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Corporate governance is crucial to the growth and prosperity of your business. It’s a way to make sure that decisions are taken in the best interest of the business and the shareholders’, and to guard against fraud and mismanagement. It also helps the business to meet its financial and social goals while remaining in compliance with the legal requirements and environmental Governance, Social, and Governance (ESG) best practices.

The board of directors (BOD) is the main corporate governance stakeholder. In this sense, BOD members are responsible to set the direction of the company, as well as setting the goals and plans while management is accountable for implementing those goals. While the traditional responsibilities of the BOD are financial, the current trends are leading the BOD to assume more responsibility in areas such as promotion of equal and fair treatment for all stakeholders including shareholders, employees as well as vendors and local communities.

Policy development

Corporate governance is highly dependent on the development and documentation of internal procedures and policies. These policies should reflect the culture of the organisation, be in line with legislation/regulations and help achieve its desired goals. Having policies readily available will also assist in streamlined the process of making decisions and increase the risk-aversion of the business.

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