General Manager of the Jamaica Stock Exchange (JSE) Marlene Street-Forrest is encouraging local companies to pursue best practices in governance as one means of achieving not only individual corporate growth but also to produce better economic conditions for Jamaica.

Street-Forrest spoke at the annual JSE Best Practices Awards which were held this year on December 7 at the Jamaica Pegasus Hotel in New Kingston. Awards in 33 categories were handed out to local companies.

The general manager asserted in her opening address that profitability and a direct return on shareholding flows from outstanding corporate governance, a fact recognised in the JSE’s awards to the Best Performing Company and the PSOJ/JSE Corporate Governance Awards, as well as the Governor General’s Award for Excellence.

The Best Practices Awards, she said, assist in promoting transparency and best practices by listed companies and member dealers, which are two critical pillars of capital market infrastructure.

“While as a country our macro and indeed our micro economic conditions have improved, we are still a fragile country competing amongst global giants. In order to survive we must be twice as good, and our companies must be able to compete with the best international companies. It is therefore imperative that our compasses move to that of living the best practices.”

She suggested the possibility of companies introducing a specific line item in the income statement accounting for the cost of good governance.

The stock exchange head noted: “There is no magic wand that was waved and which accounted for the improvements in our macro-economic conditions. We understand that this was achieved through fiscal prudence and better governance, demonstrated not only by the government but by our own companies, many of which are represented here this evening and which have embraced the philosophy that good governance is the bedrock of sustainable development and longevity.”

Street-Forrest hastened to assure attendees that she was not making light of the intensive process involved in achieving best practices, which are the groundwork of good governance.

“We understand that the changes are made to achieve best practices. Excellent results take time, energy and commitment, and this is an investment similar and I daresay equal to investments in plant, machinery and other physical assets.”

However, she said, it was a goal worth striving for, noting that in 2015 when the JSE achieved the status of being the Best Performing Exchange , Bloomberg cited not only the performance in index but made mention of its governance standards.

“This, I believe, is a powerful testimony of the importance of Best Practices,” the general manager said.

The JSE, which is developing a Corporate Governance Index (CGI), is now moving to have commissioned an independent monitoring and evaluating committee for the CGI.

Street-Forrest, in a further update said, “We are pleased to inform you that the monitoring and evaluation will be accomplished through a body for which the PSOJ Corporate Governance Committee will have oversight responsibility. By September 2017, the index, which will be refreshed twice yearly, will be officially published. This, we believe, will have the power to raise to a higher level the country’s overall corporate governance standards.”

The JSE head concluded that as the island sees more cross-border trading and activities, and “as our companies move to cross-list on global platforms while other companies seek to cross-list on ours, we must be seized with the responsibility to ensure that we operate at the highest and most relevant international standards applicable to good governance.

“Good governance and profitability are the cornerstones of every great company, and we believe that this drives profitability. The Exchange believes this can be demonstrated in the manner in which information is communicated, hence our awards in the category of website, Annual Report and Corporate Disclosure and Investor Relations.”