Corporates urged to adopt good governance

The success of modern enterprises hinges on the adoption of sound corporate governance.

The Centre for Corporate Governance (CCG), a local corporate governance training and research organisation, says good corporate governance increases return on assets by 14 per cent, with the combined predictive potential rising to an impressive 29 pe rcent, according to its research.

Chief Executive Officer Dr Joshua Okumbe, says both public and private organisations need good corporate governance practices to grow sustainably, as this promotes good leadership, strategic thinking and transparency.

"The fundamental question we should be asking today is how good corporate governance can transform institutions to achieve extraordinary results from extraordinary people," he said.

Dr Okumbe was speaking in Nairobi during the launch of the Corporate Governance Training Manual for Boards of Directors, which provides an internationally recognised curriculum to directors, managers and top leaders with current corporate governance practices, theories, challenges and practical solutions.

"This manual specifically targets boards of directors and top managers of companies and corporations who by, virtue of their positions, are at the helm of strategic decision making in these organisations," he said.

Dr Okumbe said directors play a critical leadership role in determining the fate of their organisations by entrenching effective policies, ethical and prudent practices, and informed oversight strategies that ensure sustained growth, productivity and service delivery for the benefit of other stakeholders.

The book, published by Longhorn Publishers, was launched by Abdikadir Mohamed, the president's senior adviser on political issues. He noted that good corporate governance was paramount if Kenya has to grow its businesses and the economy at large.