Commodities

Companies advised on good corporate governance

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By Faridah Kulabako

Posted  Monday, February 10  2014 at  02:00

In Summary

Compliance to principles of good governance is not enough

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Kampala

Companies have been urged to practice a culture of good corporate governance so as to grow businesses and increase profitability.

Speaking at a press conference ahead of the third annual Directors and Company Secretaries Conference scheduled for late this month, the Institute of Chartered Secretaries and Administrators chairperson Ms Alison Dillon Kibirige said the quality of corporate governance within companies, irrespective of the size, has a direct impact on the level of growth and profitability, adding that good governance is also a major tool for attracting foreign investors.

“Mere compliance to the principles of good governance is not enough, companies should make these principles part of their DNA that’s when it will make more business sense because it will help you minimise risks and make more money,” she said in Kampala last week.

Good corporate governance involves having good structures in place, business ethics and values, stakeholder engagement and transparency and accountability.

Despite a number of corporate governance laws and rules in place, Uganda continues grapple with corporate governance challenges in many private and public institutions, a challenge that has suffocated enterprise growth in the country as the lack of it comes with lots of risks.

However, Capital Markets Authority chief executive officer Mr Keith Kalyegira, said Uganda’s standards have improved over the years.

fkulabako@ug.nationmedia.com