Corporate Governance is arguably one of the most significant business developments of our times. It is commonly regarded as having significance to listed companies only and is capable of bringing significant benefits to any entity during today’s challenging economic times.
Corporate Governance is vital for companies aiming to run themselves ethically as well as responsibly and is intended to increase the accountability of your company and to avoid massive disasters before they occur.
The four outcomes of good Corporate Governance –
- Ethical culture with effective leadership – a business can only be run successfully, when it is operated ethically, and has hallmarks of good and effective leadership. A code of conduct regarding ethical decisions should also be established for all members of the board.
- Adequate and effective controls – controls of policies and procedures. Checking that controls are in place to ensure that no errors occur. It plays a vital role in ensuring the success of a business and preventing corporate fraud. Some internal control activities that ensure proper Corporate Governance include monitoring by the board, internal audits and robust policies.
- Sustainable value creation – without this, a company is set up to fail. It will lead to a company that damages the environment, mistreats their employees or stakeholders, and fails to invest in future innovations. Sustainable value creation sees a business using capital to create profit and maintaining the sustainability of its capital. They also focus on the ability to create further value for the future.
- A combination of trust, confidence, good reputation and legitimacy – It is important for any business to ensure that the company maintains excellent relationships with their shareholders, through trust and maintaining a good reputation.
Studying Corporate Governance will give you the needed knowledge to run a business ethically and professionally, guiding and equipping you with the necessary skills to allow for a successful and credible business.
For more information about IIE MSA and to register for the Postgraduate Diploma in Corporate Governance visit https://www.iiemsa.co.za/Courses/postgraduate-diploma-in-corporate-governance/