Alexandru Petrescu proposes that the ASF promote excellence rather than merely sanction deficiencies in corporate governance

Alexandru Petrescu, president of the Financial Supervisory Authority, proposes that corporate governance move beyond a model focused on identifying and sanctioning deficiencies. He conveyed the message after attending a meeting of the OECD Corporate Governance Committee, held in Paris on November 9–10.

Petrescu noted the differences between the European and Asian approaches. While European debates have traditionally focused on the “Name and Shame” principle, which involves exposing and sanctioning inappropriate practices, Asia has placed greater emphasis on the “Name and Shine” concept, based on recognizing and promoting positive examples.

The ASF president believes that accountability remains essential, but is not enough to build a strong culture of good governance. Regulators should also highlight companies that apply sound practices and set higher standards.

According to Alexandru Petrescu, successful examples can stimulate ambition, strengthen trust, and encourage other organizations to follow the same models. This change could support a shift from a culture of formal compliance to one in which good governance becomes an embraced objective.