The Asian economic crisis has hopefully taught the global business community a good lesson -- the value of sound corporate governance. The crisis proved that sustained economic growth and competitiveness cannot be maintained in the absence of values and good corporate practices. Responsible corporate governance policies ensure that the structures, rules, and procedures adopted by corporations and financial institutions and concurrent rules and regulations adopted by governments lead to effective and accountable management. Today's globalization and heightened competition for investment capital means that only those companies and countries that provide stable and transparent investment climates will achieve long-term benefits.
There is no unique structure of corporate governance, nor is there a single optimal design. However, there are certain attributes that contribute to effective corporate governance, which include:
CIPE has recognized the importance of corporate governance as it affects both economic and democratic institutions. Part of CIPE's global strategy includes building an awareness of the inherent value of corporate governance with its international partner network of think tanks and business associations. A significant hurdle in developing markets and those in transition is accessing international experience and best practices of corporate governance policies. CIPE, in response, began an initiative in 1993 to introduce some examples of corporate governance policies, principles, and values to its network.
CIPE's first corporate governance program began with a grant to the Central European University. This joint program brought vital international resources and models to leaders in Central Europe. More recently, in February, CIPE held a corporate governance workshop in conjunction with the National Endowment for Democracy's "Building a Worldwide Movement for Democracy" conference in New Delhi, India.
As a Board Member, I am pleased
to witness the successes that CIPE's partner organizations have achieved in
promoting corporate governance within their countries. In particular,
Bulgaria's Center for the Study of Democracy successfully orchestrated the
passing of legislation mandating the use of shareholder registries across the
country. This relatively small step is crucial to ensuring the protection of
minority stockholders and discerning the true ownership of companies, and it is
necessary in promoting transparency in Bulgaria's continuing privatization
process. I have watched CIPE's corporate governance initiatives spread beyond
Central Europe, and I am proud that these initiatives are a true benefit to the
global business community.
Stanton D. Anderson
Attorney at Law
McDermott, Will & Emery