It wouldn’t be a stretch to say that good corporate governance is important for development - as illustrated by financial crises and corporate collapses as well as countries’ ambitions to attract investment and build a competitive private sector. As we have learned, making corporate governance work, however, is a much more difficult task than agreeing on its importance or adopting some set of standards or copying the OECD Corporate Governance Principles.
One issue that we’ve seen gain increased attention in corporate governance reform is follow up and enforcement. Simply put - it is not enough if companies agree to some set of principles. You have to make the corporate governance process works beyond articles on paper.
How do you ensure that principles are properly enforced? How do you gauge companies’ progress and what constitutes success? What mechanisms do you have to make good governance an institutional feature of the private sector that does not change with a new leadership?
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