Development Finance Institutions to Strengthen Corporate Governance
MANILA, PHILIPPINES - Development Finance Institutions (DFIs) are sharing experiences and lessons in corporate governance at a two-day meeting hosted by the Asian Development Bank (ADB). The conference is meant to intensify the collaboration among signatories of the Corporate Governance Development Framework and to raise the bar on better enforcement of rules, practices and procedures by which client-beneficiaries operate.
The Framework helps DFIs define a common standard and guideline to assess the quality of corporate governance of companies in which they invest, and aims to foster collaboration and knowledge sharing. By adopting a common approach, DFIs set consistent standards for due diligence and common expectations from their clients.
"The meeting will help strengthen our corporate governance work in emerging markets and better align corporate governance objectives between development financing institutions and private sector finance providers," said Lakshmi Venkatachalam, ADB Vice-President for Private Sector and Cofinancing Operations.
Representatives from 31 international institutions from various countries and regions will review their progress in implementation of the Corporate Governance Development Framework, which was signed in 2011. The Inter-American Development Bank and the Brazilian Development Bank became the latest signatories today.
Good corporate governance helps companies operate more efficiently, improve their access to capital, and safeguard against corruption and mismanagement. It aims to make companies more accountable and transparent to investors and enables them to respond to legitimate stakeholder concerns, such as sustainable development.
The meeting is the seventh organized by the DFI Corporate Governance Group which also helps develop toolkits and methodologies to support corporate governance due diligence and action plans for improvement.
The meeting will also include a full-day training on corporate governance for the participants.