Read about how to create good corporate governance in the IFC's Report on Corporate Governance.

Summary:

IFC Corporate Governance Program

"Our vision is to provide corporate governance advisory services of the highest quality in support of building competitive businesses that are able to attract and retain investment, create wealth and employment opportunities, and build trust among their stakeholders."

WHAT IS CORPORATE GOVERNANCE?

Corporate governance (CG) refers to the structures and processes for the direction and control of corporations. CG affects the distribution of responsibility and accountability among the main participants in the corporation — including shareholders, directors, and managers — and the rules and procedures for making decisions on corporate affairs. CG provides the structure through which corporate objectives are set, implemented, and monitored.

THE BASIC PRINCIPLES OF CG
- Fairness
- Transparency
- Accountability
- Responsibility

THE FIVE KEY ELEMENTS OF GOOD CG
1.    Strong commitment to corporate governance reforms
2.    Good board practices
3.    Appropriate control environment & processes
4.    Strong regime of disclosure and transparency
5.    Protection of (minority) shareholder rights

CG ULTIMATELY LEADS TO

- Optimized operational and financial efficiency
- Improved access to outside capital
- Improved valuation and lowered the cost of capital
- Improved company reputation and trust
- Shareholder value & competitiveness