WITH corruption seemingly on the rise and companies folding overnight, questions concerning managing of companies have been raised, including the question of what makes an institution successful.
Giant companies like Enron collapsed – with its ongoing case becoming the biggest bankruptcy filing in US history – and more recently and closer to home is the case of Avid Investment Corporation, which made headlines after executives of that asset management company were dragged to court on fraud charges after bungling a N$30 million investment from the Social Security Commission. In the wake of outcries against corruption, the British Council office in Namibia organised a networking session dubbed a ‘management forum’ on Wednesday evening in Windhoek.The meeting was attended by representatives of the public and private sectors, and the topic under discussion was corporate governance.In a World Bank Report for 2000, Sir Adrian Cadbury described corporate governance as “concerned with holding the balance between economic and social goals and between individual and communal goals”.”The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources.The aim is to align as nearly as possible the interests of individuals, corporations and society,” he said.Wednesday’s discussion was led by Bank of Namibia Governor Tom Alweendo, who gave a presentation on the importance of good corporate governance.He said good corporate governance was all about adhering to company procedures.Alweendo said good corporate governance was founded on six pillars, which if adhered to, would ensure the success of any institution.He explained that corporate governance was not solely based on moral principles, but also on having good procedures in place that would in turn add value to the company.The six are: clear division of roles and responsibilities, ethical and responsible decision-making, effective board structure with independent directors, communication with stakeholders, risk management, and encouraging and rewarding performance.In her speech, the organiser of the event, British Council Director Patience Mahlalela, said her organisation had seen it fit to facilitate networking sessions focusing on topical issues.She said this was the first meeting of its kind and the next was likely to be held early next year.Participants interviewed after the session welcomed the idea as worthwhile and called for more such meetings to discuss critical issues.In the wake of outcries against corruption, the British Council office in Namibia organised a networking session dubbed a ‘management forum’ on Wednesday evening in Windhoek.The meeting was attended by representatives of the public and private sectors, and the topic under discussion was corporate governance.In a World Bank Report for 2000, Sir Adrian Cadbury described corporate governance as “concerned with holding the balance between economic and social goals and between individual and communal goals”.”The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources.The aim is to align as nearly as possible the interests of individuals, corporations and society,” he said.Wednesday’s discussion was led by Bank of Namibia Governor Tom Alweendo, who gave a presentation on the importance of good corporate governance.He said good corporate governance was all about adhering to company procedures.Alweendo said good corporate governance was founded on six pillars, which if adhered to, would ensure the success of any institution.He explained that corporate governance was not solely based on moral principles, but also on having good procedures in place that would in turn add value to the company.The six are: clear division of roles and responsibilities, ethical and responsible decision-making, effective board structure with independent directors, communication with stakeholders, risk management, and encouraging and rewarding performance. In her speech, the organiser of the event, British Council Director Patience Mahlalela, said her organisation had seen it fit to facilitate networking sessions focusing on topical issues.She said this was the first meeting of its kind and the next was likely to be held early next year.Participants interviewed after the session welcomed the idea as worthwhile and called for more such meetings to discuss critical issues.
