JAMAICA NOTCHES UP CORPORATE GOVERNANCE

“Markets are the best human innovation. But like parachutes they function only if open”, says Dr Madhav Mehra, President World Council for Corporate Governance at the launch of Jamaica Chapter of WCFCG

Kingston, Jamaica, 25 October, - Jamaica, a Caribbean Island known for its rum, reggae music, blue mountain coffee, white sand and sunny beaches was electrified all of two days, October 24-25, with the visit of Dr. Madhav Mehra, president of the World Council For Corporate Governance to launch the Jamaica Chapter of WCFCG. In attendance were 120 members of corporate Jamaica, senators, ministers, senior policy makers, jurists, chairmen and managing directors of Jamaica’s largest enterprises. The hosts were Jamaica Employers’ Federation and GovStrat, a corporate governance outfit headed by Vindel Kerr, Jamaica’s foremost corporate governance expert.

Bringing greetings from the government, was The Hon. Delano Franklyn, Minister of State in the Ministry of Foreign Affairs and Foreign Trade. He said, “the era of globalization has ushered in a phenomenal increase in competition. This requires the region to boost its competitiveness and credibility. For this to happen Jamaica and the rest of the Caribbean must embrace good and effective corporate governance practices.” He congratulated the hosts Jamaica Employer’s Federation and Vindel Kerr for inviting a champion of corporate governance like Dr Mehra, to launch the WCFCG chapter in Jamaica.

The launch was followed by half day seminar on “Taking Corporate Governance Beyond the Boardroom” where Dr Madhav Mehra was the keynote speaker. Departing from his text for as long as an hour Dr Mehra electrified the audience by providing brilliant and insightful details into the working of world financial system and the emerging role of corporations in the knowledge economy. He also dwelt at length on corporate social responsibility and how it can improve market capitalization of corporations.

Condemning the culture of concealment spawned by the compliance approach to corporate governance, Dr Mehra said companies are wasting huge sums of shareholders’ money simply to tick boxes striving “how not to get caught”. He said companies were missing a huge opportunity as good corporate governance offered competitive advantage and could be the most powerful instrument in Jamaica’s economic and social transformation. He said, “Jamaica’s diversity was a value enhancer. Exchange in knowledge economy has no losers. Both sides gain but the gain depends on the degree of diversity. It was in 1859 that Charles Darwin said variety improved the crop but our corporate world has not homed on to it even after 150 years.”

Dr Mehra said we must move CSR away from its philanthropic roots and make it a business goal. Citing specific case studies of companies such as ITC and HLL, Dr Mehra showed how companies could improve lives of poor and also made money for themselves. He said corporations need to understand that the poor are not the begging bowl of economy but a tremendous source of innovation and wealth creation. He cited examples of Public Partnerships to bridge infrastructural gaps that resulted in ‘win win’ situation for both.

The Hon’ble Dr Carlton Davis, Head of Jamaica’s government who delivered the opening remarks congratulated Dr Mehra and said “Dr Mehra has given an entirely new dimension to corporate governance and CSR”. He said he was specially impressed by Dr Mehra’s advice on Public Private partnerships and would invite Dr Mehra to visit Jamaica to help us make it happen.

The half-day conference was held at the Knutsford Court Hotel, Kingston and attended by 120 heads and senior executives of Jamaica’s corporations. The event has created a renewed interest in corporate governance. Companies made a beeline to join the Jamaica chapter of WCFCG. Many have invited Dr Mehra to conduct a workshop for their boards. Others who spoke included Mr Douglas Orane, Chairman & CEO of GraceKennedy Limited, Mr Aubyn Hill, Managing Partner, Corporate Strategies Limited, Mr Brian George, President & CEO, Supreme Ventures Limited and Mr Rodney Davis, President & CEO, Cable & Wireless Jamaica Limited.