Insights On The Importance Of A Culture Of Compliance
- What Is Corporate Governance?
It is the framework of controls, structures, practices, processes and policies that an entity puts in place to determine the why, when, how and by who critical leadership functions and decisions can be carried out. In short, the corporate governance framework tells us how we lead an organisation. It is not important to just work to implement good corporate governance, but to constantly invest in doing better and better with time.
- Why Is It Important for An Organisation to Have It and What Is The Worst That Can Happen To An Organisation That Does Not Have It?
Business leaders determine an organisation’s culture. Good corporate governance structures provide leaders with a foundation to develop a culture of ethical behaviour, transparency and accountability which builds stakeholder trust. Building trust is key to business sustainability (a respected brand), without it a legitimate business will struggle to grow, to reach its full potential and, in many cases, will not survive.
- How Can an Organisation Achieve Good Corporate Governance?
The shareholders need to select a Board with the right experience and principles who will then ensure that a solid governance framework is developed by Management which the Board checks and approves.
- Who Is/Are the Candidate(S) In an Organisation Responsible For Upholding Corporate Governance And How Do They Achieve This?
Ideally everyone in an organization should be responsible so you have top down and bottom up scrutiny. In practice Management are responsible for implementing good corporate governance practices, however Compliance is tasked with ensuring that good governance practices as dictated in the framework are upheld.
- Who in Turn Holds the Candidate(S) Accountable If Good Corporate Governance Is Not Achieved?
The Compliance Manager reports all corporate governance breaches to the Board, who will then take the required action.
- What Attributes/ Skills Should One (Or More People) Possess for The Organisation To Achieve Good Corporate Governance?
Good corporate governance is dependent on characteristics like integrity, accountability, ethical behaviour, transparency. So, to effectively develop this business culture you must be able to effectively communicate and demonstrate the required culture.
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