Implementing the OECD Guidelines on Corporate Governance of State-Owned Enterprises: Review of Recent Developments
The OECD Guidelines on Corporate Governance of State-Owned Enterprises have provided an internationally agreed benchmark to help governments assess and improve the way they exercise their ownership functions since 2005. This report documents changes in state ownership and SOE governance in both OECD and partner economies and assesses the extent to which the Guidelines have served as a “roadmap for reform” in individual countries since 2015, following the most recent update of the Guidelines. Drawing on practices in up to 31 jurisdictions, it covers organising the state enterprise ownership function; safeguarding a level playing field between SOEs and private businesses; equitable treatment of shareholders and other investors; stakeholder relations and responsible business; transparency and disclosure practices; and professionalising boards of directors. The report supports policy makers by facilitating greater awareness and more effective implementation of the Guidelines.
Stakeholder relations and responsible business
The OECD Guidelines on Corporate Governance of State-Owned Enterprises (SOE Guidelines) state that the state ownership policy should fully recognise state-owned enterprises’ (SOEs’) responsibilities towards stakeholders and request that SOEs report on their reactions with stakeholders. It should make clear any expectations the state has in respect of responsible business conduct (RBC) by SOEs. Governments, the state ownership entities and SOEs themselves should recognise and respect stakeholders’ rights established by law or through mutual agreements. This chapter provides national developments relevant to RBC practices in the SOE sector especially with respect to internal controls, ethics and compliance programmes or measures. The chapter notes that increasing pressure for accountability and transparency in all forms of corporate behaviour is supporting innovations and improvements in practices by SOEs.