Transition economies face many challenges in the overhaul of their political, legal and economic systems. As they develop into market economies, they are increasingly confronted with calls from local and foreign investors for the development of broadly accepted rules for the conduct of business.
As an international institution with a mandate to assist the transition process in the countries of central and eastern Europe and the former Soviet Union, the EBRD views the promotion of sound standards of business conduct as a core dimension of its work.
With the involvement of clients and other partners, the EBRD distributes a set of guidelines to help companies understand some of the broader concerns that lenders and investors have when considering a potential loan or investment opportunity in the region. These cover not only issues of corporate governance but also the relationship between companies and their clients, suppliers, local communities and governments. Sound principles of corporate governance include the existence of a transparent shareholding structure, the respect for the rights of minority shareholders and a well-functioning Board of Directors.