Creating An Ethical Culture Katie Yip Chief Compliance Officer Hang Seng Bank

2 The Face… mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters How people perceive you, How they treat you, How they interact with you Face Will people like you? Will they trust you? Will you be successful? Destiny

3 The Face = Corporate Image mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters Positive Ethical Culture Positive Corporate Image Positive Public Perception Corporate Image Sound and Successful Business Happy customers Enhanced Shareholder Value Business Success

4 The Face = Corporate Image mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters An ethical corporate culture is a key factor in the success of any company

The Law Strict adherence to applicable laws and regulations

Corporate Vision & Core Values The highest personal standards of integrity at all levels A commitment to complying with both the spirit and letter of all laws and regulations wherever we conduct our business Lead from the top senior management puts the highest priority on instilling the Group ’ s core business values across the company

7 Ownership Responsibility for Compliance lies with line management Assisted by an independent Compliance function

8 In addition… Establish common business culture bridge social, political and cultural differences of a diversified work force – particularly important here in Asia’s multi-cultural corporate environment

9 Challenges and Risks mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters “Turn a blind eye” Increasingly competitive business environment pressuring corporations to… Emerging and rapidly changing regulatory environment

10 Challenges and Risks mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters “Turn a blind eye” “Bend the rules” Increasingly competitive business environment pressuring corporations to… Emerging and rapidly changing regulatory environment

11 Challenges and Risks mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters “Turn a blind eye” “Bend the rules” Increasingly competitive business environment pressuring corporations to… Emerging and rapidly changing regulatory environment “Cut corners”

12 Challenges and Risks Increasingly competitive business environment pressuring corporations to… Emerging and rapidly changing regulatory environment “Exploit grey areas” mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters “Turn a blind eye” “Bend the rules” “Cut corners”

13 Consequences! mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters It’s not just taking risks, it’s criminal CORPORATE DELINQUENT

Conclusion mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters mother father blessing Officialdom and wealth brother property Wife wife sons and daughters life Sick ness and dang er servants residential changes Wealth sons and daughters It ’ s your choice!