OECD companies 'holding back corporate governance progress'

The countries of the Organisation for Economic Co-operation and Development (OECD) are not setting a good example for the rest of the world on corporate governance, an expert has claimed.

Adrian Davies, director of SAMI Consulting, said the inconsistent practices and weak enforcement of firms in developed nations currently acts as a barrier to the global adoption of minimum governance standards.

Mr Davies is the author of a new book, entitled The Globalisation of Corporate Governance: The Challenge of Clashing Cultures, which outlines his concerns.

"OECD companies often speak about the lack of corporate governance regulation in emerging economies ... but we have seen company after company ignoring or subverting corporate government regulation," he said.

The writer added that progress on the international stage will be "hesitant and slow" until OECD countries become more convincing in their application of corporate governance principles.

A total of 34 countries currently hold membership of the OECD, which was established in 1961. Many of the world's most advanced nations are members, although emerging countries such as Mexico, Chile and Turkey have also joined the organisation.