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AmCham Kosovo

AmCham Kosovo

American Chamber of Commerce in Kosovo

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Implementation of Corporate Governance principles would strengthen private enterprises

Jan, 2020 / Published in AmCham, Press Releases

Implementation of Corporate Governance principles would strengthen private enterprises

Prishtina, January 23, 2020 – The integration of corporate governance principles in private enterprises, the impact of these principles on attracting foreign direct investment and improving business management, were the topics discussed in the workshop on corporate governance organized by American Chamber of Commerce in Kosovo

Leonora Kusari, Principle Manager at EBRD Advice for Small Businesses stated that corporate governance is very important for the institution she works in, because it enhances business investment opportunities. Kusari expressed that some of the benefits of applying corporate governance standards are increased value of assets, turnover, productivity and company profitability. She added that in the Balkan countries there is stagnation in economic development, precisely because of the lack of implementation of corporate governance. Finally, she recommended the private sector to implement these practices in order for the enterprises to benefit more, to attract more investors and to have a larger economic development in the country.

Alban Zogaj, Economist and Monitoring and Evaluation specialist, talked about the state of corporate governance in Kosovar enterprises. According to him, it is positive that many large enterprises in Kosovo have started to integrate corporate governance principles in their companies, however, given the fact that most enterprises in the country are small and medium-sized, corporate governance is yet a new concept. Zogaj also presented some of the findings of studies conducted by “Riinvest” institute where he emphasized that Kosovo still does not have a legal infrastructure that obliges companies to implement corporate governance principles.

Visar Dobroshi, Managing Partner at Recura Financials spoke about the four pillars of corporate governance which include accountability, responsibility, transparency and fairness, which according to him are crucial to the development of corporate governance in an enterprise. Dobroshi stated that over the past six years in Kosovo there has been great progress in raising awareness regarding corporate governance, but there is still room for improvement in terms of implementing its aspects. According to him, implementing the best practices of corporate governance, influences the growth of enterprises’ value.

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