Techbiz Webinar Delivered By Mary Ekemezie ​

1. ETHICAL PRACTICES &
LEGAL COMPLIANCE
–
CORNESTONES OF
STARTUP GOVERNANCE
PRESENTATION BY
MARY EKEMEZIE
FOUNDER, ME CONSULT

2. OUTLINE
❑ Ethical Practices
❑ What are they?
❑ Some Examples.
❑ Benefits
❑ Legal Compliance
❑ Legal Compliance – Practical Examples
❑ Building an Ethical and Compliance Culture
❑ Closing Remarks – it is Possible!

3. ETHICAL
PRACTICES
-
WHAT ARE
THEY?
❑ Ethical Practices can be described as:
❑ moral standards (as opposed to legal standards)
established by a company to guide the behaviour of the
company, its officers and employees.
❑ business ethics that guide the behaviour of corporate
entities, especially regarding controversial subjects.
❑ actions/conducts that protect companies from legal liability
and ensure that they treat their customers and team
members with respect.
❑ business ethics that ensure that a company operates in
accordance with applicable laws.
What
sector/industry
does
the
question
relate
to?

4. ETHICAL
PRACTICES
-
SOME
EXAMPLES
❑ Ethical practices include:
❑ Integrity - this means adhering to a set of moral standards at all times, even
if no one is aware of your choices.
❑ Honesty –requires a commitment to telling the truth, regardless of the
consequences. It encourages trust among colleagues and between a business
and the public, thereby, leading to a reputation of reliability.
❑ Social Consciousness - A socially conscious business/company will use its
platform to bring awareness to and support change on social issues by,
amongst other things:
• Paying fair wages
• Working with business partners and suppliers that source ethically
grown products
• Applying/Utilising fair trade practices in its operations
❑ Leadership - is a commitment to excellence through ethical decision-
making. This is demonstrated by a conscious effort to set a positive example
of ethical behaviour.
❑ Transparency - transparency in the workplace is one sure way of
promoting ethical operation, and developing trust among employees and
customers.
What
sector/industry
does
the
question
relate
to?

5. ETHICAL
PRACTICES
-
SOME
EXAMPLES
CONTD.
❑ Respect - Treating others with respect is a core principle in business ethics.
Respect is demonstrated by a full commitment to the human rights, dignity,
autonomy, interests and privacy of all personnel. It means recognizing that
everyone deserves equal respect and support for sharing ideas and opinions,
without fear of any penalty or form of discrimination.
❑ Fairness – involves giving to each his/her due, and requires avoiding preferential
treatment. It is one of the surest way of combating a culture of impunity.
❑ Accountability – this requires a total commitment to the ethical quality of all
decisions, actions and relationships. When an organisation practices and enforces
(encourages) accountability, this in turn drives ethical behaviour and high
expectations for ethical behaviour amongst officers, employees, vendors/suppliers
and clients of the company..
❑ Responsibility - Encouraging employees to take responsibility will lead them
taking ownership of their work, and striving to be conscious of the emotional,
financial and business consequences of their actions.
❑ Environmental Consciousness - this comprises making choices to limit or
reduce the business’ negative impact on the environment, such as:
• Limiting trash and waste production
• Encouraging energy-saving practices
• Creating more sustainable, cost-saving strategies
What
sector/industry
does
the
question
relate
to?

6. ETHICAL
PRACTICES
-
BENEFITS
❑ Protection from Legal Liability
❑ Client Satisfaction
❑ Client Retention
❑ Brand Identity and Recognition
❑ Respect from Peers
❑ Healthy Work Environment
❑ Employee Loyalty and Retention
❑ Attract Investors and Financing
❑ Improving Operational Efficiency, Employee satisfaction and
Customer approval
❑ Build and Maintain trust amongst Employees and Customers
What
sector/industry
does
the
question
relate
to?

7. LEGAL
COMPLIANCE
❑ Compliance with the law, is the most basic level of ethical business
practices.
❑ Legal Compliance can, therefore, be defined as the adherence by a
company to the laws, regulations, guidelines and directives relevant to
its business operations and processes.
❑ To ensure legal compliance, the company must, therefore, create
policies, systems, and controls to:
• ascertain the legal requirements;
• confirm the compliance timelines; and
• track/monitor the compliance status.
❑ In order, therefore, to develop and to maintain an ethical and
compliance culture, a company must focus on the following:
• People
• Purpose
• Process
• Performance
What
sector/industry
does
the
question
relate
to?

8. LEGAL
COMPLIANCE
-
PRACTICAL
EXAMPLES
❑ Statutory Books – Register of members, Minutes Books, Register of
directors and company secretary, etc.
❑ CAMA Compliant Letterhead – full name of company, RC Number, Registered
Address, Names and Nationalities of Directors
❑ Trademark Registrations
❑ Filings with the CAC – annual returns, changes in share capital and
shareholding structure, changes to composition of directors; share
transfers,
❑ Tax Obligations – TIN, VAT Returns and CIT
❑ Statutory (and Contractual) Employee Obligations – PIT, Pension
Contribution, Group Life Insurance, ITF and ECA Contributions, Compliance
with the Special People’s Law of Lagos State
❑ Data Protection – FCCPC and NITDA
❑ SCUML and AML Obligations
❑ Develop Policies
What
sector/industry
does
the
question
relate
to?

9. BUILDING A
COMPLIANCE
CULTURE
-
PEOPLE
❑ PEOPLE
❑ This is the first element and the pivot on which all the other
elements revolves. It comprises:
❑ Founder(s) – envisions the business
❑ Board of Directors – gives effect to the vision of the Founder.
❑ Management Team - Oversees the day to day management of
the affairs of the business entity. If the management team is
ineffective: Orders are delayed, Clients are frustrated,
company loses businesses and its fortunes begin to decline
❑ Employees – the bedrock of any organisation.
❑ Investors – could be shareholders or lenders
❑ Professional Advisers – these include the company’s
lawyers, accountants, and auditors.
What
sector/industry
does
the
question
relate
to?

10. BUILDING A
COMPLIANCE
CULTURE
-
PURPOSE
❑ PURPOSE
❑ This second element is focused on:
❑ Business Conduct and Ethics - the principles that guide the
conduct of the employees and officers of the
company/business and which require them to conduct
themselves with honesty and integrity in all actions when
representing the company/business.
❑ Sustainability - concerned about the environmental, social,
occupational, community health and safety hazards, which
impact on the viability and continued existence of the
business.
What
sector/industry
does
the
question
relate
to?

11. BUILDING A
COMPLIANCE
CULTURE
-
PROCESS
❑ PROCESS
❑ This element deals with the following:
❑ Records and record management, Operational processes and
policies
❑ Payment controls, Accountability and Transparency and
Risk management
❑ Effective internal control mechanisms (internal audit and
whistleblowing) and External audit
What
sector/industry
does
the
question
relate
to?

12. BUILDING A
COMPLIANCE
CULTURE
-
PERFORMANCE
❑ PERFORMANCE
❑ The fourth and last element, this element is the reason why the
company continues to exist.
❑ This element looks to the following:
❑ Company’s revenues
❑ Products and Services
❑ Innovation and Adaptability
❑ HR Processes
❑ Employee Retention Policies
What
sector/industry
does
the
question
relate
to?

13. CLOSING
REMARKS
–
IT IS
POSSIBLE!
❑ In summary, building a sustainable governance culture in your Startup, depends on your
organisation’s business ethics and compliance culture. While this would require some
effort, it is a profitable and rewarding project, and in the best interests of your business.
❑ As a Founder, your duty is to envision and model a culture of ethics and integrity.
❑ The Board of Directors are to give effect to that vision, by fostering through their words
and actions, a culture that prioritises ethical practices and compliance.
❑ The Management Team drives the enculturation of an ethical and compliance culture in
the day-to-day operations and in their engagement with stakeholders. They encourage
employees to take responsibility and hold them accountable, when they fail to do so.
❑ Employees ensure that in carrying out their duties and in their interactions with the
company’s stakeholders, they comply with the law and the ethics of the company.
❑ Investors provide strategic support and the funding required to drive the development
and maintenance of an ethical and legally compliance company, thereby improving upon
the governance structures of the company.
❑ Professional Advisers advise on the state of the law and practice, and any changes.
❑ As I conclude this session, I leave you with this quote from Tele Lasode:
“Compliance goes beyond ticking boxes: it's about fostering a culture of ethics and
integrity, safeguarding your organisation's reputation. Every individual plays a crucial
role in ensuring compliance success; it's a collective effort across the organization.
Compliance also involves ethical standards, internal policies, and industry best practices
to achieve comprehensive governance.”
What
sector/industry
does
the
question
relate
to?

14. Thank you for your time.
I hope that you found the session useful.
Let’s have the questions.
17 Ibikunle Street, Yaba, Lagos State
mary@me-consult.org
+234 8035087797
I would like to hear from you. Please provide your feedback at:
https://tinyurl.com/vuy26y5p