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Global Partnership important to improve Corporate Governance

24 February 2005

Commonwealth Deputy Secretary-General Winston Cox.

Commonwealth Deputy Secretary-General Winston Cox said national governments, financial institutions, and public and private sector bodies have developed a global partnership to improve corporate governance, which is a necessity for all countries to promote investor confidence. He was speaking in Kingston, Jamaica, on 23 February 2005 at the launch of the Private Sector Organisation of Jamaica (PSOJ) Code on Corporate Governance for Jamaica. 

The event was held in conjunction with a series of Corporate Governance Seminars for directors and senior executives taking place from 21 to 25 February 2005 organised by PSOJ in collaboration with the Commonwealth Association for Corporate Governance, the Commonwealth Secretariat and USAID-Kingston. These seminars increase knowledge of corporate governance principles and how to enhance the successful management of organisations. Good corporate governance has proven to be an effective policy instrument which contributes to the increased conformance of companies and the maintenance of high standards of accountability and transparency. 

Mr Cox said: "Corporate governance cannot progress without parallel improvements in public policy and governance for it is a multi-targeted and highly effective policy instrument. It is not a luxury for a few countries with highly sophisticated stock exchanges or for emerging markets anxious to attract international investment." 

He stressed that the principles, structures and systems of corporate governance can and should be applied not only to listed companies, but also in state-owned enterprises, privately held companies and a range of other bodies including civil society and non-profit organisations. 

"Commonwealth countries should draw on international best practice and develop their own principles, codes, standards and practices for corporate governance to ensure relevance to national and regional priority needs. They should create an enabling environment for investment and ensure that there is a national voice in the international debate," stated Mr Cox. 

"Our long-term purpose is to ensure that Commonwealth developing countries will be the most attractive locations for trade and investment by national and international businesses. We know that this is a vital plank in our efforts to promote social and economic development and alleviate poverty in Commonwealth developing countries. The evolution and practice of good corporate governance is an essential ingredient in creating and improving the investment climate." 

Mr Cox commended Jamaica for joining the international trend of countries developing self-regulatory processes to promote good corporate governance, with the launch of the PSOJ code. He emphasised efforts must be made to ensure that companies, both listed and unlisted, adhere to the code. This will result in "the transformation of the corporate landscape in Jamaica, making the country an even more attractive location for investment." 

He said that while the formulation of principles and codes of action on corporate governance are important, it is also vital for directors to get practical training in these areas. Corporate governance, he stressed, is a bulwark in the fight against corruption.

 

CNIS - the Commonwealth News and Information Service Issue 223 23 February 2005