Public policy objectives of state‑owned enterprises

State ownership is used as a policy instrument to achieve diverse economic and societal goals. These goals are reflected in the public policy objectives (PPOs) assigned to state-owned enterprises (SOEs) and, in some cases, implemented through public service obligations (PSOs). Drawing on country experiences and anchored in the OECD Guidelines on Corporate Governance of State-Owned Enterprises, this paper discusses how PPOs and PSOs are defined and applied in practice. It highlights common approaches to their design, monitoring and financing, and the importance of appropriate compensation and transparency in support of a level playing field.