Corporate governance: encouraging dialogue and participation - Ernst & Young - Australia

How we govern our corporations plays a central role in the strength and health of our global economy.

Today, there is a growing dialogue among the different stakeholders about corporate governance and how it should evolve to cope with the increasingly dynamic and global nature of our capital markets. This dialogue is taking place against a background of legislative and regulatory change; the implementation of International Financial Reporting Standards around much of the world; an increase in the scope of audit and other internal control and risk management activities; and increased public scrutiny.

It is only with dialogue and the active participation of all stakeholders that the appropriate balance can be reached between:

• strengthened central controls and fast local responsiveness;
• effective risk management and the enduring need for innovation;
• the additional costs of the new corporate governance and the value it seeks to protect and enhance.