Developing Corporate Governance Code must be an all-inclusive engagement – BoG

Mrs Elsie Addo Awadzi, the Second Deputy Governor of the Bank of Ghana, has called for an all-inclusive engagement in the development of Ghana’s National Corporate Governance Code.

Mrs Elsie Addo Awadzi, the Second Deputy Governor of the Bank of Ghana, has called for an all-inclusive engagement in the development of Ghana’s National Corporate Governance Code.

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“l hope that Ghana’s National Corporate Governance Code will be inclusive, thorough and authentic,” she said.

Mrs Awadzi made the call during a stakeholder engagement organised by the Institute of Directors-Ghana to launch the development of a National Corporate Governance Code for Ghana in Accra.

She said as the country built its economy, particularly after the pandemic, it would require a new emphasis on strengthening governance and sound management of corporate institutions.

The Deputy Governor said the measure should be extended to public sector institutions, including State-Owned Enterprises to deliver the desired outcomes for all stakeholder groups.

Mrs Awadzi said good corporate governance was the bedrock of a modern market economy and that corporate governance standards around the world, continued to evolve with increasing emphasis on effective risk governance.

She said the importance of good corporate governance in building strong institutions, communities, economies and the nation and helping to avoid the collapse of businesses could not be overemphasized and tasked stakeholders to get on board for an inclusive Code for Ghana.

Mrs Awadzi said corporate failures had their roots in poor corporate governance and recalled that in November 2019, the Bank of Ghana published the Ghana Sustainable Banking principles to guide banks and specialised deposit-taking institutions in modelling their operations to promote wealth class standards of environmental, social and governance risk management.

She said by a combination of those two instruments, the Bank of Ghana expected banks and specialised deposit-taking institutions to govern and manage their businesses in a manner that promoted economic, environmental and social goals to create lasting value for shareholders and other investors as well as employees.

“This is the Bank’s contribution to promoting a more inclusive, sustainable and resilient economy,” she said.

She said the Bank, however, recognised that good corporate governance in the banking sector alone could not promote robust and sustainable economic growth for all and underscored the need for strong governance in all sectors.

Mrs Awadzi commended the Institute of Directors-Ghana for the continued commitment to nation-building through the promotion of high standards of corporate governance practices in Ghana.

Mr Rockson Kwesi Dogbegah, President of IoD-Gh, said the proposed corporate governance code would be the first unified national code in the history of Ghana.

He said the exercise would be an all-inclusive national endeavour, involving every “possible stakeholder.”

The President said, “We would need the concerted effort of all stakeholders to work together as strategic partners or allies to promote the culture of good corporate governance in Ghana.”

Mr Dogbegah said the national corporate governance code, expected to be ready in 12 months, would provide a shift in focus for all businesses and promote good ethical business practices.

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