Corporate governance contains a series of practices, processes and rules that aim to organize a company and facilitate its growth. It has become an important topic within companies, as it is related to business administration and success. Many companies are reviewing their management model and considering corporate governance in their processes. This is because it improves the company's economic performance and image before the market and investors.
According to the IBGC - Instituto Brasileiro de Governança Corporativa, responsible for many studies and strategies on this topic in Brazil, it can be said that corporate governance is a set of rules and procedures by which companies and other institutions are managed, monitored and stimulated, involving relationships between partners, board of directors, board of directors, inspection and control bodies and other interested parties🇧🇷 Basically, the objective of corporate governance is to ensure that all parts of a company are aligned, avoiding conflicts and bringing greater transparency. Governance seeks to ensure that those involved in the business, internally or externally, act in harmony.
With technological advances and recent economic instabilities, which dynamically change the market, corporate governance offers improved management, cost reduction, attraction of new investors, enhancement of the institutional image, improvement of strategic planning, increase in retention and attraction of new talents, among other benefits. All this coming from the basic pillars of best governance practices, which are: transparency, equity, accountability and corporate responsibility.
Based on these concepts, the following are recommended as good corporate governance practices:
Alignment of strategies with objectives
A company's strategies must be aligned with its objectives and its ability to execute from short to long term.
Suitability of processes
Initiatives such as increasing productivity or implementing improvements help improve time management and decision making. An adequacy in the processes, through a mapping of processes with the structuring of policies and procedures, is highly recommended.
Creation of an advisory and management board
To compose the board, it is recommended to invite different people from different areas of the company, seeking a diversity of opinions and analyses.
Definition of roles and responsibilities
Both operational employees, managers and executives, including the company's CEO, need to clearly understand the boundaries of their functions. It is recommended to write documents with a description of positions and responsibilities associated with them.
Implementation of control mechanisms
Standardizing procedures and improving the dynamics of internal controls are two recommended practices for corporate governance. Ideally, various control mechanisms, in addition to the creation of the board of directors, should reach the company's departments in a decentralized manner. Even auditing, whether internal or external, can also help by investigating whether good practices are being applied.
Social responsibility, integrity and ethics in the company culture
It is already highly perceived in the market that companies that include in their practices the search for a fairer society relate better to their stakeholders and employees. Therefore, it is within good corporate governance practices to ensure compliance with labor laws and rules.
This item also includes the Code of Conduct, a set of internal rules that guide the behavior of an organization and its employees. It is composed of ethical principles and becomes part of the organizational culture, serving as a parameter for the proper functioning of practices and relationships within the company.
These are just some of the main recommended practices for good corporate governance. These actions will give more autonomy to the Councils and will increase supervision, inhibiting contrary practices.
Currently, ensure the safe and healthy development of your company, adopting corporate governance practices, is to prioritize the growth of your organization.
Get in touch with Taticca Allinial Global Brasil, which provides integrated auditing, internal auditing, accounting, taxes, corporate finance, financial advisory, risk advisory, technology, business consulting and training services, for more information, through the website www. taticca.com.br or e-mail taticca@taticca.com.br and learn more.