Global Corporate Governance Forum

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Global Corporate Governance Forum

• Better Companies, Better Societies

World Bank Institute/ State University (Moscow)
April 24, 2007
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Overview

• Who we are
• What we do
• Catalyst
• Leverage
• Collaboration
• Practical
• Why our efforts matter
• Well-governed companies attract investors
• MDGs alleviate poverty, economic development
• Our impact
• Accomplishments
• Our plans

Overview Our Focus
Our Products Our Scope
Conclusion
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Who We Are

• Founded in 1999 by World Bank Group and OECD
• Forums purpose
• Promote global, regional and local CG reform
  initiatives
• Improve institutional framework for good
  corporate governance
• Facilitate improved CG practices in developing
  countries
• Our donors

Overview Our Focus
Our Products Our Scope
Conclusion
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Key Pillars
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2

• Raise awareness,
• build consensus
• understanding priorities and defining reform
  program

• Sponsor research
• relevant needs of developing countries

MANDATE

• Disseminate best practices
• utilizing the Forums expansive network globally

• Provide technical assistance,
• capacity building
• for implementation, key priority in second cycle

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Our Priority Low-Income Countries, Emerging
Markets
Overview Our Focus Our
Products Our Scope Conclusion
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Fitting It Together
Sustainable Capacity Building
Technical Assistance Support and Design
Raising Awareness for Reform Agenda
Reform Tools
Private Sector Expertise
GC Standards
Implementation
Country Assessments
Policy Dialogue
Research
Cross-Regional Experience and Best Practices
Policy
Investment
Overview Our Focus Our
Products Our Scope Conclusion
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Addressing CG Reform
Countrys Need
Forums Response
Overview Our Focus Our
Products Our Scope Conclusion
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Our Key Thrusts
Implementing Existing Tools

• Developing Director Training Institutional
  Capacity Toolkit 1
• Supporting Development of National CG Codes
  Toolkit 2

Developing New Tools

• Co-operatives
• Board Development Resource Kit
• Corporate Governance Mediation for Dispute
  Resolution
• Training Financial Journalists

Building Capacity

• Strengthening DFIs in Southern Africa
• Implementation of new Mexican Securities Laws
• Corporate Governance Score Cards and Ratings

Supporting Research

• Publications and Dissemination of Best Practices
• Boards and stakeholder engagement
• Boards and anti-corruption measures
• Case studies, private sector opinion, focus
  issues
• Corporate Governance in Developing Countries,
  Emerging Markets

Overview Our Focus Our
Products Our Scope Conclusion
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Bridge between Policy and Practice
Overview Our Focus Our
Products Our Scope Conclusion
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Director Training Organizations

• Based on global best practices
• Practical guidance
• Solutions to meet local conditions
• Peer networking
• Sustainable institution building

Expert training strengthens our effectiveness in
building board directors professionalism.
Participant, Panama IOD Project
Overview Our Focus Our
Products Our Scope Conclusion
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Corporate Governance Codes

• Best of international practice
• Clear, comprehensive guidelines
• International expertise
• Practical policy reforms

The Forums expertise and experiences provided
Bulgaria with practical, relevant, insightful
counsel. Prof. Bistra Boeva Co-Chair, Bulgaria
CG Project
Overview Our Focus Our
Products Our Scope Conclusion
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Board Development Resource Kit

• Enhance directors skills
• Engage directors in value-based judgments
• Innovative
• Adult-learning strategies
• Interactive through cases
• Audio-visual aids
• High level of utility
• Focus strengthen director training techniques

This new approach in adult learning and case
study development will enhance my skills as a
trainer in educating company directors.
Participant, CG Leadership Program for East and
Southern Africa
Overview Our Focus Our
Products Our Scope Conclusion
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Training for Financial Journalists

• Vanguard for CG awareness
• Enhance understanding of CG and financial
  reporting
• Practical training
• Exposure to leading journalists
• Partnership with Reuters

Better informed journalists make for more
insightful reporting that benefits investors,
capital markets. Participant, Balkans Media
Project
Overview Our Focus Our
Products Our Scope Conclusion
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Corporate Governance Mediation

• New initiative
• Broad-based partnerships
• Business not stymied by disputes
• Enforces good CG practice
• Supports shareholder protection
• Improves investor confidence

I welcome the Forums initiative to lead ground
breaking work on the use of ADR in the field of
Corporate Governance. Mervyn King, Former High
Court Judge South Africa
Overview Our Focus Our
Products Our Scope Conclusion
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Corporate Governance for Co-Operatives

• New initiative
• Wide consultation, collaboration
• Responds to market demand
• Utilizing global expertise
• Harnessing good practices
• Strengthening sustainable, community-based systems

Governance is central to making sure that we do
have co-operatives that are organized in the
right way for the benefit of the very poorest
people. Gareth R. Thomas, DFID Secretary, UK
Overview Our Focus Our
Products Our Scope Conclusion
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Ahead Future Tools

• Guidelines for Shareholder Engagement
• Harnessing private sector (PSAG) expertise
• Supporting efforts for better awareness of
  shareholder responsibilities
• Critical feature of CG reform
• Guidelines for CG and Pension Funds
• Again, utilizing extensive PSAG resource and
  expertise
• Complements shareholder engagement
• Need for push up of governance reforms, not
  simply top down

Overview Our Focus Our
Products Our Scope Conclusion
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Disseminating Best Practices

• Relevant to Developing Countries Undertaking
  Reforms
• Identify Material that is Useful, Practical
• Translation to Working Language Essential
• Guidance for directors of banks, Arabic version
• Guidance for members of supervisory boards of
  banks in Ukraine
• All toolkits translated to French, Arabic and
  Spanish
• Case studies from Latin America, etc.
• Private Sector Opinion
• Non-controlling shareholders
• Economic development and corruption
• North American perspective on CG
• New challenges for auditors and independence

Overview Our Focus Our
Products Our Scope Conclusion
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Supporting Research

• Relevant to Developing Countries Undertaking
  Reforms
• Supporting Emerging Market Academics
• Led by Leading Global Thinkers, Practitioner
  Review
• November 2007 Conference
• Primarily, stock take of current research
• Revitalizing Forum role in CG research
• Collaboration with leading institutions
• Fall 2008 Workshop
• Seeking new ground, challenging current
  presumptions

Overview Our Focus Our
Products Our Scope Conclusion
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Project Example SADC-DFRC
Capacity Development of Development Finance
Institutions (DFIs)

• 23 DFIs in 10 countries
• DFIs reaching population without access to
  commercial banking sector

Institutionally Strengthen DFIs on a Sustainable
Basis

• Skills enhancement and advanced techniques in
  directing DFIs
• Creating sustainable capacity for stronger
  boards, more effective management

Implementation Focus

• Practical and relevant to operating issues faced
  by DFI boards
• Leverage point for other initiatives towards
  mainstreaming CG
• Linked with policy issues in the region (e.g.
  finance and investment protocols)
• Inform anti-corruption measures and conflict of
  interest issues
• Attention to performance indicators and evaluation

Overview Our Focus Our
Products Our Scope Conclusion
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Our Team

• Ghita Alderman
• Projects Coordinator
• Sub-Saharan Africa
• Co-Ops, Board Training

• Rosario Bartolome
• Program Assistant
• Budgets, Finance
• Marketing

• Eugene Spiro
• Sr. Projects Officer
• Asia
• Journalist Training

• Philip Armstrong
• Head
• Strategy and Management
• Technical Direction

• Nancy Metzger
• Sr. Projects Officer
• Latin America
• Trust Funds

• Marie-Laurence Guy Projects Officer
• SEE, MENA
• CG Mediation

• Harminder Paul
• Program Assistant
• Office Support
• Website

Overview Our Focus Our
Products Our Scope Conclusion
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Our Resources
By Region (US 000)
By Activity
Disseminate Best Practice, 19
Raise Awareness, Build Consensus, 8
Technical Assistance, Capacity Building, 67
Sponsor Research, 6
Overview Our Focus Our
Products Our Scope Conclusion
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Our Global Reach
Overview Our Focus Our
Products Our Scope Conclusion
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Sub-Saharan Africa

• Director Development ? Institutional Capacity ?
  DFI Capacity
• SOEs ? Co-operatives ? Media Training

Overview Our Focus Our
Products Our Scope Conclusion
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South-East Europe, Middle East, N. Africa
Director Development ? CG Mediation ? Codes
Institutional Capacity ? Media Training
Overview Our Focus Our
Products Our Scope Conclusion
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South and East Asia, the Pacific
Director Development ? Scorecards/Ratings ?
Policy Dialogue Co-operatives ? IDEA.Net ? Media
Training
Overview Our Focus Our
Products Our Scope Conclusion
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Eurasia, Russia
Policy Dialogue ? Banking ? SOEs ? Corporate
Secretaries
Overview Our Focus Our
Products Our Scope Conclusion
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Latin America, Caribbean
Director Development ? Companies Circle ? Codes
Co-operatives ? SOEs ? Media Training
Overview Our Focus Our
Products Our Scope Conclusion
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Much Done, More To Do

• Developing Countries CG Reform Remain Elementary
  
• Align with Broader Policy Framework
• Match to Resource Capabilities, Economic Capacity
• Social and Other Public Policy Priorities
• Anglo-Saxon CG Model not Always Appropriate
• Give Leverage to Reform Incentives

Overview Our Focus Our
Products Our Scope
Conclusion
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Our Focus, Our Objectives
Overview Our Focus Our
Products Our Scope
Conclusion
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THANK YOU
Philip Armstrong Global Corporate Governance
Forum Telephone [phone] parmstrong_at_ifc.org
www.gcgf.org
Corporate governance is concerned with holding
the balance between economic and social goals and
between individual and communal goals. The aim
is to align as nearly as possible the interests
of individuals, corporations and society. Sir
Adrian Cadbury Corporate Governance Overview,
1999 World Bank Report