Our Reporter
Two leading experts in corporate governance, Prof Mervyn King (Senior Counsel) of South Africa, and Prof Fabian Ajogwu (SAN) have explained the principle of outcome-based governance.
According to them, it 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.
They said 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.
The principles, they added, are applicable to any organisation regardless of size.
“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,” they said.
The duo spoke ahead of the presentation of a book they co-authored entitled: Outcomes-based governance: A modern approach to corporate governance.
The publishers added: “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.
“An indispensable publication in boardrooms as well as classrooms, Outcomes-based governance: A modern approach to corporate governance will benefit attorneys, advocates, corporate legal advisors, compliance officers, company secretaries, students, lecturers, and African countries that are developing governance guidelines.
“Hopefully, they will apply the thinking to rebuild corporate structures in Africa in other to secure their contributions to economic development and prosperity.”
The King Code IV of South Africa (by introducing the benefits of good governance from an outcomes-centric approach) and the Nigerian National Code of Corporate Governance (by adopting a principles-based approach to corporate governance) provide the book’s framework.
The spirit of the two Codes inspired the co-authors to combine their decades of diverse experiences in the field of corporate governance to produce the book.
Recently released by Juta Publishers and available online, it is set to be formally presented virtually tomorrow.
The foreword is wrtten by Group Chief Executive of Standard Bank Group South Africa Mr Sim Tshabalala.
The publisher said the book seeks to demystify outcomes-based governance and emerging corporate governance trends and to aid their adaptability in emerging economies.
It unpacks its applicability by highlighting the benefits of outcomes-based governance and the responsibilities of key players such as the board, company secretary, stakeholder relationship officer, investors, auditors and even government and regulators.
Prof King is a former judge of the Supreme Court of South Africa, and Judge of the International Chamber of Commerce’s International Court of Arbitration in Paris.
He chaired the Global Reporting Initiative and was also Chairman Emeritus of the King Committee on Corporate Governance that birthed the revolutionary King IV Code™.
Ajogwu is a professor of Corporate Governance at the Lagos Business School.
He founded the Society for Corporate Governance Nigeria, chaired the NCC Committee on Corporate Governance, and served on the Financial Reporting Council of Nigeria’s Committee on the 2018 National Code of Corporate Governance.
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