FCMB CEO Tasks SMEs On Corporate governance, List Benefits
The Managing Director of First City Monument Bank (FCMB), Mrs. Yemisi Edun, has urged Small and Medium Enterprises (SMEs) to adopt sound corporate governance practices in order to remain relevant despite changing times. Also, outlining some of the benefits.
She made this known at the inaugural Corporate Governance and Enterprise Development Conference organised by H. Michael & Co in Lagos where she was a guest speaker. The theme of the conference was ‘Corporate Governance Best Practices: Imperatives for Business Sustainability.’
Edun explained that no business could stand the test of time without sound corporate governance practices. She made it clear that micro-businesses also require the same to achieve optimum performance and sustainable growth. She charged small businesses to imbibe corporate governance practices.
She listed the long-term benefits of sound corporate governance practice as strong brand equity, decreasing risks, reducing capital cost, and enhanced performance. She added that only businesses with solid corporate governance practices could stimulate economic growth and enhance innovation while protecting communities and the environment in their daily activities.
In his keynote address, former Deputy Vice-Chancellor, Babcock University, Prof. Sunday Owolabi, simplified corporate governance to “doing the right when no one is looking.”
He affirmed the advice of the Managing Director of FCMB to businesses to always do the right thing all the time, even when they seem to be at a disadvantage.
Owolabi urged businesses to self-regulate and embrace full disclosure and accountability. They are the building blocks of enduring institutions that outlive their founders. He also advised the Financial Reporting Council of Nigeria to consolidate the country’s multi-sector codes of corporate governance into a single omnibus document for corporations in Nigeria.
The conference convener, Dr Adeyinka Hassan, a notable enterprise governance advocate, noted that more than 100 companies in Nigeria have fizzled out due to corporate failures.
According to him, “there are companies we knew when we were growing up that are no more. They are all gone due to lack of a well-structured board and lack of good corporate governance.”
He stated, “No matter how small a business is or how fast a business is growing, there are certain things that must be done to sustain a business beyond the life of the owner. And that is where corporate governance comes. We need to preach it to everyone.”