Firms urged to prioritise sustainability, good governance as key survival strategies

Speakers at the 2024 Annual Corporate Governance Conference (ACGC) have advised companies to prioritise sustainability, good governance as key survival strategies.

The advice was given at the conference, themed ‘Corporate Survival and Sustainability: The New Face of Governance.’

The event provided a platform for discussions on navigating turbulent times while embedding sustainability into corporate frameworks.

In the face of the mounting global economic challenges and increased volatility, industry leaders, corporate governance experts, and business executives gathered for the 2024 Annual Corporate Governance Conference (ACGC) to explore strategies for ensuring long-term resilience and growth.

A common thread in the discussions was the urgent need for companies to prioritise sustainability and good governance as integral components of survival strategies.

Bola Adesola, Board Chair of Ecobank Nigeria Limited captured this sentiment during her keynote address: “We live in a time where corporate sustainability is no longer an option but a necessity. Long-term survival demands that governance frameworks embed sustainability as an integral element. It is not about CSR anymore; it’s about ensuring business continuity today without compromising tomorrow.”

Speaking on pressing issues shaping the future of corporate governance, Acting Director General of PENCOM, Omolola Oloworanran, represented by the Secretary, Sanni Muhammad, emphasised the increasing importance of Environmental, Social, and Governance (ESG) factors.

This discussion came on the heels of mounting global pressure on companies to demonstrate sustainability in their operations. With investors and consumers alike demanding greater accountability, Oloworanran highlighted that companies with a strong ESG focus are not just more resilient but also achieve better financial outcomes. The rising wave of ESG regulations and expectations was a critical backdrop to her remarks on sustainability becoming a corporate necessity, not an option.

“Sustainability is no longer optional for companies; it is now a critical factor for survival. Companies that prioritise ESG tend to perform better financially and maintain stronger reputations in the long run,” she said.

Similarly, Armstrong Takang, managing director of the Ministry of Finance Incorporated during his presentation emphasised the growing need for collaboration between the public and private sectors in achieving corporate governance excellence.

His comment followed discussions about the role of governance in steering both state-owned and private entities toward sustainable growth. With public sector institutions increasingly looking to adopt private sector governance best practices, Takang’s call for joint efforts highlighted the importance of a unified governance approach to create impactful, lasting change across industries. “Corporate governance must be at the heart of both private and state-owned enterprises. It is essential for driving impactful change and ensuring long-term sustainability,” he added.

Following a growing trend of AI integration in business operations, Alwin Magimay, head of AI at PA Consulting during his plenary discussion introduced the concept of an “AI manifesto,” encouraging companies to establish clear frameworks for ethical AI use. His forward-looking remarks were driven by the need to align AI development with sustainability goals, ensuring that the technology serves long-term objectives and remains a tool for ethical business practices. “Every company should have an AI manifesto a set of principles that guide the ethical and purposeful use of AI to support long-term sustainability goals,” Magimay advised.

The discussions throughout the day made it clear that corporate sustainability is not merely a buzzword but a critical component of modern governance.

“Governance has a new face, and it demands a shift toward transparency, inclusivity, and purpose. By embracing ethical leadership, we can inspire a ripple effect of positive change across the corporate sector,” Chioma Mordi, CEO of the Society for Corporate Governance Nigeria, said in her welcome address.

The 2024 Annual Corporate Governance Conference reinforced the message that effective governance is not just a regulatory obligation but a strategic imperative for businesses aiming to survive and thrive in today’s complex and rapidly evolving environment.