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.

Towards better corporate governance

In 2008, 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. These recommendations also address how the implementation of already-agreed standards can be improved.

This work was published in 3 phases:

• Corporate Governance Lessons from the Financial Crisis - a first overview of corporate governance shortcomings and the resulting challenges
   
• Corporate Governance and the Financial Crisis: Key Findings and Main Messages - follow-up analysis providing the basis for the recommendations
   
• Conclusions and emerging good practices to enhance implementation of the Principles - recommendations to help companies and governments to overcome corporate governance weaknesses and support a more effective implementation of the OECD Principles on Corporate Governance

Global consultation

Engaging and seeking advice from key stakeholders was an important part of developing these recommendations. Representatives from governments, the private sector, trade unions and civil society participated in a global consultation to provide input to the recommendations and to help guide OECD’s work in the area of corporate governance.

An online public consultation invited comments from the public on corporate governance and the financial crisis.

This work contributed to the OECD’s strategic response to the financial crisis. It was carried out in co-operation with non-OECD countries and other partner organisations within the Financial Stability Board.

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