Global Corporate Governance Forum Better Companies, Better Societies World Bank Institute/ State University (Moscow) April 24, 2007

2 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

3 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

4 Raise awareness, build consensus understanding priorities and defining reform program Key Pillars Our Priority: Low-Income Countries, Emerging Markets Sponsor research relevant needs of developing countries Provide technical assistance, capacity building for implementation, key priority in second cycle Disseminate best practices utilizing the Forums expansive network globally 3 4 2 1 MANDATE Overview Our Focus Our Products Our Scope Conclusion

5 Sustainable Capacity Building Technical Assistance Support and Design Raising Awareness for Reform Agenda Reform ToolsPrivate Sector Expertise Country AssessmentsPolicy Dialogue Cross-Regional Experience and Best Practices Fitting It Together Research PolicyInvestment GC Standards Implementation Overview Our Focus Our Products Our Scope Conclusion

6 Define reform priorities through policy dialogue Ensure reform is underpinned by analysis Draw on international expertise and networks Support implementation of reforms Raise Awareness, Build Consensus Meetings Briefings Policy Papers Dialogue Sponsor Research Analysis Validation Research Papers Disseminate Best Practices Case Studies Focus Reports Guidelines Pvt. Sector Opinion Technical Support, Capacity Building Training Programs Toolkits PSAG Targeted Reform Addressing CG Reform Forums Respons e Countrys Need Overview Our Focus Our Products Our Scope Conclusion

7 Our Key Thrusts Implementing Existing Tools Developing New Tools Building Capacity Supporting Research Developing Director Training Institutional Capacity [Toolkit 1] Supporting Development of National CG Codes [Toolkit 2] Co-operatives Board Development Resource Kit Corporate Governance Mediation for Dispute Resolution Training Financial Journalists Strengthening DFIs in Southern Africa Implementation of new Mexican Securities Laws Corporate Governance Score Cards and Ratings 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

8 Bridge between Policy and Practice Toolkit 7 Toolkit 6 Toolkit 8 Toolkit 1 Toolkit 3 Toolkit 2 Toolkit 5 Toolkit 4 Boards Companies World Bank Policy Practice CG Standards IFC Corporate Practice Investment Overview Our Focus Our Products Our Scope Conclusion

9 Director Training Organizations TK 5 TK 4 TK 6 TK 7 Toolkit 1 TK 8 TK 3 TK 2 Boards Companies 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

10 Corporate Governance Codes TK 6 TK 5 TK 7 TK8 Toolkit 2 TK1 TK 4 TK3 Boards Companies 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

11 Board Development Resource Kit TK 7 TK 6 TK 8 TK 1 Toolkit 3 TK 2 TK 5 TK 4 Boards Companies 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

12 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 TK 8 TK 7 TK 1 TK 2 Toolkit 4 TK 6 TK 5 Boards Companies TK 3 TK 4

13 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 TK 1 TK 8 TK 2 TK 3 Toolkit 5 TK 7 Boards Companies TK 4 TK 6

14 Corporate Governance for Co-Operatives TK 2 TK 1 TK 3 TK 4 Toolkit 6 TK 5 TK 8 TK 7 Boards Companies 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

15 Ahead: Future Tools TK 3 TK 2 TK 4 TK 5 Toolkits 7, 8 TK 6 TK 1 TK 8 Boards Companies 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

16 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

17 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

18 Project Example: SADC-DFRC Capacity Development of Development Finance Institutions (DFIs) Institutionally Strengthen DFIs on a Sustainable Basis Implementation Focus 23 DFIs in 10 countries DFIs reaching population without access to commercial banking sector Skills enhancement and advanced techniques in directing DFIs Creating sustainable capacity for stronger boards, more effective management 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

19 Philip Armstrong Head Strategy and Management Technical Direction Nancy Metzger Sr. Projects Officer Latin America Trust Funds Harminder Paul Program Assistant Office Support Website Ghita Alderman Projects Coordinator Sub-Saharan Africa Co-Ops, Board Training Rosario Bartolome Program Assistant Budgets, Finance Marketing Marie-Laurence Guy Projects Officer SEE, MENA CG Mediation Eugene Spiro Sr. Projects Officer Asia Journalist Training Our Team Overview Our Focus Our Products Our Scope Conclusion

20 Technical Assistance, Capacity Building, 67% Our Resources By Region ( US $000 )By Activity Raise Awareness, Build Consensus, 8% Sponsor Research, 6% Disseminate Best Practice, 19% Overview Our Focus Our Products Our Scope Conclusion

21 Our Global Reach Overview Our Focus Our Products Our Scope Conclusion

22 Sub-Saharan Africa Director Development Institutional Capacity DFI Capacity SOEs Co-operatives Media Training Overview Our Focus Our Products Our Scope Conclusion

23 South-East Europe, Middle East, N. Africa Director Development CG Mediation Codes Institutional Capacity Media Training Overview Our Focus Our Products Our Scope Conclusion

24 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

25 Eurasia, Russia Policy Dialogue Banking SOEs Corporate Secretaries Overview Our Focus Our Products Our Scope Conclusion

26 Latin America, Caribbean Director Development Companies Circle Codes Co-operatives SOEs Media Training Overview Our Focus Our Products Our Scope Conclusion

27 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

28 Our Focus, Our Objectives Global Corporate Governance Forum Raise Awareness & Build Consensus Regional Roundtables and Forums Africa, Asia, Eurasia, Latin America, MENA, Russia, SEE Sponsor Research Research Network Anecdotal research Data validation Working papers Disseminate Best Practice Website Publications Meetings Focus reports Private sector opinion Case Studies Technical Assistance & Capacity Building Training Programs and Materials Reform Toolkits and Implementation Workshops Institution building Director training Codes & standards Targeted projects Overview Our Focus Our Products Our Scope Conclusion

THANK YOU 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] Philip Armstrong Global Corporate Governance Forum Telephone +1 202 458 9114 [email protected]

Documents

Global Corporate Governance Forum Better Companies, Better Societies World Bank Institute/ State University (Moscow) April 24, 2007