Corporate governance grows businesses, protect shareholders – Industrialist

 

The Former Chairman, AIICO Insurance Plc, Dr Dele Fajemirokun has said the enforcement of principles of corporate governance would enhance business growth and success geometrically.

Fajemirokun said this in his 292 pages book titled “The Making of Me: My Odyssey in Business” launched on Monday in Lagos.

According to him, adherence to corporate governance will protect shareholders, instill discipline and transparency in the running of businesses.

News Agency of Nigeria (NAN) reports that the business mogul and philanthropist said he wrote the book in response to demands for a write-up on his industrial success from financiers, bankers, stockbrokers, insurers and entrepreneurs among others.

Within 38 years, Fajemirokun has established businesses in more than 10 sectors, which include Insurance, Pension, Manufacturing, Banking, Estate, Agriculture, Poultry, Food, Shipping among others.

He stressed that it was necessary instil the principles of corporate governance into any organisation to ensure success.

“There was no doubting the fact that there were serious issues bordering on the breaches of corporate governance in the system.

” Corporate governance deals with the rules of engagement in an organisation, it defines the structure and process for the control and direction of the company.

“I am a firm believer in the concept and application of corporate governance in any business organisation.

“ It further defines the boundaries functionaries must not cross, such as awarding contract to oneself, being sole beneficiary of decision making and demand of early gratification, among others ,” Fajemirokun said.

The business mogul said instilling corporate governance also leads to protection of shareholders, transparency, integrity and ethical behaviors.

“Through the analysis above, there is no way that companies that enforce principles of corporate governance will not grow exponentially,” he said.

He further urged entrepreneurs to invest in advanced communication and technical skills.

He said,” AIICO Insurance Plc invested so much in advanced communications and technical skills, that in 2013, it became the first insurance company in Africa to be ISO 22301-2012 certified by British Standard Institution.

“This contributed magnificently to the success story of AIICO and other companies.’’

Speaking on major challenges in the economy, Fajemirokun urged the Federal government to fix the electricity problem facing the country.

He said,” A country without power can never see progress, especially in this 21st century.

“ I would want the Federal Government to face this challenge squarely and if all hands are on the deck, the problem will easily be resolved.”

On insurance penetration, he said operators must disabuse existing schepticism about the industry to attract more patronage.

“Once Nigerians are educated that claims are paid, risks can be valued and protected, insurance penetration will improve.”

-NAN