The Organization of Effective Corporate Governance

Corporate governance is essential to the growth and prosperity of your company. It’s a method of making sure that decisions are made in the best interests of the company as well as the shareholders‘ and to protect against corruption and mismanagement. It also allows the company to achieve its financial and social goals while staying in line with legal requirements and environmental Governance, Social, and Governance (ESG) best practices.

The primary stakeholder who has influence on corporate governance is the board of directors (BOD). As such, BOD members are responsible for dictating the policies of the company while setting goals and plans and management is accountable to implement those goals. Although the primary obligations of the BOD are financial, current trends are forcing the BOD to take on more responsibility in areas such as the promotion of equality and fair treatment of stakeholders, including employees, shareholders as well as vendors and local communities.

Policy development

The creation and documentation of internal policies or processes is an essential aspect of effective corporate governance. These policies should reflect the culture of the organisation, be in line with legislation/regulations and help achieve its desired goals. Being able to access policies in a timely manner can also aid in streamlining decision-making and the risk appetite of the business.

Another aspect of a good corporate governance is the creation of strategies to address future challenges and opportunities that the organization may face. This includes a process referred to as succession planning, which is effectively management of talent with the intention of future-proofing the organisation Web Site by establishing a solid leadership pipeline.