What is Corporate Governance?

“Corporate Governance is the system by which companies are directed and controlled” – Cadbury Committee 1992

The difference between good and bad Corporate Governance can be small but is vital to the success of a company

Good corporate governance can take many forms depending on the structure and history of the company, the nature of the industry and the characteristics of the stakeholders. However, it generally encompasses certain key features:

It is essential that the board takes the lead on strategic planning and risk mitigation. Yet without the proper processes and oversight, the board is often constrained from exercising this function.

Decisions need to be made at the appropriate level in order for a company to be managed efficiently. Clear levels of delegation are key but so is the empowering of staff to embrace such delegation.

Delegated authority needs to be matched with adequate controls ensuring that powers are exercised properly and responsibly. This gives the board the confidence and comfort they require in relation to delegation.

Integral to any good system of governance is a consistent flow of high quality information. This includes information flows within the organisation, but also between the organisation and its external stakeholders.

The overriding aim of a good corporate governance system is to achieve alignment between all of the stakeholders in a company. This includes the board, the management, the employees and the shareholders and, once achieved, ensures that everyone is working towards the same goal.

We specialise in providing corporate governance advice and assistance to a wide range of companies, including listed companies, large private groups and charities. Repeated studies have shown that organisations with good corporate governance consistently outperform those without. Our team is committed to helping your organisation reach the highest standards of corporate governance.

Please contact us to discuss your specific requirements

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