Global Corporate Governance in Financial Markets: Need for Consensus on Standard Practices

The World Bank

The Global Corporate Governance Forum, co-founded by the World Bank and the Organization for Economic Co-operation and Development (OECD), is an advocate, supporter, and disseminator of high standards and practices of corporate governance in developing and transition economies. The goal of the Forum is to:

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  Bring together developed and developing countries,

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  Tap the private sector through its close working relationship with the International Finance Corporation and the Forum's Private Sector Advisory Group of international business leaders, investors and professionals,

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  Focus on practical, targeted corporate governance initiatives at the local, regional, and global level, and

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  Promote government reform and private sector self-help.

The Corporate Governance Department's Investor and Corporate Practice developed the IFC Corporate Governance Methodology, a set of tools and practices that IFC staff uses to assess the quality of the governance of potential investee companies and that serves as a guide for their work with clients to add value via improved client governance practices. In addition to working directly with clients, the functions of the Investor and Corporate Practice include:

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  Leading IFC's role in the global policy dialogue on corporate governance,

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  Providing technical assistance to regulators, stock markets, private sector associations and others, drawing from the practical investment and business experiences of IFC and its investees, and

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  Supervising and supporting IFC's directorships and share voting policies and practices.

Corporate governance is a priority for the International Finance Corporation because it presents opportunities to manage investment risks and add value to clients. In addition to the value-added provided to individual client companies, working to improve the business climate for corporate governance contributes more broadly to IFC's mission to promote sustainable private sector investment and deepen capital markets.

The Corporate Governance Policy Practice helps client countries assess their corporate governance institutional frameworks and practices under the auspices of the joint Bank-Fund initiatives on the Reports on the Observances of Standards and Codes (ROSC). The assessments serve to: