Friday, September 23, 2005

Why corporate governance matters


The ICC corporate governance website results from the willingness of business worldwide to contribute to a more tranparent and safe financial market through the sharing of experiences. ICC, speaking on behalf of business worldwide, strongly believes that sound corporate governance practices are critical to worldwide efforts to stabilize and strengthen global capital markets and protect investors.

Corporate governance could be defined as the relationship between corporate managers, directors and the providers of equity, people and institutions who save and invest their capital to earn a return.

It helps companies to improve their performance and attract investment. Corporate governance enables corporations to realise their objectives, protect shareholder rights, meet legal requirements and to demonstrate to a wider public how they are conducting their business. The combination of good corporate governance and functioning legal infrastructures is key to the development of markets.