Good Corporate Governance and the Public Relations Practitioner

James Akinseloyin-

The discourse on corporate governance in Nigeria is not a recent phenomenon. It has been a part of the corporate existence of most corporations in developed climes around the world since the late 1970′s.
Interestingly, the issue is becoming a burning one, being constantly discussed at important fora. It was the focal point of deliberation recently in Abuja at the 2009 conference of the African Public Relations Association (APRA).
A business author, Gabrielle O’Donovan defines corporate governance as “an internal system encompassing policies, processes and people, serving the needs of shareholders and other stakeholders, by directing and controlling management’s activities with good business savvy, objectivity, accountability and integrity.” His definition, addresses the business environment alone, but its principles and workability cut across all strata of the society.
Expatiating, he maintained that corporate governance is a system of structuring, operating and controlling a company with a view to achieving long term strategic goals to the satisfaction of shareholders, creditors, employees, customers/suppliers in compliance with legal and regulatory requirements aside meeting environmental and local community needs. This practice works in organizations like an unseen policeman and has achieved a measure of successes in several countries.
For corporate governance to achieve its desired impact, there are principles which it must adhere strictly to, including:
Rights and equitable treatment of shareholders: Organizations should respect the rights of shareholders and help shareholders to exercise those rights.
Interests of other stakeholders: Organizations should recognize that they have legal and other obligations to all legitimate stakeholders and strive to honour them in the course of business.
Responsibilities of the board: The board needs a range of skills and understanding to be able to deal with various business issues knowledgeably with the ability to review/challenge management performance. It needs to be of sufficient size with an appropriate level of commitment to fulfill its responsibilities. There should be an appropriate mix of executive and non-executive directors for the board to function properly.
Integrity and ethical behaviour: Ethical and responsible decision making is not only important for PR, it is also a necessary element in risk management and avoidance of breaches leading to lawsuits. It is important to understand, though, that reliance by a company on the integrity and ethics of individuals is bound for eventual failure.
Disclosure and transparency: Organizations should clarify and make public the roles and responsibilities of board/management to provide shareholders with a level of expectation for which they can hold board/management accountable. They should also implement procedures to independently verify and safeguard the integrity of the company’s financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.
In Nigeria several factors are responsible for the apathy towards embracing the practice ofgood corporate governance. Such factors include corruption, bribery, gratification, nepotism, high level of unemployment, etc.
In paper delivered by the Secretary General of the African Public Relations Association (APRA) Wole Adamolekun entitled, Corporate Governance as a tool for socio economic development in Africa, he stated that corporate governance should not be practiced only in the arena of business and politics, but in all aspects of our national lives in order to ensure a better future for all. He noted that economic performance of any country is shaped largely by the quality and effectiveness of the nation’s corporate governance.
Adamolekun expressed the opinion that “for corporate governance to achieve its desired impact, poverty reduction must be a strategic imperative for sustainable and stable economic growth.”
To entrench this practice effectively in our society, public relations and other information managers must rise up to the occasion and raise their voices in achieving a better society for all. In the light of this, all public relations tools and strategies must be proactively utilized for organizations to meet their corporate goals.
The overall impact of good corporate governance practice on all stakeholders ultimately is to ensure a strengthened economy; hence corporate governance is a tool for socio  economic development.

James Akinseloyin is of the Client Service Department of Marketing Mix & Co, Lagos based marketing consulting company. He can be reached on 08033946042.