30 Nov 2016

Botswana’s business community has been called for transparency for the positioning of a sound corporate governance as an essential element of good corporate citizenship.

Speaking during a seminar to promote corporate governance in Gaborone on Monday, the chairperson of the King Committee, Professor Mervyn King pointed out that good corporate governance requires an acknowledgement that an organisation does not operate in a vacuum, but is an integral part of society and therefore has accountability towards current and future stakeholders.

Prof. King urged organisations to be transparent in the application of their corporate governance practices.

He said good governance that involves accountability and competency would lead to a healthy economy.

Prof. King stated that the King IV code reinforces the notion that good corporate governance is a holistic and interrelated set of arrangements to be understood and implemented in an integrated manner.

He mentioned that in the execution of its governance role and responsibilities, the governing body should adopt a stakeholder inclusive approach that balances the needs, interest and expectations of the material stakeholders in the best interest of the organisation over time.

He said such are inclusive of leading ethically and effectively, also stating that the governing body should ensure that the organisation is seen to be a responsible corporate citizen, as well that the governing body of an institutional investor organisation should ensure that responsible investment is practised by the organisation to promote good governance and the creation of value by the companies in which it invests.

Meanwhile, Prof. King mentioned that times have changed, adding that the global financial crisis, climate change and other societal ills have hit the financial market hard. He  said it was time that the corporate world learn to make more with less.

He said the enhanced features of King IV relate to fair, responsible and transparent organisation wide remuneration, adding that there should also be a responsible and transparent tax strategy and policy, social and ethics committees.

He urged Botswana’s business community to improve the standard of financial reporting through benchmarking and adoption of best practice and to comply with international accounting standards and statutory disclosure requirements. ENDS