×
× Digital News Videos Opinion Special Reports Lifestyle Central Coast Eastern Nairobi North Eastern Nyanza Rift Valley Western Business News Stocks Financial Standard Africa Asia America Europe Weird News Editorial Commentary Letters Crazy World Features Entertainment Money & Careers Health & Science Sci & Tech Home & Away Generation Next Cartoon Education Pointblank Environment Travel & Destination Columns Kipkoech Tanui uReport Kiambu Murang'a Nyandarua Kirinyaga Nyeri Baringo Bomet Elgeyo Kajiado Kericho Laikipia Nakuru Nandi Narok Samburu Trans Nzoia Turkana Mombasa Kwale Kilifi Tanariver Taita Taveta Kakamega Vihiga Bungoma Busia Siaya Kisumu Homabay Migori Kisii Nyamira Nairobi Uasin Gishu West Pokot Sunday Magazine The Hague Trial Kenya @ 50 Education and Training Health and Environment Insurance and Financial Security Housing Current Affairs Humour Makau Mutua David Oginde Clay Muganda Comand Your Morning Mohamed Wehliye Wednesday Life Alexander Chagema Arts & Culture Kamotho Waiganjo Barrack Muluka Xn Iraki Urban Rights - By Steve Ouma Branding Voice KCB Fredrick Ogola Sunday Magazine Wanja Kavengi Njoki Kaigai David Oginde Ken Opalo Daisy Maritim Houghton Irungu Hustle News Group Stages Round of 16 Quarter Finals Semi Finals Finals Third Place play-offs Opinion Dr Pesa Podcasts Round Table Sepetuko Eve Woman Ramadhan Special Fact Check Correction Explainers The Standard Insider Blog E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Why good corporate governance is an impetus for growth

By Gilbert Kiprono | August 27th 2019 at 03:00:00 GMT +0300

Good corporate governance is one of the most important prerequisite requirements for attracting equity capital that can contribute to domestic sustainable growth and development.

Corporate bodies play a significant role in wealth creation in the modern world as they are the key creators of economic value and employment. The way these organisations are governed remain crucial to a country’s economic development agenda.

In the quest for promoting economic growth and inclusive development in a country, institutions must build an environment of trust, transparency, and accountability necessary for fostering long-term investment, financial stability, and business integrity.

To promote an enabling environment for businesses growth and proper management of institutions, there is a need to prioritise the practice of good corporate governance which leads to efficiency and effectiveness of institutions.

Better governed companies are less likely to bribe regulators. This is because they comply with the relevant laws within the jurisdictions they operate in while poorly managed and governed institutions are likely to fall.  It is worth noting that several initiatives have been put forward by the Institute of Certified Secretaries (ICS) that promote good governance in both public and private sectors, according to CAP 534 of the Laws of Kenya.

The Institute has developed governance codes and standards that have been published with a view to ensuring that good governance is entrenched and practiced in Kenya.

In addition, the Institute trains and accredits governance auditors.

These conduct governance audits that examine the status of adoption of governance standards by the listed firms State entities.

There is also the Champions of Governance Award which is a governance assessment exercise that awards the best Institutions and Professionals who are deemed to have adopted and practiced governance codes and standards, among others.

In conclusion, the role that good corporate governance plays in economic growth and development cannot be overlooked.

It is incumbent upon all organisations both private and public to promote the practice of good corporate governance by adopting the best practices and most importantly the principles of corporate governance.

 

-Mr Gilbert Kiprono is the Manager, Research and Business Development, Institute of Certified Secretaries


Read More

Feedback