The international business community has been calling for stronger corporate governance for companies around the globe. As a result, in 1999 the Organization for Economic Cooperation and
Development (OECD) issued some principles that deal with the ethical and fair treatment of share holders, the importance of transparency, and adequate disclosure. These OECD principles were revised in 2004. The World Bank and the International Monetary Fund support these efforts. In particular, principle number five, called Disclosure and Transparency, states:
The corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership and governance of the company (see www.oecd.org).
Required
Form a group of four students. Visit the OECD Web site and use the information to write a one-page paper that explains why OECD corporate governance principle number five is important for international capital flows.