Whether firms engage in mergers or strategic alliances, downsize to smaller units or upsize to gain complementary assets is influenced by these regimes. Systems favouring wide, dispersed ownership tend to be more open, transparent and responsive to markets. But their drawbacks are short-term perspectives and weak monitoring of management. Rigidities in corporate governance in some countries may be stifling innovation and growth. As emphasised by the OECD Principles of Corporate Governance , systems must reach a balance between encouraging risk-taking and innovation while ensuring management monitoring and accountability.
Environmental strategies are a key aspect of organisational change.
Across industry, enterprises are taking a more pro-active stance in addressing sustainable development concerns and becoming good corporate citizens. Many enterprises in both manufacturing and services are developing environmental strategies to reduce negative impacts on ecosystems. Governments can reinforce such behaviour through promoting adoption of environmental management systems, better environmental reporting, and links to assessments by the financial community. Through diffusing information to consumers and stimulating environmental innovations, governments can help catalyse markets and drive the development of new and more sustainable industrial processes and products. OECD industrial policies are no longer focused on sectors and subsidies.