SOE GOOD CORPORATE GOVERNANCE INDEX
Following global principles of good corporate governance, the State, being a shareholder of the enterprises and fulfilling extremely significant functions for the residents of the country through these enterprises, must ensure that the enterprises it owns should operate adhering to the highest standards of governance. To achieve this goal the State has adopted the policy of governance of state-owned enterprises, which all state-owned enterprises and institutions representing the state have to follow. The established policy is based on the Guidelines on Corporate Governance of State-Owned Enterprises developed by the Organisation for Economic Co-operation and Development (OECD), which establish the basic principles of good governance of SOEs. The OECD Guidelines are recognised as the most progressive in respect of the issues of SOE governance. Seeking to ensure that the policy of SOE governance should be followed, the State has authorised the Governance Coordination Centre (GCC) to carry out regular monitoring of governance of SOEs. To facilitate the evaluation of the quality of SOE governance, the Governance Coordination Centre has created an evaluation tool – the SOE Good Corporate Governance Index.
The purpose of the SOE Good Governance Index is to evaluate and measure how the state-owned enterprises and the institutions representing the state implement main practices of good governance, which encompass recommendations formulated by the Organisation for Economic Cooperation and Development (OECD), the provisions of the Ownership Guidelines, Transparency Guidelines and Nomination Guidelines, as well as other policies and global best practices. At the present time this is the only tool on the basis of which the quality of governance of all SOEs and their subsidiaries, as well as their compliance with the provisions of legal acts, are evaluated.
Taking into consideration changes that take place in SOE governance and actual performance results of SOEs themselves, the SOE Good Corporate Governance Index has been updated every year since 2012. As of 2016 the Index is issued as a separate governance report where aggregated results of SOE governance are presented. The report is publicly accessible on the website of the Governance Coordination Centre.
Since 2019 the evaluation of governance of SOE subsidiaries has been included in the SOE Good Corporate Governance Index. The principles of the evaluation are almost similar as for SOEs, the same principles of governance are followed, with the exception of cases when certain practices for subsidiaries are not formalised in the SOE governance policy or are not relevant to them.