Guiding Principles of Good Governance

Stan Magidson is President and CEO of the Institute of Corporate Directors and Chair of the Global Network of Directors Institutes (GNDI). This post is based on a recent GNDI perspectives paper, available here.

The Global Network of Director Institutes (GNDI), the international network of director institutes, has issued a new perspectives paper to guide boards in looking at governance beyond legislative mandates.

The Guiding Principles of Good Governance were developed by GNDI as part of its commitment to provide leadership on governance issues for directors of all organisations to achieve a positive impact.

Aimed at providing a framework of rules and recommendations, the 13 principles laid out in the guideline cover a broad range of governance-related topics including disclosure of practices, independent leadership and relationship with management, among others.

The GNDI Guiding Principles are not intended to be prescriptive. It must be acknowledged there is no “one size fits all” good practice solution for effective governance. Factors which may influence how a director should govern include, but are not limited to, the nature of the organisation’s activities (e.g. complexity, risks, geographical dispersion), its regulatory environment, the legislation and other regulation that governs the organisation and the organisation’s constitution. Nor are these Guiding Principles to be considered a substitute for the relevant laws, regulations and standards with which organisations must comply.

But the Guiding Principles are intended to provide organisations of all sizes and types with a starting point or guide for the development or review of their own governance arrangements, taking into account their particular circumstances.

The full principles can be found at www.gndi.org/papers.

An international pool of governance experience has been brought into the development of these guiding principles. They represent the collective insight, expertise and judgment of leading directors from around the globe.

GNDI is an international network of 15 director institutes and was established in December 2012 to foster closer cooperation between its members, who are each recognized as the primary institute for directors and governance in their respective country.

The following organizations are members of GNDI:

  • Australian Institute of Company Directors (AICD)
  • Brazilian Institute of Corporate Governance (IBGC)
  • European Confederation of Directors Associations (ecoDa)
  • GCC Board Directors Institute (BDI)
  • Hong Kong Institute of Directors (HKIoD)
  • Institute of Corporate Directors (ICD), Canada
  • Institute of Directors in New Zealand (IoDNZ)
  • Institute of Directors in Southern Africa (IoDSA)
  • Institute of Directors (IoD) in the United Kingdom
  • Malaysian Alliance of Corporate Directors (MACD)
  • Mauritius Institute of Directors (MIoD)
  • National Association of Corporate Directors (NACD), United States.
  • Singapore Institute of Directors (SID)
  • Swiss Institute of Directors (SIoD)
  • Thai Institute of Directors (TIoD)
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