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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Governance Influencers

Meridian Textiles Ltd, an Indian listed company, wants to benchmark its board practices against a globally recognised principles-based framework that stresses fairness, transparency, accountability and responsibility, and that is widely used by regulators when framing corporate governance rules. Which framework should the company refer to?

The company should refer to the OECD Principles of Corporate Governance. They are an international benchmark built on fairness, transparency, accountability and responsibility, and regulators use them when framing governance rules. The other options deal with bank capital, money laundering and financial reporting, not board governance.

  1. AOECD Principles of Corporate GovernanceCorrect
  2. BBasel III capital accord
  3. CFATF Recommendations on money laundering
  4. DIFRS Conceptual Framework

Explanation

The OECD Principles of Corporate Governance are an international benchmark that policymakers and regulators use to evaluate and improve governance frameworks. Basel III deals with bank capital, FATF with money laundering and IFRS Conceptual Framework with financial reporting, so none of these is a governance code.

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