Toolkit on Corporate Governance
Sound corporate governance is an increasingly important element of sustainable private sector development. It is also a priority for investors because it reduces the risk of investing in companies in high-risk environments. By developing and maintaining good corporate governance, businesses become more attractive to new capital and demonstrate accountability in the wider society.
In 2010, the DFI Toolkit on Corporate Governance was launched as a result of extensive collaboration among the signatories of the DFI Working Group on Corporate Governance. The toolkit is based on the IFC’s Corporate Governance Methodology and serves as a common basis for (i) assessing the corporate governance of investee companies and (ii) promoting the rapid implementation of the Corporate Governance Development Framework. In addition, signatory DFIs are encouraged to adapt the toolkit to their own requirements and the needs of their investee companies.
The two main documents of the toolkit are (i) a Corporate Governance Questionnaire, and (ii) a Corporate Governance Progression Matrix. An Instruction Sheet on how to use the different components of the Toolkit, a list of key terms, and sample templates are also provided for further guidance.