Background

During UNCTAD´s 10th quadrennial conference (Bangkok, February 2000), Member States called on ISAR to promote increased corporate transparency, including improved corporate governance disclosure. Since that time, market developments have highlighted the crucial importance of quality corporate disclosure for building investor confidence and attracting new investment.

Objectives

The aim of UNCTAD´s work in this area is to assist developing countries and countries with economies in transition to improve their ability to attract investment capital by improving their enterprises´ communications with stakeholders. UNCTAD works toward this aim by identifying and promoting good practices in corporate governance disclosure.

Outcome

Since the 17th session of ISAR in 2000, the Secretariat has organized several roundtables, workshops and consultations, which featured a broad range of experts in the field of corporate governance. As a result of these deliberations, ISAR produced the publication Guidance on Good Practices in Corporate Governance Disclosure. (Also available in Arabic, Chinese, French, Russian and Spanish.)

Since its publication, this guidance has become the benchmark used in ISAR’s annual reviews of corporate governance disclosure. These studies examine corporate governance disclosure around the world and provide an overview of trends. The most recent of these is the 2008 Review which examines the reporting practices, and compliance with disclosure rules, of 100 enterprises from 10 emerging markets. The 2007 Review provides an inventory of corporate governance disclosure requirements in 25 emerging markets. The 2006 Review examines the disclosure practices of 105 enterprises from 70 economies around the world.

The ISAR benchmark has also been used by academics to develop country case studies of corporate governance disclosure: in 2007 country case studies were produced in China and Egypt.

ISAR’s earlier work on this subject includes the publication Selected Issues in Corporate Governance: Regional and Country Experiences, as well as five country level case studies on the implementation of corporate governance disclosure: Brazil, France, Kenya, the Russian Federation, and the United States. These five case studies are summarized in the report: Major Issues on Implementation of Corporate Governance Disclosure Requirements.

Ongoing Activities

In partnership with member states, academic institutions, and enterprises, the UNCTAD secretariat is promoting the development of good practices in corporate governance disclosure through high level summits, technical workshops and research projects focused on corporate reporting. Organisations wishing to partner with UNCTAD to collaborate on research or to host a conference or workshop on corporate governance disclosure in their country, are welcome to contact us at isar@unctad.org.