Mr. Michael Mortimore, Chief, Investment and Corporate Strategies, ECLAC, Santiago, Chile

The role that corporate transparency plays in investment decisions was recognized.

Irish Association of Investment Managers (1999). Corporate Governance, Share Options and Other Incentive Scheme Guidelines.

Focusing on the legal dimension of corporate responsibilities in the field of economic development, he said that trends in investment arbitration case law suggested that certain corporate conduct obligations were inherent in the protective principles found in international investment agreements.

Finally, it was underlined that good corporate governance and transparency improve investor confidence, reduce the cost of investment and help to develop capital markets by mobilizing both domestic and foreign investment.

Perhaps the most promising reform is corporate tax reduction, which will help Japan boost both foreign and domestic investment. By spurring increased business activity, it will actually increase Japan s corporate tax revenue.

Issues that could be addressed in this connection concern further corporate involvement in overcoming information market failures with regard to investment and business opportunities in developing countries and corporate participation in risk mitigation schemes.

Microeconomic factors for investment site selection included the corporate tax structure, trade and customs regimes, the labour market situation and financial infrastructure.

(iii) promoting regional cooperation in investment promotion and enterprise development, including public private partnerships in infrastructure development and the promotion of Corporate Social Responsibility

All these elements of work combined provided a balanced and holistic approach to investment and development, including on the issue of corporate contributions to development.

He welcomed the proposal for promoting a better understanding of international investment issues and noted the plan to facilitate and enhance positive corporate social contributions.

The role of the corporate sector, and corporate strategies

What is holding back investment (both in the United States and Europe) is lack of demand, not high taxes. Indeed, given that most investment is financed by debt, and that interest payments are tax deductible, the level of corporate taxation has little effect on investment.

PSD will pursue greater growth from the consumer business, as this segment offers higher potential and requires lower investment compared to the corporate segment.

The various themes of the framework included trade policy, competition policy, investment policy, tax policy, corporate governance, public governance, infrastructure development and human resources development.

Such firms, with long term corporate strategies to expand abroad, are therefore suitable targets for investment promotion, particularly by large host countries.

With regard to a multilateral agreement on investment (MAI), corporate rights and the freedom to invest must be balanced with responsibility towards employees, customers and local governments.

He emphasized the general principle prohibiting unconscionable corporate behaviour and two economic responsibilities (a) to assess the risk of an investment properly and with due diligence, and (b) to conduct the investment with reasonable care in accordance with sound business principles.

Why would two women who were enjoying successful careers in investment banking in the corporate sector leave to found a financial services firm?

America has expanded its corporate safety net in unprecedented ways, from commercial banks to investment banks, then to insurance, and now to automobiles, with no end in sight. In truth, this is not socialism, but an extension of long standing corporate welfarism.

Savings must be channeled to firms that need capital for innovation and sustainable job creation. Today, however, the quality of corporate governance frameworks worldwide is challenged by the growing complexity of investment chains and the dominance of passive and short term investment strategies.

Corporate and income tax

Instead of cutting proven tax incentives for business investment, the US should offset at least some of the revenue losses from a lower corporate tax rate by raising tax rates on corporate shareholders. Most countries that reduced their corporate tax rates have followed this path, while the US has done the opposite.

Companies that try to seize all investment opportunities that come along may not achieve synergies or improve their chances of meeting overall corporate objectives.

Both events provided opportunities for raising awareness among main stakeholders, particularly among policy makers, of the importance of corporate transparency for facilitating investment, including foreign direct investment, as well as the positive role that accountants and auditors play in economic development.

If the twenty second session finds these revisions comprehensive and acceptable, it could recommend the finalization and dissemination of this report as voluntary guidance on good practices on corporate governance disclosure that could contribute towards further convergence of disclosures in this area to improve corporate transparency and facilitate investment.

Grundsatzkommission Corporate Governance (German Panel for Corporate Governance) (2000). Corporate Governance Rules for German Quoted Companies.

At the same time, the effective corporate tax rate in Japan is higher than it is elsewhere, making it difficult for Japan to attract investment, foreign or domestic. In order to survive international tax competition and thus be able to rely on corporate taxes as a source of revenue Japan s corporate tax rate should be lowered in the long run.

(a) Corporate and product databases.

A lower rate would strengthen incentives for investment and job creation in the US, and weaken incentives for tax avoidance. It would also reduce numerous efficiency reducing distortions in the US tax code, including substantial tax advantages for debt financing over equity financing and for non corporate businesses over corporate businesses.

In the US, the uneven and weak recovery has been sustained by extraordinarily expansive monetary policies and ongoing large fiscal deficits. While corporate coffers hold mountains of cash, private investment stagnates.

Statement on Global Corporate Governance Principles. International Corporate Governance Network.

Reducing the tax rate for companies substantially, while eliminating targeted business tax preferences and broadening the corporate tax base, would increase both investment and workers wages. Allowing multinational companies to repatriate overseas profits without paying additional US tax would also bolster investment and job creation at home.

(a) Capping of corporate costs, while corporate functions address strategic matters of governance, oversight and inspection

With the growing importance of businesses as the principal agents of trade and investment, their role in demonstrating corporate social responsibility is only just beginning to emerge within the region.

Corporate strategy

Corporate responsibility

Revised Statement on Global Corporate Governance Principles. International Corporate Governance Network.

Finance Committee on Corporate Governance (2000). Malaysian Code on Corporate Governance.

(5) Corporate governance and its status

Internal audit and corporate risk management

(l) Forest ethics and corporate responsibility

Corporate gender strategy and action plan

Strategic direction, corporate oversight and accountability

Among other things, the secretariat should continue to support host country Governments, including through policy advocacy and capacity building in investment promotion agencies, and further work on corporate governance, including that of ISAR.