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

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

2. Jane VallsCEOMauritius Institute of DirectorsandChairpersonAfrican Corporate Governance Network (ACGN)

3. UNLOCKING AFRICAN POTENTIAL

4. 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

5. 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, EthicsSA, ASEA, ESSEC, Standard Bank, World Bank

6. 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.

7. 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 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

8. 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.

9. 4 KEY FOCUS AREAS • 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

10. 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

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

12. 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

13. Website www.afcgn.org

14. 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

15. QUESTION? • What is Corporate Governance?

16. Corporate Governance £400m taken from the pension fund

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

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

19. Lehman Brothers 4th Largest Investment Bank in the USBankrupt in 2008

20. 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.

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

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

24. 40 million people lost their jobs

25. RUPERT AND JAMES MURDOCHNEWS OF THE WORLD

26. The five key elements ofgood corporate governance Good board practices Appropriate controlenvironment and processes Strong regime of disclosure and transparency Protection of (minority) shareownerrights Strong commitment to corporate governance reforms Elements of goodCorporate Governance 26

27. Ethics

29. 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 steadyimprovement 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)

30. 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.

32. REPUTATION

33. Corporate Governance in the Financial Services

36. Stakeholder Management

38. Balanced Picture

39. NEWS

41. Corporate Communications