The Program brings together corporate governance staff from investment and advisory operations into a single, global team.
To strengthen corporate governance practices, this unified team is leveraging and integrating the Global Corporate Governance Forum’s expertise, tools, and networks at the global and regional levels, and is using donor partner funding more efficiently to deliver targeted services in every region.
IFC’s Corporate Governance Program is now actively ramping up corporate governance services in all regions by:
Appointing a Regional Corporate Governance Lead with overall responsibility of each regional corporate governance program.
Offering new products in targeted areas such as family businesses, control environment, board practices, and others.
Helping assess and support implementation of corporate governance improvements for more IFC clients.
IFC’s Corporate Governance Methodology
It is a system of evaluating 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 rights, accountability and the board of directors, the control environment, and disclosure and transparency.
IFC is the first development finance institution to require a systematic corporate governance analysis of every investment transaction as part of its due diligence process.
As of July 1, 2011, all new IFC investments are subject to a focused corporate governance analysis during the appraisal process.
Corporate governance is defined as the system by which companies are directed and controlled. Sound corporate governance is an important element of sustainable private sector development - not only because it strengthens businesses’ ability to attract investment and grow, but also because it makes them, stronger, more efficient, and more accountable.
What we do
IFC works with firms to attract and retain investment by promoting the adoption of good corporate governance practices and standards.
How we do it
IFC is building on its successful track record with the aim of delivering targeted corporate governance support to more clients and stakeholders for even better results by:
Assessing a firm’s corporate governance practices and providing advice on how to improve its practices.
Building capacity of local consulting firms, directors’ institutes, media, and educational institutions to support corporate governance reform.
Working with regulatory institutions and governments to improve corporate governance laws, regulations, codes and listing requirements.
Raising awareness through conferences, workshops, roundtable discussions and training of business reporters as well as through the sharing of good practices.
Improving Corporate Governance in Southern Europe
Corporate governance has been gradually emerging as a key business concept in the countries of southern Europe, in particular as countries in the region seek foreign direct investment and are progressing on the European Union path. The Project supported Albania, Bosnia and Herzegovina, Kosovo, FYR Macedonia, Montenegro and Serbia in the adoption of sound corporate governance practices at the framework and company levels. The first phase of the project introduced corporate governance concepts to the market and representatives of market institutions and the private sector. The second phase focused on working in a more concentrated way with companies and public sector institutions that could play a role in promoting corporate governance.
Overall results and impact achieved:
Reached 1,356 companies, financial institutions and other interested parties in the region.
Assisted over 77 companies in improving their performance and raising over $309.7 million of financing attributable to improvements in their corporate governance.
Supported the adoption of 24 laws, regulations, codes, and nationally disseminated corporate governance tools.
Helped 8 universities to develop and deliver postgraduate corporate governance programs, courses and modules.
Board Leadership Program Evolves to Better Respond to Client Demand
The Board Leadership Training programs’ training of trainers (TOTs) remains the main flagship capacity-building activity of the IFC Global Corporate Governance Forum, with nine extensive training workshops conducted in the last six months. In the regions and countries where the program has already created a cadre of local trainers, the Forum introduced “advanced’ TOTs aimed at deepening the skills and build the confidence of trainers through concentrated mentoring.
In Nigeria, we partnered with the Financial Institutions Training Centre to localize and adapt the Banking Supplement and equip trainers to train directors in the local banking sector. Once these trainers completed the basic training, they went through the “mentored” TOT stage, where they could apply their newly acquired skills under the guidance of our master trainers. They then attended the third stage workshop to hone their skills and address their last comments and feedback on the localized curriculum.
Overall results and impact achieved in Nigeria:
25 modules adapted and localized (including 8 new modules)
25 trainers trained
58 Nigerian directors trained during the first year (about 20% of the entire number of bank directors in Nigeria)
Promoting Corporate Governance Standards for Investors
IFC’s Corporate Governance Methodology has been distilled into a unified set of tools known as the Corporate Governance Development Framework. The Framework was adopted by 29 development finance institutions (DFIs), including IFC, in September 2011. Signatory institutions cover emerging markets around the world and represent assets of approximately $852 billion.
The Framework will help DFIs assess the quality of corporate governance at the companies in which they invest. Signatories to the Framework aim to raise awareness of the importance of good governance to sustainable economic development, both at the private and public sector levels. By adopting a unified approach, DFIs will set consistent standards for corporate governance due diligence and advance the business case for good corporate governance.
Selected overall results and impact achieved*:
Nearly $2.9 billion in financing facilitated between fiscal years 2006-12.
Over 10,000 entities received corporate governance advisory services.
65 corporate governance codes and laws enacted in 24 countries.
29 development finance institutions, including IFC adopted the Corporate Governance Development Framework in 2011.
Over 120 publications produced, including translations, and disseminated to internal and external stakeholders.
Provided corporate governance assessments to 68 IFC clients, representing more than $5.05 billion in combined new debt and equity investments in fiscal year 2012.