On October 20, 2023, the 12th seminar of the Contemporary Asia and China Series Forum was co-organized by the College of Law at National Chung Hsing University and Financial Innovation and Technological Evolution Center at National Chengchi University. Exclusive sponsorship was provided by National Credit Card Center of R.O.C. (NCCC). The forum focused on the development of Environmental, Social, and Governance (ESG) in contemporary Asia and was conducted entirely in English. Distinguished scholars from top universities around the world were invited to speak, with Associate Professor Edith I Tzu Su of the Department of Law at National Chung Hsing University serving as the moderator.
Associate Professor Edith I Tzu Su expressed gratitude on behalf of Secretary general/Dean Li Chang-Yan for the presence of the distinguished speakers who traveled from afar, emphasizing the significance of the forum in the post-pandemic era.
The first speaker, Professor Anil Hargovan from the University of New South Wales, discussed the "Appropriateness of Regulating ESG and Director's Duties in Australia." He highlighted the increasing emphasis on corporate social responsibility and sustainable business practices in today's society, emphasizing the duty of directors to act in the best interests of the company, exercising their powers in a reasonable, prudent, and diligent manner.
Professor C.Y. Tsang from Monash University, the second speaker, addressed the "Impact of ESG on Financial Regulation." He defined ESG and discussed its current impact and challenges on financial regulation. He advocated using financial regulation to implement ESG policies, redirecting regulatory attention and resources to more critical existing business areas, thereby reducing systemic risks in financial institutions and potentially alleviating poverty or resource scarcity to improve people's lives.
Professor Souichirou Kozuka from Gakushuin University, the third speaker, used shareholder activism in Japanese law as an example. He pointed out deficiencies in the current corporate governance structure in Japan, suggesting the need for government legislation to increase advisory committees within companies. This, he argued, would help address internal governance challenges through consensus achieved in multi-stakeholder dialogues.
Professor Alan Koh from Nanyang Technological University, the fourth speaker, focused on accountability mechanisms, proposing a perspective that strengthens accountability for unlawful conduct. This might involve enforcing measures such as directly compelling directors, thereby enhancing internal mechanisms for supervising unlawful behavior within companies.
The fifth speaker, Professor Jason Harris from the University of Sydney, raised issues related to the business judgment rule in Australian law. He argued that the current application of the Business Judgment Rule (BJR) is limited and challenging for effective post hoc accountability. Consequently, Australia has established more stringent regulations in addition to corporate law, making ESG reporting obligations and related legal penalties more rigorous and specific to avoid unfair and unreasonable sanctions for corporate misconduct.
Finally, Attorney Eddie Hsiung from Lee and Li Law Firm analyzed the practical aspects, and Professor Chun-Ren Chen from National Cheng Kung University summarized and presented challenges and potential issues in implementing the ESG concept. This concluded the seminar on a successful note.
The seminar highlighted Professor C.Y. Tsang distinctive perspective on the impact of ESG on financial regulation, reflecting the interconnectedness of technological change, financial innovation, and capital market development. This not only provided valuable insights into ESG development but also laid the foundation for future international academic collaborations. The seminar was deemed a complete success.
Associate Professor Edith I Tzu Su expressed gratitude on behalf of Secretary general/Dean Li Chang-Yan for the presence of the distinguished speakers who traveled from afar, emphasizing the significance of the forum in the post-pandemic era.
The first speaker, Professor Anil Hargovan from the University of New South Wales, discussed the "Appropriateness of Regulating ESG and Director's Duties in Australia." He highlighted the increasing emphasis on corporate social responsibility and sustainable business practices in today's society, emphasizing the duty of directors to act in the best interests of the company, exercising their powers in a reasonable, prudent, and diligent manner.
Professor C.Y. Tsang from Monash University, the second speaker, addressed the "Impact of ESG on Financial Regulation." He defined ESG and discussed its current impact and challenges on financial regulation. He advocated using financial regulation to implement ESG policies, redirecting regulatory attention and resources to more critical existing business areas, thereby reducing systemic risks in financial institutions and potentially alleviating poverty or resource scarcity to improve people's lives.
Professor Souichirou Kozuka from Gakushuin University, the third speaker, used shareholder activism in Japanese law as an example. He pointed out deficiencies in the current corporate governance structure in Japan, suggesting the need for government legislation to increase advisory committees within companies. This, he argued, would help address internal governance challenges through consensus achieved in multi-stakeholder dialogues.
Professor Alan Koh from Nanyang Technological University, the fourth speaker, focused on accountability mechanisms, proposing a perspective that strengthens accountability for unlawful conduct. This might involve enforcing measures such as directly compelling directors, thereby enhancing internal mechanisms for supervising unlawful behavior within companies.
The fifth speaker, Professor Jason Harris from the University of Sydney, raised issues related to the business judgment rule in Australian law. He argued that the current application of the Business Judgment Rule (BJR) is limited and challenging for effective post hoc accountability. Consequently, Australia has established more stringent regulations in addition to corporate law, making ESG reporting obligations and related legal penalties more rigorous and specific to avoid unfair and unreasonable sanctions for corporate misconduct.
Finally, Attorney Eddie Hsiung from Lee and Li Law Firm analyzed the practical aspects, and Professor Chun-Ren Chen from National Cheng Kung University summarized and presented challenges and potential issues in implementing the ESG concept. This concluded the seminar on a successful note.
The seminar highlighted Professor C.Y. Tsang distinctive perspective on the impact of ESG on financial regulation, reflecting the interconnectedness of technological change, financial innovation, and capital market development. This not only provided valuable insights into ESG development but also laid the foundation for future international academic collaborations. The seminar was deemed a complete success.
Figure1. 10/20 ESG Development in Contemporary Asia-All participants.
(First row from right to left: Attorney Eddie Hsiung, Professor C.Y. Tsang, Professor Jason Harris, Associate Professor Edith I Tzu Su, Professor Souichirou Kozuka, Professor Anil Hargovan, Professor Alan Koh)
