The management of a company’s governance is the rules, procedures and practices that govern a business, while also taking into account the interests of shareholders, customers, employees and suppliers, lenders, government, and the community. These are the essential elements for an effective and profitable business.

The people element of good governance assures that those who are involved in the company’s activities are competent, ethical and committed to the goals of the company. This is crucial in an era where people are tired of corruption and are demanding more transparency, equity and accountability.

Transparent reporting systems are a crucial aspect of a good corporate governance. This means that the board receives complete financial reports every month that give a clear picture of how the business has performed, and why. It is also an excellent idea for boards to implement an accountability system to prevent fraud and inefficiency.

Guidelines and policies are an additional crucial aspect of good corporate governance. They should reflect the company’s culture, align with legislation/regulations and internal policies, and be clearly available to all stakeholders.

One of the most important aspects of a good corporate governance is having an independent director, referred to as a presiding director, to oversee and direct the board. This is especially important if a company’s board who sets the agenda for a board meeting leadership structure is a combination of chair and CEO or where there are personal connections between the top leaders. Furthermore, a business should ensure that their compensation policies aren’t creating conflicts of interest for directors.