Corporate governance a priority for fledgling DMA

Brian Mdluli, CEO of the DMA

Says DMA CEO Brian Mdluli, "Being an association or section 21 company that relies on member funding, the DMA will run as a lean and effective business entity that serves the industry and its members by pursuing and promoting their interests within the field of direct marketing."

Adds Rollason, "The new DMA has come a long way since it reformed after the dissolution of the MFSA last year. It is vital that we learn from the lessons of the past and as such the DMA will comply with the provisions of King II as it applies to section 21 companies and at all times we will be 100% industry specific and accountable to our members and stakeholders."

Rollason's experience within the financial services industry and at Alexander Forbes, where he helped set up a DM division in 1983, and then more recently as an independent trustee on various retirement funds and medical schemes, provides him with a solid understanding of the application of corporate governance for the association.

Rights and responsibilities

Essentially, governance is the system by which organisations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs.

By doing this, it also provides the structure through which the company objectives are set and the means of attaining those objectives and monitoring performance.

Defined deliverables

Says Mdluli, "Membership monies from corporate membership and first three founding members - currently First National Bank, RCS and the South African Post Office - are providing the seed capital to get the association off the ground and give it a sustainable future. Generally, associations live from hand to mouth and funding is always an issue that hampers progress. We want to ensure effective management of the funding to deliver a powerful association that meets objectives and has defined deliverables."

The DMA board has set some tough standards not only for the CEO but all board members in lobbying Government at the most senior levels on pending legislation.

"Corporate governance and government relationships are seldom used in the same sentence. However, we will lobby Government in a principled manner and add value wherever possible in developing legislation to regulate the industry and drive out sub-standard, unethical practices.

Contest legislation

"We will also contest legislation that we believe could harm our members' interests. In order to do this we need a defined agenda and mission and this can only be achieved through stringent adherence to the principles of governance," explains Mdluli.

The DMA has published a code of practice for its members and is advocating the protection of consumer rights through self-regulation.

On the future of the association, Mdluli is adamant that the DMA will remain independent as an industry-specific body focused on direct marketing. "We will, however, seek constructive alliances and collaborations with other associations and government departments where the board feels it would be in the best interests of our stakeholders to do so," he concludes.

For more information, go to www.dmasa.org or call the DMA on +27 (0)11 789 6770.