Corporate governance is the process of establishing guidelines, policies, controls and resolutions to foster a positive corporate culture and behavior. It also shields companies from business risks and crisis like corruption of leadership and cybersecurity threats. It also includes contingency planning that helps companies cope Web Site with these business forces and become stronger and more resilient.
Corporate governance structures and practices vary according to the size of the business and industry, its ownership structure and jurisdiction. These governance structures and practices, despite their differing must all share the same objective: to create lasting value for shareholders. They should also permit the flexibility to modify and adapt their governance procedures as needed in order to achieve this goal.
The company’s board of directors is charged with setting goals and objectives, appointing as well as supervising the senior management, as well as representing the interests of shareholders. The board members must be aware of their responsibilities, and work with management to carry out their duties in a manner that is supportive of the growth of the company and financial performance.
Stakeholders need to be encouraged to engage in dialogue and interaction with the board of directors and management. This will enable them to make their viewpoints to be heard in areas that historically, were within the control of the board and management–such as strategic direction and decisions. When doing this it is vital for management and the board to be transparent and open with the stakeholders regarding their governance structures and procedures and their reasons for using them.
Leave A Comment