Sound corporate governance is an increasingly important element of sustainable private sector development—not only because it strengthens businesses’ ability to attract investment and growth but also because it frames the private sector as part of wider society.

Strengthening corporate governance is a priority for IFC because it reduces the risk of investing in companies in high-risk regions of the world, allowing us to expand our development impact and opens up access to long term capital for well performing companies. Accordingly, we take a comprehensive approach to promoting better corporate governance, integrating it into all aspects of our investment and advisory activities.

IFC has played a pioneering role in establishing the IFC Corporate Governance Methodology—a system for evaluating corporate governance risks and opportunities that is recognized as the most advanced of its kind among development finance institutions (DFIs).

These efforts have recently paid off when the DFI Working Group on Corporate Governance recently launched the DFI Toolkit on Corporate Governance. The Toolkit, based on IFC’s Corporate Governance Methodology, is the result of extensive collaboration among:

• Black Sea Trade & Development Bank (BSTDB)
• CAF
• CDC Group, Plc (CDC)
• European Bank for Reconstruction and Development (EBRD)
• International Finance Corporation (Corporate Governance Unit)
• Islamic Development Bank (IsDB)
• Netherlands Development Finance Company (FMO)

The development of the Toolkit took into account valuable suggestions from other signatories to the DFI Approach Statement on Corporate Governance.

The purpose of the Toolkit is to serve as a common basis for (i) assessing the corporate governance of investee companies, and (ii) progressing faster in the implementation of the Approach Statement. In addition, signatory DFIs are encouraged to adapt the Toolkit to their own requirements and the needs of their investee companies.

The two main documents of the Toolkit are (i) a Corporate Governance Questionnaire, and (ii) a Corporate Governance Progression Matrix. An Instructions Sheet on how to use the different components of the Toolkit and sample templates are also provided for further guidance.

Download the Toolkit:

1- Corporate Governance Questionnaire
2- Corporate Governance Progression Matrix
3- Corporate Governance Instruction Sheet
4- List of Key Corporate Governance Terms
5- Sample - Corporate Governance Improvement Program
6- Sample - Corporate Governance Section in Internal Approval Documents


Related links: DFI Cooperation on Corporate Governance

For more information, please contact Sanaa Abouzaid or Darrin Hartzler

July 2010