This paper addresses corporate governance1 as one of the policy areas for inclusion in the Policy Framework for Investment (PFI) under the OECD Initiative on Investment for Development. It provides background both on the relationship between corporate governance and a sound investment environment, and on some of the key corporate governance issues that policy makers should consider in this context. This document will serve as the basis for one of the ten policy chapters to be developed for inclusion in the Policy Framework for Investment, each setting out key questions and issues for policy-makers’ consideration in the context of promoting an environment that is attractive to domestic and foreign investors and that enhances the benefits of investment to society.2 Importantly, the questions presented in this report are not intended and should not be seen as a substitute for the work by the OECD Steering Group on Corporate Governance to develop a methodology for assessing the implementation of the OECD Principles of Corporate Governance.