Implementing best practices in corporate governance isn’t easy, but it doesn’t have to be. The right tools can assist your board members get started and stay focused throughout the year.
Corporate governance goes beyond simply adhering to the law and adhering standard regulations. It’s a way to conduct business and has the power to transform a company for the better.
One of the main components of good corporate governance is an accountability system. This means having transparent reporting systems and a system of checks and balances to identify any potential issues regarding financial reporting. For instance, it’s essential to make sure that all of your board members understand their roles and that they are prepared for meetings on the board as well as other events.
Another crucial aspect of a good corporate governance system is establishing a clear plan for shareholder engagement. This includes ensuring that shareholders are able to remove directors when they are not delivering as expected. This means that information about the financials of the company must be easily accessible, including the ability to access quarterly reports.
It is essential to have a strategy to address social and environmental issues. Many investors are looking for ESG criteria to help them decide on stocks. It’s also crucial that you can demonstrate your company’s positive impact on the society.
