I will briefly seek to highlight the value of governance principles in the management of corporate entities. Corporate entities for our purposes will be taken to refer to established bodies such as Government Agencies.
Governance occurs throughout our various systems/entities and it is incumbent on all of us to do our part to ensure that what is described as good governance prevails. When you hear persons speak of good governance it is often in reference to the Governor and the fact that a significant part of his/her remit is to ensure good governance. All of us however, have a role to play in ensuring that good governance prevails throughout Anguilla. This we can do by ensuring that the principles of good governance are prevalent in any institution with which we are associated.
Statutory bodies such as government agencies are expected to practice good governance principles. Good governance requires good institutions with sets of rules governing the actions of individuals and organisations and the negotiation of differences between them.To achieve good governance a high degree of transparency and accountability is required in public and corporate processes. Effective institutions and good corporate governance are required toeffectively support the development of a competitive private sector.
For clarity good corporate governance requires the establishment and adherence to a constitution, laws, regulations, rules and policies, which will be made known to the persons they apply to and which will be applied consistently. In essence corporate governance takes in the entire framework within which a corporate body operates. The framework is partly established by the law, partly by participants themselves and more widely by society. The legal requirements on corporate bodies are relatively predictable but the boundaries to corporate behavior, set by the participants and by society are continually shifting and in some instances becoming more stringent. The standards expected of corporate bodies tend to rise and the interests, which they are expected to take into account to broaden.
The value of practicing good corporate governance becomes clear when it is realised that the decisions of major donors and international financial institutions,as to whether they will grant aid or a loan is dependent on whether good governance is being practiced. In essence the practice of good corporate governance ensures that a corporate entity has a good reputation, this in turn generates goodwill with investors and customers, which translates into good marketing and more business for the entity.
It is my hope that today’s workshop will create a greater appreciation for the establishment of and adherence to policies, which in turn can be reflected in rules, regulations and laws. This will have a positive impact not just on the corporate entity with which you are affiliated but also on Anguillian society as a whole. I look forward to engaging with you as we discuss some of these issues during the course of the morning.
Thank you.
