Uncategorized

Demonstrate good corporate governance

Corporate governanceCorporate governance shapes your relationships with all your stakeholders, including shareholders, co-workers, customers, suppliers and the community, and provides the framework and control systems that help us to abide by the highest ethical standards. The presence of good corporate governance practices fosters an organization that supports individual and professional integrity and will be responsible for behaviour in all levels of your business.

Good corporate governance is evident by responsibility, accountability, consistency, fairness and transparency. No matter, whether your company is large or small, good corporate governance practices can be critical in establishing a positive organizational culture. It can financially benefit an organisation, leading to higher profit margins, generate greater dividend yields, and make possible larger stock repurchases. Setting corporate governance principles in place also enhances the organization’s reputation and builds integrity, making it attractive to customers and investors.

Corporate governance is the method or system by which companies are controlled and managed. It involves regulatory and market processes, and relationships between the company’s management, the stakeholders, and its shareholders. In short, corporate governance focuses on internal and external issues, and also monitors the actions of the management. The main idea of corporate governance is concerned with the removal of the conflict of interests between the stakeholders. One important field in corporate governance is the nature and amount of accountability of people in the business.

Given below are the principles of corporate governance:

  • Accountability and transparency to all stakeholders and equal treatment for all the people.
  • Each of the departments plays its own part and does not interfere in the work of other departments. Owners, directors and staff also have their own duties and responsibilities
  • Shareholders have to ensure that only competent and reliable persons who can add value are elected on the board.
  • It determines the company’s strategic aims and the organizational structure. Boards need to be aware of their strengths and weaknesses and encourage doing only the right and ethical things. Directors should continuously review and determine the purpose and strategic plans and shape the values of their organizations. They should also devise appropriate strategies to achieve these in order to ensure that the organizations thrive and survive.
  • Owners and other stakeholders should take an interest in the organization and ensure its performance and financial results.
  • There should be well defined formal channels of communication in cooperative societies and all relevant information regarding the societies should be communicated in a timely manner to all stakeholders.
  • It is essential to document governance principles. When documenting a set of corporate governance principles, the roles and functions of the Board and its committees should be made very clear.
  • It is mandatory to document the committee charters. All committee charters should define a committee’s authority regarding decision-making and their roles and responsibilities.
  • There should be a corporate governance committee which should make recommendations to the board for new members, and monitor the performance of the board.

Good corporate governance helps enterprises tide through difficult economic times and through critical financial crises, since well-governed companies tend to deliver not only higher but also more sustainable value. Today, corporate governance has assumed worldwide importance. The organisation has a vital role to play in promoting economic development and social progress. It helps in international growth, responsible for providing employment, public and private services and good infrastructure.

Entrepreneurial Learning

Corporate governance shapes your relationships with all your stakeholders, including shareholders, co-workers, customers, suppliers and the community, and provides the framework and control systems that help us to abide by the highest ethical standards. The presence of good corporate governance practices fosters an organization that supports individual and professional integrity and will be responsible for behaviour in all levels of your business.

Good corporate governance is evident by responsibility, accountability, consistency, fairness and transparency.

Image courtesy: FreeDigitalPhotos.net

Leave a Comment

Your email address will not be published.

You may also like

Growing a Business

Want Great Guidance ? Find yourself a Super Mentor

post-image

They are the gods of small businesses, those inspired individuals who have achieved the highest levels of success. They can be the shining beacons who light up the path of running your business with their vision, wisdom and wealth of resources and contacts. They are The Mentors.

If you are fired with the passion to take your business to great heights, the best thing to do is find yourself a super mentor. Here are some tips to help in your quest

Pinpoint your Need

Sit down and focus your thoughts on your business growth strategy. Which area of the business needs a lift. Is is staffing, is it the finances, is it the production, is it the your lack of customers or is it the business as a whole that needs a makeover. Once you’ve zoomed in on the sore spot, this is where you need…

Read More
Growing a Business

Dreaming Big? You can Move Mountains with these Business Productivty Tips

post-image

You may be full of admiration for some people who seem to manage themselves and their work so usefully and efficiently. They seem to fit in so much productive work into the same number of hours which everyone has.. Let’s look what makes them tick and take a few tips.

Learn to identify your most productive hours

Its true, most productive people know which time of the day they can be most creative and efficient. They identify and allot these hours for the best part of their work. This way they are able to give their 100% awareness to the job and business productivity.

Early to rise- A winning habit

Waking up early is a personal habit that has all the plusses on its side. You need not necessarily go to work that early. It’s a habit that gives you more time for personal care, like mediation, exercise, walking,…

Read More
Growing a Business

Leadership Qualities that can make you an Icon

post-image

You may have reached the leadership position through sheer dedication to performance and a do or die attitude . Now that you are at the top, your viewpoint needs to change. You have to now be a role model, one whom others will look up to and follow. Here are some tips that can shape your leadership and management skills

Be Competent: Employees will look up to a leader who has good industry knowledge and management skills. If you do not possess these skills you should surround yourself with knowledgeable people who can offer good counsel. Competence is a trait all employees will admire.

Be Trustworthy: No one will look up to a person they cannot trust. Your employees will want to rely on you and count on you. In difficult situations, leaders are expected to apprise their employees of the situations and find solutions on how to address…

Read More
Raising Money

Are You offering Your Services Using the Right Pricing Strategies?

post-image

In these times of fierce competition, business people , mostly those that offer services and belong to the service based industry, are finding it a challenge to implement the right pricing strategies. It is virtually a struggle to set the right business price that will retain and attract the customers, and not drive them away. Follow these tips, the crucial dos and don’t s and you may be in a much better position to offer your services at the best price.

Maintain your Business identity and Dignity

If you are offering a unique or special product or service, don’t underrate it just because you want to build a better relationship with the customer. This will just cheapen your offering as another run of the mill. If its something special you are offering the customer, then communicate this fact to the client and get the equation right with the most…

Read More
Raising Money

What is a Fair Wage? How Do you Assess Fair Wage?

post-image

How do you figure out a fair wage?

This is a very common question for startups and small businesses. They can’t seem to decide or understand how to set wages and manage reputations at a time. They are determined to pay well but they also have to think about encouraging their employees to stay with them for a long time. This is why there is a need to think strategically.

Listed below are a few expert tips to help you decide:

Don’t Focus Only on Money

Money should never be the main focus for you or for your employees. You should decide on the wages in such a way that your employees are tied to your business. When your business does well they should be able to taste that success and vice versa.

Also, think about additional perks such as exclusive benefits and time off. Many employees value this more than the overall…

Read More
Raising Money

Tips to Winning Hard Negotiations With Ease

post-image

While some negotiations are easy, others are quite hard to win. If you stumble you will lose.

Whether it is a potential client or an investor, negotiations can be very tough and frustrating. The problem is that the moment you let your frustration overwhelm you, you will lose the deal and you will give in to whatever is being offered to you. In order to avoid that, here are tips to overcome tough times and to win even the hard negotiations:

Research!

Know your opponent as well as possible. This is the rule no matter what you do. You should understand your opponent to the T. Who the person is, what his culture is, what he thinks, what he stands for, how is his network, etc. are the questions you should ask yourself and answer through research before meeting up for the negotiation. Understanding the opponent will give you a great advantage.

Walking…

Read More