ABSTRACT
The chapter discusses the quality and reliability of corporate governance as essential components of the assurance needed by stakeholders who provide finance and other resources to a company. Global efforts to improve corporate governance have been led and supported by the work of the Organisation for Economic Co-operation and Development (OECD). Disclosure and transparency are essential features of corporate governance. The responsibilities of the board of directors must be defined and must be seen to be effective. National corporate governance may follow a shareholder-centric or a stakeholder-centric model, depending on national characteristics. Imposition of an unsuitable model may lead to ineffective corporate governance. Corporate governance codes are developed and enforced nationally. Comply or explain is a commonly encountered approach to enforcement of corporate governance, but there is increasing emphasis on disclosure of the approach to compliance. The World Bank Reports on the Observance of Standards and Codes (ROSC reports) provide encouragement to emerging economies to develop their corporate governance further, but emerging economies may come under pressure from external influences in developing their codes.
