on Corporate Governance
The Corporate Governance Development Framework is a joint initiative adopted by 33 Development Finance Institutions (DFIs). At its centre is a common approach on how to address corporate governance risks and opportunities in (DFI) investment operations. The effort is managed by a working group of DFI members.
The CGDF Working Group is proud to publish an updated CGDF Corporate Governance (CG) Progression Matrix, which is the newest CG best practice document available. The CG Matrix guides companies, investors, regulators, corporate governance evaluators, and other stakeholders in assessing and improving a company’s governance framework.
UPDATED CGDF Progression MatrixBased on the IFC’s Corporate Governance Methodology, the Corporate Governance Development Framework provides signatory institutions a common approach to evaluating and enhancing governance practices in their investee companies. The signatory institutions cover emerging markets around the world, including Africa, Latin America, the Caribbean, Asia, the Middle East, North Africa, Europe and Central Asia, with total assets of more than $940 billion. This Framework, first signed on September 23, 2011, is the result of extensive collaboration among members of the DFI Corporate Governance Working Group, which consists of representatives of several international finance institutions. While the Corporate Governance Development Framework started out as a DFI initiative, other investors as well as companies around the world are encouraged to consult the methodology and documents provided to guide their own corporate governance due diligence or development processes.
Sound corporate governance makes companies stronger, more efficient and accountable, and supports the implementation of good environmental and social practices. The private sector and state-owned enterprises in emerging markets and developing countries can achieve these goals by putting in place corporate governance practices allowing businesses to mitigate risks, safeguard against mismanagement and attract investment and capital to fuel their growth. Improved corporate governance practices also increase access to markets and lower the cost of capital, thus encouraging new investments, boosting economic growth and providing employment opportunities. Businesses that operate more efficiently tend to allocate and manage resources more sustainably while stronger stakeholder relationships help companies resolve environmental protection, social and labour issues more effectively.
DFIs have an important role to play in supporting efforts to strengthen corporate governance. Ultimately, strong corporate governance practices benefit companies, economies and the people living in them.
