CGIA is established as an institution that is conceived as the change-agent in Albania for IFC corporate governance, thus the CGIA is appointed as a local partner and delivers the services bases on the IFC approach and methodology.
The regional IFC project under a framework cooperation agreement has selected the Institution as the local partner for the further implementation and development of Corporate Governance practices in Albania.
The Institution has identified the directions of its future contribution, which will focus but not limited on:
Assist Companies Implement Good CG Practices:
- Providing to Albanian entities in-depth advisory services from Institution (primarily through Corporate Governance Assessments)
The Institution intends to provide demand-driven corporate governance advisory services in Albania and Kosovo based on established methodology for the delivery of such services.
The CGIA develops a collaborative relationship with its client companies and works with them to improve their governance practices. This is done through mainstreaming CG analysis by applying the IFC Corporate Governance Methodology.
IFC’s Corporate Governance Methodology is the process of analyzing the client companies’ corporate governance structures, policies and processes applying the relevant set of tools. Each analysis is company-specific to ensure practical approach to corporate governance. This methodology is applied by the CGIA board members to deliver client specific valuation.
All clients do not require the same degree of application of the Methodology or the same amount of staff commitment from the CGIA. Depending on the particular company characteristics a Corporate Governance Assessment (CGA) in accordance with the comprehensive IFC CG Methodology will ordinarily be conducted. For other clients, the simpler Corporate Governance Review (CGR) is more appropriate.
The application of the CG Methodology (the process of analysis with the application of specialized tool) envisages:
- Deciding on the level of corporate governance analysis depending on the risks involved, size and complexity of the company’s corporate governance framework;
- Collecting the relevant information and analyzing corporate governance risks and opportunities,
- Defining the relevant risk mitigating measures or improvement recommendations and
- Training and advising the client with their implementation.
- Organizing workshops, training events, seminars and conferences
- Training of companies, including in house trainings ;
- Training of the executive directors;
- Training of independent directors;
Assist the Business Community to:
- Promote and implement the CG tools developed by IFC starting from scorecards, a grading system for the businesses, utilizing corporate governance principles to help business perform a self evaluation;
- Provide detailed in-depth interventions to companies on a tailored basis;
- Improve their board room practices and increase percentage of independent directors on corporate boards ;
- Disclose information on directors including remuneration, family relationships and business relationships that may constitute conflict of interest;
- Place responsibility for company management in the hands of professional and experienced executives, establish clear management policies and make these known to employees and shareholders;
- Raise and disseminate awareness that good corporate governance is beneficial for all to help elevate the status of corporate governance in the national business agenda;
- In Cooperation with the European University of Tirana implement corporate governance master Education;
- Encourage companies to promote positive interaction between suppliers and consumers, formulate transparent guidelines for transactions, offer recourse for consumer complaints and establish mechanisms to receive complaints and feedback;
- Promote good corporate citizenship and social responsibility among firms and standards of fairness in interaction with the public.
- Organize periodic reviews and information exchanges with business people both nationally and internationally to ensure continued relevance of best standards and possible adoption of new ideas.
- Create regional database on good corporate governance including information on corporate success stories and disseminate to the public.
- Promote development of a strong financial press by disclosing information, and preparing short objective articles and editorials defining the concept of good corporate governance for publication in the business media.
- Encourage the media to publicize corporate governance reforms by providing success stories from regional and national business associations and others in the business network to identify companies that practice good corporate governance.
- Incorporate the principles of good governance into the agenda of the media seminars or workshops held regularly by other institutes and associations.
Assist the business toward Sustainable Value Creation
Assist business to generate sustainable shareholder value over the long term. Sustainability implies that the company must manage effectively the governance, social and environmental aspects of its activities as well as the financial.
Build up the skills of independent and executive Directors as Fiduciaries
Members of company boards are fiduciaries who must act in the best interests of the company and its shareholders and are accountable to the shareholder body as a whole. As fiduciaries, directors owe a duty of care and diligence to, and must act in the best interests of, the company.
Build up Effective Board Behavior
Boards need to generate effective debate and discussion around current operations, potential risks and proposed developments.
Assist in the Composition and Structure of the Board
The board should consist of directors with the requisite range of skills, competence, knowledge, experience and approach, as well as a diversity of perspectives, to set the context for appropriate board behaviors and to enable it to discharge its duties and responsibilities effectively.
Promote and provide executive education for the Role of the Chair
The chair has the crucial function of setting the right context in terms of board agenda, the provision of information to directors, and open boardroom discussions, to enable the directors to generate the effective board debate and discussion and to provide the constructive challenge which the company needs. The chair should work to create and maintain the culture of openness and constructive challenge which allows a diversity of views to be expressed.
Assist companies in developing Codes of Ethics and Conduct what about CG Code ??
Companies should develop a code of ethics and/or a code of conduct. The code should stipulate the ethical values of the company as well as include more specific guidelines for the company in its interaction with its internal and external stakeholders. Such codes must be actively and effectively communicated across the company, and should be integrated into the company’s strategy and operations.
Reforming policy: to support the development of an effective corporate governance framework through
- Conduct policy events on CG (legal and regulatory) frameworks
- Provide consultations to policy-makers on laws , regulations, CG codes
- Develop model (legal) documents, toolkits
- Provide CG diagnostics to legal framework