For example, the leaders of a company should design and adhere to a code of ethics that helps management promote each of the important characteristics of good corporate governance. Clear Strategy Good corporate governance starts with a clear strategy for the organization. Effective Risk Management Even if your company implements smart policies, competitors might steal your customers, unexpected disasters might cripple your operations and economy fluctuations might erode the buying capabilities of your target market. Discipline Corporate policies are only as effective as their implementation.
It is imperative that a leader of a business accepts the responsibility for each decision made regarding the performance of the entire organisation. Once a leader designs a code of conduct and ethics, they must adhere to it and enable the entire organisation to observe the codes while promoting the key characteristics of good corporate governance.
A clear strategy The best practices of corporate governance begin with setting a clear strategy for the business. Take, for example, a boutique hotel, whose management needs to establish a clear strategy in order to make it a success.
They will first need to conduct thorough research and find the niche market for their product. Once they identify the niche, they will create or modify the product as per the needs and demands of this target market.
Based on these demands and needs, the management will design its marketing campaigns to reach the relevant customers.
The entire flow of activities, starting from research to marketing must be pre-conceived and pre-planned in order to rule out errors and help the workforce to remain focused on the strategy.
Organisational discipline In order to run a business, it is vital to set policies and procedures for the organisation as a whole.
However, these corporate policies are only effective if they are well-developed and thoroughly implemented in the system. The management of a business invests time and hard work in developing a strategy that they can implement in order to access the market.
If the management fails to mobilize their employees to implement such strategies, the business will fail. In order to achieve success in each initiative taken by the management, and to establish good corporate governance, it is necessary to implement the policies, strategies, resolutions and, most importantly discipline and commitment, which form the foundations for all the above.
An effective policy of risk management One cannot guarantee that, even with the help of good policies: A business can stop competitors from stealing clients It can foresee unexpected disasters that may cripple the operations of the organisation It can escape the impact of economic fluctuations that may erode the purchasing power of the market Policies cannot avoid risks.
However, good corporate governance indicates that an organisation must implement measures to manage risks. For example, a business can diversify its operations in order to earn revenue from several different sources rather than depending on one particular source. Fairness in the organisation One of the best practices of corporate governance is to be fair.
To be fair within and also outside. The management must treat fair-mindedness as a priority and use this among employees and customers.
The business can always push its employees to strive for the best, but not at the cost of low morale. The management must recognise the heavy workload shouldered by an employee and its long-term negative impact. Very high turnover and extremely poor employee morale is a fatal combination.
Some important characteristics of good corporate governance “Corporate governance” defines the practices, processes, and structures through which an organisation manages its business. An organisation, through corporate governance, works to accomplish its operational, fiscal and strategic objectives while attaining longstanding sustainability. Good decision-making processes, and therefore good governance, share several characteristics. All have a positive effect on various aspects of local government including consultation policies and practices, meeting procedures, service quality protocols, councilor and officer conduct, role clarification and good working relationships. Jun 30, · For example, the leaders of a company should design and adhere to a code of ethics that helps management promote each of the important characteristics of good .
Again, when it comes to customers, a business must offer equality of treatment. Being fair to customers is mandatory for a business to function ethically and to build a strong customer reputation.
Unfair treatment for short-term benefits could be a major blow to the long-term prospects of the business. Organisational transparency Transparency is a pillar to success. Within the corporate arena, when managers do not limit information from flowing down to employees, it unifies an organisation.
When an employee is offered the freedom to understand the management strategies and observe the financial performance, it becomes easier to discern their individual role and responsibilities towards the organisation and work towards it.
Transparency, as a corporate governance policy, must be implemented for the customers too. The public is averse to secretive corporations and trusts those that are more transparent.
Self-evaluation to mitigate budding issues It is next to impossible to avoid mistakes no matter how smartly an organisation is managed. This tendency is human and can only be managed with the help of self-evaluation. Good corporate governance advocates that regular self-evaluations and identification of developing issues within the corporation can help avoid disasters.
Customer surveys and employee reviews are two highly efficient measures to collect vital feedback on the effectivity of the current organisational policies.What is good governance: main aspects and characteristics Roman Mogilevsky Center for Social and Economic Research CASE-Kyrgyzstan Presentation at the Roundtable VIII of the Fostering Global Responsibility Project, Chisinau, Moldova, 10 June KYRGYZSTAN.
Good governance has 8 major characteristics. It is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive, and follows the rule of law.
Good decision-making processes, and therefore good governance, share several characteristics. All have a positive effect on various aspects of local government including consultation policies and practices, meeting procedures, service quality protocols, councilor and officer conduct, role clarification and good working relationships.
Some important characteristics of good corporate governance “Corporate governance” defines the practices, processes, and structures through which an organisation manages its business.
An organisation, through corporate governance, works to accomplish its operational, fiscal and strategic objectives while attaining longstanding sustainability. Characteristics of Good Governance – S K Patodia Posted on May 3, November 17, S K Patodia Posted in Government Developments There has been a budge since long time on Good Governance.
In corporate affairs, good governance can be observed in any of the following relationships: between governance and corporate management; between governance and employee standards; between governance and corruption in the workplace; The meaning of good governance in regards to corporate sectors varies between actors.