The word ‘governance’ is being used more often these days. It is ringing in our ears. The Oman government has also paid greater attention towards implementing governance and modern methods in all national economy sectors. It is expected to further reflect positively in supporting the national economy. For several decades, ‘governance’ has played a leading role in developing global businesses by providing good results of business performances. Many economic experts, government decision makers and stakeholders are calling to implement governance in their own countries’ economies, both at the government and private-sector levels.
Most international organisations define governance as follows: “Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders.”
‘Corporate governance’ is considered to be the main assistance factor in terms of monitoring the company’s objectives and in helping to have sustainable growth. If these methods are employed well by setting and following the best practices of strategies, policies, vision and mission, and ethical standards, then business performance can be monitored.
The Sultanate is going forward towards implementing governance which is one of the key tools in the Oman Vision 2040. His Majesty Sultan Haitham bin Tarik in his speech has stressed on the performance governance, accountability and integrity that aims to ensure complete harmony with ‘Vision 2040.’
Recently, I had read an interview with Sayyid Hamid bin Sultan al Busaidy, Executive Director of the Oman Center for Corporate Governance and Sustainability (OCCGS). He has confirmed about the government’s Companies Charter which is ready. “The charter which will be issued by the Capital Market Authority and will be mandatory to all government’s companies is expected to cover many aspects of good governance practices,” he says.
However, we need to evaluate previous reports issued by different auditors including the State Audit. The evaluation should cover the gap analysis, as well as monitor the actions that were recommended by them and if they are implemented or not. If the management does not take action, then it needs to examine the reasons for failing to do so.
In addition, the concerned departments should reinforce the concept of transparent, accountability and disclosures among the entities’ employees. The awareness should also assist to ensure that everyone from either top management or workers can welcome constructive criticism and answer all the auditors’ queries about their duties and tasks without being sensitive. They have to make the job descriptions clear of every member, including board, executive leadership, managers and employees so everyone is held to account for their respective roles.
At a recent programme that I had the opportunity to attend, a specialist auditor mentioned that when the foreign investors realise that a company gives priority to transparency, honesty, accountability, integrity and fairness, they will be encouraged to invest in that particular company.
The governance charter is considered to be only rules that can organise the relation among all parties. However, the company’s culture plays a vital role in cultivating this concept among their employees and in the future the practices will stem from the institutions and their employees conviction rather than the governance charter. Personally, I believe that the charter will add value to the country’s national economy and also contribute in activating the business sector to a large extent.
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