Practice good governance, companies told

BANK South Pacific Company Secretary Mary Johns says good governance is important.
Speaking during the Papua New Guinea Institute of Directors gathering in Port Moresby on Wednesday, Johns said for many shareholders it was not enough for companies to be profitable, it also needed to demonstrate good corporate citizenship through environmental awareness, ethical behaviour and sound corporate governance.
“Good corporate governance creates a transparent of rules and roles in which shareholders, directors and officers have aligned incentives,” she said.
“Directors must understand their roles and subsidiaries, in PNG, there is key legislations that impacts on director’s roles and responsibilities.
“Corporate governance is a system of roles, practices and processes by which a company is directed and controlled.
“BSP has adopted a corporate governance approach as underpinned by the core values of our vision and values, integrity, leadership, people, professionalism, quality, teamwork and community.
“Corporate governance is about directors of companies acting in the best interest of its stakeholders, it is the people who meet the community’s expectations, and developing an ethical culture, commitment by the board management and all levels of staff, visibility and communication, governance environment that are continues improving governance, monitoring, assess, review of the governance framework, constant stakeholder engagement and education and awareness.”
Johns said PNG was a developing country and the social dynamics were different from other developed countries.
“It is not just systems, processes and profit, it is about people.”
Johns said at BSP, its leadership and management development programme set up in 2012 was running smoothly.
“It is a leadership development programme for high performing staff in the organisation.”