‘How corporate governance in organisations can boost economy’

The Commissioner of the Lagos State Ministry of Establishments, Training and Pensions, Dr. Akintola Benson has said active corporate governance framework in organisations is necessary for corporate success and economic growth of a country,

Dr. Benson said this while speaking on Corporate Governance: Responsibility, Sustainability And Accountability – Implication For The Nigerian Nation at the 2017 Induction Ceremony of the Association Of Corporate Governance Professionals Of Nigeria (ACGPN).

He challenged the association not to relent in the effort to propagate and champion the cause of effective, efficient and responsive frameworks for responsible corporate governance in all sectors of the Nigerian economy.

He said it is clear that in today’s market-oriented economy, the need for corporate governance arises and is absolutely crucial, noting that efficiency as well as globalization urges corporate governance ethics on us.

For an economy with as much potential as the Nigerian economy, he stated, effective corporate governance framework is essential to develop added value to the stakeholders.

He stressed that Corporate Governance ensures transparency which aids strong and balanced economic development.

He said: “This ensures that the interests of all shareholders, majority as well as minority shareholders are safeguarded. It ensures that all shareholders fully exercise their rights and that the organization fully recognizes their rights.

“Strong corporate governance maintains investors’ confidence, as a result of which, companies can raise capital efficiently and effectively. Ultimately this lowers the capital cost and this reflects positively on share prices. Also, a credible and institutional corporate governance framework is an inducement to the owners as well as managers to achieve objectives that are in the interests of the shareholders and the organization.

“Good corporate governance also minimizes wastages, corruption, risks and mismanagement. It helps in brand formation and development and ensures that organizations are managed in a manner that fits the best interests of the stakeholders.

“We must also note that effective corporate governance frameworks have social and institutional dimensions such that they encourage business dealings to flourish in a trustworthy, moral, as well as ethical environment”.