A thriving business is built on the basis of effective corporate governance. It is comprised of rules and systems that bring shareholder interests into the eyes of other stakeholders, such as employees, customers and company executives. It also creates internal control frameworks to ensure the accuracy of financial statements, safeguard assets and adhere to the law and regulations.

It is the board’s responsibility to approve corporate strategies designed to produce sustainable long-term value Choose a CEO and oversee management in operating the business, including investing capital to grow, assessing and managing risks and setting the guidelines for ethical conduct. monitor important performance indicators to discover gaps, weaknesses and opportunities. The board must also show that it is acting in the shareholders best interests by providing adequate transparency, engagement, as well as accountability.

A strong board requires the support of a solid executive team. Boards are encouraged to work with independent directors consultants, governance experts and consultants to gain the knowledge and expertise they require to be successful. Participating in governance conferences, networking with peers and industry leaders and working together to exchange best practices and learn from their experiences are all feasible.

As the world is changing and our world is changing, so do our organizational frameworks. They need to be flexible enough to respond to changing trends and issues. For example, a climate change-related crisis should prompt companies to adopt sustainability-related strategies and frameworks and also set emission reduction targets and track the progress. This means notifying stakeholders and shareholders of the changes as soon as possible, making reports easily accessible and providing sufficient information to explain any issues that might arise.

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