What Is Corporate Governance?
Hearing the term corporate governance may seem alien for many working in business today, yet it is something that you are all part of.
From the top to the bottom, inside and out, a company must have a system of corporate governance – and most of them do.
So what is it exactly?
In essence, it is the set of practices that are set out to help control a company. It can be done through various processes and should work to identify the various roles and responsibilities within a company. There are many parts that make up a company, shareholders and financers at the top, the staff and mangers that help run the day to day goings on, and those who are in direct contact with the company – customers, suppliers, government and communities.
All of these specific parts of a company affect how successful it will be, so there must be a set of rules and regulations set out to help steer everyone in the one direction.
Every aspect of business management is involved in corporate governance, internal protocols and rules, action plans and performance measurement.
The days of wanting to simply post high profits is gone, a company must show how it conduct itself and how it is controlled and directed, which is why corporate governance is so important.
Applying Corporate Governance
As this is the sure route to improving business, you will want to ensure that it is easily implemented into the daily work life of your business. To start will need to understand exactly what is expected from those at the top. Communicating with management and board members to fully understand the corporate governance of your business will be important in applying it across the business.
Make sure that management spend time with the employees to get an understanding of what could be done to help apply any changes needed. Understanding the working relationships will help to better know how these changes can be place smoothly and successfully, it will keep everyone on track.
You will then want to get the changes or rules that staff members are expected to follow, and have them written down with all the necessary information being readily accessible. This should also include managers, owners and shareholders for certain sections, as it will show all employees that the governance starts at the top, and that no one is exempt. Staff surveys or questionnaires will help all members of staff feel they have had a chance to place an input, making them feel part of the process.
As time goes by, make sure that constant checks are in place to ensure compliance with the corporate governance.
Again this should not be specific to employees or management, shareholders and board members should be included in these to ensure fairness.
Outsourcing this will show impartiality and will not only help find any problems that may arise from the corporate governance, but help it be stringently followed on a daily basis.
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