Corporate Governance

East Asia and the Pacific

WHAT WE DO
IFC promotes good Corporate Governance in East Asia and the Pacific (EAP) by: (a)
working with firms to improve their governance; and (b) strengthening investment
climates in markets around the region.

BACKGROUND
HOW WE DO IT
IFC and the World Bank deliver corporate governance services at various levels of a Corporate governance is defined as
given market, including: the structures and processes by which
companies are directed and
 assessing a firm’s corporate governance practices and providing advice on how controlled. Good corporate
to improve them; governance helps companies operate
more efficiently, improve access to
 providing specialized advisory services on board effectiveness, the control
capital, mitigate risk and safeguard
environment and family business governance;
against mismanagement. It makes
 building capacity of local partners, institutes of directors, media, and educational
companies more accountable and
institutions on corporate governance services, training and reporting;
transparent to investors and gives
 working with regulatory institutions and governments to improve corporate them the tools to respond to
governance laws, regulations, codes and listing requirements; and stakeholder concerns. Corporate
 raising awareness of corporate governance through conferences, workshops governance also contributes to
and publication. development. Increased access to
capital encourages new investments,
PROMOTING CORPORATE GOVERNANCE PRACTICES IN INVESTEE boosts economic growth, and provides
COMPANIES employment opportunities.

IFC’s Corporate Governance Methodology is a system of evaluating the corporate

IFC CORPORATE
governance risks and opportunities of client companies, applying the relevant set of
tools in the areas of commitment to good corporate governance practices, shareholder
GOVERNANCE GROUP
rights, accountability and the board of directors, the control environment, and The Group brings together staff from
disclosure and transparency. investment support and advisory
operations into a single, global team.
IFC is the first development finance institution to undertake corporate governance
This unified team advises on all
analysis of every investment transaction as part of its standard due diligence process. aspects of corporate governance and
This focused approach has been implemented for many years but it was formalized as offers targeted client services in areas
of July 1, 2011. This has helped IFC identify relevant corporate governance risks in our such as increasing board
clients and suggest appropriate solutions to address the risks and take advantage of effectiveness, improving the control
improvement opportunities. IFC now leverages this expertise and offers firm-level environment, and family business
services to other companies in the region on a selective basis in order to help build a governance. The Group also helps
strong demonstration effect in the market. support corporate governance
improvements and reform efforts in
EAST ASIA AND THE PACIFIC CORPORATE GOVERNANCE PROGRAM emerging markets and developing
countries, while leveraging and
The East Asia and the Pacific Corporate Governance Program, generously supported
integrating knowledge tools, expertise,
by the Switzerland State Secretariat for Economic Affairs (SECO), promotes corporate
and networks at the global and
governance best practices and standards in various EAP markets. The program helps
regional levels.
improve investment climates, attract investment across markets, and enhance firm
performance to boost economic growth.
OUR WORK SPANS MANY MARKETS AND MULTIPLE LEVELS SELECTED REGIONAL
The IFC EAP Corporate Governance Program works in markets across the region, RESULTS AND IMPACT AS OF
including China, Indonesia, Mongolia, and Vietnam. Our reach is continually JUNE 2015:
expanding, with plans underway for additional activities in Cambodia, Lao People’s
Democratic Republic, Myanmar, the Philippines, and parts of the Pacific. These
 More than 500 entities received
efforts come at a pivotal moment for the region, as market integration among the corporate governance advisory
Association of Southeast Asian Nations (ASEAN) moves forward. As goods, services, services.
and investments flow more freely across borders, companies will have to adopt  Direct firm engagements
stronger corporate governance standards if they want to attract investors and remain facilitated more than $1.4 billion in
competitive. financing due in part to corporate
governance improvements.
Firm-level corporate governance initiatives alone will not help to address the range of
 More than 100 public-awareness
economic development challenges that nations in the region face. IFC is working at events attracted over 8,500
multiple levels to improve the broader investment climate throughout the region. participants and 2,000 firms.
Among IFC’s efforts in this arena are support for Indonesia’s newly created regulatory
 Over 350 trainers in countries
agency as it created a corporate governance roadmap to strengthen the nation’s throughout the region received
governance regulatory framework and—in partnership with our World Bank training.
colleagues—technical advice for Vietnam’s lawmakers as they drafted the country’s
 Partner-conducted workshops—
Law on Enterprises, which will take effect on July 1, 2015. enabled through train-the-trainer
workshops—reached more than
We also provide assistance to regulators in various markets as they revise their 7,000 executives.
corporate governance codes and regulations in support of investment climate
improvements. IFC’s governance advocacy includes partnering with institutes of  14 laws, regulations, codes, and
policies in countries throughout
directors, the media, universities, associations, and other intermediaries on activities the region were improved.
such as awareness-raising and educational events and train-the-trainer workshops to
broaden the governance expertise base across the region.  More than 6,000 women at the
board and senior management
levels were trained and/or
HELPING INDIVIDUAL COMPANIES IMPROVE CORPORATE GOVERNANCE attended corporate governance
events.
Good corporate governance can help companies improve performance, increase
access to financing, and strengthen long-term sustainability. A fundamental aspect of
IFC’s EAP governance program involves direct work with firms to strengthen their CONTACTS
governance frameworks. Typically, such efforts entail an initial assessment of the
company’s governance framework, identification of improvement opportunities, and a Chris Razook | +852 9195 0991
tailored roadmap for the company to improve its practices over time. The East Asia & the Pacific, Hong Kong
engagements follow the same methodology used for IFC’s own investments, Crazook@ifc.org
leveraging expertise that has been accumulated over the years and bringing an
investor’s perspective for the benefit of clients. The engagements examine overall Leyal Savas | +84-8-3823-5266
board functioning and effectiveness, aspects of the company’s risk management and East Asia & the Pacific,
control environment, shareholder and stakeholder practices, disclosure and Ho Chi Minh City, Vietnam
transparency issues, and family governance for family-owned firms. IFC also Lerkurtoglusavas@ifc.org
conducts training workshops and helps develop or modify governance-related
policies and procedures.

IFC brings a unique perspective to companies, stemming from our specific

ifc.org/corporategovernance
investment activity as well as our regulatory and awareness-raising efforts aimed at June 2015
building strong investment climates across different markets. Our team includes
professionals who possess deep governance experience across all types of
companies, making use of internationally recognized tools and methods.

Oliver Orton | +20 (2) 2461-4220

Cairo, Egypt | cbright@ifc.org