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By Henry Uche
In a volatile, uncertain, complex, ambiguous and increasingly interconnected businesses environment, financial capital alone can no longer guarantee an organisation’s survival and long-term sustainability. Stakeholder trust has emerged as a critical asset that institutions must conscientiously earn, protect and preserve.
This was the position of doyens and doyennes in the corporate world at the 2026 Fellows’ Night & Investiture ceremony of Chartered Institute of Directors (CIoD) Nigeria held in Lagos yesterday.
Speaking on the theme, ‘The Trust Economy: Why Reputation Has Become Every Board’s Greatest Asset’, the guest speaker and Founder of MainOne, Funke Opeke, emphasized that building corporate reputation goes beyond having a trustworthy individual as CEO, although that matters, but reputation extends to all stakeholders.
“Your suppliers, regulators, employees, and of course most important, customers and the people who pay for your goods and services, are involved. We must ask, ‘how is managing reputation and engendering trust codified into your strategy, policies and business practices’? she submitted.
Charging the newly inducted Distinguished Fellows and Fellowship members, the President/Chairman of Governing Council of the Institute, Mr. Otunba Oyebanji, maintain that organisations must earn and preserve the confidence of their investors, customers, employees, regulators, business partners and the wider society.
According to him, while financial capital alone is no longer sufficient to guarantee institutional sustainability, reputation either can no longer be viewed simply as a communications or public relations matter, but the latter is a governance responsibility, a strategic asset and an important component of institutional resilience.
“Trust influences whether investors commit capital, whether customers remain loyal, whether regulators have confidence in an institution and whether employees are proud to be associated with it. Ultimately, trust can determine an organisation’s ability to sustain its license to operate”
CIoD President explained that Boards have a central role to play in building and protecting earned trust. “A Board earns confidence through the quality of its decisions, the integrity of its oversight, the transparency of its processes, the effectiveness of its risk management and its willingness to hold management accountable.
“Beyond policies and structures, however, Boards also shape the culture of the organisation. Where the Board demonstrates integrity, accountability, transparency and ethical leadership, those values can cascade throughout the organisation”
Conversely, Oyebanji stressed that weaknesses in governance and leadership can quickly develop into financial, regulatory, operational and reputational consequences, therefore, corporate leaders must continually ask not only, ‘if a decision is commercially sound?’ but also ask, ‘if It is ethical, responsible, and transparent’?
“We must ask, can we defend our decisions to our stakeholders? And will they strengthen or diminish confidence in this institution? These questions are increasingly important in an environment where information travels within seconds and corporate decisions are subject to unprecedented public scrutiny. A single governance failure can affect stakeholder confidence and undermine value built over many years”
He assured that CIoD’s mandate goes beyond conferring professional recognition, as an Institute committed to advancing excellence in corporate governance. “We have a responsibility to continually strengthen the competence, professionalism, ethical consciousness and leadership capacity of directors.
“We must equip directors not only with an understanding of the technical dimensions of governance, but also with the broader perspectives required to lead responsibly in a rapidly changing environment.
“Today’s boardroom presents challenges that were less prominent in previous decades. Directors must navigate technological disruption, cybersecurity, sustainability, regulatory complexity, artificial intelligence, stakeholder expectations and growing reputational risks”
He averred that the Institute would remain relevant, forward-looking and responsive, providing directors with the knowledge, tools and perspectives required to lead effectively and responsibly, saying, “Fellowship of the Chartered Institute of Directors Nigeria is more than a title; it is a mark of distinction and a call to greater responsibility. You must use your experience, influence and position to advance the principles of good governance and contribute meaningfully to the development of our institutions and our nation.
“Your responsibility extends beyond the organisations you currently serve. It includes helping to develop the next generation of directors, promoting ethical leadership, strengthening board effectiveness and contributing to a culture where accountability, integrity and responsible stewardship are valued. The Fellowship is a new chapter of service and leadership”
The management expert admonished corporate leaders to promote a governance culture in which organisations are not judged solely by what they achieve, but also by how they achieve it. He encouraged them to see trust as virtue that must be earned every day through responsible decisions, ethical conduct, transparency and accountability.
“Organisations may build impressive brands, strong balance sheets and sophisticated strategies. They may invest heavily in technology, infrastructure and talent. But ultimately, the sustainability of an institution rests on something more fundamental” he submitted.
The Chairman, Fellows & Awards Committee, Alhaji Tijjani Borodo, cautioned that Fellowship status is not merely a title, nor a tribute to past achievement, but a standing entrusted to bearers by their peers which carries enduring obligations.
“You must lead by example, uphold the values of this Institute, and serve our profession and the wider society with distinction. We live in an age of unprecedented scrutiny. Investors, regulators, employees, customers and the public now judge institutions not only by what they achieve, but by how they conduct themselves in achieving it”
In such an environment, he posited that ‘trust is no longer a soft virtue’, but a strategic asset, among the most valuables that any organisation can hold.
“Trust is fragile. It may take decades to build and only a moment to lose, through a lapse in judgement, an ethical failure or weak governance. The responsibility for guarding it rests, first and foremost, with the Board. Directors must ensure that integrity, transparency and accountability are not slogans on a wall but the working principles of every decision taken in the boardroom” he enjoined.
