|
Resolutions minuted at the end of board meetings rarely have
anything in common with New Year's resolutions that some directors may
have made individually. If they looked at their corporate
responsibilities with as much fervor as they do their own, some good
may come with a new found energy for 2008.
All businesses exist within a common national canvas and it is fair to
expect that the government in power makes every reasonable effort to
create and maintain an appropriate environment within which business
can thrive. But not much more.
Politicians are soft targets, governments are often convenient excuses
for corporate shortcomings. In fact, history proves that the economy
can roll along quite nicely as long as the government does not meddle
with it or create unnecessary hurdles.
Post-war Italy and a parade of 'revolving-door' governments for almost
five decades is adequate proof of that view.
So how is Indonesia's current government doing, in the eyes of its
people? Heading in the right direction, to summarize their responses.
These conclusions are based on the most recently published "Good
Governance Monitor", comprising four key indicators.
It is derived from Roy Morgan Single Source, the country's largest
syndicated survey with over 27,000 Indonesian respondents annually,
projected to reflect 90 percent of the population over the age of 14.
The results are updated every 90 days.
The first indicator is 'trust', measured by the statement "I don't
trust the current government". The small dip that has taken place is
reassuring. Distrust remains low in comparison to perceptions of other
national governments around the world.
If Indonesian businesses achieved similar ratings from their consumers,
they would be doing well on the issue of trust. It may be good idea
therefore for boards of directors to resolve to, "endeavor to win the
trust of each of our consumers with renewed vigor in 2008".
One way of expressing that resolve is to re-examine every product in
the portfolio, and ensure they deliver value. A focus on quality rather
than price alone would help.
The statement, "the government is doing a good job running this
country" illustrates how people rate the government in terms of
management. This vitally important score has gone up 1.4 points to 60
percent -- previously enjoyed in the honeymoon period after taking
office. Again, this is an unusually high score for any government,
anywhere.
In the realm of business, the offer to support SMEs by guaranteeing
bank loans can only go down well. How do employees, consumers and
shareholders rate the management of Indonesia's companies? Only a
handful of directors can answer that question with conviction.
It may be a good idea in the new year to set up mechanisms to evaluate
whether "the board is doing a good job running this company". As the
saying goes, people in glass houses shouldn't throw stones.
A favorable business environment can often come at a heavy cost to
society. There are good reasons why businesses are flocking to China
and democracy isn't one of them.
For a new democracy, Indonesians can take much pride in their
conclusion that individual freedoms continue to thrive here. It is
measured by the statement, "Democracy is working in Indonesia". A 2
percent rise to 71.8 percent of the population agreeing with this
statement is an overwhelming majority reconfirming Indonesia's faith in
self-government.
With more employment, this trend will continue to head in the right
direction. Business has an obvious role to play in continuing to
achieve that national ambition and any resolutions aimed at fostering
fair trade practices would go a long way toward fostering the
principles of democracy. Allied to that role is the dire need to
partner the government, collectively, to address the country's biggest
struggle.
"Corruption is a major problem affecting this country" is the statement
used to measure people's perception of this aspect of life in
Indonesia. At 85 percent, down by more than 2 percentage points, the
fight against this national ailment is at least heading in the right
direction again.
Politicians and bureaucrats do not corrupt themselves. Somebody has to
pay the receiver. As for the 15 percent who don't think it is a major
problem for the country, one has to wonder who they really are.
It is the month of January. It's a good time for every corporate board
to pass an appropriate resolution that will encourage all to join the
good fight. More employment and better wages are not the only
prerequisites of this change but they will remain major agents of it.
In tandem, the urge to corrupt needs to be actively curtailed. Endemic
as it is, the fight against corruption cannot be the sole
responsibility of the government. We are all affected by it, but are
all responsible for it too.
|
