Leading Development Finance Institutions Launch Corporate Governance Framework to Support Emerging Markets
By signing this Framework, IIC increases its commitment to transparency, Accountability, and good corporate governance
Washington, D.C., September 23, 2011 - The leaders of 30 development finance institutions today will adopt the Corporate Governance Development Framework, a common set of guidelines to support sustainable economic development in emerging markets.
Good corporate governance helps businesses operate more efficiently, attract capital, and safeguard against corruption and mismanagement. It makes businesses more accountable and transparent and builds investor confidence in public and private companies in developing countries.
Through the Framework, the signatories hope to answer the G-20’s call for development finance institutions to strengthen their coordination and ensure accomplishment of certain key institutional reforms, such as an increased commitment to transparency, accountability, and good corporate governance.
As providers of financing to companies in some of the world’s most challenging markets, development finance institutions can be leaders in promoting good corporate governance practices. The Corporate Governance Development Framework will help signatory institutions evaluate the corporate governance risks and opportunities of the companies they invest in. The signatories aim to raise awareness, both at the private and public sector levels, of the importance of good governance to sustainable economic development. They are expected to implement the Framework at their own pace and at a level that suits their institutions. They will also work together to advance the business case for good corporate governance. Each institution that adopts this Framework undertakes to:
- Integrate corporate governance in its investment operations by adopting procedures and tools in line with the Framework, conduct corporate governance assessments of its investment clients, and develop action plans when appropriate.
- Identify staff responsible for implementation and oversight of the Framework.
- Provide or procure training to ensure capacity building and share knowledge on corporate governance.
- Collaborate with other signatories to share experiences and resources on training and implementation.
Contact: Sylvia Szankay
Telephone: (202) 623-3878