Effective corporate governance is the foundation for a successful business. It is comprised of procedures and rules that match the interests of shareholders with those of other stakeholders, such as employees, customers and company executives. It also creates frameworks for internal control to ensure accuracy of financial statements, protect assets, and ensure compliance with the law.

It is the duty of the board to approve corporate strategies that are designed to create sustainable value over the long term Select a CEO to oversee the management of the company, including investing capital to grow and assessing and managing risks and setting the guidelines for ethical conduct; and monitor key performance indicators to spot areas of weakness, gaps, and opportunities. The board must also show that it is acting in shareholders’ best interests by providing enough transparency, engagement, and accountability.

A strong board requires the support of a great executive team. Boards should be willing to collaborate with independent directors, consultants and governance experts to gain the expertise and experience they require to be successful. Participating in governance conferences networking with peers and industry leaders, and working together to discuss best practices and learn from their experiences are all feasible.

As the world around us evolves the way we live, so should our organizational frameworks be able to adapt to new trends and challenges. A climate change crisis, for instance should spur companies to adopt sustainability frameworks and practices and set emission reduction goals and track the progress. This means communicating with shareholders and stakeholders about the changes as quickly as possible and also making reports accessible and providing enough information to explain and any issues that may arise.

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