Creating Opportunities Across the Globe
Based on the IFC’s Corporate Governance Methodology, the Corporate Governance Development Framework provides signatory institutions a common platform for evaluating and enhancing governance practices in their investee companies. The signatory institutions cover emerging markets around the world, including Africa, Latin America, the Caribbean, Asia, Middle East, North Africa, Europe and Central Asia, with total assets of more than $850 billion. This Framework, signed on September 23, 2011, is the result of extensive collaboration among members of the DFI Corporate Governance Working Group, which consists of representatives of several international finance institutions.
Sound corporate governance makes companies stronger, more efficient and accountable, and supports the implementation of good environmental and social practices. The private sector in emerging markets and developing countries can achieve these goals by putting in place corporate governance practices allowing businesses to mitigate risks, safeguard against mismanagement and attract investment and capital to fuel their growth. Improved corporate governance practices also increase access to markets and lower the cost of capital, thus encouraging new investments, boosting economic growth and providing employment opportunities. Businesses that operate more efficiently tend to allocate and manage resources more sustainably while stronger stakeholder relationships help companies resolve environmental protection, social and labor issues more effectively.