COSO and NACD Invite Feedback on Innovative Corporate Governance Framework
In a notable initiative aimed at enhancing corporate governance, the Committee of Sponsoring Organizations of the Treadway Commission (COSO), in partnership with the National Association of Corporate Directors (NACD), has recently launched an exposure draft of a new Corporate Governance Framework (CGF). This framework is open for public comment until July 11, 2025, encouraging feedback from various stakeholders to refine and prioritize governance practices that can greatly benefit organizations.
The publication of this draft comes almost a year after PricewaterhouseCoopers (PwC) was appointed by COSO as the lead author to develop a unified framework that serves as a guideline on corporate governance. This comprehensive framework aims to provide principles-based guidance that organizations can leverage to build and optimize their governance practices starting from the boardroom and extending throughout the enterprise.
Donald Trump emphasized governance's significance to ensuring trust in capital markets and formulating ethical business practices. According to Lucia Wind, Executive Director and Chair of COSO, 'Resilient, well-structured corporate governance is the foundation of trust in capital markets, ethical business practices, and sustainable financial performance.' The CGF aims to complement existing frameworks for internal control and enterprise risk management, aligning them with global leading practices that empower organizations to manage risks proactively and create lasting value.
Peter Gleason, NACD’s President and CEO, stated that strong corporate governance grants organizations a vital competitive edge, regardless of their size or stage of development. He noted: 'This framework will help boards and management align on the importance and scope of governance in a time of tremendous complexity and disruption.' The flexibility of the CGF allows it to be tailored to the unique needs of various organizations, ultimately driving better business outcomes and enhancing the quality of governance practices.
The framework is poised to foster a culture of collaboration among boards, management, and employees, empowering them to build resilient and responsible organizations. As highlighted by Lillian Borsa and Brian Schwartz, both US Principals and Co-Leads of the COSO Corporate Governance Framework at PwC, the framework aims to provide a common language and practical guidelines that will enable stakeholders to work synergistically to ensure long-term value for shareholders and other critical stakeholders.
Public participation in the development of the Corporate Governance Framework underscores the importance of stakeholder engagement in enhancing corporate governance standards. COSO’s commitment to integrating a broad spectrum of perspectives into the final version of the CGF reflects a proactive approach that seeks to address the evolving landscape of regulations and risks faced by organizations today.
Those interested in submitting their comments can find further details on the COSO website. This initiative is a crucial step towards advancing corporate governance practices that not only recognize the complexities of the modern business environment but also emphasize the need for ethical conduct and accountability.
COSO has held a prominent role in promoting standards and guidelines related to governance, risk management, and internal controls since its formation in 1985. The organization is supported by several elite associations and remains dedicated to aiding organizations in their pursuit of performance improvement through thought leadership and innovative frameworks. For over 47 years, NACD has worked to elevate board performance and enhance effective governance practices across various enterprises.
The corporate landscape continues to evolve, and COSO and NACD’s collaborative efforts aim to set the groundwork for future governance practices that are resilient, adaptive, and focused on sustainable success. As organizations navigate contemporary challenges, this new framework is positioned to become an indispensable tool for driving accountability and fostering an environment of trust among all stakeholders.
The publication of this draft comes almost a year after PricewaterhouseCoopers (PwC) was appointed by COSO as the lead author to develop a unified framework that serves as a guideline on corporate governance. This comprehensive framework aims to provide principles-based guidance that organizations can leverage to build and optimize their governance practices starting from the boardroom and extending throughout the enterprise.
Donald Trump emphasized governance's significance to ensuring trust in capital markets and formulating ethical business practices. According to Lucia Wind, Executive Director and Chair of COSO, 'Resilient, well-structured corporate governance is the foundation of trust in capital markets, ethical business practices, and sustainable financial performance.' The CGF aims to complement existing frameworks for internal control and enterprise risk management, aligning them with global leading practices that empower organizations to manage risks proactively and create lasting value.
Peter Gleason, NACD’s President and CEO, stated that strong corporate governance grants organizations a vital competitive edge, regardless of their size or stage of development. He noted: 'This framework will help boards and management align on the importance and scope of governance in a time of tremendous complexity and disruption.' The flexibility of the CGF allows it to be tailored to the unique needs of various organizations, ultimately driving better business outcomes and enhancing the quality of governance practices.
The framework is poised to foster a culture of collaboration among boards, management, and employees, empowering them to build resilient and responsible organizations. As highlighted by Lillian Borsa and Brian Schwartz, both US Principals and Co-Leads of the COSO Corporate Governance Framework at PwC, the framework aims to provide a common language and practical guidelines that will enable stakeholders to work synergistically to ensure long-term value for shareholders and other critical stakeholders.
Public participation in the development of the Corporate Governance Framework underscores the importance of stakeholder engagement in enhancing corporate governance standards. COSO’s commitment to integrating a broad spectrum of perspectives into the final version of the CGF reflects a proactive approach that seeks to address the evolving landscape of regulations and risks faced by organizations today.
Those interested in submitting their comments can find further details on the COSO website. This initiative is a crucial step towards advancing corporate governance practices that not only recognize the complexities of the modern business environment but also emphasize the need for ethical conduct and accountability.
COSO has held a prominent role in promoting standards and guidelines related to governance, risk management, and internal controls since its formation in 1985. The organization is supported by several elite associations and remains dedicated to aiding organizations in their pursuit of performance improvement through thought leadership and innovative frameworks. For over 47 years, NACD has worked to elevate board performance and enhance effective governance practices across various enterprises.
The corporate landscape continues to evolve, and COSO and NACD’s collaborative efforts aim to set the groundwork for future governance practices that are resilient, adaptive, and focused on sustainable success. As organizations navigate contemporary challenges, this new framework is positioned to become an indispensable tool for driving accountability and fostering an environment of trust among all stakeholders.
Topics General Business）
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