Focus on good governance
25 November, 2017, 12:00 am
GOOD governance starts with those in leadership positions within companies — those sitting on boards.
This was the strong view of International Finance Corporation resident representative Deva De Silva while speaking during the launch of the Pacific Corporate Governance Institute (PCGI) in Suva yesterday.
Mr De Silva said good governance puts in place sound structures and processes to better direct and control the governing of companies.
“Numerous studies have shown that companies with good corporate governance practices are more productive and are less prone to systematic failures,” he said.
“They have also shown that investors have greater confidence in companies with good governance and operating in markets that are backed by sound legal and regulatory regimes.”
A recent IFC study into company performance also found that companies in the highest quartile of corporate governance practices during investment periods achieved nearly three times the return on equities than companies in the lowest quartile. Mr De Silva said through the new institute, directors from Fijian and regional companies would be trained on good corporate governance practices.
“This could be a game-changer for the region, giving the private and public sectors an avenue to help build a more sustainable future and to ensure that there are high-quality directors and more women sitting on boards of companies around the region,” he said.
Meanwhile, the objectives of the PCGI include organising activities to raise market awareness on issues of governance and private sector development.