APRA Conference 28 30 May 2014 PR Corporate

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APRA Conference 28 -30 May 2014 PR & Corporate Governance : What Synergy?

APRA Conference 28 -30 May 2014 PR & Corporate Governance : What Synergy?

Jane Valls CEO Mauritius Institute of Directors and Chairperson African Corporate Governance Network (ACGN)

Jane Valls CEO Mauritius Institute of Directors and Chairperson African Corporate Governance Network (ACGN)

UNLOCKING AFRICAN POTENTIAL

UNLOCKING AFRICAN POTENTIAL

ACGN 10 Founding Members: • Institute of Directors Kenya • Institute of Directors in

ACGN 10 Founding Members: • Institute of Directors Kenya • Institute of Directors in Malawi • Mauritius Institute of Directors • Institut Marocain des Administrateurs • Institute of Directors Mozambique • Institute of Directors in Southern Africa • Institute of Directors in Tanzania • Institute of Corporate Governance of Uganda • Institute of Directors of Zambia • Institute of Directors Zimbabwe

New members and partners • IOD Nigeria • IOD Senegal • Targeting: Algeria, Botswana,

New members and partners • IOD Nigeria • IOD Senegal • Targeting: Algeria, Botswana, Cote d’Ivoire, Egypt, Ethiopia, Ghana, Namibia, Seychelles and Tunisia • Partners, affiliates and collaborators: NBF, Webber Wentzel, IFC, FITC Nigeria, ACCA, EY, Ethics. SA, ASEA, ESSEC, Standard Bank, World Bank

WHY? According to the International Monetary Fund, Africa will host seven of the top

WHY? According to the International Monetary Fund, Africa will host seven of the top ten fastest growing economies in the world in the next five years. With the current focus on growth and development in Africa, good corporate governance and capacity building in this area, is vitally important.

Our Mission and Vision Mission • To develop the institutional capacity of ACGN members

Our Mission and Vision Mission • To develop the institutional capacity of ACGN members for enhancing effective corporate governance practices towards building better private and public sector organisations and corporate citizens in Africa. • Vision • Africa, a continent committed to effective corporate governance and ethical leadership. Our Values • Transparency – Being open and clear • Integrity – Ethical behaviour and consistency of actions and values • Teamwork and Collaboration – Leveraging collective knowledge • Accountability – Being answerable to stakeholders • Diversity – Being respectful of the diversity of the African continent

Objectives • Exchange and share knowledge, information, best practices tools and resources. • Demonstrating

Objectives • Exchange and share knowledge, information, best practices tools and resources. • Demonstrating good practice within member organisations and network • Building sustainable capacity to enable membership organisations to achieve their goals • Common platform for advocacy, initiatives and communications • Expand the network • Create a favourable investment climate (outcome) • Conduct research.

4 KEY FOCUS AREAS 1. Research • Baseline study • repository of information on

4 KEY FOCUS AREAS 1. Research • Baseline study • repository of information on corporate governance in Africa • EY support 2. Advocacy • Stakeholder engagement and mapping • Lobbying for improved corporate governance after research completed

4 KEY FOCUS AREAS 3. Collaboration • Sharing of tools and best practices •

4 KEY FOCUS AREAS 3. Collaboration • Sharing of tools and best practices • MOU’s with key stakeholders 4. Capacity Building • Assessment of each member • Develop action plan, training, coaching and mentoring • IFC has been approached for support

ACGN ~ together representing the voice of over 11, 000 directors and senior executives

ACGN ~ together representing the voice of over 11, 000 directors and senior executives in Africa

Challenges facing corporate governance reform in Africa • • Corruption Regulatory issues Inactive shareholders

Challenges facing corporate governance reform in Africa • • Corruption Regulatory issues Inactive shareholders State owned enterprises Board weakness One-size fits all governance codes Political instability

Website www. afcgn. org

Website www. afcgn. org

PR & Corporate Governance : What Synergy? • Role of the professional Public Relations

PR & Corporate Governance : What Synergy? • Role of the professional Public Relations practitioner in todays world of corporate governance • Managing the interests, attitudes and perception of all the stakeholders • The rocky road that has brought us here

QUESTION? • What is Corporate Governance?

QUESTION? • What is Corporate Governance?

Corporate Governance £ 400 m taken from the pension fund

Corporate Governance £ 400 m taken from the pension fund

What Is Corporate Governance? “Corporate governance is the system by which companies are directed

What Is Corporate Governance? “Corporate governance is the system by which companies are directed and controlled…. ” Sir Adrian Cadbury, UK, 1992 17

 • ENRON • WORLDCOM • PARMALAT • MAXWELL • BARINGS • BCCI •

• ENRON • WORLDCOM • PARMALAT • MAXWELL • BARINGS • BCCI • VIVENDI • SATYAM • LEHMAN

Lehman Brothers 4 th Largest Investment Bank in the US Bankrupt in 2008 19

Lehman Brothers 4 th Largest Investment Bank in the US Bankrupt in 2008 19

Madoff In December 2008, Bernard Madoff admitted to a Ponzi Scheme. In March 2009,

Madoff In December 2008, Bernard Madoff admitted to a Ponzi Scheme. In March 2009, Madoff pleaded guilty to 11 federal crimes and admitted to operating the largest investor fraud ever committed by an individual. In June 2009 he was sentenced to 150 years in prison.

LEHMAN BROTHERS SHARE PRICE Housing bubble peaked in 2006 Case for Corporate Governance 19

LEHMAN BROTHERS SHARE PRICE Housing bubble peaked in 2006 Case for Corporate Governance 19 Jan 2012

BRADFORD & BINGLEY SHARE PRICE Case for Corporate Governance 19 Jan 2012

BRADFORD & BINGLEY SHARE PRICE Case for Corporate Governance 19 Jan 2012

40 million people lost their jobs

40 million people lost their jobs

RUPERT AND JAMES MURDOCH NEWS OF THE WORLD

RUPERT AND JAMES MURDOCH NEWS OF THE WORLD

Protection of (minority) shareowner rights Strong regime of disclosure and transparency Appropriate control environment

Protection of (minority) shareowner rights Strong regime of disclosure and transparency Appropriate control environment and processes Good board practices Elements of good Corporate Governance The five key elements of good corporate governance Strong commitment to corporate governance reforms 26

Ethics

Ethics

SATYAM – WHERE TRUST WAS ABUSED • Satyam Corporate Services - annual revenues >

SATYAM – WHERE TRUST WAS ABUSED • Satyam Corporate Services - annual revenues > USD 1 billion in 2008 - winner of World Council for Corporate Governance’s Golden Peacock Award • January 2009 - Confession by Founder and Chairman - Embezzlement of about USD 1 billion in cash • A year later - “ A steady improvement in the functioning of boards in India…Independent Directors… more involved in overseeing the affairs of their companies and property minority rights” (Comment by ARUN DUGGAL, former CEO Bank of America in India)

In late 2011 the company fired its newly appointed British CEO causing a scandal

In late 2011 the company fired its newly appointed British CEO causing a scandal that wiped 75% off the company's stock market valuation. The board members had engaged in one of the biggest loss-concealing scandals in Japan.

REPUTATION

REPUTATION

Corporate Governance in the Financial Services 33

Corporate Governance in the Financial Services 33

Stakeholder Management

Stakeholder Management

Balanced Picture

Balanced Picture

NEWS

NEWS

Corporate Communications

Corporate Communications