While the COVID-19 pandemic has caused businesses around the world to face their most challenging year till date, they are still required to adhere to corporate governance principles, codes and regulations in their operations and reporting.
The King Code IV of South Africa (by introducing the benefits of good governance from an outcome-centric approach) and the Nigerian National Code of Corporate Governance (by adopting a principle-based approach to corporate governance) provide the ultimate framework. The spirit of the two codes inspired Prof. Mervyn King (SC), of South Africa, and Prof. Fabian Ajogwu (SAN) of Nigeria to combine their decades of diverse experiences in the field of corporate governance to co-author the book, ‘Outcomes Based Governance: A Modern Approach to Corporate Governance,’ ISBN: 9781485136880, which was recently released by Juta Publishers and available online.
It is set to be formally presented at a virtual book presentation on July 14. The book, with a foreword from Mr Sim Tshabalala, Group Chief Executive of Standard Bank Group South Africa, seeks to demystify outcome-based governance and emerging corporate governance trends and to aid their adaptability in emerging economies. The book unpacks its applicability by highlighting the benefits of outcome-based governance and the responsibilities of key players, such as the board, company secretary, stakeholder relationship officer, investors, auditors and even the government and regulators.
Outcome-based governance entails considering the positive effects and benefits that an organisation can reap if the underlying principles of good governance are properly applied and fully achieved. It promotes the idea that there is a need to consider the potential benefits of effectively implementing governance inputs as opposed to isolated actions, details or procedures: this is what the book considers. The principles of good corporate governance are not only applicable to large organisations, but also useful for small and medium-sized enterprises (SMEs), which make up most businesses in emerging economies and the world generally. The book is centred on this approach, making it a must-read guide for listed companies, SMEs, and NGOs alike.
Emerging trends, such as inclusive capitalism, long-term sustainability, rights relations, integrated reporting and technology governance, are among those considered in the book for a holistic view of contemporary corporate governance. This is to assist the corporation in developing quality management and responsiveness towards the interest of all its financial stakeholders and society at large.
Source: The Guardian, July 13, 2020