The importance of implementing good corporate governance in business
Adopting the principles of good corporate governance is essential for large companies and must be supported by certain conceptual foundations and practical applications. What factors influence these governance initiatives?
The overall strategic direction of the company
Clear rules and transparent guidelines are essential for corporate decision-making. This is particularly true for large companies with a major impact on society and are faced with complex decisions on mergers, acquisitions, investments or strategic plans.
Establishing control mechanisms
Establishing effective control mechanisms is a fundamental condition for efficiently adapting to the regulations and guaranteeing the implementation and monitoring of the approved strategic plans.
These control tools must cover the entire top management of the company and all areas of the company: economic, financial, social, strategic, etc.
In the same way, good corporate governance stands out as a solution to guarantee compliance. This means that all managers, directors and employees who form part of the company comply with current legislation.
Relations between the company’s main governing bodies
Another of the basic functions of good corporate governance is to monitor and control the behaviour of the members of the company and the relationships established between them.
At this point, it is a matter of establishing the rights and obligations of the different management areas and ensuring that they are complied with.