Objectives of corporate governance

What is the goal of corporate governance?

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As we all know, an organization is effective when it is run smoothly, the units are well coordinated and all activities are under control. In order to do that, corporate governance is an indispensable item. In an enterprise, there are always many departments to perform different tasks and how to make the human resources department as well as the business leaders to manage all those departments is the problem that corporate governance need to solve. So Objectives of corporate governance what? Let's Johnson's Blog Find out now!

The concept of corporate governance
The concept of corporate governance

The concept of corporate governance

Before diving into deeper learning, readers need to understand the basic concepts. First, What is corporate governance?

In simple terms, corporate governance is the process of building a reliable, transparent and linked school, ensuring the rights and responsibilities of stakeholders such as shareholders, managers, employees. , customers... This not only ensures a smooth business process, but also a springboard to promote investment and long-term growth.

Corporate governance Usually expressed through a system of rules and regulations that are publicly issued to help companies operate and control all activities, from production and business to human resource development and reward policies. , discipline, internal control process, information disclosure rules... 

Currently, in the context of the deepening industrial revolution 4.0, businesses often choose a form of governance through digital tools. 

And more business management software was born to support management activities much faster and more convenient.

>>> See more: Training Service Technology transfer

Objectives of corporate governance

Mentioned the destination of the corporate governance process, we can immediately mention the benefits in ensuring the order of the company, which directly affects the quality of operations of that business. 

For an effective management process, businesses need a lot of factors, among which, 3 basic rules are Balance - Executive - Control. So what is the specific goal of this process? Stay tuned for this post!

Objectives of corporate governance - Long-term development and ensuring benefits
Long-term development and ensure benefits

Long-term development and ensure benefits

All corporate governance decisions must be considered and weighed on the basis of whether the decision helps the company grow or not. In general, the long-term interests of the company and the interests of shareholders often go hand in hand. The more the company grows, the more beneficial it is for shareholders. 

However, there are also some cases when it is necessary to sacrifice the general interests of the company or cut the interests of shareholders. On the other hand, corporate governance also needs to be balanced - the most core key for sustainable development.

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Build and retain investors

An investor will consider investing in a company when they see that the company will be profitable in the short, medium and long term. Investing here is not only about money but also about resources, time and opportunities. 

A company with a clear and effective corporate governance system will create attraction for customers. When investors share the same goals as companies, an effective corporate governance system also helps maintain and retain their trust. The greater the trust in the company, the more effective its value and ability to raise capital. 

Risk control and management

Corporate governance also aims at good control of security issues and risk management. This is a particularly important goal for companies. 

Risk control and management
Risk control and management

Limiting and minimizing the possibility of risks also ensures smooth and efficient operation. Not only that, once the risks are predicted, the handling methods are well prepared and the business is ready to face that difficulty. 

>>> See more: Benefits of businesses when using ERP software

Reduce corruption and waste

With a business with a lax management system, it is one of the problems that should be eliminated from the outset by employees. 

Corporate finance has never been so simple. Businesses will go to waste without a mechanism for accountability and control of resources. 

In order to achieve the goal of managing corruption, corporate governance must ensure that the operation and control of all activities of the company are within specific and clear frameworks and regulations. 

Build inner strength

A company that wants to be successful, has trademark Definitely need effective corporate governance. Corporate governance can not only help your company increase its internal strength in each activity, but also help your company create its mark and brand.

>>> See more: 3 business management models most popular nowadays

The goal of corporate governance -Building internal strength
Build inner strength


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