The OECD Guidelines on Corporate Governance of State-Owned Enterprises were first published in 2005 and revised in 2015. They provide non-binding principles for governments on how to professionalize the ownership function and ensure state-owned enterprises operate as efficiently as privately-owned firms. The 2015 revision added new chapters on defining the rationales for state ownership and ensuring state-owned enterprises compete fairly in the marketplace. It also strengthened principles around disclosure, boards of directors, and responsible business conduct. While not legally binding, the Guidelines represent an international standard for reforming governance of state-owned enterprises.
Presentation by Vincent Tophoff, IFAC Senior Technical Manager at the INTOSAI Subcommittee on Internal Control Standards Annual Meeting, May 27-28, 2014
Presentation by Vincent Tophoff, IFAC Senior Technical Manager at the INTOSAI Subcommittee on Internal Control Standards Annual Meeting, May 27-28, 2014
Analysis of the Performance of Public Enterprises in NepalSurath Giri
This paper discussed the history of state-owned enterprises in Nepal, their current status (financial as well as service delivery), causes of their poor performance and ways to improve their performance.
It is a well known fact that state-owned enterprises of Nepal have become a huge financial burden for the country but what exactly is the cause behind the poor performance? And can anything be done about it? The paper tries to answer these questions.
Corporate governance is "the system by which companies are
directed and controlled". It involves regulatory and market
mechanisms, and the roles and relationships between a
company’s management, its board, its shareholders and other
stakeholders, and the goals for which the corporation is
governed. In contemporary business corporations, the main
external stakeholder groups are shareholders, debt holders,
trade creditors, suppliers, customers and communities affected
by the corporation's activities. Internal stakeholders are the
board of directors, executives, and other employees.
Business & Industry - CSR - Industrial Policy - CSR Committee - Resposibilities of the Committee - Format of Reporting - CSR Policy - List of CSR Activities
The KING IV CODE on Corporate Governance In South Africa Part I Introduction - Introductory Presentation on the draft KING IV Code deals with the Philosophy Underpinning the new KING IV CODE. Further presentations are to follow
CH -11 CORPORATE GOVERNANCE AND OTHER STAKEHOLDERSBibek Prajapati
CH -11 CORPORATE GOVERNANCE AND OTHER STAKEHOLDERS
FOR CS PROFESSONAL, CA,CMA, MBA
Stakeholder Concept
• Recognition of Stakeholder Concept In Law
• Stakeholder Engagement
• Stakeholder Analysis
• Types of Stakeholders
• Caux Round Table
• Clarkson Principle of Stakeholder Management
• Governance Paradigm and Stakeholders
• Stakeholders provide resources that are more or less critical to a firm’s long-term success. These resources may be both tangible and intangible. Shareholders, for example, supply capital; suppliers offer material resources or intangible knowledge; employees and managers grant expertise, leadership, and commitment; customers generate revenue and provide infrastructure; and the society builds its positive corporate images.
• A director of a company shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole, and in the best interest of the company, its employees, the community and the environment.
• Stakeholder engagement leads to increased transparency, responsiveness, compliance, organizational learning, quality management, accountability and sustainability. Stakeholder engagement is a central feature of sustainability performance.
• Primary stakeholders are those whose continued association is absolutely necessary for a firm’s survival; these include employees, customers, investors, and shareholders, as well as the governments and communities that provide necessary infrastructure.
• Secondary stakeholders do not typically engage in transactions with a company and thus are not essential for its survival; these include the media, trade associations, and special interest groups.
• Customers are considered as the king to drive the market and they can sometimes exercise influence by consolidating their bargaining power in order to get lower prices.
• The lenders put a check and balance on the governance practices of an organization to ensure safety of their fund and as a societal responsibility.
• The organization which builds a mutually strong relationship with its vendors improves its overall performance in the marketplace.
• The society provides the desired climate for successful operation of a company business. If society turns against the company, then business lose its faith in the eyes of other stakeholders be it government or customer.
This historical exhibit by the OECD Library and Archives service traces 40 years of the OECD Guidelines for Multinational Enterprises from 1976-2016.
Find out more about the OECD Guidelines for Multinational Enterprises http://mneguidelines.oecd.org/.
14-16 September, OECD: The meeting was organised in the framework of the Anti-Corruption Network for Eastern Europe and Central Asia (ACN), a regional anti-corruption programme established under the OECD Working Group on Bribery. The ACN supports countries in Eastern Europe and Central Asia1 in their fight against corruption, by providing a regional forum for promotion of anti-corruption activities, exchange of information, elaboration of best practices and donor coordination.
Analysis of the Performance of Public Enterprises in NepalSurath Giri
This paper discussed the history of state-owned enterprises in Nepal, their current status (financial as well as service delivery), causes of their poor performance and ways to improve their performance.
It is a well known fact that state-owned enterprises of Nepal have become a huge financial burden for the country but what exactly is the cause behind the poor performance? And can anything be done about it? The paper tries to answer these questions.
Corporate governance is "the system by which companies are
directed and controlled". It involves regulatory and market
mechanisms, and the roles and relationships between a
company’s management, its board, its shareholders and other
stakeholders, and the goals for which the corporation is
governed. In contemporary business corporations, the main
external stakeholder groups are shareholders, debt holders,
trade creditors, suppliers, customers and communities affected
by the corporation's activities. Internal stakeholders are the
board of directors, executives, and other employees.
Business & Industry - CSR - Industrial Policy - CSR Committee - Resposibilities of the Committee - Format of Reporting - CSR Policy - List of CSR Activities
The KING IV CODE on Corporate Governance In South Africa Part I Introduction - Introductory Presentation on the draft KING IV Code deals with the Philosophy Underpinning the new KING IV CODE. Further presentations are to follow
CH -11 CORPORATE GOVERNANCE AND OTHER STAKEHOLDERSBibek Prajapati
CH -11 CORPORATE GOVERNANCE AND OTHER STAKEHOLDERS
FOR CS PROFESSONAL, CA,CMA, MBA
Stakeholder Concept
• Recognition of Stakeholder Concept In Law
• Stakeholder Engagement
• Stakeholder Analysis
• Types of Stakeholders
• Caux Round Table
• Clarkson Principle of Stakeholder Management
• Governance Paradigm and Stakeholders
• Stakeholders provide resources that are more or less critical to a firm’s long-term success. These resources may be both tangible and intangible. Shareholders, for example, supply capital; suppliers offer material resources or intangible knowledge; employees and managers grant expertise, leadership, and commitment; customers generate revenue and provide infrastructure; and the society builds its positive corporate images.
• A director of a company shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole, and in the best interest of the company, its employees, the community and the environment.
• Stakeholder engagement leads to increased transparency, responsiveness, compliance, organizational learning, quality management, accountability and sustainability. Stakeholder engagement is a central feature of sustainability performance.
• Primary stakeholders are those whose continued association is absolutely necessary for a firm’s survival; these include employees, customers, investors, and shareholders, as well as the governments and communities that provide necessary infrastructure.
• Secondary stakeholders do not typically engage in transactions with a company and thus are not essential for its survival; these include the media, trade associations, and special interest groups.
• Customers are considered as the king to drive the market and they can sometimes exercise influence by consolidating their bargaining power in order to get lower prices.
• The lenders put a check and balance on the governance practices of an organization to ensure safety of their fund and as a societal responsibility.
• The organization which builds a mutually strong relationship with its vendors improves its overall performance in the marketplace.
• The society provides the desired climate for successful operation of a company business. If society turns against the company, then business lose its faith in the eyes of other stakeholders be it government or customer.
This historical exhibit by the OECD Library and Archives service traces 40 years of the OECD Guidelines for Multinational Enterprises from 1976-2016.
Find out more about the OECD Guidelines for Multinational Enterprises http://mneguidelines.oecd.org/.
14-16 September, OECD: The meeting was organised in the framework of the Anti-Corruption Network for Eastern Europe and Central Asia (ACN), a regional anti-corruption programme established under the OECD Working Group on Bribery. The ACN supports countries in Eastern Europe and Central Asia1 in their fight against corruption, by providing a regional forum for promotion of anti-corruption activities, exchange of information, elaboration of best practices and donor coordination.
This book presents photos from the 2016 edition of the Global Forum on Responsible Business Conduct. On the occasion of the 40th anniversary of the OECD Guidelines for Multinational Enterprises, participants from governments, businesses, trade unions and civil society met on 8-9 June 2016 to discuss how to achieve actual impacts through better business practices, to explore emerging issues in supply chains, and to promote better contribution of the private sector to the achievement of Sustainable Development Goals.
Find more information about the Outlook online at
https://mneguidelines.oecd.org/globalforumonresponsiblebusinessconduct/
In the framework of an OECD project with the Mexican Ministry of Economy, this presentation summarises the findings of this 2016 OECD report on international experiences and best practices regarding the role of courts in the implementation of competition policy. The full report available in English and Spanish can be downloaded at oe.cd/comp-courts-report-2016.
This presentation by OECD's financial markets expert Adrian Blundell-Wignall shows the highlights from the 2016 edition of the OECD Business and Finance Outlook. http://www.oecd.org/daf/oecd-business-and-finance-outlook-2016-9789264257573-en.htm
This OECD report, launched on January 10, 2017, systematically reviews strategies put in place by countries to limit ineffective spending and waste. Further information: http://www.oecd.org/health/health-systems/tackling-wasteful-spending-on-health-9789264266414-en.htm.
Presentation of Starting Strong IV by Montserrat Gomendio, OECDEduSkills OECD
Presentation of Starting Strong IV, the new report by the OECD on monitoring quality in early childhood education and care, launched on 28 October 2015 at the International Early Childhood Education and Care Event on Monitoring Quality in Dublin
This presentation summarises the final version of the Report submitted to the OECD Council on the implementation
of the Recommendation on Due Diligence Guidance for Responsible Supply Chains of Minerals from ConflictAffected
and High-Risk Areas.
Full report accessible here: http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=COM/DAF/INV/DCD/DAC(2015)3/FINAL&docLanguage=En
The 2016 edition of the OECD Pensions Outlook analyses how the pensions landscape is changing in the face of challenges that include ageing populations, the fallout from the financial and economic crisis, and the current environment of low economic growth and low returns. This presentation by Pablo Antolin contains key findings from the publication.
Find the book and more information about OECD work on pensions at http://www.oecd.org/pensions/oecd-pensions-outlook-23137649.htm
View a selection of photos from the OECD Global Forum on Competition that took place in Paris on 29-30 October 2015. Find out more at http://www.oecd.org/competition/globalforum
OECD Business and Finance Outlook 2016: Launch Photo BookPamela Duffin
This book presents photos from the launch of the 2016 edition of the OECD Business and Finance Outlook. This event was opened by Angel Gurría, OECD Secretary-General, with keynote addresses by Ana Botín, Group Executive Chairman of Banco Santander, and Ignazio Visco, Governor of Banca d’Italia. The launch was immediately followed by a high-level roundtable on "Doing Business in a Fragmented World" to debate the issues raised in the Outlook.
Find more information about the Outlook online at
http://www.oecd.org/daf/oecd-business-finance-outlook.htm
The OECD is actively engaged with MENA partners in addressing those challenges through well-proven work methods of regional dialogue, peerlearning and support for reforms. At the centre of the partnership is the MENA-OECD Initiative on Governance and Competitiveness for Development, launched in 2005 as a platform for joint work at the regional and country levels. With an extended mandate for 2016-2020, the fruitful and intense MENA-OECD co-operation will continue evolving to adapt to the development priorities of the region.
As part of its work to implement the OECD Guidelines for Multinational Enterprises, the OECD produces country reports that examine the role of responsible business conduct in building healthy business environments. These reports provide concise and basic information to investors on the existing responsible business conduct expectations in the featured countries. This presentation looks at the business case for promoting responsible business conduct and highlights OECD guidance and mechanisms for achieving this.
Find out more about the OECD work on responsible business conduct at http://mneguidelines.oecd.org/
The OECD Guidelines on Corporate Governance of State-Owned Enterprises are the leading global standard for the ownership and governance of state-owned enterprises (SOEs). Since their adoption in 2005, the Guidelines have been adhered to by 38 members of the OECD and three Partner economies.
In 2023, the Working Party on State Ownership and Privatisation Practices (the ‘Working Party’) began a review of the standard to reflect nearly a decade of experience and evolving best practices since the 2015 revision. The review will strengthen the Guidelines to ensure that SOEs contribute to sustainability, and economic security and resilience, by maintaining a global level playing field and high standards of integrity and business conduct.
Corporate Governance and Performance of SOEs: Relevance for IraqOECDglobal
Corporate Governance and Performance of SOEs: Relevance for Iraq
State Owned Ensterprises
Alissa Amico, Programme Manager,
Middle East and North Africa
Corporate Affairs Division, OECD
16 February, 2015, Paris, France
Corporate Governance and Performance of SOEs: Relevance for IraqOECDglobal
16 February – Project Working Group, Paris, France
Thematic session II: State-Owned Enterprises (SOEs) and Investment
Corporate Governance and Performance of SOEs: Relevance for Iraq – Alissa AMICO, Manager, Middle East and North Africa, Corporate Affairs Division, Directorate for Financial and Enterprise Affairs, OECD
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
This presentation comprises highlights from the publication OECD Competition Trends 2024 published in Paris on 6 March 2024 during the OECD Competition Open Day. The full publication can be accessed at oe.cd/comp-trends.
This presentation by Cristina Camacho, Head of Cabinet and Head of International Relations, Portuguese Competition Authority, was made during the discussion “Use of Economic Evidence in Cartel Cases” held at the 22nd meeting of the OECD Global Forum on Competition on 8 December 2023. More papers and presentations on the topic can be found out at oe.cd/egci.
This presentation was uploaded with the author’s consent.
This presentation by William E. Kovacic, Global Competition Professor of Law and Policy and Director, Competition Law Center, The George Washington University, was made during the discussion “Ex-post Assessment of Merger Remedies” held at the 22nd meeting of the OECD Global Forum on Competition on 8 December 2023. More papers and presentations on the topic can be found out at oe.cd/eamr.
This presentation was uploaded with the author’s consent.
This presentation by John E. Kwoka, Neal F. Finnegan Distinguished Professor of Economics, Northeastern University, was made during the discussion “Ex-post Assessment of Merger Remedies” held at the 22nd meeting of the OECD Global Forum on Competition on 8 December 2023. More papers and presentations on the topic can be found out at oe.cd/eamr.
This presentation was uploaded with the author’s consent.
This presentation by Amelia Fletcher CBE, Professor of Competition Policy, University of East Anglia, was made during the discussion “Ex-post Assessment of Merger Remedies” held at the 22nd meeting of the OECD Global Forum on Competition on 8 December 2023. More papers and presentations on the topic can be found out at oe.cd/eamr.
This presentation was uploaded with the author’s consent.
This presentation by the OECD Secretariat was made during the discussion “Ex-post Assessment of Merger Remedies” held at the 22nd meeting of the OECD Global Forum on Competition on 8 December 2023. More papers and presentations on the topic can be found out at oe.cd/eamr.
This presentation was uploaded with the author’s consent.
This presentation by John Davies, Member, UK Competition Appeal Tribunal, was made during the discussion “Use of Economic Evidence in Cartel Cases” held at the 22nd meeting of the OECD Global Forum on Competition on 8 December 2023. More papers and presentations on the topic can be found out at oe.cd/egci.
This presentation was uploaded with the author’s consent.
This presentation by Simon Roberts, Professor, Centre for Competition, Regulation and Economic Development, University of Johannesburg, was made during the discussion “Use of Economic Evidence in Cartel Cases” held at the 22nd meeting of the OECD Global Forum on Competition on 8 December 2023. More papers and presentations on the topic can be found out at oe.cd/egci.
This presentation was uploaded with the author’s consent.
This presentation by Serbia was made during the discussion “Alternatives to Leniency Programmes” held at the 22nd meeting of the OECD Global Forum on Competition on 7 December 2023. More papers and presentations on the topic can be found out at oe.cd/atlp.
This presentation was uploaded with the author’s consent.
This presentation by Italy was made during the discussion “Alternatives to Leniency Programmes” held at the 22nd meeting of the OECD Global Forum on Competition on 7 December 2023. More papers and presentations on the topic can be found out at oe.cd/atlp.
This presentation was uploaded with the author’s consent.
This presentation by Daniel CRANE, Richard W. Pogue Professor of Law, University of Michigan, was made during the discussion “Out-of-Market Efficiencies in Competition Enforcement” held at the 141st meeting of the OECD Competition Committee on 6 December 2023. More papers and presentations on the topic can be found out at oe.cd/omee.
This presentation was uploaded with the author’s consent.
This presentation by John DAVIES, Member, Competition Appeal Tribunal UK, was made during the discussion “Out-of-Market Efficiencies in Competition Enforcement” held at the 141st meeting of the OECD Competition Committee on 6 December 2023. More papers and presentations on the topic can be found out at oe.cd/omee.
This presentation was uploaded with the author’s consent.
This presentation by Nancy ROSE, Head of the Department of Economics and Charles P. Kindleberger Professor of Applied Economics, Massachusetts Institute of Technology (MIT), was made during the discussion “Out-of-Market Efficiencies in Competition Enforcement” held at the 141st meeting of the OECD Competition Committee on 6 December 2023. More papers and presentations on the topic can be found out at oe.cd/omee.
This presentation was uploaded with the author’s consent.
This presentation by Nicole ROSENBOOM, Principal, Oxera Consulting LLP, was made during the discussion “Out-of-Market Efficiencies in Competition Enforcement” held at the 141st meeting of the OECD Competition Committee on 6 December 2023. More papers and presentations on the topic can be found out at oe.cd/omee.
This presentation was uploaded with the author’s consent.
This presentation by Anna TZANAKI, Lecturer in Law, University of Leeds, was made during the discussion “Serial Acquisitions and Industry Roll-ups” held at the 141st meeting of the OECD Competition Committee on 6 December 2023. More papers and presentations on the topic can be found out at oe.cd/sair.
This presentation was uploaded with the author’s consent.
This presentation by Sha'ista GOGA, Director, Acacia Economics, was made during the discussion “Serial Acquisitions and Industry Roll-ups” held at the 141st meeting of the OECD Competition Committee on 6 December 2023. More papers and presentations on the topic can be found out at oe.cd/sair.
This presentation was uploaded with the author’s consent.
This presentation by Ioannis KOKKORIS, Chair in Competition Law and Economics and Director, Centre for Commercial Law Studies, Queen Mary University of London, was made during the discussion “Serial Acquisitions and Industry Roll-ups” held at the 141st meeting of the OECD Competition Committee on 6 December 2023. More papers and presentations on the topic can be found out at oe.cd/sair.
This presentation was uploaded with the author’s consent.
This presentation by the OECD Secretariat was made during the discussion “Serial Acquisitions and Industry Roll-ups” held at the 141st meeting of the OECD Competition Committee on 6 December 2023. More papers and presentations on the topic can be found out at oe.cd/sair.
This presentation was uploaded with the author’s consent.
This presentation by Simonetta VEZZOSO, Associate Professor, Economics Department, University of Trento, was made during the discussion “Competition and Innovation - The Role of Innovation in Enforcement Cases” held at the 141st meeting of the OECD Competition Committee on 5 December 2023. More papers and presentations on the topic can be found out at oe.cd/rbci.
This presentation was uploaded with the author’s consent.
More from OECD Directorate for Financial and Enterprise Affairs (20)
Russian anarchist and anti-war movement in the third year of full-scale warAntti Rautiainen
Anarchist group ANA Regensburg hosted my online-presentation on 16th of May 2024, in which I discussed tactics of anti-war activism in Russia, and reasons why the anti-war movement has not been able to make an impact to change the course of events yet. Cases of anarchists repressed for anti-war activities are presented, as well as strategies of support for political prisoners, and modest successes in supporting their struggles.
Thumbnail picture is by MediaZona, you may read their report on anti-war arson attacks in Russia here: https://en.zona.media/article/2022/10/13/burn-map
Links:
Autonomous Action
http://Avtonom.org
Anarchist Black Cross Moscow
http://Avtonom.org/abc
Solidarity Zone
https://t.me/solidarity_zone
Memorial
https://memopzk.org/, https://t.me/pzk_memorial
OVD-Info
https://en.ovdinfo.org/antiwar-ovd-info-guide
RosUznik
https://rosuznik.org/
Uznik Online
http://uznikonline.tilda.ws/
Russian Reader
https://therussianreader.com/
ABC Irkutsk
https://abc38.noblogs.org/
Send mail to prisoners from abroad:
http://Prisonmail.online
YouTube: https://youtu.be/c5nSOdU48O8
Spotify: https://podcasters.spotify.com/pod/show/libertarianlifecoach/episodes/Russian-anarchist-and-anti-war-movement-in-the-third-year-of-full-scale-war-e2k8ai4
A process server is a authorized person for delivering legal documents, such as summons, complaints, subpoenas, and other court papers, to peoples involved in legal proceedings.
Understanding the Challenges of Street ChildrenSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Many ways to support street children.pptxSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
This session provides a comprehensive overview of the latest updates to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly known as the Uniform Guidance) outlined in the 2 CFR 200.
With a focus on the 2024 revisions issued by the Office of Management and Budget (OMB), participants will gain insight into the key changes affecting federal grant recipients. The session will delve into critical regulatory updates, providing attendees with the knowledge and tools necessary to navigate and comply with the evolving landscape of federal grant management.
Learning Objectives:
- Understand the rationale behind the 2024 updates to the Uniform Guidance outlined in 2 CFR 200, and their implications for federal grant recipients.
- Identify the key changes and revisions introduced by the Office of Management and Budget (OMB) in the 2024 edition of 2 CFR 200.
- Gain proficiency in applying the updated regulations to ensure compliance with federal grant requirements and avoid potential audit findings.
- Develop strategies for effectively implementing the new guidelines within the grant management processes of their respective organizations, fostering efficiency and accountability in federal grant administration.
OECD Guidelines on Corporate Governance of State-Owned Enterprises
1. OECD GUIDELINES ON CORPORATE
GOVERNANCE OF STATE-OWNED
ENTERPRISES
THE INSTRUMENT AND
ITS 2015 REVISION
2. The OECD Guidelines on Corporate Governance of State-Owned
Enterprises
• In some OECD countries, and most emerging economies, the State is the largest
single enterprise owner. Corporate inefficiencies would have major fiscal,
macroeconomic and structural impact.
• Privatisation is often not an option. Moreover, the OECD takes the position that state-
owned enterprises (SOEs) can be operated as efficiently as private firms.
2
Why is there a need for Guidelines?
How were the Guidelines developed?
• The Guidelines were first published in 2005. They were fundamentally revised in
2015.
• All OECD member countries participated in the revision process. So did 29 other
countries, as well as representatives of business, trade unions, civil society and
academia.
3. The OECD Guidelines on Corporate Governance of State-Owned
Enterprises
• An OECD instrument. All OECD countries must associate themselves with the
recommendations laid down in the Guidelines. Newcomers to OECD must
demonstrate that they can credibly do so.
• Addressed to the SOE ownership. The Guidelines makes recommendations to
policy makers and public officials responsible for exercising the ownership of
enterprises.
• Non-binding. No government or SOE is in any given situation legally obliged to
follow the Guidelines.
• Not limited to OECD members. Any country can, following a review of its national
SOE sector, become an adherent to the Guidelines and participate fully in OECD’s
work on SOEs.
3
What is the status of the Guidelines?
4. The OECD Guidelines on Corporate Governance of State-Owned
Enterprises
• The general public is the ultimate owner of SOEs. The Guidelines are based on,
and complementary to, the OECD Principles of Corporate Governance, which apply
to exchange-listed companies. The idea is that SOEs should be as accountable to
the general public as listed enterprises should be to their shareholders.
• Setting a high level of aspiration. The Guidelines establish a high bar for good
practices. They are designed to serve as a lodestar for reform – not establish
minimum standards. Not many countries have fully implemented the Guidelines, but
ongoing SOE reform is almost always consistent with the Guidelines.
4
The Guidelines embody a shared vision:
5. The OECD Guidelines on Corporate Governance of State-Owned
Enterprises
• A rules-based environment. SOEs should be subject to the same rules and
regulations as other enterprises. They should compete on a level playing field with
private enterprises and not distort competition.
• Reinforcing the ownership function. The state administration should exercise SOE
ownership on a whole-of-government basis. The state ownership function should be
separate from the regulatory function to avoid conflicts of interest.
• Equitable treatment of shareholders. The state should not have any undue
advantages over other investors in SOEs.
• Transparency and disclosure. SOEs’ objectives and performance should be disclosed
and reviewed.
• Stakeholder relationship. SOEs and their owners should treat employees, creditors
and affected communities fairly and equitably.
• Boards of directors. The boards are the SOEs’ highest decision-making bodies. They
should exercise their powers free of political interference.
5
Main priorities in the Guidelines:
6. The OECD Guidelines on Corporate Governance of State-Owned
Enterprises
Government
• Sets ownership policy
• Coordinates at cabinet level
Ownership function
• Defines objectives for individual SOEs
• Monitors performance
SOE board
• Approves strategy
• Monitors management
Management
• Runs the company
6
Independent
regulation
The “OECD model” implies:
• The ownership of SOEs is separated from regulation
• Each ownership decision should be taken at the appropriate level
7. The 2015 Revision of the Guidelines
• A new introductory section on “Applicability and Definitions”
• A new chapter on defining and communicating the rationales for state
ownership of enterprises
• A revamped chapter on SOEs operating in the marketplace.
7
The new Guidelines embody a multitude of change, based on the experiences
learned over the previous decade. The three most fundamental changes to the
document are the following:
Further details on individual chapters are provided on the following pages
8. The 2015 Revision of the Guidelines
• Defining an SOE. An SOE is any corporate entity recognised by national law as an
enterprise, and in which the state exercises ownership.
• Ownership and control. The Guidelines are applicable to enterprises under the
control of the state, either through majority ownership or other measures that confer a
large degree of influence.
• Commercial orientation. The Guidelines apply to all SOEs that pursue “economic
activities”, which involves offering goods or services on a given market and which
could, at least in principle, be carried out by a private operator to make profits.
• Levels of government. Authorities responsible for enterprises held at the sub-
national levels of government should implement as many of the Guidelines as
applicable.
8
A new introductory section on “Applicability and Definitions”
9. The 2015 Revision of the Guidelines
• Developing an ownership policy. Builds on the previous version of the Guidelines
that called on governments to issue an ownership policy that defines the objectives of
state ownership and outlines the state’s role in the corporate governance of SOEs.
• The overall rationales for state ownership. Puts forward that the purpose of state
ownership should be to maximise value for society, through an efficient allocation of
resources. It is up to national governments to determine the rationales for state
ownership, but whatever they are, they should be clearly evaluated and disclosed to
the general public.
• Enterprise-specific rationales. Calls for governments to also define the rationales
for owning individual SOEs and subject these to recurrent review. Any public policy
objectives placed on SOEs should be clearly mandated and disclosed.
9
A new chapter on defining and communicating the rationales for
state ownership of enterprises
10. The 2015 Revision of the Guidelines
• Legal and regulatory framework. Builds on previous text calling for the legal and
regulatory framework to ensure a “level playing field” when SOEs compete with
private enterprises. SOEs should not be exempt from general laws and regulations.
• Market consistent financing. Explicitly calls for SOEs’ economic activities to face
market consistent conditions on debt and equity financing – whether it is provided by
the state or the commercial marketplace – and to achieve rates of return consistent
with competing private enterprises. SOEs should not receive any indirect support
from the state or other SOEs that confers an undue competitive advantage (e.g.
production inputs, tax arrears or preferential trade credits)
• Non-discriminatory public procurement. Highlights that when SOEs engage in
public procurement – whether as bidders or procurers – the procedures involved
should be competitive, non-discriminatory and transparent.
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A revamped chapter entitled “SOEs in the marketplace”
11. The 2015 Revision of the Guidelines
• Greater attention to responsible business conduct by SOEs, in line with the
standards that governments encourage private enterprises to implement through the
OECD Guidelines on Multinational Enterprises.
• Broadened scope of the board’s risk management duties, going beyond operational
and financial risk to include risks related to human rights, labour, environmental and
tax-related issues.
• An explicit recommendation to eliminate political donations by SOEs, or to use
SOEs to achieve partisan political goals, given the inherent conflicts of interest
involved.
• A call to ensure that when SOEs engage in public-private partnerships, care is
taken to respect partners’ contractual rights and to monitor and manage related fiscal
risks for the government.
• More detailed disclosure standards, reflecting the best practice of the updated
OECD Principles of Corporate Governance.
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Other material changes of note
12. The OECD Guidelines on Corporate Governance of State-Owned
Enterprises: An overview of the seven chapters
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I. Rationales for state ownership
II. The state’s role as owner
III. State-owned enterprises in the marketplace
IV. Equitable treatment of shareholders and
other investors
V. Stakeholder relations and responsible
business
VI. Disclosure and transparency
VII. The responsibilities of the boards of state-
owned enterprises
13. Resources and contacts
Find OECD work on state-owned enterprises at
www.oecd.org/daf/ca/soemarket.htm
Questions can be addressed to
StateOwnedEnterprises@oecd.org
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