If Jamaica is to be properly positioned in the global economy there must not only be the enforcement of laws, but also a practice of compliance. With a borderless global environment companies and investors must be cognizant of the regulatory requirements that will preserve and promote their prosperity in the future.
If Jamaica is to be properly positioned in the global economy there must not only be the enforcement of laws, but also a practice of compliance. With a borderless global environment companies and investors must be cognizant of the regulatory requirements that will preserve and promote their prosperity in the future.
As a society it cannot be taken that “It is a Jamaican ting” to avoid or break the law; instead there should be a high degree of compliance. By highlighting this principle the call is being made to regulatory agencies to begin educating stakeholders on areas of law to avert violations and build a culture of compliance.
While it could be taken that the obvious practice for companies is to develop plans that recognize a territory’s laws, in Jamaica there are many cases that prove otherwise. Clearly, with violations the authorities have no option but to enforce the law, which creates losers in the process.
All Listed Companies, whether with December yearend or otherwise, must developed plans to ensure that their strategic objectives are realized in the future; the same can be said of Non-Listed Companies. It can be taken that these Companies’ executive management team would have undertaken the strategic planning exercise long before the close of the financial period.
It must also be added, that non-profit entities and individuals also do performance assessments and create strategies. One of the traditional tools of reporting companies’ financial performance is the publication of financial statements, which provide shareholders and the public with an opportunity to evaluate its worth and management’s performance.
What is, however, reported in the financials are not fortuitous, but rather, the skillful, careful and timely development and execution of a company’s strategy.
What really is a strategy?
One of the fundamental underpinnings of a strategy is that it seeks to define the current environment that the business operates in against the background of identifying and positioning it in the future where opportunities and advantages exist. This can be in regulatory setting that is highly developed and properly defined or one that informal and developing.
One of the fundamental underpinnings of a strategy is that it seeks to define the current environment that the business operates in against the background of identifying and positioning it in the future where opportunities and advantages exist. This can be in regulatory setting that is highly developed and properly defined or one that informal and developing.
Depending on a country’s socio-economic maturity, informal institutions are relevant and important; however, in the long-run they are deemed more costly to business operators, and stymie a country’s global competitiveness. The significance of institutions, whether in the formal or informal setting, is that they provide business operators the opportunity of understanding rules of the land.
Regulations provide a mechanism for the enforcement of rules, which advances the efficacy of the market and promote compliance. The promotion of compliance, however, also requires an interface between regulatory officers and the market players, who should be constantly engaged through public education and discussions.
Building Jamaica with a new strategic perspective
Traditionally, strategies are formulated along principles of Industry and Resource Based Perspectives. The new thinking, however, is to recognize institutions in strategies, and that is where regulations are highlighted and are deemed critical. The Institutional Based Perspective highlights the need to place emphasis on the institutions, culture and ethics within the territory or country that the business operates.
Traditionally, strategies are formulated along principles of Industry and Resource Based Perspectives. The new thinking, however, is to recognize institutions in strategies, and that is where regulations are highlighted and are deemed critical. The Institutional Based Perspective highlights the need to place emphasis on the institutions, culture and ethics within the territory or country that the business operates.
Above, reference was made to the vacancy of formal and informal institutions; however, the latter makes a country globally uncompetitive in the long-run. It is fair to say that Jamaica cannot afford to spend its resources to realize short-term gratifications. Therefore, advancing the formal institutional framework is critical. This will only be realized if rules are properly defined, enforcement is undertaken and compliance is promoted.
In closing, if Jamaican companies are to make the grand leap into the global market conforming to formal regulatory requirements is critical. Arising from these local and international investors will feel fully satisfy that our financial market bears the emblem of being transparent, efficient, ethical and fair. Additionally, Jamaica will be better positioned in being more competitive to attract Foreign Direct Investments to its shores.
