Transparency in Corporate Reporting: Assessing South Korea’s Largest Companies
Download Transparency in Corporate Reporting_Assessing South Koreas Largest Companies_2016
TI-Korea’s report evaluates the transparency of corporate reporting by Korea’s 50 largest publicly listed companies. The study assesses the disclosure practices of companies with respect to their anti-corruption programs, company holdings and the disclosure of key financial information on a country-by-country basis. It is part of a series of studies based on a similar methodology aimed at assessing the transparency practices of international companies, the most recent being a 2015 report on leading global telecommunication companies.
Corruption major risk factor in business
Korean companies are growing exponentially internationally, contributing to economies and influencing the lives of various groups and individuals abroad and overseas. For that reason, the purpose of TRAC-Report is to encourage top companies to be more transparent and accountable to ensure that they only do business fairly and with all stakeholders involved.
Corruption is still a major risk factor in business. It can damage reputations, lead to the loss of contracts, result in lawsuits and other criminal sanctions. Furthermore, corruption is detrimental to innovation, entrepreneurship, market mechanisms and economic stability.
Transparency contributes to fair competition
While the report tracks companies’ disclosure practices, it is important to note that it does not establish whether or not individual companies are corrupt. Comprehensive reporting leads to the improvement of anti-corruption policies and practices, although it cannot guarantee that a company is corruption-free.
Transparency is one of the best solutions and is indispensable in detecting and removing corruption not only in business, but in all sectors of society.
Main sectors are technology, manufacturing, construction & electronics
The top 50 Korean international companies being studied and described in this report are based on Fortune Korea’s ranking of the top Korean companies in South Korea in November 2014. These companies, all of which have headquarters in South Korea, are running businesses related mostly to technology, manufacturing, construction, and electronics. The other industries include financial, consumer goods, telecommunications and multi-industries.
The study employs the same three dimensions and methodology used by Transparency International in its 2014 report on the world’s largest companies. The questions are aimed at measuring transparency and levels of disclosure for each company in the following three dimensions:
1. Reporting on Anti-corruption Programs
2. Organizational Transparency Reporting
3. Country-by-Country Reporting
Only companies with international operations have been selected on the basis of market value (especially revenues). In addition, only those companies that have significant international operations are covered in the study.
Overall, this study shows that while some companies have shown their commitment to comply with transparency demands, there is still plenty of room for improvement, which of course would lead to further gaining their customers’ and investors’ trust.
You may download the recently published Transparency in Corporate Reporting_Assessing South Koreas Largest Companies_2016 here.
For more information, please contact:
Karoline Richter (Communications Director, Transparency International-Korea)
T +82 (0)10 2594 2155 E ka@ti.or.kr
