Dubai Businesses Gain A Fresh Perspective On Corporate Governance

Dubai Chamber organised dialogue discusses the role of corporate governance in value creation and enterprise performance

The Dubai Chamber of Commerce and Industry ’s Centre for Responsible Business organised the 7th Dubai Dialogue: Corporate Governance and Value Creation at the Chamber headquarters on Wednesday.

In the presence of top global and local corporate governance experts, the conference discussed the emerging trends in corporate governance, creation of value and the importance of adopting the right structures. The conference also looked at the roles and responsibilities of board members in ensuring accountability and transparency in decision making.

The conference examined the role of corporate governance in driving sustainable business performance and enhancing competitiveness. It also looked into the effective integration of leadership, risk and process management control, and compliance into a single coherent and consistent business strategy to ensure long-term value creation.

In two different sessions, the speakers shed light on the topics such as Beyond Compliance - A New Era for Corporate Governance, Governance Best Practices for Risk Management and Enhanced Performance, Ownership Structures and Corporate Governance, Emerging Practices in Board Roles and Responsibilities and Family Owned Companies in a Global Competitive Arena. They also dealt with Governance, Risk and Compliance for Financial Services.

The post lunch master classes covered the topics of Designing Integrated Corporate Governance Structures and Role of Boards in Identifying Risk and Crafting Effective Internal Controls.

In his opening address, H.E. Hisham Al Shirawi, 2nd Vice Chairman, Dubai Chamber , stated that the conference continues to go from strength-to-strength and this time it examines the topic of corporate governance which in a way is a complex one due to several streams of thought including the organisation’s size, accountability to management and their individual objectives.

He further stated that one thing that is more or less universally accepted is that good corporate governance is a vital part of any business and if ignored can have dire consequences both in terms of increased vulnerability and poor performance.

In a nutshell, good governance should facilitate efficient, effective and entrepreneurial management and one that delivers value to stakeholders over the longer term. Therefore, it is necessary for companies to set out their objectives clearly in a policy or code of corporate governance, said Al Shirawi.

The 2nd Vice Chairman cited the example of Dubai Chamber stating that the Chamber ’s code of corporate governance is available to all staff and it clearly states the roles and responsibilities of the Board and Executive Members, as well as policies on corporate social responsibility, disclosure and transparency, and corporate culture and ethics, among others.

"This code has been put in place to support efficient, effective and entrepreneurial management and promote confidence in corporate reporting and governance and helps us to realise our ambitions and obligations to stakeholders, which include our staff, our members and the business community at large," he said.

Al Shirawi added, "Creating added value is what can put you ahead of rivals and is often the difference between success or failure. More and more companies here in Dubai and across the UAE realise the importance of corporate governance and are formalising its concepts into their operations and management requirements.

"Being a best practice pioneer is an important job for the future health and prosperity of Dubai’s business community. Everyone’s individual efforts are vital to ensure future success," he said.

He concluded by stating that through its Centre for Responsible Business, Dubai Chamber aims to promote awareness and the practicing of CSR and good governance among Dubai’s business community, which he said is done through training courses, advisory services, seminars to raise awareness and various programmes like the 35-member Sustainability Network which are designed to increase a company’s capacity to implement broad governance and CSR.

Mr. Mohammed A.R. Al Fahim, CEO of Paris Gallery, said: "What made us a market leader today was a clear vision, a strong governance plan which started in 2006, firmly committed leadership, and a team of highly dedicated personnel.

"We had our vision and our long-term goals, but one of our challenges was sustainable growth, and it required a revolutionary change which we did successfully by overhauling and restructuring our governance structure."

Mr. James Waweru, VP Finance, North Africa and Middle East, Unilever, added: "The conference will help UAE businesses and other organisations to introspect, understand and share best practice from within and without the UAE and make plans to be not just the best but trend setters in the area of governance," he said.

Ms. Alissa Amico, Manager, Middle East and North Africa, Corporate Affairs Division, Organisation for Economic Co-operation and Development, added, "The UAE has been making important improvements in corporate governance, both on the listed companies side with the introduction of a comply or explain code of governance and on the state-owned companies side with the establishment of mechanisms to improve the oversight and accountability of governmental enterprises."

Ms. Monica Soans, Vice President - Compliance, mashreq, said: "Corporate and governance must go hand in hand and begin with defining ethical behaviour and social responsibility of a citizen towards its economy. A good governance model is a system by which companies are directed and controlled as it showcases the ’value system’ of an organisation."

Mr. Sajith Kumar PK, Director and CEO, IBMC Group & JRG International Brokerage DMCC, said: "With the UAE financial services sector entering into new phases, the governance, risk management and compliance (GRC) are having more importance in investor, intermediaries and brokerage house education as GRC will guide them to benefit from these new financial service activities in a complied manner."

Emirate:  Dubai

Date: Nov 28, 2012

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