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Good Corporate Governance Critical to Business Survival

Suva, Fiji, April 4, 2019 – The inaugural summit of the Pacific Corporate Governance Institute, PCGI, opened in Fiji today amid calls for companies to be more transparent and accountable by applying good corporate governance practices to build customer and investor trust.
Attracting some 200-business people, the summit was told good corporate governance was vital not only for business, but also for sustainable growth and success.
“In this competitive world, building customer and investor trust is fundamental for business survival,” said Australia’s High Commissioner to Fiji, John Feakes. “Good corporate governance is gaining priority in the minds of investors and other stakeholders. Companies increasingly have to be more transparent and accountable to their stakeholders and understand and manage a broader set of risks that could disrupt their business than ever before.”
IFC, a member of the World Bank Group, with the support of Australia, set up the Pacific Corporate Governance Institute last November, with the endorsement of the Reserve Bank of Fiji.  It’s now operating as an independent non-profit organization, with a clear mandate to promote principles of good corporate governance to companies in Fiji and operate as a center of excellence for corporate governance in the broader Pacific region.
“Numerous studies have shown that good corporate governance has a positive impact on business’s performance and access to finance,” said Nouzab Fareed, PCGI chair. “The work of the institute as well as the summit will play a crucial role in raising governance standards in the market, which will help Fijian companies better manage risks and improve profitability.”
“We are seeing a strong appetite within Fiji for the business community to learn more about corporate governance,” said IFC’s Resident Representative for Fiji, Samoa, Tonga, and Kiribati, Deva De Silva. “Good corporate governance is a critical component for the development of any organization. It’s important for companies to improve their corporate governance practices if they’re seeking to expand, foster stronger ties with other potential partners or developing a smooth succession plan.”
IFC’s Corporate Governance Program in the Pacific is implemented in partnership with the Australian Government, through the Department of Foreign Affairs and Trade. The program aims to help Pacific companies adopt effective governance standards and practices by raising market awareness, building the capacity of regulators and local partners, and providing firm-level advisory services.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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About Australia IFC Fiji Partnership
Through the Australia - IFC Fiji Partnership, Australia and IFC are working together to stimulate private sector investment and promote sustainable economic growth in Fiji.