OECD PRINCIPLES FOR GOOD CORPORATE GOVERNANCE AND THEIR IMPACT ON PROCESS OF STANDARDIZATION

Abstract

In May 1999, the OECD published the "Principles of Corporate Governance", which are also the first intergovernmental attempt to develop international standards for corporate governance. These principles demonstrate the importance of introducing a basic framework for good corporate governance, in line with rapid technological development, existing economic changes that contribute to the globalization process and increasingly break the boundaries of markets with the tendency of creating a large global and single market. Along with that process of globalization and investment opportunity, the current development in the business world, OECD principles are an indicator and benchmark for international financial institutions, as well as a measure by which governments can be guided in evaluating their corporate laws and regulations management. The principles are developed in a way that is flexible and can be adopted in different cultures, environments and traditions in different countries. As a result, the private sector has, in many countries, used them as a basis for developing its corporate governance codes. As a result, the Corporate Governance Principles have become an international standard for corporate governance by promoting transparency, integrity and the rule of law. The latest released version of the so-called G20 / OECD Corporate Governance Principles take into account recent advances in the financial and corporate sector, which have the potential to influence the effectiveness and relevance of corporate governance policies and practices. Due to the changing world market situation, they have undergone changes and become their final form in 2015. As a result, their goal is actually to serve all countries around the world in the process of evaluating and promoting their legal , institutional and regulatory framework for corporate governance. Although numerous and diverse factors influence the management and decision-making process within each company that are important for its long-term growth, the Principles focus on management issues and problems arising from separation of ownership and control. Standardization, by means of principles, will involve the creation of unified business processes in different organizational units or locations with similar levels of cost and performance goals and the use of good working practices.