Better Companies,Better Societies

IFC - Global Corporate Governance ForumIFC - Global Corporate Governance Forum

January 2009

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Who We Are

IFC multi-donor trust funded facility IFC multi-donor trust funded facility ↳ Founded in 1999 by World Bank Group and OECD

Forum’s purpose:Forum’s purpose:↳ Promote global, regional and local CG reform initiatives↳ Improve institutional framework for good corporate governance↳ Facilitate improved CG practices in emerging markets

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Toolkits Provide “Best in Class”, Practical Guidance Toolkits Provide “Best in Class”, Practical Guidance – Building Institutional Capacity– Building Institutional Capacity

CG Codes TK 1CG Codes TK 1Raising boardroom practices, setting Raising boardroom practices, setting framework for enhanced standardsframework for enhanced standards

Director Institutions TK 2Director Institutions TK 2Creating institutional capacity for Creating institutional capacity for implementation of best practiceimplementation of best practice

CG Leadership Resources TK 3CG Leadership Resources TK 3Providing material to facilitate Providing material to facilitate sustainable institutions, quality training sustainable institutions, quality training

CG Mediation TK 4 [Due FY09]CG Mediation TK 4 [Due FY09]Supporting business climate and Supporting business climate and relieving legal systemrelieving legal system

Media TK 5 [Due FY10]Media TK 5 [Due FY10]Facilitating extra regulatory market Facilitating extra regulatory market oversight – JV with Thomson Reuters oversight – JV with Thomson Reuters

Sequenced, Integrated Approach

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Director Training Organizations

TK 5

TK 4

TK 6

TK 7

Toolkit 1

TK 8

TK 3

TK 2

Boards

Companies

Based on global best practicesBased on global best practices Practical guidancePractical guidance Solutions to meet local conditions Solutions to meet local conditions Peer networkingPeer networking FocusFocus: Guide sustainable : Guide sustainable

institution building institution building “Expert training strengthens our effectiveness in building board directors’ professionalism.” Participant, Panama IOD Project

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Corporate Governance Codes

TK 6

TK 5

TK 7

TK8

Toolkit 2

TK1

TK 4

TK3

Boards

Companies

Best of international practiceBest of international practice Clear, comprehensive guidelinesClear, comprehensive guidelines International expertise/PSAGInternational expertise/PSAG Supports policy reformsSupports policy reforms Code Peer Review GroupCode Peer Review Group Toolkit available in English, Toolkit available in English,

French, Arabic, Spanish and is French, Arabic, Spanish and is currently being translated by currently being translated by EBRD to RussianEBRD to Russian

FocusFocus: Facilitate better : Facilitate better boardroom practices, local boardroom practices, local ownership of the processownership of the process

“The Forum’s expertise and experiences provided Bulgaria with practical, relevant, insightful counsel.”

Prof. Bistra BoevaCo-Chair, Bulgaria CG Project

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Board Development Resource Kit

TK 7

TK 6

TK 8

TK 1

Toolkit 3

TK 2

TK 5

TK 4

Boards

Companies

Enhance directors’ business skills Enhance directors’ business skills Engage directors in value-based Engage directors in value-based

judgments, through challenging judgments, through challenging boardroom dilemmasboardroom dilemmas

Innovative Innovative • Adult-learning strategies • Interactive through cases • Audio-visual aids

High level of global utilityHigh level of global utility FocusFocus: Strengthen director : Strengthen director training techniquestraining techniques

“This new approach in adult learning and case study development will enhance my skills as a trainer in educating company directors.”

Participant,CG Leadership Program forEast and Southern Africa

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Corporate Governance Mediation

New initiative New initiative Broad-based partnershipsBroad-based partnerships Release capital tied up in Release capital tied up in

disputes, encourage mediated disputes, encourage mediated settlement settlement

Enforces good CG practiceEnforces good CG practice Supports shareholder protectionSupports shareholder protection Improves investor confidenceImproves investor confidence FocusFocus: Foster investment climate : Foster investment climate

and business practicesand business practices

“I welcome the Forum’s initiative to lead ground breaking work on the use of ADR in the field of Corporate Governance.”

Mervyn King,Former High Court JudgeSouth Africa

TK 8

TK 7

TK 1

TK 2

Toolkit 4

TK 6

Boards

Companies

TK 3

TK 5

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Training for Financial Journalists

Vanguard for CG awareness Vanguard for CG awareness Enhance understanding of CG Enhance understanding of CG

and financial reportingand financial reporting Practical trainingPractical training Exposure to leading journalistsExposure to leading journalists Partnership with ReutersPartnership with Reuters FocusFocus: Build understanding and : Build understanding and

importance of CG, facilitate importance of CG, facilitate betterbetter reportingreporting

“Better informed journalists make for more insightful reporting that benefits investors, capital markets.”

Participant, Balkans Media Project

TK 2

TK 1

TK 3

TK 4

Toolkit 6

TK 8

TK 5

Boards

Companies

TK 5

TK 7

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Our Reform Approach

Catalyst for Implementing CG Policy Reform↳e.g., World Bank CG ROSC, OECD

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Provide Leverage for CG Reform↳e.g., IFC, World Bank, EDFI, EBRD, etc.

Build Expertise in CG Institutions↳e.g., Accrediting Toolkit Use, Training Trainers

Support Local Capacity through TA↳e.g., CG Experts, PSAG, Building Collaboration

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Our Private Sector Advisory Group

Makes us unique!Makes us unique! Drawn from top echelons of business leadership Drawn from top echelons of business leadership

↳Chaired by Peter Dey, with Christian Strenger as Deputy Chairman ↳ Includes experts from different parts of the world

Provide guidance and counsel on our strategyProvide guidance and counsel on our strategy Bring practical, relevant business experienceBring practical, relevant business experience Advise on new products, provide material for publicationsAdvise on new products, provide material for publications Support Forum outreach and penetration globallySupport Forum outreach and penetration globally Only Only one partone part of expansive, global network of partners of expansive, global network of partners

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How to Work with us We are NOT a grant-making facility, instead we We are NOT a grant-making facility, instead we

finance technical supportfinance technical support Our PSAG networkOur PSAG network Code peer review Code peer review Flexible processFlexible process We welcome new initiatives, but need enough We welcome new initiatives, but need enough

time to properly preparetime to properly prepare We follow a partnership model We follow a partnership model

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Disseminating Best Practices Relevant to Developing Countries Undertaking ReformsRelevant to Developing Countries Undertaking Reforms Identify Material that is Useful, Practical Identify Material that is Useful, Practical Translation to Working LanguageTranslation to Working Language FocusFocus

↳ In-depth assessments of policy issues↳ Sharing experiences and knowledge↳ Frameworks our wider mandate

Private Sector OpinionsPrivate Sector Opinions↳ Ten now issued to date↳ Covers broad spectrum of issues ↳ Practical insights drawn from PSAG

Website (www.gcgf.org)Website (www.gcgf.org)

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THANK YOU

Hassan El-ShabrawishiHassan El-ShabrawishiGlobal Corporate Governance Global Corporate Governance

ForumForumTelephone +1 202 458 9521Telephone +1 202 458 9521

helshabrawishi@ifc.orghelshabrawishi@ifc.orgwww.gcgf.orgwww.gcgf.org