Corporate Governance best

practices in the developing

world – a unified
perspective
 INTRODUCTION
Corporate Governance
Corporate Governance is the application of best management practices,
compliance of law in true letter and spirit and adherence to ethical standards for
effective management and distribution of wealth and discharge of social
responsibility for sustainable development of all stakeholders.. Conduct of
business in accordance with shareholders desires (maximising wealth) while
confirming to the basic rules of the society embodied in the Law and Local
Customs
Corporate Governance
• Relationships among various participants in determining the direction and performance of a corporation.

Effective management of relationships among

–Shareholders

-Managers-Board of directors

-employees

-Customers

-Creditors

-Suppliers

-community
Why Corporate Governance?
• Better access to external finance
• Lower costs of capital - interest rates on loans
• Improved company performance - sustainability
• Higher firm valuation and share performance
• Reduced risk of corporate crisis and scandals
 STATEMENT OF PROBLEM

Is having a unified perspective of corporate governance really better?

or this is just another way for developed countries to put pressure on
the financial ability of developing countries.
 OBJECTIVES
• To create social responsibility

• To create a transparent working system

• To create a management accountable for corporate functioning

• To protect and promote the interest of shareholders• To develop an efficient organization culture

• To aid in achieving social and economic goals

• To improve social cohesion

• To minimize wastages, corruption, red-tapaism etc.

 CORPORATE GOVERNANCE IN
UNITED KINGDOM
The UK Corporate Governance code, formerly known as the Combined Code  is a part
of UK company law with a set of principles of good corporate governance aimed at
companies listed on the London Stock Exchange. It is overseen by the Financial Reporting
Council and its importance derives from the Financial Conduct Authority's Listing Rules. The
Listing Rules themselves are given statutory authority under the Financial Services and
Markets Act 2000 and require that public listed companies disclose how they have complied
with the code, and explain where they have not applied the code – in what the code refers to
as 'comply or explain’. Private companies are also encouraged to conform; however there is
no requirement for disclosure of compliance in private company accounts. The Code adopts
a principles-based approach in the sense that it provides general guidelines of best practice.
 ORGANIZATIONAL FOR ECONOMIC
COOPERATION AND DEVELOPMENT (OECD):

The Organization for Economic Cooperation and Development created the first
set of corporate governance rules that were accepted globally (OECD, 1999).
The OECD is a global organisation with 29 member nations that is headquartered
in Paris. The principles covered topics like fair treatment of shareholders,
shareholder responsibilities, transparency and disclosure in terms of corporate
reporting and audit, the role and responsibilities of company boards of directors,
and the significance of non executive directors.
 EFFORTS TOWARDS EFFECTIVE CORPORATE
GOVERNANCE:’

’A mix of enforcement, (ii) monitoring, and (iii) lobbying is necessary for

effective corporate governance systems, while the exact distribution and
functioning of these measures may differ from business to firm. The parts that
follow will go through these elements. Enforcement Standard requirements do
not ensure successful implementation unless the relevant regulatory bodies take
the required procedures to effectively enforce them.
 CONCLUSION:

In this paper, corporate governance was examined from a global viewpoint, that is, in a few
chosen industrialised and developing nations. Objective of understanding the various systems of
corporate governance globally, initiatives made in various nations to change corporate
governance practise, discussions on corporate governance of various countries were conducted.
One issue that all governments have in common is that they have prioritised revising corporate
governance procedures in order to boost investor confidence and trust, which will result in a
more liquid capital market. To ensure that all business players follow the best practises, a serious
monitoring programme on corporate governance compliance is necessary.