The OECD has taken an important step to reinforce the role of its Principles of Corporate Governance as a global standard by issuing guidance for users in assessing their implementation. The Principles, agreed by governments in 1999 and revised in 2004, are designed to maintain public trust in companies and stock markets.
The newly published Methodology for Assessing Implementation of the OECD Principles of Corporate Governance can be used by policy makers for self-assessments and by other interested organisations and researchers, such as director institutes, investor associations, analysts and academics. The Methodology will also be used by the World Bank in its Review of Standards and Codes (ROSC) programme.
The Methodology specifies assessment criteria for each of the OECD Principles, with examples to guide users. It invites analysts to look at more than just the regulatory framework – what might be called "corporate governance on the books” – by focusing on actual company practices, such as whether shareholders have access to useful remedies, whether the regulators are effective and efficient, and whether the corporate governance framework as a whole promotes transparent and efficient capital markets.
See full Press Release.
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