The Task Force recommends the development of corporate governance innovations for global digital financing platforms:Â
‘Public utility’ corporate governance arrangements could complement policy and regulatory measures in strengthening the SDG-alignment of global digital financing platforms. Historically, ‘public utility’ element of businesses, especially water, electricity and railway companies, were safeguarded through a mixture of policy, regulation, and corporate governance and ownership. How best to govern large digital platforms has become a major topic of public debate, demonstrating a need for governance innovations.
Digital companies are increasingly making investments in soft or non-fiduciary governance innovations, such as Facebook’s newly-convened Oversight Board, to strengthen oversight and sustain their license to operate. Reuters, one of the earliest global media and communications groups, adopted the Trust Principles in 1941 when it became a publicly traded company on the London Stock Exchange and Nasdaq, along with a unique corporate governance arrangement, given the name ‘Reuters Founders Share Company Limited’, that continues to exist and operate today.
A pathfinder initiative has been launched under the leadership of Kenya and Switzerland. The International Dialogue on Global Digital Finance seeks to facilitate a balanced and more inclusive dialogue, particularly involving developing nations, on SDG-aligned governance of global digital finance.
Overview of this Recommendation
Element
Governance Innovations
Recommendation
Develop and deploy corporate governance frameworks to secure ‘public utility’ aspects of digital financing platforms that are large, market dominant, and have cross-border spill-over effects.
Next steps
Establish a working group including financial policy makers and regulators, corporate governance groups, public interest bodies and global digital financing platforms to develop and encourage take up of possible frameworks.
The Task Force recommends the development of corporate governance innovations for global digital financing platforms:Â
‘Public utility’ corporate governance arrangements could complement policy and regulatory measures in strengthening the SDG-alignment of global digital financing platforms. Historically, ‘public utility’ element of businesses, especially water, electricity and railway companies, were safeguarded through a mixture of policy, regulation, and corporate governance and ownership. How best to govern large digital platforms has become a major topic of public debate, demonstrating a need for governance innovations.
Digital companies are increasingly making investments in soft or non-fiduciary governance innovations, such as Facebook’s newly-convened Oversight Board, to strengthen oversight and sustain their license to operate. Reuters, one of the earliest global media and communications groups, adopted the Trust Principles in 1941 when it became a publicly traded company on the London Stock Exchange and Nasdaq, along with a unique corporate governance arrangement, given the name ‘Reuters Founders Share Company Limited’, that continues to exist and operate today.
A pathfinder initiative has been launched under the leadership of Kenya and Switzerland. The International Dialogue on Global Digital Finance seeks to facilitate a balanced and more inclusive dialogue, particularly involving developing nations, on SDG-aligned governance of global digital finance.
Overview of this Recommendation
Element
Governance Innovations
Recommendation
Develop and deploy corporate governance frameworks to secure ‘public utility’ aspects of digital financing platforms that are large, market dominant, and have cross-border spill-over effects.
Next steps
Establish a working group including financial policy makers and regulators, corporate governance groups, public interest bodies and global digital financing platforms to develop and encourage take up of possible frameworks.
Governance Innovations