SCGN Workshop: Companies Advised to Embrace Good Corporate Governance to Succeed
Emmanuel Otaru
A Director and Fellow of Society for Corporate Governance Nigeria (SCGN), Prof. Chris Ogbechie, has sounded a note of warning to companies and institutions that do notpracticegoodcorporategovernance, saying “there is a price to pay if you have bad corporate governance.”
He said corporate governance is now a global phenomenon and one common threat to failed companies is lack of corporate governance. “One thing is obvious that there is a price to pay if you have bad corporate governance,” he reiterated.
Ogbechie made these submissions at the validation workshop for the review of the Report of the Corporate Governance and Board Structure Survey for Microfinance Banks, organised by SCGN in collaboration with AFOS Foundation recently.
He lamented: “How many companies founded in Nigeria are in their second or third generations?” He added that companies like Nestle, Microsoft, Unilever, Cadbury, among others, were founded by families and have moved to their third generations.
Accordingtohim,“Microfinancebanks are in a better position to transform lives thantheothercommercialbanks,astheyhave morenumbers.Butyouneedcollaboration andtobuildrelationships,todothingstheway itshouldbedone.Itwillimproveyourvalue:
He added that as MFIs, “we are serving the bottom of the pyramid. Our job is not just lending but to help small businesses to succeed, stimulate saving culture. If you spend more than you earn, you will be poor for life.”
He tasked microfinance banks to assist the active poor,to help achieve the Millennium Sustainable Goals, adding: “With over 125 microfinance banks, we are still crawling. We need to also use technology to do this. Mobile phone is one technology that can help.”
Ogbechie said compliance to the code of corporate governance must be at the front burner of board meetings and deliberations, as it can lead to better management and international recognition. “Everybody is part of the corporate governance process.