Website aims to demystify corporate governance

Paris 5 September 2002

The International Chamber of Commerce goes online today with a basic guide by ICC experts to the main elements of corporate governance.

The guide is aimed primarily at executives of small and medium-sized companies, especially those doing business in the developing world. The emphasis is on practical advice rather than on theorizing and punditry.

The site has a strong "how-to" approach and will be especially useful to companies introducing corporate governance provisions for the first time.

The Corporate Governance site will not attempt to give a blow-by-blow account of moves in the United States and elsewhere to improve the reliability of financial information in the wake of the Enron, WorldCom, Tyco and other failures in corporate accountability. That information is readily available in the press.

But we do intend to seek comment from business leaders on significant regulatory moves in any part of the world and their implications for business.

All the evidence indicates that companies that practice high standards of corporate governance benefit through lower capital costs. Research shows that companies in countries that protect shareholders and creditors borrow and raise capital more easily and at much better terms than in countries with poor laws and weak enforcement.

Corporate governance, in other words, is intrinsic to good business conduct and corporate success. In that nothing has changed. Companies that play by the rules stay out of trouble.

There is no single business view about the multiple aspects of corporate governance, and indeed the rules of the game differ substantially from country to country, depending on legislation and regulations in force and national or even sectoral business customs and conventions.

So this website will not attempt to lay down the law. Rather, it will provide a reference point for executives who want to keep up with the corporate governance debate and seek information on what other companies are doing. We will pick up articles and speeches by people whose views carry weight, provide links to relevant websites, and summarize press comment.

Authorities on corporate governance will be invited to submit articles for display on the site. Companies that have had relevant experience are welcome to tell us about it. We shall be interviewing the experts besides providing basic guidance.

Whatever the complexi ty of the subject covered or the length of the material carried on the site, our intention is to provide a brief introduction on the home page so that surfers can readily see what is available.