One can measure precisely the extent to which Africa's largest mobile network operator, MTN, is reeling from a massive fine in Nigeria, obligatory disconnection of customers in other countries, hyperinflation in Iran, and a variety of regulatory actions. In its interim results for the six months to end-June 2016, it reported a R5.5-billion loss. For every underperforming territory, reasons can be given.However, much of the worst damage came from its run-ins with regulators as a result of poor compliance. That can be blamed on poor governance, which, in turn, can be attributed to a culture that left ethics shelved away in the archive.The irony is that Governance, with a capital "G", is taken extremely seriously at MTN. This means it has in place policies and procedures which should guarantee its behaviour is above reproach. The problem lies with the capital G, which denotes a proper noun, turning the idea of governance into a mere document title.By contrast, governance with a lower-case "g" is a "thing" one can almost touch and feel.story_article_left1There is a gulf between the two. Governance without governance leads to policies and procedures without a commitment to a culture of good governance, resulting in a downfall of ethics, and potential disaster.But things are changing fast, says MTN South Africa CEO Mteto Nyati, who previously headed up governance-obsessed Microsoft South Africa."The policies, processes and procedures at MTN, and how the approval process around decisions is set up, is as good as I've seen in companies like Microsoft and IBM - from a documented process standpoint."The careful qualification of his statement, in an interview with Business Times this week, speaks volumes. He is not afraid to spell out how this kind of Governance does not necessarily result in good governance."Where we may have had challenges in the past is through institutionalising these things, in having them as policies but not making sure people live these things."He acknowledges that this is the single biggest issue exposed by the Nigerian fine. And he intends to make good governance visible."The company is beginning to make sure that, not just on one level but throughout the organisation, people believe and live the policies of the company, and also the consequences of not doing so. There were maybe 10 disciplinary actions taken by MTN South Africa involving staff over the last six months of last year. We're talking about 75 this year so far. Clearly, we are taking these things seriously. It's not that we are coming up with new things, but applying what is already there."story_article_right2Structural changes in management, with the appointment of chief operating officers in key markets and regional vice-presidents, will help take the pressure off CEOs, allowing them to spend more time on external relations - a major shortcoming of the group during its crisis.Most crucially, in South Africa, Nyati has appointed an ethics committee to provide guidance alongside standard audit and risk committees."The culture of ethics is being addressed vigorously, and the choice of people around me is of people who take these things very seriously. You can be star performer in your area, but if you can't live and respect governance and collaboration, you can't be part of this team."Goldstuck is the founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram @art2gee..