Philippine corporate governance hindered by highly concentrated ownership, OECD says

<br><br>**Unpacking the OECD Report Why Concentrated Corporate Ownership is a Governance Hurdle in the Philippines**<br><br>**Introduction**<br><br>As the global business landscape continues to evolve, it's crucial to identify and address the challenges that hinder effective corporate governance practices. The Organisation for Economic Co-operation and Development (OECD) has highlighted one such challenge - concentrated ownership among family-owned listed firms in the Philippines. In this blog post, we'll delve into why this concentration of ownership is detrimental to corporate governance in the country.<br><br>**The Problem**<br><br>Concentrated ownership, where a small group or individual holds a significant proportion of shares, can undermine transparency and accountability within companies. The OECD notes that the Philippines has one of the highest levels of concentrated corporate ownership in Asia, which can lead to minority shareholders struggling to have their voices heard.<br><br>**The Impact**<br><br>This concentration of ownership can also hinder a company's ability to raise capital, make strategic decisions, and drive innovation. When one individual or group has excessive control, they may prioritize their own interests over those of the company and its stakeholders. This can result in poor decision-making, stagnation, and even bankruptcy.<br><br>**Breaking Down Barriers**<br><br>So, how do we overcome this challenge? The OECD recommends that companies implement policies to promote diversity on boards and in leadership positions. This includes encouraging the appointment of independent directors and ensuring that board members possess diverse skills and expertise. By promoting a culture of transparency and accountability, we can create a more inclusive business environment.<br><br>**Conclusion**<br><br>In conclusion, concentrated corporate ownership is a significant hurdle to effective corporate governance in the Philippines. Recognizing this challenge and implementing policies to promote diversity and transparency are crucial steps towards creating a more accountable business environment. It's time to address the concentration of ownership and pave the way for more inclusive and innovative corporate governance practices.<br><br>**Keywords** Concentrated ownership, corporate governance, OECD, Asia Capital Markets Report, Philippines, diversity