Joseph Agholor
(Sunderland University, London Campus, London, E14 9SG, United Kingdom)

 

Abstract: The convergence of Global Corporate Governance has been as a result of global harmonization of international trade, transnational businesses, international accounting standards, international investments, financial markets and international capital markets. Within these remits, the globalization of corporate and
administrative law has also promoted the growth of economic globalization on essential sections and sub-systems of international business activities especially in finance, financial institutions and markets and international businesses. Hansmann and Kraakman (2001) state: “that the pressures of further convergence on shareholders’ models are now rapidly growing”. Among the most important of these pressures is the recent dominance of a shareholder centred ideology of corporate law within businesses, governments and legal elites. Within the above framework of international principles, good Global Governance helps to create a better world through the activities of governments, intergovernmental networks and non-state-actors. These goals directly or indirectly help to curb corruption practices. At the same time, it is contended that good global corporate governance should demonstrate accountability, reliability, transparency and legitimacy. It is also considered that at the global level, various governments and their agencies have made frantic efforts to curb corruption within the global corporate governance practices. Significant of these institutions working to curb corruption practices of global corporate governance are the World Bank, the International Monetary Fund and the Organization of Economic Cooperation and Development. While the Multilateral Financial Institutions provide loans to Member Countries from their “Ordinary Capital Resources” and additionally, “Soft Window” Funds to the Developing Member Countries, the Economic Cooperation and Development, formulated the “Global Corporate Governance Principles” in 2004 which were aimed to promote best practice and improve good standards. As the World Bank and International Monetary Fund continue to promote good global governance, by strengthening the conditionality of their loans to governments and other institutions, each of them ensures that the borrowers conform with the principles of accountability to their stakeholders. Simultaneously, the borrowers must also demonstrate transparency and comply with the relevant regulatory requirements including legal, financial and other institutional reforms that will enhance the role of the markets and maintain sound and adequate capital capable of protecting the shareholders and enhancing the liquidity of the Institutions.

 

Key words: Global Corporate Governance; critical evaluations; economic cooperation and development

JEL codes: F33; F6