OECD standards help policy makers evaluate and improve the legal, regulatory and institutional framework for the corporate governance of listed companies and state-owned enterprises.

The G20/OECD Principles of Corporate Governance aim to help listed companies access financing from capital markets, to protect investors, and to support companies’ sustainability. They offer recommendations on, among others, shareholder rights, institutional investors, corporate disclosure and reporting, the responsibilities of boards, and sustainability to help companies manage climate-related and other sustainability risks and opportunities.The Principles were first issued in 1999, last revised in 2023 and have been endorsed by G20 Leaders.

Published every two years, the OECD Corporate Governance Factbook provides information on how major economies implement the Principles.

The OECD Guidelines for Corporate Governance of State-Owned Enterprises aim to help governments better manage the companies they own. They offer recommendations on, among others, the state’s role as an owner, fair competition with other companies, the equitable treatment of shareholders and other investors, transparency and accountability, and sustainability. First adopted in 2005, they were revised in 2024.

Good corporate governance helps companies access financing, particularly from equity and debt capital markets, which promotes innovation, productivity and entrepreneurship, and fosters economic dynamism more broadly. Good corporate governance also ensures that those that provide capital can participate and share in the company’s value creation on fair and equitable terms. It therefore affects the cost at which corporations can access capital for growth.

This is significant in today’s globalised capital markets, as international flows of capital enable companies to access financing from a much larger pool of investors. If companies and countries are to reap the full benefits of global capital markets, corporate governance frameworks must be credible, well understood both domestically and across borders, and aligned with internationally accepted principles.

Good corporate governance protects investors by providing a formal structure of procedures that promote the transparency and accountability of board members and executives to shareholders. This, in turn, helps to build trust in markets, thereby supporting corporations’ access to long-term market-based financing.

Providing a system in which households can share in corporate value creation, knowing their rights are protected, will give them access to investment opportunities that may help them to achieve higher returns for their savings and retirement.

Good corporate governance supports the sustainability and resilience of corporations which, in turn, contributes to the sustainability and resilience of the broader economy. A sound framework for corporate governance with respect to sustainability matters can help companies recognise and respond to the interests of shareholders and different stakeholders, as well as contribute to their own long term success. Such a framework should include the disclosure of sustainability-related information that is reliable, consistent and comparable, including in regards to climate change.