Corporate Governance at IFC

We provide advice to companies and banks on how to introduce and strengthen corporate governance practices based on international standards. Our activities include improving board practices, shareholder rights, internal and external controls, risk management, transparency, and reporting practices as well as improving enforcement and resolving related disputes. We help build capacity and provide support so that institutions can be sustainable by working with regulators, corporate governance institutes, centers for directors and educational institutions and the media to support adherence to corporate governance practices at the country and corporate levels. Through these efforts, companies are more successful in attracting capital, improving their performance, and can better weather financial crises. This in turn helps boost private sector development, creating jobs, improving the quality of living, and ultimately alleviating poverty through improved economic performance.

IFC's Approach

The umbrella corporate governance approach at IFC is carried out by three delivery agents, the Corporate Governance Unit, the Global Corporate Governance Forum, and the field-based corporate governance advisory services projects. The combined effort of all three corporate governance components ensures good corporate governance standards and practices are implemented in a sustainable manner.

Corporate Governance Unit: The Corporate Governance Unit has as its primary role to assess corporate governance practices of IFC clients. This is done using the IFC Corporate Governance Methodology. In addition the CG Unit provides focused corporate governance training to IFC investment staff, advises IFC senior management on share-voting policies, nominations of directors to the boards of client firms, and conducts director training programs for IFC-nominated members of boards of investee companies. The unit also leads IFC's participation in the global dialogue on corporate governance with key partners such as the Organization of Economic Co-operation and Development (OECD).

Global Corporate Governance Forum: The Global Corporate Governance Forum is an IFC multi-donor trust facility. The Forum was co-founded by the World Bank and OECD in 1999. Through its activities, the Forum aims to promote the private sector as an engine of growth, reduce the vulnerability of developing and transition economies to financial crisis, and provide incentives for corporations to invest and perform efficiently in a socially responsible manner. The Forum sponsors regional and local initiatives that address the corporate governance weaknesses of middle- and low-income countries in the context of broader national or regional economic reform programs. For more information, visit www.ifc.org/gcgf

Corporate Governance Advisory Services in the Regions/Countries: The field-based corporate governance advisory services projects assist clients to improve—at country or regional level— corporate governance practices. These projects work with national and regional stakeholders, ranging from companies to institutions and governments.

Regional Advisory Services Corporate Governance Projects and Coordinators