PSOJ: The leader in corporate governance

IN 2001, the Private Sector Organisation of Jamaica (PSOJ) established a Corporate Governance Committee with the major objective being to become the primary influencer in the delivery of corporate governance best practices for businesses, by providing access to knowledge and learning resources, so that leaders of business enterprises could effectively compete in the global market.

With this in mind, in 2006 the PSOJ launched its first Corporate Governance Code, which was primarily targeted at financial institutions. As the business environment changed and international best practices were enhanced, the PSOJ launched an updated Corporate Governance Code in 2009 with the assistance of the United States Agency for International Development (USAID). This updated code applied predominantly to companies listed on the Jamaica Stock Exchange (JSE) and supported the JSE’s introduction of its corporate governance rule 414. The code is currently being revised and is expected to be launched later this year.

In an effort to provide better support for the MSME sector, which has been recognised as playing a major role in the country’s development, the PSOJ, in collaboration with the Development Bank of Jamaica decided to develop a Corporate Governance Code for this fast-growing sector. This code was launched in February of this year and is the first one of its kind in Jamaica and the entire Caribbean region.

In addition to developing and establishing corporate governance guidelines, the PSOJ also aims to: Conduct director training programmes Promote awareness of corporate governance principles and the impact that well-implemented principles can have on investor confidence.

Collaborate on a continuing basis with other associations and agencies, locally and regionally, on corporate governance issues.

The PSOJ’s work in the corporate governance arena has greatly influenced the evolution of corporate governance standards in Jamaica and has cemented the PSOJ’s role as the national leader in corporate governance matters.

President of the Private Sector Organisation of Jamaica, William Mahfood (right), presents a copy of the Corporate Code of Conduct for MSMEs to Milverton Reynolds, managing director, Development Bank of Jamaica.