A study on OECD principles to global corporate governance

Corporate governance is perceived as a system of structuring, operating and controlling a company with a strong commitment to shoot at long term strategic goals satisfying shareholders, creditors, employees, customers, suppliers and more importantly, environmental and local community needs. Infact, corporate governance serves as the framework of how directors and management perform their respective duties to add and create shareholder value. Corporate governance principles and codes have been developed in different countries and issued to stock exchanges, corporations, institutional investors, or associations of directors and managers with governments’ and international organizations’ support. Around the globe, honesty, trust & integrity, openness, performance orientation, responsibility & accountability, mutual respect, and commitment to the organization have been most accepted principles of good corporate governance that paves way to guaranteeing transparent information, an equal treatment of all shareholders and a balanced level of the power of decision, shared rights and responsibilities among the different participants of an organization like, the Board of directors, managers, shareholders and other stakeholders etc. OECD is indubitably an important proponent of principles on global corporate governance which has offered internationally agreed benchmark consists of more than fifty distinct disclosure items over five broad categories namely auditing, board & management structure and process, corporate responsibility & compliance, financial transparency & information disclosure, ownership structure and exercise of control rights respectively.

In this paper an attempt has been made to discuss both, general outlooks of global corporate governance and OECD based principles of global corporate governance.