Professor Alexander Settles

OECD Core Values

• Transparency: The corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the company, including its financial situation, performance, ownership, and governance structure.
• Accountability: The corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board, and the board’s accountability to the company and shareholders.

Business Case for Corporate Governance

• Well governed companies have lower cost of capital
• Reduction of risks
• Higher valuation of human capital in companies that are well governed
• Higher share valuation

IFC Business Case

Advantages of Good Corporate Governance

• Stimulating Performance and Improving Operational Efficiency
• Better oversight and accountability
• Improved decision making
• Better compliance and less conflict
• Less self-dealing
• Better informed
• Avoidance of costly litigation through adherence to laws and regulations