Accra, April 06, GNA — The Institute of Directors-Ghana (IoD-Gh) has urged firms to prioritise stakeholder engagement to increase effective work delivery and productivity in the face of Ghana’s economic downturn.
“As an industry observer, the IoD-Gh posits that Ghana’s recent economic troubles and their impact on businesses are a reminder to firms of the critical role of stakeholder engagement in enhancing effective work delivery and increasing productivity.”
A statement from IoD-Gh said Ghana’s economy was going through one of its toughest periods in history and experiencing many setbacks, more so with the emergence of the COVID-19 pandemic and the onset of the Russia-Ukraine War.
It said businesses had to find innovative ways of keeping afloat and must recognise that stakeholders played an important part in their success and plan appropriately.
The statement said stakeholder engagement and good corporate governance practices had become increasingly important as the country sought to attract foreign investment and grow the economy.
It said companies that prioritised stakeholder engagement as part of effective corporate governance and a commitment to Environmental, Social and Governance principles were better equipped to navigate the challenges of doing business in the country and to take advantage of the numerous opportunities available.
The statement said boards must recognise that they had a responsibility to the communities in which they operated and must take intentional steps toward identifying and engaging them.
It said boards needed to understand who their stakeholders were, how they related to the organisation, and what obligations the organisation may have to them.
The statement said by engaging with stakeholders, companies could better understand the needs and expectations of various publics and tailor their operations to suit them.
It said good corporate governance enjoined companies to operate responsibly and sustainably while creating value for all stakeholders.
The statement said effective stakeholder engagement included establishing connections founded on respect, trust, and understanding, and served as a tool for developing relationships that supported organisations in achieving their goals.
It said stakeholder engagement was beneficial to both organisations and constituents, and fostered goodwill and aided in the identification of potential problems that could be resolved while giving the organisation useful information such as how it was perceived, the requirements of its stakeholders, and its larger operational environment.
“The IoD-Gh is by this presser urging boards of organisation to prioritise stakeholder engagements as part of good corporate governance practices. This can provide a more sustainable future for Ghanaian firms while positively contributing to the country’s struggle for economic stability,” it stressed.
The Institute of Directors-Ghana is a professional body committed to the practice of effective Corporate Directorship to champion director professionalism and development through good corporate governance.
GNA