Corporate Governance is a system by which a company controls and directs the organisation. It requires the establishment of optimal method and processes for the organisation to ensure sufficiency of vigilance against omissions, errors and fraud, and to manage these by implementing of effective controls and checks. Corporate Governance applied at two levels: board governance and business governance.
Essentially, corporate governance is important to its stakeholders, primarily its shareholders and key customers. It involves fair balancing of these stakeholders’ interests and ensuring transparency in dealings by both the supervisory board and the operational managers. Most countries publish their respective sets of rules of corporate governance for their business communities and non-profit. All public-listed companies are required, additionally, to adhere to their respective stock exchange’s listing rules.
Of primary concerns in corporate governance are: effective board member composition and practices, presence of committees (e.g. audit committee, remuneration committee, nominating committee, risk committee), adoption of fair and robust business practices, transparency to shareholders, internal audit, and a sound practice of risk management and internal controls. Sustainability is another growing key concern, and the board is incumbent to ensure that the organization’s operations is sustainable to both itself, the society and ecology.
Procedures for working between the board and operational management, i.e. proper bilateral flow of information, directions for control and supervision serving as a system of checks and balances for any corporately governed organizations. It is a transparent way in which an organization is governed so as to completely satisfy the stakeholders. It also helps in determining the most effective strategies for decision making.
At JaBA, we have resources to support your corporate governance obligations. We are able to do this through: conducting a ‘governance and transparency’ review, implementing risk management and Internal Control systems, process analysis leading to optimal operational efficiency and reduced costs.