Fairness, transparency, responsibility, and accountability are the core values of corporate governance. They are also core principles of democracy. In light of the Asian financial crisis, high profile scandals in Russia and Latin America, and the increased focus placed on governance practices in the Middle East and North Africa, corporate governance has been brought to the forefront and has become a major issue for businesses in the increasingly globalized economy. National business communities are learning and re-learning the lesson that there is no substitute for getting the basic business and management systems in place in order to be competitive internationally and to attract investment.
At its most basic level, corporate governance deals with issues that result from the separation of ownership and control. But corporate governance goes beyond simply establishing a transparent and responsible relationship between managers and owners. The presence of strong corporate governance standards provides increased access to capital and thereby aids economic development. Good corporate governance attracts investors by assuring them that the business environment is fair and transparent; that companies can be held accountable for their actions or lack thereof; and those investments can be protected and contracts enforced.
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