Pearl Initiative outlines need for principles-based corporate governance
DUBAI- The Pearl Initiative, the leading not-for-profit institution working across the Gulf region to influence and improve corporate accountability and transparency, and leading global law firm Linklaters have co-hosted a roundtable discussion at the Shangri-La to discuss the business benefits of principles-based corporate governance in the Gulf region.
Guest speaker Lance Croffoot-Suede, a partner at Linklaters and Head of its International Governance and Development Practices, stated that; “In the Gulf region, where business is fast-paced and constantly changing, it is important to be adaptable to situations. Principles-based governance allows organisations this flexibility by being built around four key principles: accountability, transparency, evidence, and adaptability. By implementing fluid governance principles as opposed to tick-box rules, companies can create bespoke governance frameworks specific to their stakeholders needs.”
The event included workshop sessions in which the delegates agreed that there needs to be greater transparency in the Gulf region. In a survey conducted at the event, 85% of delegates stated that private companies should be obliged to implement rigorous governance frameworks but the majority believed that most companies will still not have fully identified and optimised their key governance issues in the next five years.
“When working together within a principles-based corporate governance framework, there is no question that best practice will proliferate. This will minimise reputational issues, and allow a company to grow quicker and become more cost effective,” continued Croffoot-Suede.
Imelda Dunlop, Executive Director of the Pearl Initiative, said: “At the Pearl Initiative, we are proud to be a conduit for best practice and events that bring together the business community, are invaluable in sharing ideas, experiences and good practises.
“There is a clear business case for the implementation of governance frameworks and principles-based governance is the most adaptable framework. Therefore it is well suited to our region. Many Gulf-based organisations have been built on the basis of strong integrity and values, and now is the time to translate these values into rigorous processes that protect reputation, minimise risk and enable these organisations to thrive”