Business experts give views on raising governance standards

Paris, 3 December 2002

Almost half the respondents (47.7%) to a world business survey published today believe that the best way to raise standards of corporate governance is a combination of business self-reg ulation and new government regulations that contribute to greater accountability.

The opinions of a panel of 776 corporate executives and economics from 85 countries were sought on how to raise standards of corporate governments in light of recent corporate scandals that have shaken confidence in capital markets worldwide.

The second most widely-supported approach (33.5%) was reliance on the pressure of public opinion, the power of the marketplace and effective enforcement of existing rules. The least support (19.8%) was for the third option offered: Tougher and more detailed new government regulation rather than self-regulation.

The questions on corporate governance formed part of the third quarter 2002 World Economic Survey conducted jointly by the International Chamber of Commerce and the Munich-based Ifo economic research institute.