It can be difficult to follow best practices for corporate governance, but you don’t have to. The right tools will assist your board to get started and stay on to the right path throughout the year.
Corporate governance goes beyond simply following the law and adhering to standard regulations. It’s an approach to doing business and has the power to transform a company for the better.
Accountability is one of the most essential aspects of corporate governance. Transparent reporting systems and the system of checks and balances which can identify potential issues in financial reporting are all a part of this. For instance, it’s crucial to ensure that all due diligence board members understand their roles and are prepared for meetings of the board and other events.
Setting up a clear pathway for shareholder engagement is another crucial aspect of good corporate governance. This includes ensuring that shareholders have the power to dismiss directors if they are not delivering as expected. It also means having transparent and easily accessible information regarding the company’s financials, which includes the ability to access the company’s quarterly financial reports.
It’s crucial to have a strategy that addresses environmental and social issues. Many investors are now looking for ESG criteria to help them pick stocks. It’s also crucial to show your business’s positive effect on society.
