IFC’s Corporate Governance Program in Europe and Central Asia (ECA) builds on IFC’s work in this field in the Caucasus, Central Asia, the Russian Federation, Southern Europe and Ukraine over the past decade, aimed at improving corporate governance practices in companies and financial institutions, as well as enhancing the corporate governance framework at the institutional, regulatory and policy levels.
The Program has three overall objectives:
Working with Companies:the Program will assist companies and financial institutions in ECA to improve their corporate governance in line with best practices, with a view to assisting them to meet some of the challenges posed by the modern business environment, and thereby improve their performance and sustainability, as well as their ability to access finance and investment.
Developing Local Capacity:the Program will build local capacity for delivery of corporate governance services and advice in certain countries in ECA.
Enabling the Environment:the Program will assist in the development of the corporate governance framework through advising on national codes, laws and regulations, as well as developing various tools to assist companies, investors and markets assess corporate governance practices.
Why is Corporate Governance important to the countries of Europe and Central Asia?
Corporate governance is a key emerging business concept in the countries of Southern and Eastern Europe and of the former Soviet Union.
Corporate governance is defined as the system by which companies are directed and controlled. Sound corporate governance is an important element of sustainable private sector development – not only because it improves business performance and strengthens businesses’ ability to attract investment and to grow, but because it also makes them more sustainable and accountable.
Good corporate governance can help a company or financial institution to:
enhance its performance, operations, efficiency, profitability and long-term value grow in a sustainable manner
establish clear roles, responsibilities and accountabilities
define and implement corporate strategy and direction
identify and manage risks
become more competitive
attract capital, investment and business partners
build reputation and trust, through the strengthening of relationships with relevant stakeholders
The ECA Corporate Governance Program is implemented by IFC in partnership with the State Secretariat for Economic Affairs of Switzerland (SECO), providing the majority of the funds, and Oesterreichische Entwicklungsbank AG (OeEB) of Austria.
Azerbaijan Project Completion Report Between 2005 and 2011 the Project worked to improve corporate governance practices in Azerbaijani companies and banks to help them enhance their operations and increase their ability to attract financing and investment.