Maintain Corporate Compliance Standards • BoG TelLS Businesses
The Deputy Govenor of the Bank of Ghana (BoG), Mrs. Elsie Addo Awadzi has underscored the need for businesses to maintain corporate compliance standards.
She said corporate compliance is critical to an organization’s survival and should be the bedrock of any business model.
Addressing stakeholders at the Festival of Ideas held in Accra on Friday, she said “It is imperative for business owners to think long term when starting business. Inter-generational business are built on a strong culture of compliance and ethical behaviour that builds the goodwill and brand of the organization for generation to come.”
Corporate compliance involves institutions and their employees, complying with relevant laws, regulations, standards, policies, and ethical practices that applies to their operations.
The Deputy Governor’s comment follows after a report from BoG cited various instances of supervisory weakness, and regulatory breaches which led to the collapse of UT, and Capital bank.
Persons whose actions contributed to the collapse, according to the Central bank, would be made to face the full rigour of the relevant laws of the country.
However, Mrs. Awadzi believes the seven banks wouldn’t have collapsed if the board and senior management had complied with relevant laws, regulations, and ethical standards.
She said non-compliance with statutory, regulatory, contractual, and obligations could lead to formal sanctions, and costly litigation or arbitration.
“Too often, we see businesses that start with great potential but fail all too soon, in part because their entire business model failed to internalize the statutory and regulatory requirements that govern their business operations or industry.
Internalising compliance requirements during the business planning stage, helps to assess the potential true costs of the business and whether it makes sense to start the particular business at all,” she mentioned.
She reiterated the importance for businesses to build a culture of compliance and an ethical value system at the core of its operations and activities.
“Be the business that is built on a rock. Be the corporate executive that helps to build a business,” she stressed.
By: Emmanuel Yeboah Britwum