Sound corporate governance is an increasingly important element of sustainable private sector development. It is also a priority for IFC because it reduces the risk of investing in companies in high-risk regions of the world. As a result of integrating corporate governance in investments, businesses can attract new capital and show accountability in the wider society.
IFC has played a pioneering role in establishing the IFC Corporate Governance Methodology - a structure for evaluating corporate governance risks and opportunities that is recognized as the most advanced of its kind among development finance institutions (DFIs). IFC takes a comprehensive approach to promoting better corporate governance, implementing it into all aspects of investment and advisory activities.
In 2010, the DFI Toolkit on Corporate Governance was launched as a result of extensive collaboration among the signatories of the DFI Working Group on Corporate Governance. The toolkit is based on IFC’s Corporate Governance Methodology and its purpose 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 Corporate Governance Development Framework. 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 Instruction Sheet on how to use the different components of the Toolkit, a list of key terms, and sample templates are also provided for further guidance.