May 16, 2012 – Blog post by John Martin St. Valery, Founder & CEO at The Links Group
Everywhere you go in town the buzz is trying to be Corporate Governance
compliant. I say ‘trying’ as I’m not convinced everyone understands the real
Corporate governance is not just a set of rules for the big listed companies –
it is a framework of guidelines to make your business safer, more accountable,
transparent – and more attractive! Do you agree?
Attractive how? Well, are you seeking finance? Are you considering an exit
strategy? Are you trying to attract business from overseas and demonstrate that
we are indeed transparent, open and honest in this booming region?
In our own business we have experienced real value straight to the bottom line
by implementing and maintaining a corporate governance structure. A private
business with true independence on the board? Yes! A company with an ethics
policy? Yes! As a Dubai SME 100 ranked company, these efforts have been
applauded and recognised. Was this a result of being forced to adopt a code? No
– it is a result of being proactive.
It is odd then that some listed companies – whom now have a code to follow –
choose not to! Others, (i.e. banks) are exempt; come on! What can we do to
change this situation? Perhaps a bottom-up approach from the lifeblood of our
economy (yes, the SMEs), by voluntarily adhering to basic governance standards
would help. What say you?