The concept of corporate governance pivots around accountability, transparency, ethics, integrity and responsibility. These governance components are essential to ensure non-compliance is not an option in the corporate administration conducted by the management and the board of directors.
GRC management is about how corporations are transparent, supervised, managed, controlled and held accountable to the shareholders and all stakeholders. Every process, policy or procedure must include multiple elements of good corporate governance. Corporate governance is a means to achieve Corporate Excellence if all 70+ components of good governance are embedded in the organisation.
Corporate governance and ethical actions have several advantages.
- Help to create a good brand image for the company.
- Successful brand image results in corporate trust and brand loyalty
- Employee fidelity, stakeholder engagement and customer loyalty will result in a more significant commitment to the employees, and when there’s a commitment to workers, the workers will turn more creative.
Sound Business Practices and Good Governance go hand in hand.
Creativity is vital to get a competitive edge in the current competitive atmosphere. Therefore, management must ensure that good Corporate Governance and the results are embraced and adopted to promote the development of products and services due to the advantages gathered from the brand image, loyalty and commitment rewards.
With the rapid pace of globalisation, many companies have been forced to utilise international financial markets and face greater competition. All companies can be global and are looking for growth. Therefore, be aware of the importance of improved international standards of GRC so that corporate policymakers and business managers can achieve global advantages.
- Establish procedures for proper control (bribery/corruption and sustainability), supervision of company information flow (transparency, disclosures), and adequate operational checks and balances.
- Procedures for resolving and confirming different stakeholders with conflict of interest.
- It is the responsibility of the Board of Directors to all stakeholders (including. managers, shareholders, suppliers, creditors, auditors, controllers, workers, and society) to ensure fair, transparent, and effective management with a corporate administration system, code of conduct and proper functioning of a corporate entity.
Aims of GRC
GRC and IT security are integral to the existence of a company and, more so, how a company is administered, monitored and controlled. GRC inspires and strengthens investors’ and stakeholders’ confidence by assuring the company’s commitment to high growth and earnings.
The GRC power and system can achieve the specific goals of fulfilling employees’ long-term strategic claims and interests, maintaining stakeholder relations, and fulfilling all the applicable legal and regulatory requirements.
The GRC articles in this newsletter, from establishing a framework to defining and executing GRC, will motivate all stakeholders to move toward the goals by demonstrating success. GRC authority is good business, so the organisation can move forward and maximise future value, shareholders’ wealth, and stakeholder trust.