When entrepreneurs start a business, they want to ensure that their management style is fair and transparent. However, establishing governance best practices are rarely top of the agenda of an entrepreneur. So why is corporate governance crucial for startups? In this article at Forbes, Betsy Atkins explains why startups must prioritize corporate governance as their businesses scale.
The Importance of Corporate Governance
“Strong corporate governance practices foster a company culture built on high standards of integrity, accountability, transparency, fairness, and responsibility,” says Atkins. This foundation provides organizations with the necessary flexibility to focus on innovation and delivering a better product or service to their customers.
How to Implement Corporate Governance
Identify the Culture
Robust corporate governance can be implemented only if you have a clear vision of what your company stands for and what you want to your organization to achieve as a business owner.
Policies and Procedures
Policies and procedures are often ignored during a startup’s initial stages. However, they play a significant role in establishing good governance and organizational culture. Develop software to manage procedures when you start. This will reassure you that you are in control. Additionally, if people know what behaviors are expected of them, it will significantly help you implement strong corporate governance.
Leadership is equally an essential factor in building strong corporate governance. Individuals in a leadership team bring in industry expertise, ethics, and integrity. The leadership team’s qualities can then permeate throughout the organization as it grows and expands.
Transparency in Decision-Making
Consistent communication is the best approach to implementing robust corporate governance. For example, when the board or leadership team decides the company’s future, it must be communicated to the internal and external stakeholders while maintaining transparency.
To read the original article, click on https://www.forbes.com/sites/betsyatkins/2021/04/12/why-startups-are-increasingly-prioritizing-corporate-governance-as-their-businesses-scale/?sh=3fca337f5900.