DOCSLIB.ORG

The Value and Challenges of Good Corporate Governance

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Value and Challenges of Good Corporate Governance DCO-ZXH393-20040200-sdmPP1 The Value and Challenges of Good Corporate Governance OECD-World Bank Eurasian Corporate Governance Roundtable Kyiv, Ukraine May 2004 DCO-ZXH393-20040200-sdmPP1 CORPORATE GOVERNANCE REFORM IS A WORLDWIDE PHENOMENON Corporate governance codes during the last decade Date code published (latest code) Pre-1997 1997 1998 1999 2000 2001 2002 2003/2004 • Australia (2002) • Finland (2000) • Belgium (2000) • Brazil (2002) • Denmark (2001) • Argentina • Austria • Bangladesh • Canada (2004) • Japan (2001) • Greece (2001) • China, Hong • Indonesia (2001) • China, mainland • Chile • Cyprus • France (2002) • Kyrgyz Republic • Germany (2003) Kong (2001) • Philippines (2002) • Czech Republic • Colombia • Mauritius • Ireland (1999) • Netherlands (2003) • India (2003) • Italy (2002) • Romania (2002) • Malta • Pakistan • Oman • New Zealand (2000) • Sri Lanka • Kenya (2000) • Singapore (2001) • Peru (2002) • Poland • Turkey • South Africa (2002) • Thailand • Malaysia • Russia • Ukraine • Spain (2003) • Mexico • Slovakia • Sweden (2001) • Portugal • Switzerland • UK (2003) • South Korea • US (2003) Source: ECGI; web sites; clippings 1 1 DCO-ZXH393-20040200-sdmPP1 SCOPE OF REMARKS • Value of corporate governance to investors • Progress in emerging markets • Challenges facing emerging markets 2 DCO-ZXH393-20040200-sdmPP1 KEY MESSAGES • Investors are willing to pay a premium for a well-governed company, particularly in emerging markets • Governance is now an established investment criterion • Investors perceive corporate governance risks at three levels 3 2 DCO-ZXH393-20040200-sdmPP1 INVESTOR OPINION SURVEY DETAILS Percent of respondents Global Investor Opinion Survey, 2002 • 201 responses from professional* investors from institutions with an estimated USD 9 trillion assets under management (approximately USD 2 trillion AuM directly under their control) • Covers 31 countries in Asia, Europe, Latin America, Middle East, Africa, and North America • Undertaken in April/May 2002 in cooperation with the Global Corporate Governance Forum, using a questionnaire-based survey Type of investor Other** Bank 9 Mutual fund 7 20 Insurance 8 Broker/trader 9 17 Private equity 9 Pension fund 10 11 Money manager Venture capital * Addressed to key investment decision-maker, e.g., CEO, CFO, Fund Manager ** Includes investment bank with asset management activities, family offices, holding companies Source: McKinsey Global Investor and Emerging Market Policymaker Opinion Surveys on Corporate Governance, 2002 4 DCO-ZXH393-20040200-sdmPP1 A SIGNIFICANT MAJORITY OF INVESTORS SAY THEY ARE WILLING TO Yes PAY A PREMIUM FOR A WELL- No GOVERNED COMPANY % of investors Western Europe 78 22 Asia 78 22 North America 76 24 Latin America 76 24 Eastern Europe/Africa 73 27 5 3 Average premiums of those investors willing to pay premium pay to willing investors those of premiums Average COUNTRY BY VARIES COMPANY WELL-GOVERNED A FOR PREMIUM INVESTORS WOULD PAY COMPANY VARIESBY REGION PAY FOR AWELL GOVERNED THE PREMIUM INVESTORS WOULD Premium in2002 41 Morocco Egypt 39 North America Western Europe Asia Latin America Eastern Europe/Africa 38 Russia 27 Turkey 25 25 Indonesia China 24 24 24 Argentina Venezuela Brazil 23 23 Poland India Malaysia 22 22 22 Philippines South Africa Japan 21 21 21 Singapore Colombia South Korea 20 20 13 Thailand 14 Mexico 19 19 Taiwan 18 Chile 16 Italy 15 22 22 Switzerland 14 14 U.S. Spain 13 13 13 Germany France DCO-ZXH393-20040200-sdmPP1 DCO-ZXH393-20040200-sdmPP1 30 Sweden 12 U.K. 11 Canada 7 6 4 DCO-ZXH393-20040200-sdmPP1 CORPORATE GOVERNANCE IS NOW AN ESTABLISHED INVESTMENT CRITERION How does corporate governance affect your investment decision? % of investors selecting this option; multiple responses possible "Our investment group would never Avoidance of certain 63 approve an investment in a company with companies bad governance" – US Investment Manager, US$2 billion Private Equity Fund Decrease/increase holdings in certain 57 companies "Good governance is a qualitative cut-off criterion" – Analyst, US$62 billon European Avoidance of certain Asset Manager 31 countries "I simply would not buy a company with Decrease/increase poor corporate governance" holdings in certain 28 – CFO, US$3 billon European countries Private Bank 8 DCO-ZXH393-20040200-sdmPP1 GOVERNANCE OFTEN AS IMPORTANT AS FINANCIALS, PARTICULARLY Less important Equally important IN EMERGING MARKETS More important How important is corporate governance relative to financial issues – e.g., profit performance and growth potential – in evaluating the companies in which you invest? % of investors, 2002 Eastern Europe/Africa 15 45 40 Latin America 16 66 18 Asia 18 61 21 North America 43 50 7 Western Europe 44 41 15 9 5 DCO-ZXH393-20040200-sdmPP1 INVESTORS IDENTIFY ISSUES AT THREE LEVELS THAT IMPACT ON THEIR INVESTMENT DECISIONS % of investors who think that factor is very important for investment decision; top ten factors listed Accounting disclosure 71 Corporate factors Shareholder equality 47 Market regulation and infrastructure 43 Capital market International accounting standards 42 factors Market liquidity 37 Property rights 46 Pressure on corruption 32 Broad country level factors Insolvency and bankruptcy regulation 32 Fiscal environment 31 Banking system 30 10 DCO-ZXH393-20040200-sdmPP1 INVESTORS IDENTIFY GOVERNANCE PRIORITIES FOR POLICYMAKERS What are the top reform priorities for policymakers? % of investors listing change; Top 4 listed Investors selecting this option; multiple responses possible Strengthen "Give shareholders significant rights to 33 look after their investments" shareholder rights – Fund Manager, US $5 billion European Private Equity Fund Improve accounting 32 standards "Simple, clear accounting and reporting rules" – Fund Manager, More effective US $5 billion 31 European Private Equity Fund disclosure "Enforcement of fiduciary duties" Stronger 27 – Senior Counsel, US$50 billon US enforcement Money Manager 11 6 DCO-ZXH393-20040200-sdmPP1 SCOPE OF REMARKS • Value of corporate governance to investors • Progress in emerging markets • Challenges facing emerging markets 12 DCO-ZXH393-20040200-sdmPP1 POLICYMAKER OPINION SURVEY DETAILS Percent of respondents Emerging Market Policymaker Opinion Survey, 2002 • 44 responses from leading policymakers and academics • Covers 20 countries in Asia, Eastern Europe, and Latin America • Undertaken in April/May 2002, using a questionnaire-based survey Type of policymaker Government Business official Market representative 5 regulator body 19 32 Academic 22 22 Stock exchange official Source: McKinsey Global Investor and Emerging Market Policymaker Opinion Surveys on Corporate Governance, 2002 13 7 DCO-ZXH393-20040200-sdmPP1 POLICYMAKERS HIGHLIGHT SIGNIFICANT CORPORATE GOVERNANCE CHANGES IN RECENT YEARS % of respondents; Top 5 changes "Enhanced enforcement powers of regulators and the penalties applicable for 1. Enhanced disclosure 44 breaches of securities law" – Director, Asian Market Regulator 2. Adoption of best practice code 38 "The comprehensive review of the legal framework and its specific recommendations" 3. Improved corporate 35 – Law Reform Manager, legislation Asian Market Regulator 4. Strengthened shareholder 29 rights and enforced activism "Increased protection, and board and general meeting representation, for minority shareholders" 5. Improved and enforced 26 – Chief Advisor, Latin American capital market regulation Market Regulator Source: McKinsey Emerging Market Policymaker Opinion Survey on Corporate Governance, 2002 14 DCO-ZXH393-20040200-sdmPP1 POLICYMAKERS BELIEVE IMPLEMENTATION HAS BEEN RELATIVELY SUCCESSFUL, BUT WITH ROOM FOR IMPROVEMENT % of respondents Very successful Somewhat 8 How successful has unsuccessful your country been in 14 implementing corporate governance reform? 78 Somewhat successful Source: McKinsey Emerging Market Policymaker Opinion Survey on Corporate Governance, 2002 15 8 DCO-ZXH393-20040200-sdmPP1 POLICYMAKERS IDENTIFY SIGNIFICANT BARRIERS TO FUTURE CORPORATE GOVERNANCE SUCCESS % of respondents "No strong local institutional investment Core owners/ 32 concentrated ownership industry" – Head of Listings, Latin American Stock Exchange 30 Poor enforcement* "Successful lobbying by effected and influential people" – Vice Chairman, Latin American Market Regulator Other vested interests, 27 e.g., political interference "Change in corporate culture is evolutionary in nature" – Deputy President, Asian Cultural difficulties 24 Stock Exchange "Mindset that the company belongs to me (as the dominant shareholders) even though there are Inactive shareholders 22 many other shareholders" – Head of Regulation, Asian Ministry of Finance * Including lack of trained personnel Source: McKinsey Emerging Market Policymaker Opinion Survey on Corporate Governance, 2002 16 DCO-ZXH393-20040200-sdmPP1 EXAMPLE: RUSSIA Progress in some areas … but • Strengthened protection to • Weak equity culture minority shareholders under revised Law on Joint Stock • Infringement of Companies shareholder rights still common • New code of corporate governance • Poor enforcement of laws and regulations • Asset stripping less – Lack of financial and pervasive human resources – Corruption • Some progressive – Inefficient judiciary companies adopting international best practice • Accounting standards do not fully conform to IAS 17 9 DCO-ZXH393-20040200-sdmPP1 EXAMPLE: THE ASIA REGION Many reforms since 1997–1998 … but • Government led initiatives • Compliance with letter not – Enhanced authority for spirit of law regulators
Load more

Recommended publications
  • What Is Good Governance?
    United Nations Economic and Social Commission for Asia and the Pacific What is Good Governance? Introduction institutes, religious leaders, finance institutions political parties, the military etc. The situation in urban areas is much more Recently the terms "governance" and "good complex. Figure 1 provides the governance" are being increasingly used in interconnections between actors involved in development literature. Bad governance is urban governance. At the national level, in being increasingly regarded as one of the addition to the above actors, media, root causes of all evil within our societies. lobbyists, international donors, multi-national Major donors and international financial corporations, etc. may play a role in decision- institutions are increasingly basing their aid making or in influencing the decision-making and loans on the condition that reforms that process. ensure "good governance" are undertaken. All actors other than government and the This article tries to explain, as simply as military are grouped together as part of the possible, what "governance" and "good "civil society." In some countries in addition to governance" means. the civil society, organized crime syndicates also influence decision-making, particularly in Governance urban areas and at the national level. Similarly formal government structures are The concept of "governance" is not new. It is one means by which decisions are arrived at as old as human civilization. Simply put and implemented. At the national level, "governance" means: the process of informal decision-making structures, such as decision-making and the process by "kitchen cabinets" or informal advisors may which decisions are implemented (or not exist. In urban areas, organized crime implemented).
    [Show full text]
  • The Politics of Poverty: Elites, Citizens and States
    The Politics of Poverty: Elites, Citizens and States Findings from ten years of DFID-funded research on Governance and Fragile States 2001–2010 A Synthesis Paper Acknowledgements This paper was written by DFID Research and Evidence Division Staff, with help and advice from Graeme Ramshaw of IDS and from the directors and staff of the four Re­ search centres. Disclaimer: This synthesis presents some key findings of DFID-funded research and the resulting policy recommendations of the researchers: it does not necessarily reflect DFID policy. Cover Photo: Justice and Peace Commissioners, Masisi, DR Congo. © Sarah MacGregor / DFID The Politics of Poverty: Elites, Citizens, and States EXECUTIVE SUMMARY Executive Summary Evidence shows that in order to deliver sustainable international development we must be able to understand and work with its politics. Governance describes the way countries and societies manage their affairs politically and the way power and authority are exercised. For the poorest and most vulnerable, the difference that good, or particularly bad, governance, makes to their lives is profound: the inability of government institutions to prevent conflict, provide basic security, or basic services can have life-or-death consequences; lack of opportunity can prevent generations of poor families from lifting themselves out of poverty; and the inability to grow economically and collect taxes can keep countries trapped in a cycle of aid-dependency. Understanding governance, therefore, is central to achieving development and ending conflict. During the 1990s donors came to realise that development required better ‘governance’, and DFID recognised early on the need to work with the research community to identify ways of improving governance for better development outcomes.
    [Show full text]
  • PDF Good Governance, Bad Governance
    RESEARCH ASSOCIATION for INTERDISCIPLINARY RMARA CH I 2021S STUDIES DOI: 10.5281/zenodo.4640767 Good Governance, Bad Governance: The Politics of Coronavirus Pandemic in Nigeria Muyiwa Samuel Adedayo The Polytechnic, Ibadan, Oyo State, Nigeria [email protected] ABSTRACT: This paper examines the influence of good governance on coronavirus pandemic in Nigeria. The kernel of this article is the intrinsic nexus between good governance, bad governance and coronavirus pandemic in a democratic state. It reviews articles on how democracy has influenced good governance and/or promotes bad governance. It examines the individual perspective and understanding of the virus, state of lockdown and the welfare of the populace by the political leaders; to what extent is the palliative being distributed among other welfare packages useful to the populace. The paper clearly explained the notion of good governance in the context of the Nigerian milieu and links it with how welfare of the citizens could assist in building their confidence. The paper provided evidence from around the world of the nexus between the three variables under examination and it shows that there is a yawning gap in trust and accountability between citizens and the government because the need of the populace has overtime been ignored and neglected by government. This is evident in that Nigeria is yet to comply with the inextricable indices of good governance due to lack of trust and committed leadership. The paper recommended amongst others that government and political leaders, as well as the institutions in the country, must strive to promote participatory, consensus-oriented, accountability, transparency, responsiveness, effectiveness and efficiency; equitable, inclusive and follows the rule of law to deliver good governance in Nigeria, and Africa in general.
    [Show full text]
  • Political Corruption and Governance
    Political Corruption and Governance Series Editors Dan Hough University of Sussex Brighton, UK Paul M. Heywood University of Nottingham Nottingham, UK This series aims to analyse the nature and scope of, as well as possible remedies for, political corruption. The rise to prominence over the last 20 years of corruption-related problems and of the ‘good governance’ agenda as the principal means to tackle them has led to the develop- ment of a plethora of (national and international) policy proposals, inter- national agreements and anti-corruption programmes and initiatives. National governments, international organisations and NGOs all now claim to take very seriously the need to tackle issues of corruption. It is thus unsurprising that over couple of decades, a signifcant body of work with a wide and varied focus has been published in academic journals and in international discussion papers. This series seeks to provide a forum through which to address this growing body of literature. It invites not just in-depth single country analyses of corruption and attempts to com- bat it, but also comparative studies that explore the experiences of dif- ferent states (or regions) in dealing with different types of corruption. We also invite monographs that take an overtly thematic focus, analysing trends and developments in one type of corruption across either time or space, as well as theoretically informed analysis of discrete events. More information about this series at http://www.palgrave.com/gp/series/14545 Richard Rose · Caryn Peiffer Bad
    [Show full text]
  • Good Governance: the Inflation of an Idea Faculty Research Working Paper Series
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics Good Governance: The Inflation of an Idea Faculty Research Working Paper Series Merilee Grindle Harvard Kennedy School June 2010 RWP10-023 The views expressed in the HKS Faculty Research Working Paper Series are those of the author(s) and do not necessarily reflect those of the John F. Kennedy School of Government or of Harvard University. Faculty Research Working Papers have not undergone formal review and approval. Such papers are included in this series to elicit feedback and to encourage debate on important public policy challenges. Copyright belongs to the author(s). Papers may be downloaded for personal use only. www.hks.harvard.edu Good Governance: The Inflation of an Idea Merilee Grindle Harvard University May 2008 Good governance is a good idea. We would all be better off, and citizens of many developing countries would be much better off, if public life were conducted within institutions that were fair, judicious, transparent, accountable, participatory, responsive, well-managed, and efficient. For the millions of people throughout the world who live in conditions of public insecurity and instability, corruption, abuse of law, public service failure, poverty, and inequality, good governance is a mighty beacon of what ought to be. Due to this intuitive appeal, good governance has grown rapidly to become a major ingredient in analyses of what’s missing in countries struggling for economic and political development. Researchers have adopted the concept as a way of exploring institutional failure and constraints on growth.
    [Show full text]
  • Conceptual Framework
    Conceptual Framework Table of Contents 04 Local Government 08 Good Governance 11 Democracy 14 Civil Society 17 Sustainability 20 Citizenship 24 Voluntary Work 28 Human Rights 32 Gender Equality 37 Development and Empowerment 40 Political Terminology and Definitions 49 Youth - Related Terminology and Concepts 4 Local Government Definition of Local Government Local government is a management model of democratic governance. The concept of local governance has emerged due to the expansion of state functions and duties, and in order to consolidate citizens’ rights to and participation in the management of their affairs. This means that citizens conduct their affairs by themselves within a particular local authority, thus achieving the purpose of creating local authorities which is in the division of responsibilities and powers between the central government and local areas. Characteristics of Local Government • Autonomy; which means governing a community of specific geographical area in all matters pertaining to the affairs of its population. • Local governance requires members of local councils to be elected by the population of that community who themselves are in the best place to know their needs in contrast to other forms of public administration characterized by subordination to the central authority. Administrative Centralization Centralization means the reservation of all powers in the hands of one governing body in all parts of the state. This means that only one authority in the state undertakes the same functions by itself or by staff that do not enjoy any authority themselves. In other words, centralization confines state administrative functions to the representatives of the central government in the capital (i.e.
    [Show full text]
  • OECD DEVELOPMENT CENTRE POLICY BRIEF No
    DEVELOPMENT CENTRE POLICY BRIEFS OECD DEVELOPMENT CENTRE POLICY BRIEF No. 39 In its research activities, the Development Centre aims to identify and analyse problems the implications of which will be of concern in the near future to both member and non-member MEASURING GOVERNANCE countries of the OECD. The conclusions represent a contribution to the search for policies to deal with the issues involved. by The Policy Briefs deliver the research findings in a Charles P. Oman and Christiane Arndt concise and accessible way. This series, with its wide, targeted and rapid distribution, is specifically intended for policy and decision makers in the fields concerned. Official development aid agencies, international investors, academics and the media have greatly increased their use of quantitative indicators to assess the quality of governance in Quantitative indicators of the quality of governance developing countries – with far reaching consequences for these in developing countries and emerging economies have countries. The most widely used indicators suffer from limits and greatly proliferated since the mid-1990s. biases which their users often ignore. This Policy Brief seeks to clarify theses limits and reduce the misuse of governance indicators. The main users of these indicators are international investors, official development agencies, journalists and academics. The most widely used, and misused, governance indicators are composite perceptions-based indicators. Even the most carefully constructed composite OECD DEVELOPMENT CENTRE indicators have limitations their users seem widely to 2, rue André-Pascal, ignore. 75775 Paris Cedex 16, France Tel.: +33 (0)1 45 24 82 00 Greater transparency is required both in the production Fax: +33 (0)1 44 30 61 49 and in the use of governance indicators.
    [Show full text]
  • Politics, Power, and Accountability: Addressing the Elephant in the Room in the Quest for Civil Society Organizations’ Right to Freedom of Association
    International Journal of Not-for-Profit Law / vol. 16, no. 2, December 2014 / 34 Civil Society in Africa POLITICS, POWER, AND ACCOUNTABILITY: ADDRESSING THE ELEPHANT IN THE ROOM IN THE QUEST FOR CIVIL SOCIETY ORGANIZATIONS’ RIGHT TO FREEDOM OF ASSOCIATION * DR. MARIA NASSALI 1. Introduction The right to freedom of association is increasingly being illuminated in the international human rights arena, as demonstrated by the adoption of the Human Rights Defenders Declaration by the General Assembly in 1998 and the establishment of the mandate of Special Rapporteur on the same issue in 2010.1 Simultaneously, there is an alarming global trend of clamping down on independent civil society spaces under the guise of combating terrorism, defending government’s sovereignty, and safeguarding the public from bad governance of civil society organizations (CSOs).2 In the East African region, since September 11, 2001, there is an apprehension that CSOs can facilitate terrorism. Further, following the Arab and North Africa springs of 2012, East African governments have become intolerant to social protests.3 Government perceives CSOs as partners, appendages of government, foreign stooges, economic saboteurs, inciters of violence, or watchdogs, depending on the nature of their activities. Ugandan President Yoweri Museveni has publicly castigated CSOs with alternative views as “internal saboteurs and acting on behalf of foreign interests.”4 Given that participation in associational life promotes political consciousness and encourages more involvement in politics, through voting, campaigning, and willingness to stand for elective office, it is one of the most restricted rights because it threatens those in power.5 As articulated by the former Chief Justice of Australia, Justice Gleeson, because government claim to represent the will of the people, it does not like to be checked and balanced which it deems as a threat or challenge to its power.6 * Maria Nassali has a Doctorate in Law from the University of Pretoria.
    [Show full text]
  • Governance and Representation in the Afghan Urban
    The Role of Civil Society in Promoting Good Governance in Afghanistan Orzala Ashraf Nemat and Karin Werner July 2016 Afghanistan Research and Evaluation Unit and German Federal Ministry of Economic Cooperation and Development Issues Paper The Role of Civil Society in Promoting Good Governance in Afghanistan Orzala Ashraf Nemat and Karin Werner July 2016 Funding for this research was provided by the German Federal Ministry of Economic Cooperation and Development ISBN 978-9936-628-20-5 (ebook) Publication Code 1613E Editor Victoria Grace Cover Photos (Top to bottom): Jashn-e-Hamdili (Empathy Festival) (©www. shafaqna.com, Kabul Province, 2015); Female participants at National Community Development Council Conference (©MRRD- Afghanistan, Kabul Province, 2015); AREU consultation meeting with participants from the government and different segments of civil society (©AREU, Kabul Province, 2015); Advocacy training in Guzara District with local leaders and civil society (©www. ptro.org.af, Heart Province, 2014) ©2016 Afghanistan Research and Evaluation Unit and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH This publication may be quoted, cited or reproduced only for non-commercial purposes and provided that the authors and source are acknowledged. The opinions expressed in this publication are those of the authors and do not necessarily reflect those of the German Federal Ministry of Economic Cooperation and Development, AREU and GIZ. Some rights are reserved. Where this publication is reproduced, stored or transmitted electronically, a link to AREU’s website (www. areu.org.af) and GIZ (www.giz.de) should be provided. Any use of this publication falling outside of these permissions requires prior written permission of the co-publishers, the Afghanistan Research and Evaluation Unit and GIZ.
    [Show full text]
  • A Condition for Inclusive Growth and Good Governance 21 │
    2. INTEGRITY: A CONDITION FOR INCLUSIVE GROWTH AND GOOD GOVERNANCE 21 │ 2. Integrity: A condition for inclusive growth and good governance Despite the marked heterogeneity in Latin America, the region also shares common characteristics and challenges. Addressing these challenges requires tackling both social and economic aspects, especially raising productivity and diminishing inequalities. In turn, to achieve such an inclusive growth agenda and make the respective economic and social policies effective, governance is a key ingredient. Governance determines how policies are made and how they are implemented. In recognition of their relevance for most countries individually, as well as for the region as a whole, the OECD LAC Regional Programme has adopted the following three challenges as thematic priorities: increasing productivity, enhancing social inclusion, and strengthening institutions and governance. Public integrity stands as a necessary condition to move the region forward towards the fulfilment of each of these priorities and catalyse the wellbeing of its citizens. 2.1. Integrity and governance: From vicious to virtuous cycles Corruption is one of the main obstacles to good governance. By biasing the decisions of public and private actors, corruption weakens governance and undermines government efficiency (Figure 2.1). Causality between corruption and weak governance, however, is not straightforward. It would be too simplistic to state that corruption is a consequence of weak governance or that weak governance is a consequence of corruption. Both are true. The relationship between corruption, capture and bad governance is a vicious cycle. On the one hand, vulnerabilities in governance structures and processes due to lack of integrity, transparency and accountability open opportunities for corrupt practices and capture.
    [Show full text]
  • Development in Africa Through Governance and Partnerships
    Both good governance and functional partnerships are regarded as important goals of development in their own right. They are also considered to be necessary in building favourable environment and productive overall framework for development. In the Finnish development assistance, governance and partnerships are signifi cant principles in the White Paper on Development Policy. Development in Africa through Governance and Partnerships and Governance through Africa in Development This study aims to improve understanding of conceptual and operational aspects of governance and partnerships. The perspective is that of development aid recipients in Eastern Africa. The main focus was to listen and collect views and opinions of representatives of Ethiopian and Kenyan governments and of civil society. The civil servants who were interviewed worked in six different ministries: foreign affairs, fi nance, water, trade, education and justice. The civil society interviewees came from non- governmental organizations and professional associations, chambers of commerce, and academia. One-third of the interviewed were employees of intergovernmental organisations and the European Union. During the study a total of 76 people were interviewed in Ethiopia and Kenya. The study presents defi nitions on governance and partnerships. It also includes ideas and thoughts on how those could be promoted by development aid programmes at the national, regional and international levels. Development Policy Information Unit Edited by Street address: Kanavakatu 4 a, 00160 Helsinki
    [Show full text]
  • Bridging Governance Gap with Political CSR
    This is an Accepted Manuscript of a book chapter published by Routledge in Development- Oriented Corporate Social Responsibility: Volume 1 Multinational Corporations and the Global Context in 2017 available online: https://www.taylorfrancis.com/books/ e/9781351285568 Bridging Governance Gap with Political CSR 1. Adelopo, I. Associate Professor, Bristol Business School, University of the West of England, Bristol, United Kingdom. Email: [email protected] Phone: +447828249752, +44(0)1173308109 2. Yekini, K. Senior Lecturer, Accounting & Finance, Leicester Business School, De Montfort University, The Gateway, Leicester, LE1 9BH, United Kingdom. Email: [email protected] Phone: +44 (0) 116 207 8783 3. Raimi, L. Senior Lecturer, Centre for Entrepreneurship Development (CED), Yaba College of Technology, Lagos, Nigeria & Doctoral Fellow, Leicester Business School, De Montfort University, The Gateway, Leicester, LE1 9BH, United Kingdom. Email: [email protected], [email protected] Phone: +2348023462555 Abstract Corporate social responsibility (CSR) has attracted varied applications in management. This chapter contribution provides evidence of a political CSR where multinational corporations (MNCs) are complementing government’s role in bridging governance gap. The governance gap thesis and political costs hypothesis provide grounding for the discussions in this paper. Data from case studies across the Middle-Eastern countries were critically analysed and justify the political and developmental undercurrents of CSR initiatives. The key argument is that governance is crucial for development, and where there is a governance gap, it is in the interest of corporations to bridge the gap with their CSR initiatives to stimulate development. Pressure groups and civil society organisations in developing countries could leverage on the political dimension of CSR to lobby corporations to intervene in socio-economic issues especially poverty alleviation through entrepreneurship development in their operating environment for mutual benefits.
    [Show full text]