Implementing best practices in corporate governance isn’t easy however it doesn’t need to be. Having the right tools will assist your board to get started and stay on the right track throughout the year.
It’s easy to think that corporate governance is merely a matter of ticking the legal box and adhering to standard regulations however, it’s more than that. It’s an approach to business that can transform a business.
Accountability is one of the most essential aspects of corporate governance. Transparent reporting systems as well as the system of checks and balances that detect potential issues in financial reporting are all a part of this. For instance, it’s crucial to ensure that all of your board members know what they are responsible for and that they are prepared for board meetings and other events.
The establishment of a clear and defined path for shareholder engagement is another vital aspect of good corporate Governance. This means that shareholders have the ability to eliminate directors who aren’t performing well. This means that information about the company finances must be easily accessible, with the ability to access quarterly reports.
It’s important to have a plan to address environmental and social issues. This is due to the fact that investors are more concerned with ESG criteria when deciding on stocks. It’s essential to demonstrate that your company can positively impact society.