Page 44 - FOL2023

NUL Alumni
Fol Alumni Corner:

5 FOL Alums Reflect on Corporate
Governance and Compliance

Corporate Governance and Compliance: a symbiotic relationship
By: Advocate Pheta Setlojoane

orporate governance Management. This is however

and compliance not a blank cheque as the Board

Chave gained signif- will always hold Management

icance in our modern-day cor- accountable for its decisions.

porate world. The success and Compliance on the other hand

sustainability of any corporate speaks to the process through

entity largely depends on the which companies demonstrate

strength of its governance and conformance to the laws,

compliance culture. Although regulatory requirements, policies,

the common measurement and best practices. Compliance is

of success for any company is its financial performance and share- irrefutably an indispensable key for

holders’ value creation, corporate governance and compliance are the both the survival and thriving of any

critical ‘behind the scene’ levers without which corporate success and company. Failure to observe any

sustainability are attainable. It is apposite to argue that the two are in- compliance requirements carries

extricably linked notwithstanding how each of the two is defined. both financial and reputational

implications. With this in mind, the
Corporate governance on one conferred accountable. In context,
Board oversight responsibility is,
hand is concerned with the way the power to hold any stakeholder
at all times, focused on ensuring
the company is governed, how accountable vests in the Board
that the control environment is
powers are shared and exercised of Directors. Typically, whilst the
strengthened, and all lines of
by various stakeholders in the Board plays an oversight role and
defense are operating effectively.
company and ways to hold those provides a strategic direction, it

on whom powers have been delegates operational powers to

46 FOL Quarterly Issue 2022