Why Focus on Corporate Governance Today?
K.Narayana Moorthy, HR Consultant, India
Today in the business world 3 factors have become more relevant:
1. Cost & risk reduction in business operations.
2. We have limited resources.
3. Anti-Capital Sentiment.
All three aim at LONG-TERM growth of the enterprise. Considering the above, corporate governance has a very important to play:
- It helps streamline the process and gives people accountability
- It helps to establish a correct decision making process.
- It clearly explains to the board, stakeholders and the shareholders what their duties and responsibilities are within the company.
- Knowing these roles and responsibilities, the key people within the enterprise can understand what they are held accountable for.
- Accountability helps people within the enterprise to make the right decisions.