First Corporate Governance Codes and Standards Practice Group Meeting on Development and Uses of the CG Scorecard Tool
May 17-18, 2012, Vienna, Austria. Twenty four experts and practitioners and IFC regional managers and clients from all over the world got together to discuss different models and uses of the corporate governance scorecards.
Corporate governance scorecards are tools that can help assess companies’ governance practices based on a set of agreed best practice standards. They can be used for reporting purposes, as a basis for corporate governance improvement plans, and also to rate companies. Together with IFC country based corporate governance projects, the Global Corporate Governance Forum (the Forum) has to-date supported the development of scorecards in Croatia, Bulgaria, Macedonia, Bosnia and Herzegovina, Montenegro, Azerbaijan, Georgia, Serbia, Indonesia, Vietnam, and the Philippines. Jordan, Mongolia and Nigeria are currently working on preparing CG scorecards.
“It is great to see that the idea of the Scorecard Tool has caught on with such speed and acceptance worldwide.” said Christian Strenger, member of the German Government Commission on Corporate Governance and Deputy Chairman of the Forum’s Private Sector Advisory Group (pictured speaking).
In light of the increasing demand and to support the improvement of corporate governance framework and regulatory environment in which companies operate, the Forum is up-dating its toolkit on Developing Corporate Governance Codes of Best Practices and preparing a supplement on Developing and Implementing Corporate Governance Scorecard Tool.
The objective of this first meeting was to inform the structure, content, and roll-out of this new knowledge product and gather lessons learned from different countries and regions on developing and implementing scorecard tools including on:
Rationale for developing CG scorecards;
Ownership models and different types of CG scorecards;
Uses of CG scorecards;
Development processes and endorsement and monitoring.
“It is a very good group and these discussions are fundamental to increase awareness and implement practice tools to improve the corporate governance in all regions.” said Francisco Prada, Head of the Corporate Governance Division at CONFECAMARAS in Colombia.
In addition, participants discussed to formalize the practice group and expand its mandate in the future to also cover development and implementation of CG Standards and up-dating and revision of other corporate governance assessment tools.