Dubai Chamber Conference about Corporate Governance

The Dubai Chamber of Commerce and Industry’s Centre for Responsible Business organised the latest Dubai Dialogue: Good Governance 2011 at the Emirates Towers hotel on Tuesday. With top global and local corporate governance experts in attendance, the conference discussed the mechanisms and best practices useful for businesses in promoting transparency and sustainability and gaining of confidence of investors and stakeholders. With its aim to find the way forward to developing a holistic approach to sustainability, the conference examined shortcomings in corporate governance practices worldwide and outlined challenges and promising features of excellence in the field. It also looked into measurable and progressive governance models and mechanisms that can lead to organisational excellence and long term sustainability.

In three different sessions, the speakers shed light on the topics of Corporate Governance and the Current Financial Turmoil, Corporate Governance a Driver for Sustainability and Best Practices in Corporate Governance. In his opening address, H.E. Hisham Al Shirawi, 2nd Vice Chairman, Dubai Chamber, stated that the recent global financial turmoil has questioned well established governance and economic systems and has forced global businesses to rethink the traditional norms and standards. He further stated that nHeHnow businesses in the region are beginning to recognise that good corporate governance, risk management and corporate social responsibility is a pre-requisite for sustainability and competitiveness and the ultimate path to business reputation and therefore, new directions for corporate governance have to be devised.

H.E. Al Shirawi informed that there is a strong link between good governance, business performance and sustainability, a relationship, which has been frequently overlooked by traditional organisations and corporate system. “Today corporate governance demands higher global outreach by businesses as it is a source of core global competence and competitive advantage. For making governance work we need to move beyond compliance to achieve higher standards. The need here is to create a corporate governance system which is based on ethics, integrity, equity, legitimacy and transparency,” he said. “For the UAE, good corporate governance is a key pillar underpinning the country’s reputation as a trusted financial and business hub. Meanwhile, significant regulatory reforms are taking place in UAE to further strengthen our governance regime. The idea is to enhance the fundamental regulatory framework supporting Dubai’s growth as an international hub for both businesses and investors,” H.E. Al Shirawi added.

He further said 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 added is done through training courses, advisory services, seminars to raise awareness and various programmes which are designed to increase a company’s capacity to implement broad governance and CSR. “It is a great pleasure that my participation in Dubai Dialogue: Corporate Governance Conference 2011 coincides with the recent announcement that we have ranked first in the S&P/Hawkamah Environmental, Social and Corporate Governance (ESG) Index 2011, as MENA’s most compliant company,” said Mahmood Ahmad, Vice President of Board Relations and Corporate Governance, du. “Our sustained efforts to enhance corporate governance standards within the company and the community led to this milestone achievement, and we would like to emphasise upon the fact that corporate governance reflects upon a company’s image, leading to greater shareholder trust, which, in turn, leads to increased value.”

Mr David Crackett, Vice President, Council of British Chambers of Commerce in Europe, who blamed bad corporate governance for the ensuing problems caused by the global financial crisis, stated that excessive legislation will not bring about the change but the renaissance of a strong ethical business culture. Mr Mak Yuen Teen, Associate Professor of Accounting at the NUS Business School, said: “Good corporate governance is critical for attracting investment and building sustainable businesses. Corporate scandals and a succession of financial crises throughout the world highlight the damage that can be done to companies and economies when governance is poor. This conference is very timely for raising awareness and sharing ideas about how to move corporate governance forward in the UAE.”

Mr Ryuichiro Yamazaki, Secretary-General, Asian Productivity Organisation, added: “The Asian Productivity Organisation (APO) has been assisting its member countries in the Asia-Pacific region for over 50 years in their socioeconomic development through the enhancement of productivity. These economies have continually recognised corporate governance as a vital factor in achieving organisational transparency and long-term sustainability alongside the needs for productivity and competitiveness. There are many best practices in promoting corporate governance which can be shared between the UAE and APO member countries, and we hope that the organisation can contribute to creating such regional linkages.”

The speakers included Paul Koster, CEO, Dubai Financial Services Authority, Dr. Peter Eigen, Founder of Transparency International, Christianna Woods, Chairman, International Corporate Governance Network Board of Governors, David Crackett, Vice President, Council of British Chambers of Commerce in Europe, Mahmood Ali Hussain Ahmad, Vice President, Board Relations, Corporate Governance and Compliance, Du, Yumiko Yamashita, Program Officer, Industry Department, Asian Productivity Organisation Secretariat, Wolfgang Braun, Head of Energy Transmission, Siemens Middle East and Mak Yuen Teen, Associate Professor of Accounting at the NUS Business School.