The implementation of effective corporate governance is the process of establishing rules, controls, policies, and resolutions that encourage positive corporate behaviour and work culture. It also protects organisations against business risks and crises such as cyber-security threats, corruption in leadership, economic downturns, and political instabilities. It includes contingency plans to aid companies in coping with these forces of business and emerge on the other side stronger and more resilient.

Corporate governance structures and practices differ according to the size of the business and industry, its ownership structure and jurisdiction. These governance structures and practices, regardless of their differences must all share the same objective: to create long-term value to shareholders. They should also be able to adapt their governance practices to meet this objective.

The board of directors of a company is accountable for setting objectives for strategic planning, appointing top management and monitoring them, as well as representing shareholders’ interests. Board members must be aware of their responsibilities, and work with management to meet them in a manner that aids the growth of the business and financial performance.

Stakeholders should be urged to engage in dialogue and communication with the board of directors and management. This will enable them to make their views recognized in areas that traditionally, have fallen within the control of management and the board–such as strategic direction and decision-making. It is crucial that the management and board are honest and transparent about their governance practices and structures, and the motivations for why they employ hop over to this site them.