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Corporate governance is a complex discipline. Even those of us who have built our careers in fields where governance is a necessity might not fully understand everything it encompasses. Moreover, new circumstances and terminologies keep emerging as businesses open shops.
That’s why I think the Institute of Corporate Governance of Uganda (ICGU) should keep visiting the subject and sharing new thoughts amongst its Members through this open forum. Today I would like to discuss the subject of Corporate governance by breaking it down into four simple words: People, Purpose, Process, and Performance.
Corporate governance is of paramount importance to a company and is almost as important as its primary business plan. When executed effectively, it can prevent corporate scandals, fraud and the civil and criminal liability of the company.
The reason for good governance is to earn as much profits as you can in a sustainable way. In non-government organizations and public sectors, the reason for good governance is to deliver stakeholder value.
There is no dilemma whatsoever unless there is conflict of interest, corruption and fraud. These are tell-tale signs of bad governance. In my position as the Secretary of the Institute of Corporate Governance of Uganda, we are creating environment of best practices to make sure that people understand how to run their businesses profitably and sustainably. When this is achieved, economies prosper, and people succeed.
Are you too good to be great? Are you too comfortable in your present good life to stress out and reach greatness? Because as great leaders have said, ‘the enemy of the best is the good.’
Many of you become comfortable when you get a small job, and think the world has come to an end. You sit, eat and sleep. You forget to stress out, always improving to reach greatness. Ask yourself; when it comes to the resources and opportunities you have, how much do you allocate from within and externally?
Traditionally, we have been taught that we need a mission and vision. However, a vision doesn’t help us improve. It invites us to remain stagnant. We end up dreaming out of the context. Somebody begins dreaming they want to own an aeroplane. Yes, it is very good to be stressed. But what does it help to dream owning an aeroplane yet in your family you don’t have a history of owing even a bicycle! It is good to dream big, but do so within context.