Downturn calls for greater governance

KUALA LUMPUR: With the current global economic downturn, there is a greater importance for good corporate governance, according to Securities Commission (SC) chairman Tan Sri Zarinah Anwar.

“At the heart of the crisis was a terrible failure of ‘tone at the top’ that drove CEOs and their companies to behave in an ever more irresponsible fashion, driven by rewards that recognised short-term income without taking into account the longer term downsides that could materialise as risky trading positions unwind,” she said.