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Tony Elumelu, chairman, Heirs Holdings Limited and founder, Tony Elumelu Foundation, has disclosed how critical poor monitoring, oversight, corporate culture, unethical business practices, lack of integrity at leadership level can be in the trajectory of business organisations, companies and largest of institutions on the back of a bad corporate governance. “We have seen how a lack of corporate governance can destroy institutions”.
Elumelu spoke at the 2021 Institute of Directors (IoD) annual directors’ conference with the theme, ‘Creating the Future: Deepening Corporate Governance Practice Through Multi-Sectoral and Multi-Generational Collaborations” held recently in Abuja, where he posits that corporate governance has come a long way, thanks to efforts of industry regulators and bodies like the IoD for always pushing for higher standards. “Governance is not one person’s responsibility and most times, the biggest test of governance is when it affects you.
The ability to step back, look at things holistically and subordinate self in the decision you make can be a game changer,” he said.
According to him, the task of imbibing the culture of corporate governance in the younger generation is collective for all industry leaders. Elumelu said that industry leaders must strive to teach the younger generation against repeating some of the mistakes they have made. “What came to my mind was the strategic importance of engaging our young ones at this stage so that together, we can help them to build institutions that will last and surpass the ones we have built. Let it be that we have suffered for them so let them share from our stories,” he stated.
Elumelu, who was a guest speaker at the IoD’s annual conference, said corporate governance is about structures, policies, rules, and regulations that govern best practices. According to him, governance is extremely important in building a lasting institution and legacy.
“When you think of IBM and Apple, you’ll find that while IBM was there before Apple, Apple is much stronger today. We want to see the businesses of our young ones – those who are here and those who are listening virtually – rise and overtake what we’ve already built,” Elumelu said.
Speaking further on the governance benefit of the Tony Elumelu Foundation, the chairman said, part of the business training its entrepreneurs receive is on the importance of governance systems to the sustainable growth of their enterprises. “We believe that it’s not just about giving $5,000; what’s more important is preparing and ‘capacitating’ you to manage that $5,000 when you get it,” Elumelu said.
He further said that there was a lack of understanding of what governance is; hence it is seen to be reserved for the public listed companies and large conglomerates, which is usually not the case. “Continuous engagement and socialisation at forums such as this will help to inculcate the right spirit in these our young businesses as they attempt to scale,” said Elumelu.
Ije Jidenma, president and chairman of the governing council, Institute of Directors (IoD) Nigeria, said when the baton of leadership of the Institute was handed over to her some months ago; she pledged to see that inclusiveness underlines the core essence in the Institute.
According to her, the theme of the 2021 Annual Directors’ Conference, ‘Creating the Future: Deepening Corporate Governance Practice Through Multi-Sectoral and Multi-Generational Collaborations,’ underscores the importance of corporate governance practices and further captures the Institute’s desire to inculcate good corporate governance practice at all levels of leadership, both at the private and public sectors of the Nigerian economy.
“The chosen theme highlights the need for synergy between the public and private sectors of the economy and also the need to pay attention to our emergent crop of leaders be they entrepreneurs or simply young directors charting new courses and who are in need of corporate governance and ethical practices to define their endeavours,” Jidenma said.
She also hoped that key players across the sectors of the economy will see the need to properly align their operations and conduct with the principles of corporate governance for the overall benefit of the country and the economy. “When we succeed, we would leave a lasting legacy to incoming generations. This undeniably speaks to our commitment to the principle of intergenerational equity which is essential for continued existence and prosperity,” Jidenma said.
