About corporate governance research

In order for any company to be effective, company leaders must take responsibility for their decisions and the performance of the organisation as a whole. This is why embracing the good corporate governance research practices is very important.

There are characteristics which can show one that a company is practicing good corporate governance.

corporate governance research

Characteristics of corporate governance research

Fairness workload

Fairness should always be a high priority for management. Managers should therefore be able to push their employees to be their best but they should also recognize the fact that a heavy workload can have negative long term effects. Some of these effects could be low morale and high turnover.

Companies should therefore ensure that they are fair to their customers, both for ethical and public relations reasons.

Discipline

This means that all the senior management should be aware of and committed to adhere to behavior that is universally recognized as correct and proper.

Transparency

This is the measure of how easy it is for outsiders to find out and analyze a company’s financial and non- financial fundamentals. Companies should however make this information available in timely and accurate press releases to give outsiders a true picture of what is happening within the company.

Independence

For any successful corporate governance, it is important that all decisions are made objectively with the best interest of the enterprise in mind. This should also be done without any undue influence from large shareholders or an overbearing chief executive officer.

In order for this to be successful, good mechanisms such as having a diversified board of directors, and external auditors, to avoid any potential conflict of interests.

Accountability

All the people who make decisions in a company must be held accountable for their decisions. Relevant mechanisms have to be put in place so as to allow effective accountability.

For example in public companies, investors hold individual running the company accountable for their actions by carrying out routine inquiries to assess the actions of the board.

Social responsibility

A well managed company should ensure that it puts in mind the things affecting people living around them. They should therefore be ethical and responsible with regard to environmental and human rights issue.

Responsibility

Managerial responsibility in a corporation means that the management should be responsible for their behaviours and must have means that they can use to penalize mismanagement. This also means putting in place a system that puts the company on the right path when things go wrong.

Self-Evaluation

It’s important to note that no matter how well you manage your company, mistakes will be made. The key is to perform regular self-evaluations to identify and mitigate brewing problems. Employee and customer surveys, for example, can supply vital feedback about the effectiveness of your current policies.

A company can also hire outside consultants to help analyze your operations. This will help identify ways you can improve your company’s efficiency and performance.

The above are just but some of the good corporate governance research and can be of good help whenever one wants to take corporate governance research seriously.