An action plan to protect and strengthen corporate governance practices in Russian corporations

Abstract

Subject. The article considers the corporate governance implementation in Russia under modern conditions and evaluates its efficiency. Objectives. The aim is to identify key areas for strengthening and developing the corporate governance practices in Russian companies that will enable to improve the existing corporate governance model. Methods. The study draws on comparative analysis, ranking, classification, formation of ratings on the basis of sociological surveys. Results. The paper includes recommendations on creating a single standard to assess corporate government practices, which should involve three parties, i.e. the business, rating agencies and the State, and consider their interests. I offer a methodology for overall assessment of components investigated by rating agencies that may help investors understand the business activity of companies. Conclusions. Public companies and State-owned corporations demonstrate the best results in the sphere of corporate governance. It is critical to enhance corporate governance in Russia, which implies developing the corporate legislation, improving the law enforcement practice. Companies should be willing to take measures to perfect corporate governance.