The management of effective corporate governance http://scoreboardroom.com/structure-of-a-typical-board-meeting-agenda/ is the process of establishing rules, controls, policies and resolutions to encourage positive corporate behavior and work culture. It also safeguards organizations from business dangers and crises, such as cybersecurity threats, corruption of the leadership as well as economic downturns and political instability. It also provides contingency planning that assists companies to deal with these forces of business and become stronger and more resilient.
Corporate governance structures and procedures vary according to a company’s business, ownership structure, and the jurisdiction. Despite their differences, these governance structures and practices must have a common goal, which is to create value for shareholders. They must also be flexible enough to adjust their governance practices to achieve this goal.
The company’s board of directors is responsible for setting goals and objectives, appointing as well as supervising the senior management, as well as representing the interests of shareholders. The board members must be aware of their responsibilities, and work with senior management to fulfill them in a way that helps the expansion of the business and financial performance.
Stakeholders should be encouraged be involved in shareholder outreach and dialogue with the management and board of an organization. They will be able speak out in areas which were previously the responsibility of the board and the management, for example, strategic direction and making decisions. In this way, it is important for the board and management to be transparent and open with their stakeholders about their governance structures and processes and their motivations for using them.
