The Chartered Institute of Directors, Nigeria (CIoD) has urged businesses to adopt governance models that work for the environment in which they operate for competitiveness.

Noting that emerging economies have their peculiarities, the institute warned that unless the characteristics are properly understood, ensuring business survival may be very challenging.

Chief Executive Officer, the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said this at the 2023 yearly dinner and awards by the CIoD, in Lagos, where he spoke on ‘Global Trends in Governance: Adapting to a Changing World’.

He noted that these were realities that the governance process needed to take into account for businesses to ensure competitiveness.

Noting that rigid governance models may not always work for business sustainability, he said such rigidities could pose serious risks to the resilience and competitiveness of business.

According to him, to ensure business resilience, there should be room for governance flexibility without compromising the fundamental values of corporate organisation.

He listed some diverse factors shaping the context of business operations, which he said include technological disruptions, geopolitical developments, emerging economic nationalism and protectionism, global economic fragmentation, supply chain disruptions, the changing nature of work, sustainability concerns and climate change, among others.

For businesses to ensure competitiveness, the CPPE chief said there must be an increasing demand for sustainability reporting, increasing gender diversity on corporate boards as well as increasing focus on environmental and social issues.

Similarly, he mentioned some of the trending global corporate governance issues organisations and businesses need to take on board in the new year.

According to him, there should be demands for better board effectiveness, board oversight of company culture, growth of remote working culture, increasing engagement with activist investors, growing importance of corporate social impact and enormous value proposition of AI for risk assessment, marketing and customer support.

He added that there should also be nurturing of talents that can manage the rapidly changing business landscape nationally and globally.

According to him, talent retention policy will be key going forward, even as organisations focus on career development opportunities, workforce flexibility and inspired leadership.

CIoD President, Tijjani Borodo, urged directors to champion diversity and inclusion within their organisations. “Embrace the richness that different perspectives bring and create environments where every voice is heard and valued. In doing so, we not only enhance the effectiveness of our boards but also contribute to the broader societal goal of creating a more inclusive and equitable business environment.

“Our collective journey is poised to take on new dimensions. As Directors, we are not just custodians of our organisations; we are stewards of the Nigerian economy, influencers of policy and architects of a sustainable future,” he said.