Corporate governance is the process of making rules, policies and controls and resolutions that promote a positive corporate culture and behavior. It also protects organizations against risk to their business and also crises like corruption in the leadership and cybersecurity threats. It http://scoreboardroom.com/nonprofit-board-pay-equity/ includes contingency plans to aid companies in coping with these forces of business and emerge from the other side stronger and more resilient.
Corporate governance structures and practices vary according to the size of a company, industry, ownership structure and jurisdiction. These governance structures and practices, regardless of their differences, should all have the same aim: creating lasting value for shareholders. They should also allow for flexibility to modify and adapt their governance procedures as needed to achieve this objective.
The board of directors for a company is accountable for setting strategic goals, appointing senior management and evaluating them, and representing the shareholders’ interests. The board members must be aware of their responsibilities and work with management to carry out their duties in a manner that is supportive of the growth of the business and financial performance.
Stakeholders must be encouraged to be involved in shareholder outreach and dialogue with the board and management of an organization. This will allow them to make their viewpoints recognized in areas that traditionally, have fallen within the remit of the board and management–such as strategic direction and decision making. It is crucial that the management and board are open and honest about their governance practices and structures and the motives behind using them.