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[Opinion]Transparency in Business World Depends on Sharing of Information

[Opinion]Transparency in Business World Depends on Sharing of Information

Posted June. 15, 2001 08:03,   


Although I have not been in business world for a brief time, there has not been as many as opportunities to hear the words of `transparency and leadership` than nowadays.

As domestic economy keeps stagnating and the export decrease, the voice, which we have to find an ingenious scheme to boost the competitiveness of our commodities the nation itself, is getting louder.

When I see the names of well-known companies fade away into the background, and the stock price index, which can be called a physical-strength-test-ground, gaspingly stays around the level of 600, I think bringing up of the issues on the competitiveness of our enterprises and transparency in administration is not an unusual phenomenon.

It is our self-portrait in which we are suffering from a serious internal illness. The disgraceful yoke of `Korea Discount` was put on our necks.

Not a small number of people are being irritated by the issue on how we can take away the yoke. It also a challenge why we cannot easily answer to a question like, ``Why aren’t there outstanding CEOs in Korea, such as GE’s Jack Welch in U.S. or Kyosera Co.’s Kazuo Inamori in Japan``?

As securing of enterprises’ transparency began to be regarded as a crucial foundation for a company’s competitiveness, various prescriptions have been presented. But, some of them have problems in their efficiency.

If one defines `business administration` as a work in which a company maximizes its value as it practices the company’s purpose and vision, all organizations of the company must play their proper roles recognizing the purpose of the company. But, strangely enough, people who should have known the principle believe that when there is a tension between a CEO and the board of trustee or its members, a right decision can be made and the transparency of a company is guaranteed.

The reason why this kind of claim exists can be justified by the excuse of the shameful history of Korea enterprise. Nevertheless, I am worried because they seem to underestimate the existence of an enterprise or the value of administration despite of the fact that they are given mission and role in a company’s organizations. It can be thought that in that kind of environment, the existence of the company itself can be threatened, not to mention the value and role of the stocks and stockholders.

If a CEO is an unsettled person who may destroy the value of an enterprise, which can be represented by its stock value, he or she cannot maintain his or her position even under the current system. The intellectual level of our society has been lifted to a level that can confront such a problem.

As I notice the discussion about an appropriate financial treatment for a CEO is taking place, I can verify that our society has begun to understand the role and duty of a CEO in the business administration field.

A society’s expectation toward the transparency in business world is achieved by understanding of the enterprise and sharing the process of decision making, not by establishing an antagonistic structure. To successfully implement the recent adoption of the controversial `outside-trustee-system`, the system has to begin from this kind of viewpoint.

It is important for CEOs, who have already achieved success, and many future CEOs to grow in an atmosphere of mutual trust. I am sure that it is time for us to prepare a system in which CEOs can display their own ability to the degree of 100 percent.

Kwon Moon-Ku, the CEO and vice president of LG Cable Co.