Good Governance Standards for public

The OECD Principles of Generic Principles of Good

Service 6. Core Principles of Good
Corporate Governance Governance
Governance

protect and facilitate the promote values for the whole develop the capacity and
exercise of shareholders organization and demonstrate good effectiveness of the governing body
rights governnace through behavior
agree and promote values

ensure strategic guidance of

the company, the effective focus on the organization's purpose and
monitoring of management on outcomes for citizen and service use engage with stakeholders and
by the board shareholders

be fair and impartial protects people

rights
make timely and accurate take informed transparent decisions and
disclosure on all amterial manage risk
matters behave ethically

set strategic purpose and outcomes

recognize the right of
stakeholders and encourage engage with stakeholders and make
accountability real
active co-operation identify and manage risk

make informed and transparent

decisions
ensure equitable treatment develop the capacity and capability of
of all shareholders the governing body to be effective
monitor performance

disclose everything that

accountability is effective
promote transparent and perform effectively in clearly defined
efficient markets , be
consistent we the rule of law roles define roles and responsibilities
 Regulatory Approach
given set of corporate governance
requirements to be adhered to
limited discretion on application and
interpretation
may not be flexible enough to deal with
new and changing circumtances and
business environments
narrower definition of rules
more of tick-box exercise
clear guidnace on what is appropriate and
what isn't
Principle-Based Approach
key principles need to be complied with and
explained
different organizations may interpret and
apply principles differently
flexibility to handle changing and
circumtances and business environment
broader definition of rules
less ot tick-box activity, more a set of guidng
practices
behavior is more open to interpretation