On October 12, 2020, the Corporate Governance Professional Association (CGPA), in partnership with the CSR Development Centre (CSR Ukraine), held an online conference – presentation of the Ukrainian Companies Transparency Index 2019 (hereinafter – the Index). The Index was supported by the Center for International Private Enterprise (CIPE) and with the assistance of the Ministry of Economic Development, Trade, and Agriculture of Ukraine.
The event was moderated by Maryna Saprykina, Chairman of the Board of CSR Ukraine. She introduced the speakers and noted that this event is an opportunity to share experiences of the study, as well as highlight the achievements of champion companies included in the TOP-3 Index.
Oleksandr Okuniev, Chairman of the CGPA Management Board, told the participants where the idea to explore companies’ transparency came from and the CIPE’s role in the process. CIPE has been a partner of CGPA for many years and supports its activities aimed at establishing good corporate governance in Ukraine. O. Okuniev also noted that CGPA, together with the CSR Ukraine, for the first time decided to investigate the issues of leadership of the first persons of companies and coverage of their activities on companies and social networks websites. “The first persons of the company must share the values declared by the company and promote the ideas and standards of corporate culture personally,” – O. Okuniev said.
Eric Hontz, Deputy Regional Director for Europe and Eurasia at the Center for International Private Enterprise (CIPE), said the Index is an attempt to show investors that there are transparent companies in Ukraine that deserve attention. “Corporate governance is the foundation on which all the company’s activities, its corporate culture, and corporate social responsibility are built,” E. Hontz said. He also stressed that Now in Ukraine there is a struggle between old and new approaches to doing business, so it is worth promoting the formation and development of a new vision of business as an honest, open, transparent, responsible process.
Olena Voloshyna, Head of the IFC’s operations in Ukraine, noted that it is essential that Ukraine has started talking about transparency and openness of business. “Openness and transparency are important not only for investors but first and foremost for the company itself. Because the company’s transparency is a way to build the company’s trust with the entire ecosystem in which it is, with all its stakeholders, it is part of good corporate governance.” O. Voloshyna noted. From the investor’s point of view, transparency and disclosure are a way to minimize risks for the investor. Reduced risks for the investor reduce the cost of financial resources. The transparency of the company increases the value of the company over time.
Evgen Shevchenko, CEO of Carlsberg Ukraine, said that the Carlsberg Group builds its activities on sustainable development, and there is a specific minimum requirement that must be met by all companies in the Group. “A transparent company is a house with glass walls. If you want to build beautiful glass panoramic windows, put your house in order, make repairs there, so as not to be ashamed of what people from the outside can see in your company. Investments in compliance, procedures, control, rules, disclosure pay off many times over. That is where to start. If you want to have order in the country, bring order to your home,” E. Shevchenko summed up.
Andriy Kravets, acting Chairman of the Board of JSB Ukrgasbank, noted that behind each Index evaluation criterion is an extensive work. “Today’s Ukrgasbank website is the result of the work of many employees for five years. We started with significant changes, especially concerning building a good corporate governance system, the inclusion of independent directors into the supervisory board. We consciously began the corporate governance system reforming in order to create a more transparent bank, a more understandable bank for all stakeholders, all market participants, customers, and partners. It is worth investing in transparency because it makes the company more vital, more stable, resistant to challenges, and increases confidence in the bank, “A. Kravets stressed.
Tetyana Kolesnyk, FUIB CSR Manager, explained why it is worthwhile and whether it is worth investing in transparency. She stressed that the purpose of building transparency and openness was to establish long-term relationships with employees, customers, and investors. For two years, the company has worked to improve the company’s website. Thanks to the CSR Development Center’s advice, a section “Sustainable Development” has appeared on the company’s website, which contains documents and the results of the declared activities, which is very important for the bank’s customers. A website is the face of a business that needs constant attention and updates. “When visiting a website, a person wants to find answers to all their pains and troubling questions in one or two clicks. If she doesn’t find it, she will be disappointed with the company, “T. Kolesnyk said at the end. Transparency is the foundation of any relationship, not just business.
Alla Zinchenko, an expert of the Center for CSR Development, Associate Professor of the Kyiv-Mohyla Academy, presented the primary evaluation criteria and results, emphasizing the peculiarities of information disclosure and levels of disclosure by areas of activity.
The detailed information on conclusions, results and recommendations is available by link
Summing up the event, O. Okuniev stressed that the study will be repeated periodically, its organizers will improve the methodology, encouraged all those interested in constructive comments and advice, as well as cooperation.
Video of the event can be seen here.