What they are
The OECD Corporate Governance Principles are widely recognized by policy makers and business as a key international point of reference and form the basis of countless local codes of corporate governance around the world. They offer a principle-based approach to address key corporate governance issues and are one of the 12 key standards for international financial stability of the Financial Stability Board.
The OECD Guidelines on Corporate Governance of State-Owned Enterprises (SOEs) give concrete advice to countries on how to manage more effectively their responsibilities as company owners.
Why they matter
The Principles have had a major impact around the world in informing local codes and practices. In 2014, the OECD launched a review of the Principles to ensure the continuing high quality, relevance and usefulness of the Principles taking into account recent developments in the corporate sector and capital markets. In parallel to the update of the Principles, the SOE Guidelines were also updated in 2015 to take into account developments since they were first adopted in 2005.
How they impact
BIAC strongly supports corporate governance principles that promote business sustainability and that facilitate the continued stability of capital markets. BIAC therefore took a pro-active role in the discussions regarding the update, and was closely involved in the review process. Bearing in mind the importance of solid overarching principles, BIAC also underlined the need for flexibility to allow companies to apply the principles to achieve effective governance. BIAC’s detailed comments on the update of the Corporate Governance Principles and SOE Guidelines are available on the Committee page.
