Understand more about corporate governance in companies

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If you’ve been reading about business development, you’ve probably heard about something called corporate governance. But… do you really know what it is?

According to the Brazilian Institute of Corporate Governance , it is nothing more than a system for managing companies and organizations. Therefore, it is the listing and transformation into rules of the company's basic principles that govern the monitoring, management, board of directors and relationship of partners.

Want to understand more about the subject? Then, follow the text!

The basic principles of corporate governance
Corporate governance arises mainly to regulate practices that truemoney database occur within companies and to list what should be done. The tendency of this is for the number of frauds to decrease and companies to become more transparent with everyone, both inside and outside the company. Thus, corporate governance is based on 4 principles. See:

Transparency
Transparency within corporate governance consists of presenting all information that is of interest to the person asking the question. This means that the company must provide the requester with information that goes beyond the legal requirements, leaving aside any possibility of masking data or omitting facts.

Equity
The equity that corporate governance speaks of refers to offering fair treatment to all members of the company, regardless of their position. This means that in all cases the rights, duties, obligations and expectations of the members of the organization must be considered.

Accountability
As expected, corporate governance values ​​clear, concise and complete accountability. In line with transparency and fairness, those who render accounts must fully assume the consequences of their actions and omissions.

Corporate responsibility
Those involved in corporate governance must ensure the economic and financial health of the organization. This means being willing to reduce any external actions that are negative for the business, as well as increase any positive actions. Furthermore, the business model must include all types of capital (human, social, manufactured, financial, intellectual, etc.) in the short, medium and long term.

If we look at each of these pieces individually, they may not represent much. However, corporate governance has understood its principles as gears that, when working together, make everything work.

The application of corporate governance in a company
For corporate governance to be applied in a company, it is necessary to pay attention, at first, to the practices that are already naturally carried out by the business. Thus, the way of behaving with customers, the relationship between different hierarchical levels and the way in which production is carried out will be the basis for the development of a system.

The system proposed by this measure is to transform the basic principles, those that already exist within the company, into objective recommendations. This means that the act of reporting, which already occurs in the company, for example, would become a recommendation for the normal functioning of the business and no longer an activity left to the luck or good will of whoever does it.