Tangible benefits of a corporate governance framework
What is corporate governance?
Corporate governance is a system in which a company’s system of rules, practices and processes are directed and controlled. Corporate governance involves balancing all the different interests of the companies’ stakeholders, management, customers, government and community.
Corporate governance provides the framework for a company’s objective; it looks at the management’s action plan and internal control to performance measure.
The directors are usually responsible for the board which include looking at the company’s strategic aims and having the leadership to put them into effect. They will also supervise the management of the business and reporting back to the shareholders on their stewardship. Corporate governance is what the board of a company does and how it sets the value of the company. This is different from the day to day operational management of the company by full time executives.
Good governance can have wider impact on non-listed sector because it is mostly about improving transparency and accountability within existing systems. There have been interesting developments in the last few years there has been a shift in which the elements of corporate governance label has been used to describe accountability issues beyond the corporate sector. This can be misleading as the UK corporate governance is built and developed to deal with listed company entities and not designed to cover all organisational types that may have a different accountability.
Not sure how to implement best practices for corporate governance? Read more about the benefits of the corporate governance course and browse through the courses at London TFE.