Board excellence key to economic growth: Banker

DOHA: Global growth is projected to slow to 3.1 percent in 2016 before recovering to 3.4 percent in 2017. A more subdued outlook for advanced economies following the June UK vote in favor of leaving the European Union and weaker-than-expected growth in the US,  said Dr R. Seetharaman, Group CEO, Doha Bank.

Dr Seetharaman was addressing the 16th London Global Convention on “Corporate Governance Sustainability Global Business Meet” organised by the  Institute of Directors, India.The theme of the summit was “Board’s Evolving Role in an Uncertain Global Economy”

Addressing the event, Dr Seetharaman said the Global Governance gives focus on global economic growth and financial stability. It also gives emphasis on attaining inclusive growth through digitalisation and through women empowerment. 

Economies, institutions and individuals need to follow governance. It can be called corporate governance for institutions, and global governance for economies. Individuals are affected by corporate governance and global governance due to the links with institutions and economies, respectively. Institutions cannot afford to ignore the long-term, and focus only on the short term, as the long term is achievable only when it is sustainable. 

Today Sustainable growth remains a challenge for economies and for corporates as well. Corporate structure and culture should focus on linking performance objectives and combining performance measures, and should have a consistent design and implementation across organisations.Improved oversight over board compositions, improved disclosure and transparency, and the effective use of audit functions are key areas which require focus. Boards are increasingly considering sustainable development issues at the committee level. Board excellence contributes to sustainable development.”

Dr Seetharaman also participated in the session “Changing Role of the Boards – Global Trends “on 18th October 2016. He said “Diversity on corporate boards is associated with more effective corporate governance and improved financial value. 

Board diversity, which includes not only gender diversity, becomes really important in ensuring the Board is fit to drive change towards a sustainable business. Solving sustainability problems requires working across functions and this can happen if the senior team has collaborative leadership styles, he said.