Don’t treat corporate governance as a cost element

Good corporate governance is good business because it is all about risk management.

As a global health care investor, balancing the interests of our shareholders, management, customers, and other public stakeholders has been a key focus since we started investing in emerging markets 10 years ago. Since our first fundraise back in 2010, we have worked with the International Finance Corporation (IFC), a member of the World Bank, to implement social and environmental management systems across our portfolio companies and partnered with global accreditations to integrate ESG issues into investment decision-making and ownership practices.

The benefits of adopting these governance models into our operations have been clear.

Most importantly, they have helped us to grow the bottom-line. Studies continue to show us that companies with strong corporate governance models run like well-oiled machines. They have good relations with government and a deep understanding of the regulatory requirements in their markets.Their strategies are shaped by relevant data. And they can maintain a diligent eye on their assets and spot red flags early on.

Source: Don’t treat corporate governance as a cost element

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