
In the public and private sectors alike, good governance has a significant
impact on competitiveness. In recent years, corporate scandals at home
and abroad have undermined public trust in markets and in business leadership.
At the same time, declining voter interest in the electoral process
suggests that public faith in Canada's democratic institutions has become
equally frayed. Leaders in business and government at all levels therefore
must work together to shape smart public policy, to strengthen the fabric
of Canada's federation and to reinvigorate Canadian democracy as a force
for progress both within our borders and globally.
In the wake of corporate scandals such as Enron and WorldCom, the Council
in 2002 developed and published a detailed consensus on principles for
good corporate governance. Governance,
Values and Competitiveness: A Commitment to Leadership. The Council
has remained active on governance and regulatory issues such as the
need for more reform of Canada's fragmented structure for the regulation
of securities markets. The recent crisis in financial markets has sparked
renewed debate over governance and regulation of the financial services
sector globally, with Canada's standards and practices being seen widely
as models for the world.