Many of us would have pondered about the working of a company and what rules and regulation it may be following. Yes, this is a matter of thought for those of us who are interested in setting up our own company. There is a certain set of laws and rules we need to abide by and these compliances are coined under the term “corporate governance”.
It involves in keeping the interests of all those involved in the company like stakeholders, management, financiers, suppliers, employees, government and the company.hence it is a collection of the policies which control the working of the company in a proper manner.
Key Factors of Corporate Governance:
Maintaining a company to follow the necessary rules and policies for functioning is the ultimate aim of corporate governance being implied. Making the company’s corporate governance known to the stakeholders and investors is the key to successful business.
The most important people in influencing corporate governance are the board of directors. They have a direct dealing with the company in every manner. They are elected by the members of the company and these directors have a maximum share of the company’s shares.
An organization’s success can be determined only when all the processes and functions work for hand in hand and aim at the same mission and vision of the company. It is directed towards these goals and hence adhering to the rules and compliance factors s very much necessary.
Pillars of corporate governance
The 3 most crucial pillars of corporate governance are
These are the critical factors which make a company competent and successful by making healthy relations with its stakeholders who are the employees, managers, the board of directors and most importantly the shareholders who are the credible people of the company.
Elements of good governance
- A company is complete and successful when it abides by all the rules and maintains a healthy relationship with its stakeholders. Some of the elements judging this good governance are:
- Fair and legal rules of law
- equity and inclusiveness
- effectiveness and efficiency
Keeping the 8 good elements and making a track record of success to follow it is the task of the entire company professionals. Achieving good governance is a strenuous process in totality. It depends on all those are involved with it. People who are well-intentioned to bring together all their good ideas, experiences, and knowledge: together for the company’s well-being, this can be achieved by continuously following the required compliance.