Several weak corporate governance examples highlight the issues of corruption, negligence, fraud, and lack of accountability. In many organizations, governance failures stunted their business growth, misled clients, lost shareholders’ confidence and trust, and negatively impacted employees. So, what should your effective corporate governance program include to increase your company’s potential for success? In this article at Chron, Steve Milano shares some critical elements of good governance practices.
How to Set Solid Corporate Governance Examples
Good governance practices can be overwhelming for growing companies. But incorporating these corporate governance examples will help you deliver value to your shareholders and customers.
Building a Strong, Qualified Board
There is no ‘one-size-fits-all’ approach to a board’s structure. However, there are some common elements that you can include. An effective board must consist of diverse directors with different skills, perspectives, and backgrounds. Furthermore, provide your directors with an orientation and periodic updates beyond the scope of ordinary board matters. Once the directors know your business, they will be motivated to actively achieve your organizational goals.
Training Your Mid-Level Managers is One of the Good Corporate Governance Examples
“Not only should they know basic laws regarding employee safety and behavior, but also how to implement processes and procedures to ensure compliance,” says Milano. The author suggests you conduct in-person management meetings to discuss common problem areas and ways to avoid and report them to C-suite executives if they arise.
Share timely information such as corporate policies, performance metrics, board decisions, and other crucial developments with your shareholders. Create a plan to distribute updated information—monthly, quarterly, or annually—to your shareholders. Furthermore, communicate your ideas to your shareholders so they know what to expect. Additionally, a good plan will allow shareholders to understand their roles better and motivate them to help your business grow.
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