Directors told to practise good governance

“Acquiring knowledge in corporate governance principles and applying these to decision making is fundamental to all practising directors”

It is important to understand good governance.

However, it is equally – if not more important - to apply this principle in the performance of duties.

That was the message from lawyer, Taulapapa Brenda Heather-Latu, during a presentation to a workshop organised by the Samoa Institute of Directors (S.I.o.D) held recently.

As part of the Institute’s commitment to promoting good governance, the training organised for members highlighted the need not only for directors to understand the principles of good corporate governance such as transparency, accountability and effective, proactive leadership, but how to apply these principles in the performance of their duties.

 “Good corporate governance practices involve; complying with the law and keeping proper financial records,” Taulapapa noted.

“(It also involves) seeking the success of the entity by making decisions for the best interest of the entity, identifying its future vision and ensuring that the purpose and goals of its activities are given to management.”

Corporate governance refers to the set up of systems, principles and processes by which an entity is governed.

They provide the guidelines as to how the entity can be directed or managed such that it can fulfil its goals and objectives in a manner that adds to the value of the entity and is also beneficial for all stakeholders in the long term.

Stakeholders in most cases, would include everyone ranging from the board of directors, management, governments and shareholders to customers, employees and societies.

Onosefulu S. Fuatai, the Chief Executive Officer of the S.I.o.D said the workshop was a success.

 “Acquiring knowledge in corporate governance principles and applying these to decision making is fundamental to all practising directors,” she said.

“This workshop has been successful in advocating to participants why corporate governance is crucial to the promotion of effective leadership in entities and corporations.”

The directors who attended were able to discuss and apply governance principles to ‘real time’ case studies they were presented with, and exchanges were shared on relevant boardroom experiences.

The Institute plans to continue with its courses and is preparing for the conduct of an introductory governance course in the latter half of the year for those aspiring to be directors in the course of their careers.