The 2nd Corporate Governance Awards 2022
Putting in mind the adage “Great Nations are built by great institutions; and great institutions are managed by people who embrace good corporate governance practices”.
The Institute of Corporate Governance of Uganda (ICGU) in Partnership with Grant Thornton Uganda organized the 2nd ICGU Corporate Governance Awards, 2022 under the theme “CORPORATE GOVERNANCE: RECOGNIZING ADHERENCE TO BEST PRACTICES”. The event took place on Wednesday, 28th September, 2022 at Mestile Hotel, Nsambya. The Awards were sponsored by Kansai Plascon, New Vision, Diamond Trust Bank, National Social Security Fund, Centenary Bank, Bank of Uganda, Insurance Regulatory Authority and Diamond Trust Bank.
The Objectives of the Awards were to:
- Recognize the best governed institutions in the 6 different categories, to popularize good corporate governance comprehensively
- Establish a strong brand position for ICGU and the sponsors of this event as champions of Corporate Governance
- Build a relationship between the various brands and the key players in the categories assessed, to promote good corporate
This year’s Corporate Governance Awards presented an opportunity for different organizations to independently assess themselves and benchmark with their peers within the same sector. Organization Self-Assessment is now the modern trend of Corporate Governance spot checks as opposed to expert based assessments.
The Awards Criteria;
- The Institute appointed an independent consultant, Friends Consult, to drive this process from start to finish, and a panel of esteemed citizens, whose primary role was to quality assure the process and ensure that the results were arrived at equitably and correctly.
- Expressions of Interest were sent out to willing organizations to voluntarily participate in these Awards. Over 350 organizations were reached out to.
- ICGU used a Corporate Governance Self-Assessment Tool that is based on benchmarks derived from a number of internationally acceptable Corporate Governance principles, namely:
- The OECD Principles
- The King I-IV Reports on Codes of Corporate Governance
- The ICGU Corporate Governance Guidelines
- The Cadbury Code of Corporate Governance
- The International Principles of Corporate Governance and
- The Commonwealth Corporate Governance Principles
- To each organization which expressed interest was sent the detailed assessment tool.
In the tool, each of the following eight assessment areas were broken down into constituent questions, the answers to which automatically scored the participating organizations:
- Board selection, composition and diversity
- Effective board and committee operations
- Oversight on enterprise risk management and controls
- Board induction and training.
- Strategy, oversight, esg and value creation
- Board evaluation & improvements
- Responsibility, accountability & transparency
- Change leadership
- The participating/ assessed organizations responses were then classiified into 6 categories, namely:
- Large Private Sector Enterprise (Annual Turnover in excess of UGX 20 billion)
- Small and Medium Sized Enterprise (SME) (Annual Turnover less than UGX 20 billion)
- Public Sector Enterprise (Ministries, Directorates and Agencies)
- Non-Governmental Organizations (NGOs)
- Insurance Companies
- Banks and MDIs
These self-assessments were a hygiene check on the organizations’ composite governance areas (the eight assessment areas).
The rankings help the participating organizations to know where they stand relative to their peers with regard to governance. Overall whereas the organizations have tried their best to conform to internationally acceptable Corporate Governance principles, there is still considerable room for improvement.
The ICGU Corporate Governance Awards will henceforth continue to be held on an annual basis and we hope all participating organizations will strive to improve in the future, and those who that did not participate will do so next year.
All the assessments will be compiled into a report which will form part of a bigger report, “The State of Corporate Governance of Uganda Report” and shared with all participating organizations. This report will also give input into thematic area 4 – Corporate Governance, of the African Peer Review Mechanism (APRM).