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February 22, 2018

Build relationships to improve performance, managers told

Employees at work. /FILE
Employees at work. /FILE

Managers should create ongoing relationships with stakeholders for better performance. This was the message during the Good Governance for Good Citizenship Summit in Nairobi.

Participants were, however, told there is no satisfactory method to measure relationships in organisations and therefore, no basis for creating relational key performance indicators or measuring relational performance in organisations. 

“Kenya has advanced among African nations in executing corporate governance policies,” Institute of Certified Public Secretaries of Kenya chairman Tom Omariba said.

The King Report on Corporate Governance reveals effective organisational strategy requires that management understands the needs, interests and expectations of stakeholders. Joshua Wathanga, the chairman of the Hesabika Trust, said corporate governance represents the inclusivity stakeholders need.

“The increasing pay equivalence among organisations in African countries with over 500:1 pay equality between the CEO and lowest paid employee is an indicator of social injustice and should be addressed in corporate governance,” economist Michael Schluter said.

Mervyn King, a former Justice of the Supreme Court of South Africa said corporate governance should be  holistic.

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