Stakeholders harp on good corporate governance, sustainability

Industry stakeholders have emphasised the need to prioritise sustainability and good governance as integral components of firms’ survival strategies. This was the consensus at the 2024 Annual Corporate Governance Conference (ACGC) held in Lagos to explore strategies for ensuring long-term resilience and growth.

The conference, themed “Corporate Survival and Sustainability: The New Face of Governance,” provided a platform for discussions on navigating turbulent times while embedding sustainability into corporate frameworks.

Board Chair of Ecobank Nigeria Limited, Mrs. Bola Adesola, in her keynote address said: “We live in a time where corporate sustainability is no longer an option but a necessity. Long-term survival demands that governance frameworks embed sustainability as an integral element. It is not about CSR anymore; it’s about ensuring business continuity today without compromising tomorrow.”

Speaking on pressing issues shaping the future of corporate governance, the acting Director General of PENCOM, Mrs Omolola Oloworanran, emphasised the increasing importance of Environmental, Social, and Governance (ESG) factors.

This discussion came on the heels of mounting global pressure on companies to demonstrate sustainability in their operations. With investors and consumers alike demanding greater accountability, Oloworanran highlighted that companies with a strong ESG focus are not just more resilient but also achieve better financial outcomes.

The rising wave of ESG regulations and expectations was a critical backdrop to her remarks on sustainability becoming a corporate necessity, not an option.

“Sustainability is no longer optional for companies; it is now a critical factor for survival. Companies that prioritise ESG tend to perform better financially and maintain stronger reputations in the long run,” she said.

Similarly, the Managing Director of the Ministry of Finance Incorporated Dr. Armstrong Takang during his presentation emphasised the growing need for collaboration between the public and private sectors in achieving corporate governance excellence.

His comment followed discussions about the role of governance in steering both state-owned and private entities toward sustainable growth. With public sector institutions increasingly looking to adopt private sector governance best practices, Takang called for joint efforts, highlighting the importance of a unified governance approach to create impactful and lasting change across industries.

“Corporate governance must be at the heart of both private and state-owned enterprises. It is essential for driving impactful change and ensuring long-term sustainability,” he added.

Following a growing trend of AI integration in business operations, the Head of AI at PA Consulting, Mr. Alwin Magimay, during his plenary discussion introduced the concept of an “AI manifesto,” encouraging companies to establish clear frameworks for ethical AI use.

His remarks were driven by the need to align AI development with sustainability goals, ensuring that the technology serves long-term objectives and remains a tool for ethical business practices.

His words: “Every company should have an AI manifesto, a set of principles that guide the ethical and purposeful use of AI to support long-term sustainability goals.”

The CEO of the Society for Corporate Governance Nigeria (SCGN), Mrs. Chioma Mordi, earlier in her welcome address, explained that governance has a new face, and demands a shift toward transparency, inclusivity, and purpose.

“By embracing ethical leadership, we can inspire a ripple effect of positive change across the corporate sector,” she declared.