|First released in May 1999 and revised in 2004, the OECD Principles are one of the 12 key standards for international financial stability of the Financial Stability Board and form the basis for the corporate governance component of the Report on the Observance of Standards and Codes of the World Bank Group. The OECD Principles are currently under review.
In 2014, the OECD is launching a review of the Principles to ensure the continuing high quality, relevance and usefulness of the Principles taking into account recent developments in the corporate sector and capital markets.
Text of the Principles
The Principles were last updated in 2004. This booklet contains the text of the 2004 revision of the Principles. Download the different language versions in PDF file format.
Paper copies can be ordered from the OECD Online Bookshop
Implementing the Principles
The preamble to the OECD Principles states that they “are evolutionary in nature and should be reviewed in light of significant changes in circumstances”. It is also recognises that, “To remain competitive in a changing world, corporations must innovate and adapt their corporate governance practices so that they can meet new demands and grasp new opportunities”.
The 2006 Methodology for Assessing Implementation of the OECD Principles of Corporate Governance underpins the dialogue on implementation of the Principles in a jurisdiction and provides a framework for policy discussions.
Corporate governance and the financial crisis - The financial crisis revealed severe shortcomings in corporate governance. When most needed, existing standards failed to provide the checks and balances that companies need in order to cultivate sound business practices. The OECD launched an ambitious action plan to develop a set of recommendations for improvements in priority areas such as remuneration, risk management, board practices and the exercise of shareholder rights. This work was published in 3 phases.
Peer reviews - In responding to the corporate governance challenges that came into focus in the wake of the financial crisis, the Corporate Governance Committee has engaged in a thematic peer review process designed to facilitate the effective implementation of the OECD Principles and to assist market participants and policy makers to respond to emerging corporate governance risks. Six peer reviews have been completed to date:
- Risk Management and Corporate Governance (forthcoming)