Corporate governance is essential to the growth and prosperity of your company. It’s a way to make sure that decisions are made in the company’s best interest and the shareholders’, and to protect against fraud and corruption. It helps the company meet its financial and social goals while adhering to legal requirements Environmental, social and governance (ESG) best practices, and other legal requirements.
The board of directors (BOD) is the main corporate governance stakeholder. As such, BOD members are responsible for dictating the policies of the company while making decisions about plans and objectives while management is responsible for implementing those goals. While the responsibilities of this position are traditionally financial-oriented, many current trends are pushing the BOD to take on more responsibility in areas like promoting fair and equitable treatment of all stakeholders including vendors, shareholders, employees, and the local community.
Corporate governance is largely dependent on the development and documentation of internal processes and policies. These policies should reflect the culture of the click this site organisation, be in line with legislation/regulations and help achieve its desired goals. The existence of policies can streamline decision-making, and help the organization to manage its risk appetite.
A good corporate governance involves the development of strategies to deal with the challenges and opportunities the organisation could confront. This includes a process referred to as succession planning, which is essentially managing talent with the aim of ensuring that the organization is prepared for the future by establishing a solid leadership pipeline.