The board room - where the crucial decisions are made

Paris, 16 December 2002 - Proclaiming ICC's support for the highest standards of corporate governance throughout the world, the ICC leadership has emphasized that the chief responsibility for good behaviour rests with business itself.

A statement issued on behalf of the ICC Chairmanship, headed by President Richard D. McCormick, added: "The long-term interests of shareowners - and business's commitment to an ethical society - must be paramount."

The other Chairmanship members are Vice-Chairman Jean-René Fourtou, Chairman and Chief Executive Officer of Vivendi Universal, and Immediate Past Chairman Adnan Kassar, Chief Executive Officer, Fransabank, Lebanon.

The statement, said: "Corporate misconduct is unacceptable. It can wreck companies, destroy jobs and pensions, undermine confidence in business and stifle economic growth."

It went on to set out five basic principles of corporate governance:

• Government should rigorously enforce existing laws, and should encourage business self-regulation.
• Lawmakers and accounting boards should clarify and simplify existing procedures, so concealing the truth would be more difficult.
• Any new laws should be considered carefully, to avoid creating roadblocks to business growth.
• Corporate boards must insist on ethical behaviour and diligent self-regulation.
• Executives must not allow short-term market pressures to lead to unethical behaviour or distorted reports.

The statement concluded: "The chief responsibility for good behaviour rests with business itself. The long-term interests of shareowners - and business's commitment to an ethical society -- must be paramount."

The ICC leaders drew attention to the corporate governance section of ICC's website, which provides basic guidance on corporate governance practice for companies of all sizes, sectors and regions.

Corporate governance website