Corporate governance is the process of establishing rules, policies and controls and resolutions to foster a positive corporate culture and behaviour. It also shields companies from business risks and crises like cybersecurity threats, corruption of the leadership as well as economic downturns and political instabilities. It also has contingency plans that assist companies in dealing with these challenges and emerge from the other side stronger and more resilient.
Corporate governance structures and practices vary depending on a company’s size, industry, ownership structure, and jurisdiction. These governance structures and practices, despite their differences must all share the same objective: to create long-term value to shareholders. They should also be flexible enough to adapt their governance practices to achieve this purpose.
The board of directors for a company is tasked with setting strategic objectives, appointing and overseeing senior management, and representing the interests of shareholders. The board members must be aware of their responsibilities and work with senior management to meet them in a manner that aids the development of the business as well as financial performance.
Stakeholders should be encouraged to engage in shareholder outreach as well as dialogue with the management and board of the company. They will be able speak out in areas that are traditionally the responsibility of the board and the management, such as strategic direction and decisions. When doing this, it is important for the board and management to be honest and transparent with stakeholders about their governance structures and processes and their reasons for using them.
http://scoreboardroom.com/steps-to-create-a-nonprofit-social-media-policy/
