Finance and Planning Minister M. Saifur Rahman said sound corporate governance might solve today's crisis of electricity and fertiliser in the country in a cost-effective manner.
Sound and ethical practice of corporate governance (CG) plays a key role to the success and failure or ups and downs of not only corporations but also national life, said the minister at the inaugural session of a conference.
The conference on 'CG-Bangladesh Perspective' was organised by the Institute of Cost and Management Accountants of Bangladesh in the city Thursday with its president Satipati Moitra in the chair.
The inaugural session was also addressed by State Minister for Education A.N.M Ehsanul Hoque Milan, Former Bangladesh Bank Governor Dr. Fakhruddin Ahmed and Managing Director of Bangladesh Online Limited Chowdhury Hafizur Rahman.
"There is no sound CG in the world in reality. Only theoretical practice and little implementation of CG may improve the current poor state of mismanagement, corruption, low productivity and inefficiency of organisations but it will not produce any effective result," said the minister.
Terming local government as worst form of unaccountable governing system he said Bangladesh is not lacking in resources rather it lacks in sound governance system in every sector including the financial sector.
"Who is the director of big companies? Owning major portion of shares most people are electing directors in an unfair way. Does it ensure sound implementation of CG? There is no expert financial officer or audit function in Nationalised Commercial Banks and the same with the private banks," asked the minister.
Companies are overstating their assets position by a minimum of 20 per cent to manipulate share prices but when the company fails then the question of rectification comes but CG ensures the disclosure of all the material and pertinent information which will protect not only the shareholders but also stakeholders, added the minister.
In the backdrop of rapid and irrational spread of irresponsible behaviour of capitalism CG and its implementation is vitally necessary to protect the corporate social responsibility as capitalism, since the inception, has been engrossed in only profit maximisation, suggested the minister.
He urged all to establish ethical evaluation, proper management system, and above all personal commitment to solve any crisis.
Bangladesh is a tariff-based country so people with highest integrity may help the country establish corporate governance, commented the minister.