two trends continued during the second half of 2009. The number of conferences and events on SRI topics increased from 183 (as of July 1, 2009) to 232 (as of November 30, 2009). The number of companies that publish a stand-alone English-language CSR report increased from 330 to 388. Blue-chip companies from Brazil, Russia, India and China (BRIC) as well as CEE and SEE covered by the PFS Program’s regional surveys are included in this group. In addition, this group includes companies which distribute a CSR reports through Corporate Register.

This ninth edition of the database includes a new category entitled “Networks”. It consists of 23 networks promoting SRI by bringing together companies, financial institutions, investors, NGOs and/or professional associations.

The current edition of the database also includes all PFS Program partners engaged in corporate governance, CSR and/or SRI activities.

To download the database, please click on the link below:

(Updated) Database of Contacts in the Field of Socially Responsible Investment (SRI) - November 2009.xls - 1,273 KB

Thursday, November 12, 2009 - Friday, November 13, 2009
TBLI Conference Europe 2009
Amsterdam, The Netherlands

On Thursday, November 12 and Friday, November 13, 2009 TBLI Group organized TBLI Conference Europe 2009 in Amsterdam, The Netherlands.

TBLI Conference and the PFS Program co-sponsored the Eastern European Socially Responsible Investment (SRI) Delegation, which included representatives of the following institutions: the Albanian Financial Supervisory Authority, the National Corporate Social Responsibility Coordinative Body - Macedonia, and Responsible Business Initiative Smart Kolektiv – Serbia.

Geoffrey Mazullo, Director, PFS Program, moderated Workshop 2 on TBLI in Emerging Markets on Thursday afternoon, November 12, 2009. Mr. Mazullo is a member of TBLI’s International Advisory Group.

Speakers in the Workshop represented the following institutions: Erste Sparinvest KAG; European Investment Bank (EIB); Norfund; and Standard & Poor's Index & Portfolio Services.

Participation in TBLI Conference Europe 2009 is part of the PFS Program’s ongoing commitment to strengthening reporting on environmental, social and governance (ESG) issues and promoting responsible investment in South East Europe as well as Central and Eastern Europe.

The complete conference agenda and speaker bios may be found on the TBLI Conference Europe 2009 website. All of the presentations may be found at the presentations and media section of the TBLI Conference Europe 2009 website.

Thursday, October 29, 2009
Conference: Double Dividends – Trends in Ethical Investment
Vienna, Austria

On Thursday, October 29, 2009 oekom research AG and Corporate Responsibility Interface Center (CRIC) organized a conference entitled, “Double Dividends – Trends in Ethical Investment” in Vienna, Austria. A wide range of Austrian, German and Swiss financial institutions supported the conference.

The event was attended by more than 100 participants, representing institutional investors, service providers for ethical investment, representatives of religious orders and investment professionals serving churches, dioceses, charities, churches, foundations and dioceses.

The two major themes of the conference were: engagement with companies about environmental, social and governance (ESG) issues; and ethical/responsible investment in emerging markets.

Dr. Klaus Gabriel, Chair of CRIC, explained his network’s position on engagement as follows: “Investor engagement, in cooperation with other civil society activities, can play a decisive role in achieving concrete results on environmental and social issues.”

A workshop on emerging markets included two presentations. Geoffrey Mazullo, Director, PFS Program outlined some of the challenges for ethical investment in emerging markets, focusing on transition economies in South East Europe (SEE) and Central and Eastern Europe (CEE). He described developments and trends in ESG reporting by listed companies in CEE, comparing the results of eight years of PFS Program regional surveys with data on other regions, including: Brazil, Russia, India and China (BRIC); Germany; and the US. Sabine Doebeli, Director of Sustainability, Bank Vontobel, Switzerland, spoke about ethical investment in emerging markets in Asia.

The PFS Program would like to thank the organizers of the conference for this opportunity. Contributing to this event enabled the PFS Program to present its research and engage in discussion with a wide range of institutions from German-speaking markets.

The detailed conference agenda and presentations as well as photos from the conference may be found on a sub-page of the oekom research AG website dedicated to the event.

Saturday, October 24, 2009 - Saturday, December 12, 2009
NAIC Fall 2009 International Internship Program
Kansas City, MO; Oklahoma City, OK; San Francisco, CA and Washington, DC

A leading advisor of the Ministry of Finance of Republic of Azerbaijan, participated in the Fall 2009 International Internship Program organized by the National Association of Insurance Commissioners (NAIC) from October 24 through December 12, 2009.

During a week-long orientation program at the NAIC headquarters in Kansas City, Missouri nine interns from five emerging markets were introduced to insurance regulation in the United States. Thereafter, the leading advisor of the Ministry of Finance of Republic of Azerbaijan undertook a five-week internship with the Oklahoma Insurance Department. During the on-site component of the internship program, the intern worked closely with a mentor and interacted with staff members of various departments of the host-state insurance regulator. Following the on-site component of the program, all of the interns attended the NAIC Autumn National Meeting in San Francisco, California from December 5-8, 2009. At the end of the program, the interns participated in industry-regulator dialogue meetings and closing ceremonies in Washington, DC organized by the NAIC’s internship coordinator.

Detailed information about the NAIC International Internship Program may be found on the International Relations page of the NAIC website.

The PFS Program emphasizes peer-assisted learning as an effective professional development mechanism. This internship program provided an excellent opportunity for the leading advisor of the Ministry of Finance of Republic of Azerbaijan to expand her knowledge base and improve her professional qualifications. Each of the participating institutions contributed towards the cost of this program.

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:

PFS Program - Survey of Reporting on CSR in CEE, BRIC and Ukraine - September 2009.pdf - 619 KB

Database - Survey of Reporting on Corporate Social Responsibility in CEE + BRIC and Ukraine - September 2009.xls - 1,557 KB

PFS Program - List of Companies with English-language ESG reports - September 2009.pdf - 168 KB

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

Thursday, September 24, 2009
Investor Relations Seminar
Skopje, Macedonia

On Thursday, September 24, 2009 the Macedonian Stock Exchange and the PFS Program organized an Investor Relations Seminar in Skopje, Macedonia.

Ivan Steriev, CEO, Macedonian Stock Exchange opened the Seminar. His opening remarks underscored the importance of transparent disclosure and effective investor relations. He announced new listing rules of the Macedonian Stock Exchange, including the recommendation that each listed company appoint an individual responsible for corporate communications.

The design of the seminar flowed as follows: “What to Do – How to Do It – and Why Do It.”

During the first presentation, the PFS Program analyzed what a company should do to achieve best practice in investor relations. During the second presentation, a practitioner outlined how an investor relations professional implements investor relations effectively. During the third presentation, a targeted institutional investor explained why a company should conduct good investor relations.

During the first session, Geoffrey Mazullo, Director, PFS Program explained in practical terms what best practice investor relations is. Following a discussion of definitions (of investor relations, disclosure and shareholder rights) the presentation outlined the internal and external benefits of an effective investor relations program. The distinction between financial information and extra-financial information was made; Mr. Mazullo explained the industry-standard acronym ESG, describing environmental, social and governance data. Thereafter, the presentation provided numerous examples of best practice in investor relations, analyzing in detail best practice corporate websites and other investor relations mechanisms, including: ad hoc disclosures, the annual general meeting of shareholders, the annual report, a calendar of disclosures, conference calls, investor meetings/presentations, newsletters, press releases, road shows, and share price information.

This “What to Do” analysis was followed by the insights of a practitioner. In the second session, Agnieszka Solarz-Jedrych, Investor Relations Department, BRE Bank SA, addressed an audience in Skopje for the first time. She presented a broad range of practical information about her institution’s investor relations program, focusing on communicating with shareholders. She described in detail the channels employed and tools used to manage relationships with shareholders.

This was also the first visit of Alvar Roosimaa, Chief Investment Officer, Limestone Investment Management to Skopje. In the third and final session, he delivered a presentation explaining why companies should invest in disclosure and good investor relations. He explained how the Limestone New Europe Socially Responsible Fund uses financial and extra-financial (ESG) data in its investment process. He described the investment process in detail, outlining the extensive research conducted, the parameters/steps of the research process and the fund’s engagement strategy with portfolio companies. He explained that Limestone Investment Management engages “in dialogue with companies to both better understand, as well as help shape them in ways that favor sustainable and responsible practices.”

A total of 63 persons participated in the Seminar, including speakers, participants and media. Participants represented companies listed on the Macedonian Stock Exchange, companies contemplating a listing, the IFC, USAID Business Environment Activity and USAID Macedonia.

The Seminar was covered by several Macedonian radio and television media outlets. Throughout the Seminar speakers and participants engaged in an interactive dialogue, exchanging information and brainstorming about how to promote the adoption of international standards as well as the implementation of best practice in investor relations.

This seminar is part of an ongoing and multi-faceted PFS Program regional initiative dedicated towards improving the quality of financial and extra-financial reporting across emerging markets in South East Europe, Central and Eastern Europe, and the Caucasus.

This event was the 17th investor relations seminar organized by the PFS Program since 2001, attracting over 850 participants. (Materials from each of the seminars may be found on the capital markets seminars page of the PFS Program website.)

To download the seminar agenda, presentations and speaker biographies as well as a list of participants, please click on the links below.

Agenda - Investor Relations Seminar - Skopje, Macedonia - September 24, 2009 - ENG.pdf - 33 KB

Agenda - Investor Relations Seminar - Skopje, Macedonia - September 24, 2009 - MK.pdf - 117 KB

Session 1 - PFS Program - Best Practice in IR - IR Seminar - September 24, 2009.pdf - 3,863 KB

Brief Bio - Geoffrey Mazullo - September 2009.pdf - 16 KB

Session 2 - BRE Bank - Best Practices in IR - IR Seminar - September 24, 2009.pdf - 765 KB

Brief Bio - Agnieszka Solarz-Jedrych - September 2009.pdf - 118 KB

Session 3 - Limestone Investment Management - Institutional Investors and IR - IR Seminar - September 24, 2009.pdf - 844 KB

Brief Bio - Alvar Roosimaa - September 2009.pdf - 11 KB

List of Participants - IR Seminar - September 24, 2009 - Skopje, Macedonia.xls - 36 KB

Friday, September 11, 2009
Presentation of Fourth Edition of Croatian Surveys: Investor Relations Online of Leading Croatian Companies – 2009 and Survey of Reporting on Corporate Social Responsibility (CSR) by Leading Croatian Companies – 2009
Zagreb, Croatia

On Friday, September 11, 2009 the Zagreb School of Economics and Management (ZSEM) organized a press conference to present the fourth edition of two research surveys: Investor Relations Online of Leading Croatian Companies - 2009; and Survey of Reporting on Corporate Social Responsibility (CSR) by Leading Croatian Companies - 2009.

The surveys follow similar research conducted by ZSEM in 2004, 2005 and 2006. They 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 Armenia, Bulgaria, Czech Republic, Hungary Macedonia, Poland and Serbia.

This year the Croatian surveys included a new component, namely an analysis of the disclosure statements made by companies listed on the Zagreb Stock Exchange. The statements outline each company’s compliance with the Corporate Governance Code.

Following presentations of the Croatian surveys, the PFS Program compared the disclosures of Croatian companies with peers in other Central and Eastern European countries as well as Armenia, BRIC (Brazil, Russia, India and China) and Ukraine.

More than 50 persons attended the presentation; the majority of participants were ZSEM faculty and students. Representatives of several companies covered by the surveys, other financial institutions and the Zagreb Stock Exchange also attended.

To download the conference agenda, presentations, survey databases and survey publications, please click on the links below:

Agenda - Presentation of Fourth Edition of Croatian Surveys - ZSEM - September 11, 2009.pdf - 122 KB

Session 1 - ZSEM - Survey of Investor Relations Online - Croatia - 2009.pdf - 8,752 KB

Session 2 - ZSEM - Investor Relations Online - Best Practices - Croatia - 2009.pdf - 3,576 KB

Session 3 - ZSEM - Survey of Reporting on CSR - Croatia - 2009.pdf - 6,455 KB

Session 4 - ZSEM - Reporting on CSR - Best Practices - Croatia - 2009.pdf - 818 KB

Session 5 - PFS Program - PFS Program Surveys - September 11, 2009.pdf - 230 KB

Session 6 - ZSEM - Survey of CG Code Disclosure Statements - Croatia - 2009.pdf - 2,750 KB

Database - ZSEM - Investor Relations Online - Croatia - 2009.xls - 4,722 KB

Database - ZSEM - Survey of Reporting on CSR - Croatia - 2009.xls - 660 KB

Database - ZSEM - Survey of Reporting on CSR - Croatia - 2004-2009.xls - 730 KB

ZSEM - Publication - Investor Relations Online of Leading Croatian Companies - 2009.pdf - 2,517 KB

ZSEM - Publication - Reporting on CSR by Leading Croatian Companies - 2009.pdf - 2,687 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:

PFS Program - Investor Relations Online - Survey of Websites - August 2009.pdf - 248 KB

PFS Program - Presentation - Investor Relations Online - Survey of Websites - August 2009.pdf - 1,441 KB

Database - Investor Relations Online - Survey of Websites - August 2009.xls - 549 KB

Monday, September 7, 2009 - Friday, September 11, 2009
20th Warsaw Actuarial Summer School
Warsaw, Poland

From September 7-11, 2009 the 20th Warsaw Actuarial Summer School took place in Warsaw, Poland. The WASS is a joint venture of the Faculty of Economic Sciences, University of Warsaw and the Polish Society of Actuaries. This year’s WASS was the 20th edition of the Summer School, which since 2003 has focused on continuing education of actuaries who have already completed basic academic training in actuarial science. The program included two lectures: Dependence Modelling with Actuarial Applications and Understanding Accounting Standards and Regulatory Requirements for Insurance Companies - Actuaries on the Pole Position. The PFS Program financed the tuition of two actuaries from the Insurance Agency of Republika Srpska, Bosnia and Herzegovina.

Wednesday, July 1, 2009
Updated Database of Contacts in the Field of Socially Responsible Investment (SRI) – July 2009

From June 1-25, 2009 PFS Program Intern Jun Rentschler (Germany) updated the PFS Program’s Database of Contacts in the Field of Socially Responsible Investment (SRI).

Since then, the database has been updated seven times. A second edition of the database was published on February 16, 2005; it contained 726 organizations divided among ten categories. A third edition of the database was published on October 7, 2005; it contained 709 organizations divided among ten categories. A fourth edition of the database was published on July 27, 2007; it contained 793 organizations divided among ten categories. A fifth edition of the database was published on December 17, 2007; it contained 799 organizations divided among ten categories. A sixth edition of the database was published on August 1, 2008; it contained 854 organization divided among 11 categories. A seventh edition of the database was published on December 16, 2008; it contained 920 organizations divided among 12 categories.

This eighth edition of the database, with current information as of June 2009, contains 1,176 organizations divided among the following 12 categories: Academia (38 institutions); Awards/Prizes (12); Companies/Listed Companies (330); Conferences and Events (186); Financial Institutions (152); Governmental Organizations (52); Indices (31); Media (62); Non-Governmental Organizations (206); Professional Associations (40); Public-Private Partnerships (eight); and Rating/Research (59). It includes institutions from 55 countries in Africa, Asia, Australia, Europe, North America and South America.

In this latest edition of the database, the number of events and conferences on SRI topics has increased significantly from 96 (as of December 16, 2008) to 183. Particularly striking is the large (more than threefold) increase of SRI events in the United States from 18 to 58.

Also, in this edition of the database the number of companies that publish a stand-alone English-language Corporate Social Responsibility (CSR) report has increased from 248 to 330. Blue-chip companies from Brazil, Russia, India and China (BRIC) as well as CEE and SEE covered by the PFS Program’s regional surveys are included in this group. In addition, this group includes companies which distribute a CSR reports through Corporate Register. As of June 2009, data by Global Reporting Initiative indicates that over 1,000 companies worldwide publish a stand-alone English-language report on environmental, social and governance (ESG) indicators.

This edition of the database documents ongoing growth in a variety of renewable energy initiatives. It includes: three awards (compared with one in the December 2008 edition); 16 companies (one); 30 conferences and events (eight), and nine NGOs (four). The 30 companies include both new market entrants and conventional/mainstream power companies with an increasing focus on sustainability.

The current edition of the database also includes all PFS Program partners engaged in corporate governance, CSR and/or SRI activities.

To download the database, please click on the link below:

(Updated) Database of Contacts in the Field of Socially Responsible Investment (SRI) - July 2009.xls - 1,145 KB

Thursday, June 25, 2009
International Seminar: Supply Chain Management and its Impact on Social Responsible Investment
Bucharest, Romania

On Thursday, June 25, 2009 the Bucharest Stock Exchange – Corporate Governance Institute and the PFS Program organized an International Seminar: Supply Chain Management and its Impact on Socially Responsible Investment (SRI). This was the fourth year in which the Bucharest Stock Exchange – Corporate Governance Institute and the PFS Program co-organized a June event, following seminars organized in June 2008, June 2007 as well as June 2006.

The innovative topic of the seminar was selected by Petra Alexandru, Executive Director, Bucharest Stock Exchange – Corporate Governance Institute. Mariana Ciurel, Strategy and International Alliances, Bucharest Stock Exchange, devised the agenda and content. The international seminar represented a first in-depth discussion in Romania of the impact of supply chain management on SRI.

The first session was dedicated to SRI and covered fundamentals as well as integration of SRI into the investment decision-making process. The PFS Program presented a basic primer on SRI followed by two mini case studies written by the PFS Program team about the role of supply chain management in corporate social responsibility (CSR). The case studies deomonstrated how supply chain management can attract or deter investors. Thereafter, the Director of Corporate and Investor Relations at Petrom presented the companies approach to supply chain management and its role in the company’s overall CSR policies/procedures.

The second session investigated various operational risks and their effect on the company’s risk profile. Presentations by representatives of Maersk Romania, Oracle Romania and POP Pepa Attorneys-at-Law covered corporate governance, information technology, risk management and supply chain management.

During the third session, representatives of the European Centre for Corporate Engagement, Maastricht University and Fitch Ratings Turkey analyzed the question: How socially screened should your portfolio be?

At the beginning of the fourth and final session a representative of Marsh Romania explained how supply chain integrity and sustainability awareness impact cost-efficiency and business value. Therafter representatives of the Bucharest Stock Exchange - Corporate Governance Institute and Eurosif discussed various issues related to the responsibility component/parameter of SRI.

The event was attended by a total of 52 participants from Bosnia and Herzegovina, Macedonia and Romania. A representative of the Sarajevo Stock Exchange moderated session two and a representative of Komercijalna Banka AD Skopje moderated session three.

This seminar is part of an ongoing and multi-faceted PFS Program regional initiative dedicated towards strengthening corporate govenance and improving the quality of financial and non-financial reporting across Central and Eastern Europe as well as South East Europe.

To download the seminar agenda, presentations and a list of participants, please click on the links below:

Friday, June 19, 2009
Corporate Governance Workshop
Yerevan, Armenia

On Friday, June 19, 2009 NASDAQ OMX Armenia and the PFS Program held a Regional Workshop on Corporate Governance. The Workshop took place on the premises of NASDAQ OMX Armenia in Yerevan.

The audience of 21 persons was composed of Armenian capital market participants, financial journalists and regulatory authorities as well as professor from Tbilisi, Georgia.

At the outset of the workshop, PFS Program Director Geoffrey Mazullo presented a case study demonstrating the negative impacts of poor governance on a large listed company. Participants analyzed the legal and self-regulatory framework for disclosure in the market where the company is listed, and then discussed the consequences of the company’s governance failures. They differentiated between the roles of shareholders and stakeholders in governance. In conclusion, they summarized the internal versus the external impacts of governance on the company over the long term.

After a coffee break, the PFS Program delivered a presentation designed to assist financial journalists in reporting on corporate governance. It covered the following topics: corporate governance models (including the Anglo-US, German and Japanese models as well as corporate governance in transition economies); ownership structures; disclosure regimes; the legal and self-regulatory framework for corporate governance; the rights and responsibilities of corporate organs, including management and the board; shareholders’ rights; and the use of governance information by shareholders and stakeholders. During the final component of the presentation Mr. Mazullo outlined a brief primer for financial journalists, with a checklist of recommendations for reporting on corporate governance.

To download the workshop agenda, presentations and speaker biographies (in Armenian and English) as well as a list of participants, please click on the links below. The PFS Program would like to thank NASDAQ OMX Armenia for translating the materials into Armenian.

Agenda - Corporate Governance Workshop - Yerevan, Armenia - June 19, 2009 - AM.pdf - 172 KB

Agenda - Corporate Governance Workshop - Yerevan, Armenia - June 19, 2009 - EN.pdf - 198 KB

Session 1 - Case Study - CG Workshop - June 19, 2009 - EN.pdf - 340 KB

Session 1 - Handout - CG Workshop - June 19 2009 - AM.pdf - 38 KB

Session 1 - Handout - CG Workshop - June 19, 2009 - EN.pdf - 14 KB

Session 2 - Reporting on Corporate Governance - CG Workshop - June 19 2009 - AM.pdf - 1,175 KB

Session 2 - Reporting on Corporate Governance - CG Workshop - June 19, 2009 - EN.pdf - 208 KB

About the Speakers - CG Workshop - June 19, 2009 - AM.pdf - 193 KB

About the Speakers - CG Workshop - June 19, 2009 - EN.pdf - 257 KB

List of participants - Corporate Governance Workshop - Yerevan, Armenia - June 19, 2009.pdf - 35 KB

Wednesday, June 17, 2009
Investor Relations Seminar
Yerevan, Armenia

On Wednesday, June 17, 2009 NASDAQ OMX Armenia and the PFS Program organized an Investor Relations Seminar in Yerevan, Armenia. The event was notable in several ways: First, this was the first seminar in Armenia dedicated solely to the topic of investor relations. Second, during the seminar the PFS Program presented its inaugural survey of websites of 20 Armenian companies admitted to trading and listed on NASDAQ OMX Armenia. Third, the seminar represented the expansion of the PFS Program’s ongoing investor relations initiative to Armenia and the Caucasus.

During an opening presentation, the PFS Program explained in practical terms why investor relations is important. Following an analysis of developments and trends in investor relations during the past two decades, the presentation ended with an examination of the internal and external benefits of good corporate governance as well as an effective investor relations program.

The above-mentioned overview was immediately complemented by the insights of a practitioner. Agnieszka Solarz-Jedrych, Investor Relations Department, BRE Bank SA, addressed an audience in Armenia for the first time. She presented a broad range of practical information about her institution’s investor relations program, focusing on communicating with shareholders. She described in detail the channels employed and tools used to manage relationships with shareholders.

Thereafter, a representative of the Central Bank of Armenia delivered a presentation outlining the disclosure regime in the Armenian securities market.

In a final session before lunch, the PFS Program presented the results of its inaugural survey: Investor Relations Online – Survey of Websites of 20 Armenian Companies Admitted to Trading and Listed on NASDAQ OMX Armenia. In addition to analyzing the online disclosures of Armenian companies and identifying several examples of best practice, the survey also compared the investor relations disclosures of Armenian companies with peers in 11 Central and Eastern European (CEE) countries, Macedonia, BRIC (Brazil Russia, India and China) as well as Ukraine. This component of the seminar was designed to motivate management of Armenian companies to benchmark their investor relations disclosures with Armenian peers and with peers in other emerging markets.

During an afternoon session the PFS Program presented several case studies regarding best practice in investor relations, from a diverse number of companies (both large cap and small cap) recognized for their investor relations programs, including several CEE companies. The PFS Program also presented selected data from its semi-annual surveys: Investor Relations Online and Survey of Reporting on CSR by the Largest Listed Companies in 11 CEE countries; BRIC and Ukraine. In addition to analyzing corporate websites in detail, the presentation also examined other investor relations mechanisms, including the annual general meeting of shareholders, annual report, conference calls, press releases and roadshows.

In a final session, Andrus Alber, Chairman of the Management Board, NASDAQ OMX Tallinn delivered a presentation describing the Baltic Markets Awards. In it he explained both the philosophy behind recognizing investor relations best practice with awards and the practical outcomes achieved during the past three years of the awards program.

A total of 61 persons (speakers, participants and organizers) participated in the seminar. Participants and speakers represented Armenia, Estonia, Georgia, Poland, Sweden, Ukraine and the USA. Throughout the day speakers and participants engaged in an interactive dialogue, exchanging information and brainstorming about how to promote the adoption of international standards as well as the implementation of best practice in investor relations.

As noted above, this seminar is part of an ongoing and multi-faceted PFS Program regional initiative dedicated towards improving the quality of financial and extra-financial reporting across CEE, South East Europe and the Caucasus.

This event was the 16th investor relations seminar organized by the PFS Program since 2001, attracting a total of 802 participants. (Materials from each of the seminars may be found on the capital markets seminars page of the PFS Program website.)

To download the seminar agenda, presentations and speaker biographies (in Armenian and English) as well as a list of participants, please click on the links below. The PFS Program would like to thank NASDAQ OMX Armenia for translating the materials into Armenian.

Monday, June 8, 2009 - Saturday, June 13, 2009
10th Summer Seminar for Young Public Servants from South East Europe: Efficient Membership and Successful Preparation for European Union (EU) Accession

From Monday, June 8 through Saturday, June 13, 2009 Economic Policy Institute (EPI) held its 10th Summer Seminar for Young Public Servants from South East Europe: Efficient Membership and Successful Preparation for European Union (EU) Accession. The Seminar took place in Varna, Bulgaria. 69 persons participated in the program, including young public servants from EU accession countries as well as experts from EU accession countries, new EU member states, old EU member states and the United States.

The PFS Program contributed to this regional activity for the third time. On June 10, 2009 Mr. Mazullo, Director, PFS Program conducted an interactive workshop entitled, “Financial and Extra-Financial Reporting in SEE.”

To download the two presentations delivered during the workshop, please click on the links below:

Presentation - PFS Program - EPI Summer Seminar - June 10, 2009.pdf - 122 KB

Presentation - Part II - PFS Program Surveys - EPI Summer Seminar - June 10, 2009.pdf - 2,427 KB

Tuesday, June 2, 2009
PFS Program Grant to Zagreb School of Economics & Management (ZSEM)
Zagreb, Croatia

On Tuesday, June 2, 2009 the PFS Program awarded a PFS Program Grant to Zagreb School of Economics & Management (ZSEM) to conduct fourth annual editions of two surveys: “Online Investor Relations: Survey of Websites of Leading Croatian Companies - 2009” and “Survey of Reporting on Corporate Social Responsibility by Leading Croatian Companies - 2009.”

The PFS Program conducts in-house two regional surveys of the 10 largest listed companies (by market capitalization) in 11 CEE countries. The inaugural edition of Investor Relations Online was published on August 1, 2001. Since then it is conducted semi-annually: it is published in early March and early September each year. The inaugural edition of Reporting on CSR was published on September 4, 2003. Since then it is conducted semi-annually: it is published in early May and early October each year.

The above-mentioned regional surveys analyze disclosure practices of CEE blue chip companies. In order to better understand the disclosure practices of a wider range of CEE listed companies, the PFS Program provides grants to local research institutes to co-finance country surveys of a wider universe of companies in the respective country. To date, the PFS Program has co-financed country surveys in Bulgaria, Croatia, Czech Republic, Hungary, Macedonia and Poland.

The Croatian surveys which ZSEM conducted in 2007, 2006 and 2005 were widely covered by the financial media in Croatia and several on-line publications. The 2009 surveys will be completed during the summer and presented at a conference at ZSEM on September 11, 2009. The surveys will be published on the websites of ZSEM and the PFS Program in mid-September 2009.

Tuesday, May 19, 2009
Presentation of Second Macedonian Surveys: Investors Relations Online and Reporting on Corporate Social Responsibility (CSR)
Skopje, Macedonia

On Tuesday, May 19, 2009 the Macedonian Stock Exchange, the International Finance Corporation (IFC), USAID’s Business Environment Activity and the PFS Program organized an event to present the second edition of two Surveys of the 20 Largest Listed Companies in Macedonia (by market capitalization): Investors Relations Online and Reporting on Corporate Social Responsibility (CSR).

At the event, a representative of the Macedonian Stock Exchange presented the second edition of the two surveys. The surveys analyze disclosure of extra-financial information by the 20 largest listed companies in Macedonia (by market capitalization), specifically, information about corporate governance as well as environmental, social and governance (ESG) data. The Macedonian country surveys (and Serbian country surveys mentioned below) employ the same methodology as the PFS Program regional surveys conducted semi-annually since 2001.

Thereafter, the PFS Program compared the data from the Macedonian surveys with reporting by peer companies in Bulgaria, Croatia and Romania, referring to data from the PFS Program’s two semi-annual surveys: Investor Relations Online and Reporting on Corporate Social Responsibility (CSR). The PFS Program’s regional surveys analyze disclosures by the 10 largest listed companies in 11 Central and Eastern European (CEE) countries; Brazil, Russia, India and China (BRIC); and Ukraine.

Whereas the PFS Program’s regional surveys analyze information disclosed in English, the Macedonian surveys analyze disclosures in the Macedonian language.

Following a coffee break, a representative of the Belgrade Stock Exchange presented data from Serbian surveys conducted by the Belgrade Stock Exchange. A fourth speaker, representing a member firm of the Macedonian Stock Exchange, presented a new research paper entitled, “Capital Mobilization through an Initial Public Offering (IPO): Reality or Illusion.”

Participants asked questions about the surveys and discussed with speakers the drivers behind financial and non-financial disclosure in Macedonia as well as across SEE and other emerging markets.

A total of 44 persons representing banks, financial sector donor institutions, financial institutions, institutional investors, listed companies and regulatory authorities as well as 13 representatives of media participated in the event

This event and the Macedonian as well as Serbian country surveys presented at it are part of an ongoing and multi-faceted PFS Program regional initiative dedicated towards improving the quality of financial and extra-financial reporting across SEE.

To download the agenda, presentations and a list of participants, please click on the links below:

Agenda - Presentation of 2nd Edition of Macedonian Surveys - May 19, 2009.pdf - 50 KB

Presentation - Macedonian Stock Exchange - May 19, 2009.pdf - 12,516 KB

Presentation - PFS Program - IR in SEE and CEE - May 19, 2009.pdf - 1,275 KB

Presentation - Belgrade Stock Exchange - May 19, 2009.pdf - 2,634 KB

Presentation - Ideja Plus Broker - May 19, 2009.pdf - 64 KB

List of Participants - Presentation - May 19, 2009.pdf - 17 KB

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.

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.

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:

PFS Program - Survey of Reporting on CSR in CEE, BRIC and Ukraine - April 2009.pdf - 661 KB

Database - Survey of Reporting on Corporate Social Responsibility in CEE + BRIC and Ukraine - April 2009.xls - 1,640 KB

PFS Program - List of Companies with English-language ESG reports - April 2009.pdf - 166 KB

Saturday, May 2, 2009 - Saturday, June 20, 2009
NAIC Spring 2009 International Internship Program
United States

An aspirant of the Insurance Agency of Republika Srpska, Bosnia and Herzegovina, participated in the Spring 2009 International Internship Program organized by the National Association of Insurance Commissioners (NAIC) from May 2 through June 20, 2009.

During a week-long orientation program at the NAIC headquarters in Kansas City, Missouri nine interns from five emerging markets were introduced to insurance regulation in the United States. Thereafter, the aspirant from the Insurance Agency of Republika Srpska, Bosnia and Herzegovina undertook a five-week internship with the Alabama Department of Insurance. During the on-site component of the internship program, the intern worked closely with a mentor and interacted with staff members of various departments of the host-state insurance regulator. Following the on-site component of the program, all of the interns attended the NAIC Summer National Meeting in Minneapolis, Minnesota from June 13-16, 2009. At the end of the program, the interns participated in industry-regulator dialogue meetings and closing ceremonies in Washington, DC organized by the NAIC’s internship coordinator.

Detailed information about the NAIC International Internship Program may be found on the International Relations page of the NAIC website.

The PFS Program emphasizes peer-assisted learning as an effective professional development mechanism. This internship program provided an excellent opportunity for the aspirant of the Insurance Agency of Republika Srpska, Bosnia and Herzegovina to expand her knowledge base and improve her professional qualifications. Each of the participating institutions contributed towards the cost of this program.

Friday, April 24, 2009 - Sunday, April 26, 2009
Lectures on Corporate Governance
Gdansk, Poland

On April 24 - 26, 2009 Geoffrey Mazullo, Director, PFS Program gave a series of lectures on corporate governance as part of the School of American Law organized by the Faculty of Law and Administration of the University of Gdansk and Chicago-Kent College of Law.

19 students attended the course. During the first session, Mr. Mazullo reviewed information presented during the first set of lectures delivered in January 2009, including: definitions of key terminology (compliance, corporate governance, disclosure, etc.); analysis of various models of corporate governance; explanation of the rights/responsibilities of corporate organs; and specific examples of corporate governance in practice, demonstrated by company-specific case studies. During the subsequent sessions, students analyzed case studies about companies listed and/or operating in Germany, India, the Netherlands, the United Kingdom and the United States. Mr. Mazullo outlined the rationale for corporate disclosure on environmental, social and governance (ESG) data. He then presented the PFS Program’s regional surveys on reporting on corporate governance (Investor Relations Online) and reporting on corporate social responsibility (CSR) by the largest listed companies in 11 Central and Eastern European (CEE) countries; Brazil, Russia, India and China (BRIC); and Ukraine.

Through an agreement with the School of American Law, students who attend the lectures and complete the School of American Law may apply for an unpaid internship with the PFS Program. The School of American Law finances part of the costs of the internship, namely travel and accommodation costs of the student/intern. Between summer 2004 and April 2009, 20 graduates of the School of American Law completed a PFS Program internship.

During the one-month internship, the intern conducts (under the supervision of PFS Program staff) one of the PFS Program’s ongoing semi-annual regional surveys: Investor Relations Online: Survey of Websites of the Largest Listed Companies in 11 Central and Eastern European (CEE) Countries, BRIC and Ukraine or Survey of Reporting on CSR by the Largest Listed Companies in 11 CEE Countries, BRIC and Ukraine.

In summer 2009, Polish interns co-financed by the SAL will be paired with interns from South East Europe who attended a training workshop prior to the internship. The pre-internship training enhances the overall internship experience and is a quality-control mechanism for the PFS Program surveys.

To download the materials presented at the lectures, please click on the links below:

Agenda - Lectures on Corporate Governance - SAL - April 24-26, 2009.pdf - 13 KB

Session 1 - Does Corporate Governance Governance Matter - April 24, 2009.pdf - 424 KB

Session 2 - Case in Point - Satyam - April 24, 2009.pdf - 270 KB

Session 3 - Reporting on CSR - April 25, 2009.pdf - 1,223 KB

Session 4 - PFS Program - Survey of Reporting on CSR in CEE, BRIC and Ukraine - September 2008.pdf - 700 KB

Session 5 - Case Study - SRI - April 25, 2009.pdf - 184 KB

Session 6 - Case in Point - Germany - April 26, 2009.pdf - 283 KB

Session 7 - Cases in Point - April 26, 2009.pdf - 2,525 KB

Tuesday, March 31, 2009
Regional Workshop on Corporate Governance
Belgrade, Serbia

On Tuesday, March 31, 2009 the Foundation for the Advancement of Economics (FREN) and the PFS Program held a Regional Workshop on Corporate Governance in Belgrade, Serbia. The Workshop took place at the Faculty of Economics, University of Belgrade. The USAID Serbia Economic Growth Activity assisted with logistical arrangements for the event.

The participant breakdown was as follows: two members of AISEC Macedonia; two staff members of the USAID Macedonian Business Environment Activity; 14 students/recent graduates from the Faculty of Economics, Faculty of Law and several other institutions of higher education; and an intern as well as a staff member of SMartKolektiv, Serbia.

The purpose of the Workshop was to introduce students to practical issues in corporate governance through the analysis of case studies about companies in a number of jurisdictions. The following topics were covered: corporate governance models (including the Anglo-US, German and Japanese models as well as corporate governance in transition economies); disclosure regimes; the legal and self-regulatory framework for corporate governance; the rights and responsibilities of corporate organs, including management and the board; shareholders’ rights; and the use of governance information by shareholders and stakeholders.

During the final session, the PFS Program presented its ongoing regional surveys: Investor Relations Online and Survey of Reporting on Corporate Social Responsibility (CSR).

Participants in the Workshop were invited to apply for a one-month unpaid internship with the PFS Program in summer 2009. During the internship, the student/intern collects data for the above-mentioned PFS Program surveys. Thus, the Workshop also served as a pre-internship training and orientation.

To download the Workshop agenda and materials, please click on the links below:

Friday, March 27, 2009 - Sunday, March 29, 2009
Lectures on Corporate Governance
Wroclaw, Poland

On March 27-29, 2009 Geoffrey Mazullo, Director, PFS Program gave a series of lectures on corporate governance as part of the first edition of the School of American Law organized by the Faculty of Law, Administration and Economics of the University of Wroclaw and Chicago-Kent College of Law.

25 students attended the course. During the first session, Mr. Mazullo reviewed information presented during the first set of lectures delivered in January 2009, including: analysis of various models of corporate governance; explanation of the rights/responsibilities of corporate organs; and specific examples of corporate governance in practice, demonstrated by company-specific case studies. The case studies discussed concern companies listed and/or operating in Germany, the Netherlands, the United Kingdom and the United States. Mr. Mazullo then presented the PFS Program’s regional surveys on reporting on corporate governance (Investor Relations Online) and reporting on corporate social responsibility (CSR) by the largest listed companies in 11 Central and Eastern European (CEE) countries; Brazil, Russia, India and China (BRIC); and Ukraine. In the final session, Mr. Mazullo presented for the first time a case study written by PFS Program colleagues about the fraud scandal at Indian outsourcing company Satyam. The case study is a work in progress; it will be revised and updated as details regarding the case unfold.

Through an agreement with the School of American Law, students who attend the lectures and complete the School of American Law may apply for an internship with the PFS Program. The School of American Law finances part of the costs of the internship, namely travel and accommodation costs of the student/intern. In summer of 2009, a graduate of the first edition of the School of American Law will complete a PFS Program internship.

During the one-month unpaid internship, the intern conducts (under the supervision of PFS Program staff) one of the PFS Program’s ongoing semi-annual regional surveys: Investor Relations Online: Survey of Websites of the Largest Listed Companies in 11 Central and Eastern European (CEE) Countries, BRIC and Ukraine or Survey of Reporting on CSR by the Largest Listed Companies in 11 CEE Countries, BRIC and Ukraine. In summer 2009, Polish interns will be paired with interns from South East Europe who will attend a training workshop prior to the internship. The pre-internship training enhances the overall internship experience and is a quality-control mechanism for the PFS Program surveys.

To download the materials presented at the lectures, please click on the links below:

Agenda - Lectures on Corporate Governance - SAL - March 27-29, 2009.pdf - 42 KB

Session 1 - Does Corporate Governance Governance Matter - March 27, 2009.pdf - 357 KB

Session 2 - Cases in Point - March 27, 2009.pdf - 2,280 KB

Session 3A - Reporting on Corporate Governance - March 28, 2009.pdf - 841 KB

Session 3B - PFS Program - Presentation - Investor Relations Online - Survey of Websites - February 2009.pdf - 1,419 KB

Session 3C - PFS Program - Press Release - Survey - IR Online - March 3, 2009.pdf - 50 KB

Session 4A - Reporting on CSR - March 28, 2009.pdf - 1,054 KB

Session 4B - PFS Program - Presentation - Survey of Reporting on CSR - September 2008.pdf - 700 KB

Session 5 - Case in Point - Satyam - March 29, 2009.pdf - 270 KB

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 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:

PFS Program - Investor Relations Online - Survey of Websites - February 2009.pdf - 238 KB

PFS Program - Presentation - Investor Relations Online - Survey of Websites - February 2009.pdf - 1,419 KB

Database - Investor Relations Online - Survey of Websites - February 2009.xls - 554 KB

Friday, January 23, 2009 - Sunday, January 25, 2009
Lectures on Corporate Governance
Wroclaw, Poland

On January 23-25, 2009 Geoffrey Mazullo, Director, PFS Program gave a series of lectures on corporate governance as part of the first edition of the School of American Law organized by the Faculty of Law, Administration and Economics of the University of Wroclaw and Chicago-Kent College of Law.

35 Polish students attended the course. During the three days, students were introduced to the following topics: corporate governance models (including the Anglo-US, German, Japanese and Polish models); disclosure regimes; the legal and self-regulatory framework for corporate governance; the rights and responsibilities of corporate organs, including management and the board; shareholders’ rights; and the use of governance information by shareholders and stakeholders.

Students discussed practical and theoretical aspects of corporate governance in several jurisdictions (including Poland) by analyzing a number of case studies about real companies covering each of the above-mentioned topics.

A second set of lectures will follow on March 27-29, 2009, during which students will be exposed to the following: trends in non-financial reporting by listed companies (reporting on corporate governance); corporate social responsibility (CSR); and reporting on environmental, social and governance (ESG) criteria.

Through an agreement with the School of American Law (SAL), students who attend the lectures and complete the SAL may apply for an internship with the PFS Program. The SAL finances part of the costs of the internship, namely travel and accommodation costs of the student/intern.

During the one-month unpaid internship, the intern conducts one of the PFS Program’s ongoing semi-annual regional surveys: “Investor Relations Online: Survey of Websites of the Largest Listed Companies in 11 Central and Eastern European (CEE) Countries” or “Survey of Reporting on CSR by the Largest Listed Companies in 11 CEE Countries.” When possible, Polish interns will be paired with interns from South East Europe, thereby enhancing both the internship experience and the quality of the PFS Program surveys.

To download the materials presented at the lectures, please click on the links below:

Agenda - Lectures on Corporate Governance - SAL - January 23-25, 2009.pdf - 13 KB

Session 1 - Case in Point - January 23, 2009.pdf - 570 KB

Sessions 2 and 3 - Three Models of Corporate Governance - January 23-24, 2009.pdf - 933 KB

Introduction to Corporate Governance - January 2009.pdf - 19 KB

Three Models of Corporate Governance - January 2009.pdf - 121 KB

Corporate Governance - Updating the German Model - January 2009.pdf - 44 KB

Session 4 - Case Study - Proposed Merger of Volvo and Renault - January 24, 2009.pdf - 141 KB

Session 5 - Corporate Governance in Poland - January 25, 2009.pdf - 148 KB

Session 6 - Case Study - Elektrim SA - January 25, 2009.pdf - 134 KB

Friday, January 16, 2009 - Sunday, January 18, 2009
Lectures on Corporate Governance
Gdansk, Poland

On January 16-18, 2009 Geoffrey Mazullo, Director, PFS Program gave a series of lectures on corporate governance as part of the School of American Law organized by the Faculty of Law and Administration of the University of Gdansk and Chicago-Kent College of Law.

29 Polish students and a representative of NASDAQ OMX Riga Stock Exchange attended the course. During the three days, students were introduced to the following topics: corporate governance models (including the Anglo-US, German, Japanese and Polish models); disclosure regimes; the legal and self-regulatory framework for corporate governance; the rights and responsibilities of corporate organs, including management and the board; shareholders’ rights; trends in non-financial reporting by listed companies (reporting on corporate governance); and the use of governance information by shareholders and stakeholders.

A second set of lectures will follow in April 2009, during which students will analyze additional case studies related to corporate governance, corporate social responsibility (CSR) and reporting on environmental, social and governance (ESG) criteria.

To download the materials presented at the lectures, please click on the links below:

Agenda - Lectures on Corporate Governance - SAL - January 16-18, 2009.pdf - 13 KB

Session 1 - Case in Point - January 16, 2009.pdf - 569 KB

Sessions 2 and 3 - Three Models of Corporate Governance - January 16-17, 2009.pdf - 838 KB

Introduction to Corporate Governance - January 2009.pdf - 19 KB

Three Models of Corporate Governance - January 2009.pdf - 121 KB

Corporate Governance - Updating the German Model - January 2009.pdf - 44 KB

Session 4 - Case Study - Proposed Merger of Volvo and Renault - January 17, 2009.pdf - 140 KB

Session 5 - Corporate Governance in Poland - January 17, 2009.pdf - 33 KB

Session 6 - Case Study - Elektrim SA - January 18, 2009.pdf - 34 KB

Session 7A - Reporting on Corporate Governance - January 18, 2009.pdf - 802 KB

PFS Program - Presentation - Investor Relations Online - Survey of Websites - August 2008.pdf - 1,554 KB