Nowadays it is common to read or listen to many people about Corporate Governance, as something that seems to be transcendental for companies, but do you really know what it consists of? Or what benefits does it bring? Therefore, there are many companies and entrepreneurs that do not have comprehensive knowledge on the matter, and of course, how to put it into practice, falling back on adverse practices, such as setting up Corporate Governance Policies, based on models from other companies or general models, without making considerations or reflections on the matter.
With which, the possibility of applying rules within companies that have the effect of attracting new and better human and financial resources, as well as improving operating conditions and stimulating consumption and production of goods, is lost. goods and services. Therefore, it is not a simple formal or legal requirement that companies must comply with.
Thus, the conscious creation and implementation of Good Corporate Governance policies brings a positive impact to the company, since it constitutes a tool for the construction and regulation of responsibilities and duties of internal and/or external control bodies. of the companies that allow to strengthen the procedures and dynamism of these. These policies allow creating a balance in the daily operations of a company, creating a constant and reliable flow of information, through transparency rules, which converges to make your company more competitive, productive and profitable.
Therefore, Corporate Governance is undoubtedly not a tool that gives value to the company’s internal processes, but is also considered one of the most important aspects by third parties as stakeholders, when evaluating a company in the face of the best international standards, which have predominantly become a reference framework for different countries and organizations, and of special surveillance and development by supranational entities such as the OECD.
Therefore, the implementation of Good Corporate Governance policies seeks, among other things, to provide protection to shareholders, creditors, investors, employees, the government and society in general (Interested Parties), through principles such as Transparency, objectivity, conflict resolution, competitiveness in the administration and in the establishment of guidelines for the development of the Company where all the parties of interest and involved are aware of what must be done and not allow themselves to take improvised measures, which generate greater risks for the durability and profitability of the company.
However, one should not fall into the desire to implement policies based on the models of other companies and/or general models, since the expected goals and results will not be achieved, since they must meet their own needs, which allows build broad and clear communication channels between the different bodies and stakeholders, in order to strengthen the proper administration of the companies based on a reduction in conflicts between the interested parties, thus mitigating the risks related to the administration of the society, which allows you to improve your decision-making capacity and your company’s risk rating
Hence the importance of structuring a Corporate Governance based on the reality of your company, reflecting its essence, since without a doubt, it would never leave strategic planning or business and growth plans in the hands of a third party that does not understand its own contexts. from day to day. Well, as has been mentioned, the Corporate Governance, first and foremost, must reflect those plans and strategies, so that the bodies that are created are aligned with the size, capacity, income and organization chart of the company, so that it is based without any consideration in the various models found on the internet. Otherwise, said policies will not allow the real benefits, objectives and needs of the Company to be taken advantage of.
Now, after all that has been said, the following questions may arise: How to structure a Corporate Governance adapted to my company? Where to start? To respond, it is recommended to take into account the following points:
The first will be to understand that the control bodies in a company do not necessarily have to submit exclusively to the Shareholders’ Meeting and the Board of Directors, since it is always feasible to set up smaller and more specific bodies, such as committees focused on studying the needs of the company, either in product and/or service issues, sales, innovation, quality, human talent management, operations, among others.
Second, it must be regulated and established, based on the realities of the company: ownership structures, management compensation schemes, cost reduction policies based on adequate resource management, reduction of duplicate or redundant activities, transparency practices and disclosure of information that avoid the lack of visibility of the company’s risks, controls in the management of the administration, and management of conflicts of interest.
All of the above, focused on the values that are the fundamental pillars of the organizational culture that you have or want to build, in order to achieve greater capacity to: collect data and information quickly and efficiently that are vital for the decision-making, and generate a greater capacity to distribute processes and responsibilities consciously.
In conclusion, the implementation of Corporate Governance Policies becomes vital to publicize the company’s DNA and its organizational culture, and is useful for all companies regardless of their size or corporate type. The foregoing, provided that it is taken into account that these are not static and therefore, there is no standard model, but, on the contrary, to the extent that it adjusts to reality, the needs, the purposes proposed for the business and strategic plans of your company, it will be possible to establish the most efficient ways for the correct decision-making and the necessary guidelines for the operation of your company, allowing over time to mature and strengthen the Corporate Governance.
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