The management of effective corporate governance involves establishing guidelines, policies, rules and resolutions that promote positive corporate behavior and work culture. It also helps protect organizations from risk to their business and also crises such as leadership corruption and cybersecurity threats. It includes contingency plans that help companies cope with these challenges and emerge from the other side stronger and more resilient.
Corporate governance structures and practices vary according http://scoreboardroom.com/nonprofit-board-pay-equity/ to the size of the business, industry, ownership structure and the jurisdiction. Despite their different characteristics, these governance structures and practices must have a common goal–building long-term value for shareholders. They should also be flexible enough to adapt their governance practices to achieve this objective.
The company’s board of directors is charged with setting goals and objectives, appointing as well as overseeing senior management, and representing the interests of shareholders. The board members must be aware of their responsibilities, and work with management to carry out their duties in a manner that aids the expansion of the business and financial performance.
Stakeholders must be encouraged to participate in shareholder outreach and dialogue with the management and board of an organization. They will be able voice their opinions on issues that are traditionally the management and the board the management, like strategic direction and decisions. In this way it is crucial for management and the board to be transparent and honest with the stakeholders regarding their governance structures and procedures and their motivations for using them.
