ACCA tasks business leaders on corporate governance to boost investor confidence

In the face of the current slowdown in both global and local economies, the Association of Chartered Certified Accountants (ACCA) has tasked business leaders to strictly adhere to corporate governance in order to boost investors’ confidence and win them back into the Nigerian economy.

The accountancy body notes that while financial failures, fraud and questionable business practices do very little to boost investors’ confidence, strict adherence to accounting and auditing standards play a crucial role when investors consider markets to invest in.

Speaking at a forum organised by the Association and Institute of Directors (IoD) in Lagos recently, Helen Brand, chief executive, ACCA, said the current economic downturn in the country had further reinforced the message that governance of organisations, especially financial institutions, should always aim at protecting the interests of all stakeholders.

Brand, who spoke on the theme, ‘The Relevance of Governance and Ethics as a key Driver for Sustainability in 2020 and Beyond,’ reiterated that corporate governance remained crucial for the health of the country’s financial sector.

“At ACCA, we believe that improved disclosure, both mandatory and voluntary, is one of the few sustainable means of attracting liquidity,” she said.

The institution also canvassed for a timely and credible disclosure of company information, stating that this promotes investors’ confidence and, by extension, broadens the benefits to the domestic economy.

According to Brand, it’s evident that the responsibility of ensuring greater disclosure needs fall on the chief executive and chief financial officers of any organisation as they both play an important role in enhancing corporate governance, accountability and business success.

The ACCA boss argued that with financial scandals spreading across diverse sectors; from football to banking, it’s becoming increasingly clear that the previous ways of doing business require close examination.

“We cannot continue executing business the usual way without expecting another potential disaster around the corner,” she said, adding that business leaders had a massive role to play in setting the right tone from the top.

Brand echoed the need for board members to strive in ensuring their organisations get culture right so they could get the kind of behaviour they want.

According to her, board members must also avoid the sort of dysfunctional behaviour that causes accidents, destroys values and creates financial and reputational loss.

Earlier, Samuel Yemi, president, IoD, had commended ACCA for its success in the past 10 years in Nigeria, adding that corporate governance remained crucial in attracting investors into the country.