Wednesday, September 27, 2017 8.00pm/Proshare WebTV
Ethical culture with effective leadership has been described as one of the key elements in driving corporate governance, that can achieve economic growth.
This constitutes one of the four outcomes for corporate firms and organizations to strengthen corporate governance, shared by Professor Mervyn King who was the keynote speaker at the 2017 Society for Corporate Governance Nigeria annual conference, in Lagos.
Professor King was speaking on the theme of the conference “Institutionalization of Corporate Governance as a tool for National Economic Development”.
Other outcomes according to the former Justice of the Supreme Court of South Africa include; performance and value creation in a sustainable manner, adequate and effective controls and trust, good reputation and legitimacy.
Speaking on the value of integrity, Prof King said “Great companies have been built on integrity, you lose that you lose everything”. He believed that good corporate governance is about “intellectual honesty and not just sticking to rules and regulations”.
The notable expert on corporate governance shared with stakeholders his involvement in the development of the International Integrated Reporting Council (IIRC) framework, which is focused on how companies can give clear and concise reports to stakeholders, in a language they understand.
Globally recognized for developing the “Kings Code for Corporate Governance” Professor King outlined the “ICRAFT” model as a template corporates and state-owned institutions, should embrace which connotes “Integrity”, “Competence”, “Responsible leadership”, “Accountability”, “Fairness” and “Transparency”.
Considering the changing dynamics in the global space, he noted that businesses will consistently face the challenge of making business judgment calls and adopting governance principles/best practices.
On the direction of the business environment, King said there was a significant shift to the “Era of Corporate leaders”, which signified the need to focus on the long-term health of the company as against making shareholders wealthy.
Looking at the Nigerian scenario, the legal scholar called on Ministers in Nigeria to invest in ventures that protect the interests of the citizens, e.g pension funds. King called on the government to value competence over political patronage in the appointment of boards and positions for state-owned enterprises.
Professor King was conferred with the honorary fellow of the Society for Corporate Governance in Nigeria, while three new publication were unveiled at the conference namely; “Leading an effective board: A Chairman’s Guide”, “Corporate Governance Reporting in Nigeria 2017: A review of 30 most capitalized companies in the Nigeria stock exchange” and “Survey on Board Structure and Corporate Governance for Micro-Finance Banks in Nigeria” done in collaboration with AFOs foundation and the CBN.
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