Description:
Corporate Governance: A Framework for Implementation
The report recognizes the complexity of the very concept of corporate governance and therefore focuses on the principles on which it is based. These principles—such as transparency, accountability, fairness, and responsibility—are universal in their application. The way they are put into practice has to be determined by those with responsibility for implementing them. What is needed is a combination of statutory regulation and self-regulation. The mix will vary around the world, but nowhere can statutory regulation alone promote effective governance. The stronger the partnership between the public and private sectors, the more soundly based will be their governance structures. Equally, as the report emphasizes, governance initiatives win most support when driven from the bottom up rather than from the top down.
Corporate governance systems have evolved over centuries, often in response to corporate failures or systemic crises. The first well-documented failure of governance was the South Sea Bubble in the 1700s, which revolutionized business laws and practices in England. Similarly, much of the securities law in the United States was put in place following the stock market crash of 1929.
There has been no shortage of other crises, such as the secondary banking crisis of the 1970s in the United Kingdom and the U.S. savings and loan debacle of the 1980s. The history of corporate governance has also been punctuated by a series of well-known company failures: the Maxwell Group raid on the pension fund of the Mirror Group of newspapers, the collapse of the Bank of Credit and Commerce International and Barings Bank. Each crisis or major corporate failure—often a result of incompetence, fraud, and abuse—was met by new elements of an improved system of corporate governance.
Keywords: Coporate, Governance, Framework, Implementation
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Corporate Governance: A Framework for Implementation 
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