ISBN 92‐64‐01597‐3 – No.

 53533 2004

© OECD 2004
 Group DELTΔ
Afaf Nizam

Burhan Ahmed

Tahira Sadiq

Talha Ajaz

Zirgham ullah Bukhari
 Goals of OECD
a. To achieve the highest
g sustainable economic ggrowth and
employment and a rising standard of living in member
countries, while maintaining financial stability, and thus to
contribute to the development of the world economy;
b. To contribute to sound economic expansion in member as
well as non‐member
non member countries in the process of economic
development; and
c. To contribute to the expansion of world trade on a
multilateral, non‐discriminatory basis in accordance with
international obligations.

© OECD 2004
 Disclosure and Transparency

The corporate governance framework should ensure

that timely and accurate disclosure is made on all material
matters regarding the corporation, including the financial
situation,, p
performance,, ownership,
p, and ggovernance of the
company.

© OECD 2004
 What means Disclosure?

A Disclosure should include, but not be limited to, 
A. Disclos re sho ld incl de b t not be limited to
material information on:
i. The financial and operating results of the company

ii Company objectives
ii. Company objectives

iii. Major share ownership and voting rights

iv. Related party transactions

v. Foreseeable risk factors
Foreseeable risk factors

© OECD 2004
 What means Disclosure?
vi Remuneration policy for members of the board and
vi.
information about board members, including their
qualifications, the selection process, other company
directorships and whether they are regarded as independent
byy the board
vii. Issues regarding employees and other stakeholders
viii Governance structures and policies,
viii. policies in particular,
particular the content
of any corporate governance code or policy and the process by
which it is implemented

© OECD 2004
 How to ensure Transparency?
p y
B. Information should be prepared and disclosed in accordance with
high quality standards of accounting and financial and non‐
financial disclosure.

C. An annual audit should be conducted by an independent,

competent and qualified,
qualified auditor in order to provide an external
and objective assurance to the board and shareholders that the
financial statements fairly represent the financial position and
performance of the company in all material respects.

© OECD 2004
 How to ensure Transparency?
p y
D. External auditors should be accountable to the shareholders
and owe a duty to the company to exercise due professional
care in the conduct of the audit.
audit

E. Channels for disseminating information should provide for

equal, timely and cost‐efficient access to relevant
information by users.

© OECD 2004
 How to ensure Transparency?
p y
F. The corporate
p ggovernance framework should be
complemented by an effective approach that addresses and
promotes the provision of analysis or advice by analysts,
analysts
brokers, rating agencies and others, that is relevant to
d ii
decisions b investors,
by i f
free f
from material
i l conflicts
fli off interest
i
that might compromise the integrity of their analysis or
advice.

© OECD 2004
 OECD’ss take for Pakistan
OECD
Business ethics derive from transparency,
transparency objectivity,
objectivity
reliability, honesty and prudence. These values allow the
financial sector to generate the key asset to conduct business
and discharge its fiduciary responsibility: trust.

It is vital to engage emerging economies in the creation a

new set of high
g ethical standards,, sharingg with them not onlyy
rights but also responsibilities
Angel Gurría, 
Angel Gurría,
OECD Secretary‐General, at the European Business Ethics Forum (EBEF)
22nd January’ 09
© OECD 2004
 Conclusion
To restore this trust we need to build a more robust
regulatory framework. We need to prove that globalization is
reliable. And the only way to do so is through an enhanced
multilateral co‐operation. The global economy is too integrated
to function without sound international rules and regulators.
Any Questions!!!
Any Questions!!!
Please put them forward…
Thank
h k y
you