Middle East and North Africa Corporate Governance Roundtable
From Theory to Practice:
Enabling IODs and Corporate Governance Centers to Promote Governance in the MENA region
Remarks by: FADI SAAB
Chairman, IOD Lebanon
Paris, Septembre 22nd, 2014
Middle East and North Africa Corporate Governance Roundtable
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Development of IODs and Governance Centers:
Sustainability and Priorities?
I. GENERAL FRAMEWORK
Middle East and North Africa Corporate Governance Roundtable
CONCEPT…
The OECD Definition of Corporate Governance:
“Procedures and processes according to which an organization is directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization – such as the board, managers, shareholders and other stakeholders – and lays down the rules and procedures for decision-making.”
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Middle East and North Africa Corporate Governance Roundtable
THEORY…
The OECD Principles of Corporate Governance:
I. Ensuring the Basis for an Effective CG Framework II. The Rights of Shareholders & Key Ownership Functions III. The Equitable Treatment of Shareholders IV. The Role of Stakeholders in Corporate Governance V. Disclosure and Transparency VI. The Responsibilities of the Board
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Middle East and North Africa Corporate Governance Roundtable
PRACTICE…
Main Actions by IODs, CG Centers, & Dedicated NGO’s:
I. Seeking donor assistance/technical support/financial backing II. Raising awareness, leading by example, specialized training III. Building capacity, specialized tools, execution methodologies IV. Performing assessment audits and implementation reviews V. Aligning interests from public and private sectors, banks, CMs VI. Promoting voluntary governance codes and policy guidelines VII. Lobbying for mandatory legislations and policy regulations
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Middle East and North Africa Corporate Governance Roundtable
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Development of IODs and Governance Centers:
Sustainability and Priorities?
II. INSTITUTIONAL STRUCTURE
Middle East and North Africa Corporate Governance Roundtable
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Development of IODs and Governance Centers
CONCEPT (3 main factors/3 main issues)
Basic Foundations
Implementation Obstacles
Key Success Factors
Vision- Mission - Goals Entry Barriers: Public Private-Hybrid-NGOs
Professional Tools (Knowledge Base)
Prominent Membership Base
Increased Competition Market Penetration (Major Scalability)
Financial and Human Resources
Continued Sustainability Strategic Positioning (Reference Standard)
Middle East and North Africa Corporate Governance Roundtable
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Development of IODs and Governance Centers THEORY (3 main goals)
Desired Benefits
1. Efficient Internal Organizational Structure: (Companies, SMEs, SOEs, Financial Institutions, Regulators)
2. Effective Protection of Stakeholder Rights: (Internal Setup, External Relationships, Community at Large)
3. Solid Base for Planned Future Growth: (Ownership & Management Change, Access to New Funding)
Middle East and North Africa Corporate Governance Roundtable
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Development of IODs and Governance Centers
PRACTICE (3 main topics)
Performance Measurement
1. Internal and External Capacity Building (Provide Quality Output with Continuous Improvements)
2. Collaborating Partnerships and Coalition Networks (Combining Benefits: ‘What You Know’ and ‘Who You Know’)
3. Tangible Results and Building on Success Stories (Set the Benchmarking Standards)
Middle East and North Africa Corporate Governance Roundtable
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Development of IODs and Governance Centers:
Sustainability and Priorities?
III. MOVING FORWARD
Middle East and North Africa Corporate Governance Roundtable
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Development of IODs and Governance Centers
RECOMMENDATIONS (3 main levels)
Concept
Theory
Practice
Periodic Principles Revisions & Updating
Cluster Building & Network Creation
Tangible Impact on Performance Skills
In-depth Expansion from Macro to Micro
Implementation Toolkits & Systems
Feasible Application Methodologies
Sector Orientation & Specific Tailoring
Expand Coverage to all Stakeholder Types
Positive Results on all Market Segments
Middle East and North Africa Corporate Governance Roundtable
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Development of IODs and Governance Centers:
Sustainability and Priorities?
IV. QUESTIONS FOR DISCUSSION
Middle East and North Africa Corporate Governance Roundtable
Development of IODs and Governance Centers: Sustainability and Priorities?
• Is the creation of national corporate governance centers important for countries which do not yet have one?
• What organizational structure of IODs is most conductive to their effectiveness? (i.e. governmental, private, hybrid, NGO)
• What membership development strategies and tools need to be developed and deployed to make IODs sustainable?
• How can the funding basis of CGCs and IODs become stable and sustainable? • Is the dialogue with securities regulators and stock exchanges sufficient in order to
exchange on policy priorities and stimulate change? • What training as well as research and development priorities are facing MENA
IODs and CGCs and what might be the challenges in delivering on them? • Other areas of interes…
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014
Middle East and North Africa Corporate Governance Roundtable
Thank You
Fadi Saab, Chairman, IOD Lebanon Paris, Septembre 22nd, 2014