Ghana Business Code to regulate business operations
The Association of Ghana Industries (AGI) is expecting businesses to adopt more pro-social approaches in order to enhance their competitiveness, both within and outside the borders of Ghana.
It is now globally accepted that operating in the current global market requires certain standards, and businesses can no longer afford to operate at their whims and caprices to the determent of the larger society.
According to Mr. Cletus Kosiba, Executive Secretary of AGI, it is important for business entities to recognize that doing business in the 21st century “is no longer a question of companies doing what they want and then leaving consumer to determine whether they will buy their products or not, whether they will accept their services.”
The AGI Executive Secretary made the observation at a workshop on the implementation of the Ghana Business Code (GHBC) in Accra recently. It was co-organised by the AGI, the Ghana National Chamber of Commerce and Industries (GNCCI) and the Ghana Employers’ Association (GEA) with support from Improving Business Practice (IBP), a Danish International Development Agency (DANIDA) programme.
The GHBC, which is modeled on the United Nations (UN) Global Compact, is a set of norms developed by the AGI to guide the conduct of business operations. It outlines acceptable standards with regards to the environment and anti-corruption in business.
The GHBC has been introduced against the background of the Golden Age of business agenda. It is expected to focus performance measurements of businesses operating in Ghana not only on the bottom line of profits, but also on their social and environmental responsibilities, thereby strengthening the long-term prospects of the individual businesses.
Mr. Kosiba said the AGI “expects our members and all corporate entities for that matter to sign onto the code.” However, he pointed out, “this is a voluntary exercise.”
He said the idea of the GHBS is “about persuading companies to appreciate current global market requires certain standards.
“It’s a win-win situation, everybody is partner in the process of development and for that matter it’s important that we appreciate a certain standard of operation and this is the basis of GHBC.”
On the other hand, “there are a number of incentives that go with signing on. Even though you cannot be sanctioned, you will be marginalizing yourself if you decide that you will not be part of this GHBC process,” he told the forum.
Encouraging business to sign on to the code, Mr. Kosiba told participants, “nobody expects that from day one, every aspect of your activities or meet required principles but try much as possible that you will meet the principles.”
“Eventually, and definitely, you will be recognize only within the borders of the country”, the Executive Secretary said.
All ten major principles of the GHBC underscore the substance of Corporate Social Responsibility (CSR) and they are also fashioned after existing laws in Ghana.
Fundamental among the principles is that “Business should support and respect the protection of internationally proclaimed human rights within their sphere of influence.”
This principle recommends four types of rights here to, namely, the right to security of persons; the right to equal opportunity and non-discriminatory treatment; ensuring economic, social, and cultural rights; and the rights of workers.
Schooling participants on the contents of GHBC, Mr. Jacob Saah, a Consultant to the GHBC said, “There are several reasons by CSR is relevant for Ghanaian businesses.”
He noted that CSR has been around since the beginning of commerce, and it goes along with good corporate governance.
“`The core of CSR – ethical behaviour – is now firmly on the business agenda. Increasingly, companies are realizing that their business activities have direct impact on the society in which they operate and they see their future success.
Story by: Fredrick Asiamah – Public Agenda