04 Dec 2023

Corporate governance, as a system that guides the conduct of people within an organisation, is critical for the growth of the economy.

The success of every organisation depends on the strategic planning, risk management, talent management and succession planning, which has the domains of corporate governance.

This was said by Assistant Minister of Trade and Industry Ms Beauty Manake when officiating at a two-day Corporate Governance Summit themed: Inside the Mind of Governance Gatekeepers, on Thursday.

She added that the board of directors, as opposed to its management team, such as chief executive officers and non-executive directors set the direction of an organisation towards success or failure.

This, she said had a trickle-down effect on the country's macro-economy.

Therefore, Ms Manake commended Exclusive Human Capital Consultancy, a small and medium Enterprise, for organising the summit, which was aimed at equipping the board of directors, and everyone in the corporate world, with critical principles of good corporate governance.

She emphasised that everybody should be treated equally through accountability in taking responsibility in decision making.

Ms Manake further emphasised  responsibility by efficiently exercising the order of authority as well as  transparency through the disclosure of factual information about the organisation, not only to shareholders, but also to stakeholders.

These factors, Ms Manake said were critical in building investor confidence for the diversification of the economy.

Another factor, she said was compliance which eliminated uncertainties and avoided corporate scandals for the firm and brought the much needed economic growth.

For that reason, she encouraged the speakers at the summit to preach and adhere to the basic principles to echo the success of companies.

She also stressed that there was need for clarity around the duties and responsibilities of both the executive and non-executive board members, adding that there was need for a clear demarcation between the roles of a CEO, board chairperson and all.

The assistant minister noted that theme also resonated well with the Reset Agenda, especially the Mindset Change championed by President Dr Mokgweetsi Masisi.

The objective of the summit was to explain the concept of corporate governance and why governance was important for corporations, as well as the society at large.

In addition, the event was meant to deliberate on how corporate governance structures evolved and how academic interest and political or social concerns developed and discussed open issues concerning the future evolution of corporate governance in the context of globalisation. Ends