One of the root causes of the Asian financial crisis was the failure in corporate governance. The social costs in terms of the resulting unemployment and distress were severe. Consequently, there has been a surge of interest in the principles of good corporate governance.
Asian business and other leaders wish to minimize the risk of indifferent governance in the future. While several governments and corporations have taken steps to enhance the enabling environment for corporate governance, the financial pages of the business press continue to report instances of significant corporate governance shortcomings in practice. Against this backdrop, it was felt that a set of principles at the heart of good corporate governance should be enunciated. From our own interactions with Asian private sector corporations, we have felt the need for specific pointers on implementing good corporate governance. This publication aims to serve as a guide for those who wish to embark on a program to strengthen governance practice in their organizations.
This booklet could also be helpful to investors, the media, and other stakeholders in understanding the essence of good corporate governance. Knowledge of the key principles would enable them to distinguish between companies that comply superficially with good practice standards and those that have a genuine commitment. Private sector enterprises will increasingly discover that traditional financial
performance will be insufficient to attract investors on a sustained basis and will need to demonstrate conduct consistent with the principles of good corporate governance.
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