Trending News: It is now compulsory for Nigerian corporations (Public &Private) to comply with the Codes of Corporate Governance

Why is this important?

To ensure the economic stability of the country, to protect the interest of the least person in the society, the corporations, their employees, customers and shareholders

Long Story Short

The Code of Corporate Governance for Public Companies and the Code of Corporate Governance for Banks in Nigeria do not ensure that Managers of corporations (Public and Private) in the country possess leadership qualities

Long Story

Have you ever wondered why some companies become insolvent, or did you know about the economic crisis (which started from UK and US) that rocked the global market in 2008, or have you probably read about why the Nigerian banking sector was in crisis in 1989-1991, or why do public office holders mismanage resources of the corporations they manage? A recent example in my country would be the allegation made by the Minister of Finance against NIMASA accusing the corporation of various sharp practices. Fundamentally, these fraudulent practices are possible because those in charge have little or no regard for good corporate governance practices or they lack the basic qualities of good leadership. Thus, I have the mandate to campaign more in support of good corporate governance and leadership in both private and public sectors of the Nigerian economy.

What is Corporate Governance?

Corporate governance is the ability to put in place proper systems and proper processes for ensuring the effective management of an organisation and the oversight function of managing the organisation, the proper process includes the mode by which the organisation is governed and by which the activities of the company are conducted, it places emphasis on integrity, order, efficiency, accountability and responsibility which are qualities required of those in charge of the management of the corporation. Simply put, it is a set of process, customs, policies, laws and institutions affecting the way in which a corporation is directed, administered or controlled. It is the overall strategic plan to make the company grow, which if practiced diligently will attract investment to the company and on the larger scale, countries with good corporate governance mechanisms attract foreign direct investment more than those countries without such structure.

What is Leadership?

Leadership is the process of motivating, inspiring, and influencing individuals and groups to set and achieve goals by pulling people who want to follow voluntarily, hence, the leader is someone with vision and interpersonal skills that guides, influences, or heads the direction of a group, or team in a non-coercive modelling manner. It is important for an organisation to have a focal person that is responsible for coordinating the activities of the organisation and for showing good example so that the employees and the customers will have confidence in following him or her in achieving the objectives of the organisation.

On the failure of Corporations

Fundamentally, the failure of big corporate organisations is caused by bad corporate governance practices, the organisations without accounting responsibility, operations responsibility, proper rules and regulations by which it operates will be free for all and such will hardly survive. This makes the issue of corporate governance extremely important to the economy of any nation. Due to the importance of some of these big companies to the economy of the nation and stability of the economy, the governments of developing countries like Nigeria have now taken the issue of corporate governance more seriously. continue reading @ http://www.alpinedna.com/?p=1581