The Institute of Directors (IoD) Nigeria has charged directors to encourage and nurture ethical leadership.

A fellow and Vice Chancellor of Pan-Atlantic University, Prof. Enase Okonedo, gave the charge, yesterday, during the institute’s 2023 biennial lecture, where she spoke on ‘Cultural Norms vs Good Governance: Balancing the Tug of War.’

The don, who said there is a need for directors to have an open dialogue with stakeholders, stated that understanding their consent and cultural perspectives is pertinent in shaping corporate governance practices.

While streamlining the significant role culture plays in shaping corporate governance practices, Okonedo said its impact is complex, as it interacts with factors such as the legal system, decisional framework and stakeholders’ expectations.

She urged that directors should take cognizance of these factors in carrying out their duties and responsibilities.

“Cultural factors can impact decision-making, stakeholders’ relationships and business practices. To minimise conflicts is to raise awareness, foster understanding within the organisation about organisational culture. You must recognise cultural nuances to align with local consults,” she said.

Earlier, President and Chairman of Governing Council, IoD Nigeria, Dr. Ije Jidenma, said the biennial lecture, held in her honour as she prepares to hand over to the next leadership, recalled promises she made during her swearing-in two years ago to make the institute future-ready.

The IoD chief, who identified five pillars of inclusiveness, growth and development, charters of the institute, IoD house project and digital transformation, said with support of the council, they did creditably well.