APRM Topics: Corporate Governance
Africa is a continent that has historically attracted very little investment. Our economies are based on industries such as mining, and agriculture that can have damaging effects on the environment. Abject poverty, hunger, HIV/AIDS, Malaria and Tuberculosis afflict many of our communities. Corporations are members of the community and can play a significant role in its development and improvement.
The corporate governance thematic area aims to promote good corporate governance on the continent, with the aim of enhancing the confidence of both domestic and foreign investors to increase their investments in Africa.
Corporate Governance is a system by which corporations are directed, controlled and held to account. It includes all types of businesses in the private and public sector- no company is too small to have to worry about strong corporate governance.
The main purpose of corporate governance is that it provides a level of disclosure and transparency regarding the conduct of corporations, their boards and their directors. It makes it possible to ensure those corporations: comply with their legal obligations and remissions; are accountable to shareholders and responsible to stakeholders including employees, suppliers, creditors, customers and communities; and act responsibility regarding the environment.
Good Corporate Governance has seven major principles: discipline, transparency, independence, accountability, responsibility, fairness and social responsibility. A corporation that practices these principles will most likely increase investor confidence, making it easier for them to raise money and finance new investments.
The main objectives of this thematic area are:
- Promote an enabling environment and effective regulatory framework for economic activities
- Ensure that corporations act as good corporate citizens with regards to human rights, social responsibility and environmental sustainability
- Promote adoption of codes of good business ethics in achieving the objectives of the corporation
- Ensure that corporations treat all their stakeholders (shareholders, employees, communities, suppliers and customers) in a fair and just manner
- Provide for accountability of corporations, directors and officers