Business Regulations, Law & Practice | |
Business Regulations, Law & Practice | |
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Thursday,
December 02, 2019 / 9:10 AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV
As the revised Nigerian
Corporate Governance Code takes effect in 2020, Ethics and Sustainability will
be critical areas for companies to give priority.
Lead Advisor for Deal HQ
Solicitors, Tosin Ajose, noted this at the Roundtable 1.0, which discussed "Building Sustainable Enterprises Through Adaptive Corporate Governance
Practices".
Giving an overview of the
code and implications for businesses, Ajose stressed that Ethics and
Sustainability would position companies to be effective and valuable to the
economy of the nation.
On Ethics, she said it
includes the values of a company, its culture as a business, and what matters
to it as an organizational entity.
Sustainability, according
to her, covers the interaction between the companies and their environment,
stating that it was an important consideration for investors.
In the area of
sustainability, the Deal HQ boss emphasized the fact that beyond making a
profit, companies had a responsibility to factor in consideration for their
communities and the environment. She gave an example of a manufacturing
and production company that should be concerned about the impact of its
activities on the ozone layer.
"Investors are taking note of how companies value ethics, sustainability and people, which are
critical components for ranking companies," She said.
The Deal HQ solicitor also added that the people-component was critical
to good corporate governance and involved creating an enabling environment for
learning and the development of the skills and capacities of employees
alongside considerations of staff empowerment.
Looking at the board of directors' composition under the code and as it
applies to businesses, she advised that tested experts and experienced
professionals be employed to design and oversee the values of respective
companies.
She said, "Boards should suit the need of the
organization in question, where quality decisions are made, with a composition
that is diverse".
Giving further perspective on the matter, she noted
that Company Secretaries should play critical roles in driving corporate
governance in Nigeria.
She called on boards of companies to entrench
transparency, which was a key component of the corporate governance code, and
encourage openness and scrutiny of their operations.
The provisions for whistle-blowing in companies,
according to her, was a wonderful initiative that encouraged individuals to
report infractions within companies.
She highlighted some of the key features of the 2020
Nigerian Corporate Governance Code, to include;
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