Importance of Corporate Governance
“The issuance of National Code of Corporate Governance is a very important deliverable that can be used to enhance our national competitiveness and address some socio-economic issues including corruption and lack of independence.” ---- CEO Financial Reporting Council of Nigeria
According to one-time World Bank President, James D. Wolfesohn, ‘the proper governance of companies will become as crucial to world economy as the proper governance of countries.’
This assertion was supported by Chief Emeka Anyaoku, former Commonwealth Secretary General, when he rightly captured the imperativeness of sound governance of companies and national economies. He said, “CORPORATE GOVERNANCE and enterprise culture have become important for the survival of companies and indeed national economies in the increasingly global economy. For transition economies, such as Nigeria’s which are faced with the double challenge of restructuring for greater efficiency and creating foreign investment friendly environment, good corporate governance and a thriving enterprise culture are crucial for success’’.
“The enthronement of corporate governance in the Nigerian Banking system is a sine qua non given the rapid growth of Nigerian banks in the past two and half years.” – Central Bank of Nigeria (CBN).
Sound corporate governance was further defended by the President of United States of America, Barack Obama when he said, ‘‘I think there is a direct correlation between governance and prosperity. Countries (including firms) that are governed well, that are stable, where the leadership recognizes that they are accountable to the people and that institutions are stronger than any one person have a track record of producing results for people….’’
The following assertions made by important global corporate leaders, personalities and institutions underscore the critical role played by corporate governance in the economic survival of corporations and nations.
Sound corporate governance standards and practices will ensure: