So that your company can improve its financial results short and long term, it is necessary to adopt new approaches to the management of the business. Previously, the rules that guided the entire work dynamics were informally established, but now it is necessary to seek better corporate governance practices.
This idea represents the search for a more formal and organized internal environment, providing more security to shareholders and investors about how the company is run. If you want to understand how to improve this aspect of your business, read on and see our tips!
What is corporate governance?
Corporate governance represents the system in which a company is managed, controlled and guided by its leaders. This set of regulations can be composed of regulations, internal rules, bylaws or any other formal description that establishes guidelines for the company's behavior.
These notions are relatively recent in Brazil, but they already play an important role in improving transparency in companies and preventing fraud that harm investors and other individuals linked to the corporation.
Thus, the main objective of corporate governance is to professionalize business management and ensure more autonomy for each leader in the process of decision-making. This must be done based on previously established rules.
What are the principles of corporate governance?
Corporate governance can be applied in a company through 4 principles, namely:
- corporate responsibility.
With the application of corporate governance, these principles are transformed into attitudes to ensure a company with better performance.
What are the best corporate governance practices?
There is one methodology created by professors José Paschoal Rossetti Adriana Solé that can help to apply this concept, called the 8 Ps of Corporate Governance. These letters have the following meaning:
- Property: it is necessary to know how the social capital is organized in the company;
- Principles: they are the foundation of corporate governance, and must be shared and accepted by all;
- Purposes: are useful to align mission, vision and strategic planning results from the company;
- Roles: each function in the organization must be well established
- Power: it is necessary to have legitimate and capable leaders;
- Practices: they must provide efficiency, organization and transparency in the company;
- People: it is necessary to measure the quality of the institution's human capital;
- Perpetuity: companies must adopt solutions to grow and remain active in the market.
By putting each of these concepts into practice, the company is able to gain efficiency and ensure that corporate governance is efficient.
What are the main results for the company?
Through changes in governance company, it is possible to have more transparency regarding the internal processes and identify which are the main bottlenecks of the business.
In this way, it is possible to make adjustments in various sectors and optimize the team's routines. This represents a significant cost reduction, which is a result of the improvement of internal processes and the productivity gain of the entire team.
Saw how best corporate governance practices can transform your business? Understanding how to implement this format is the first step in developing an optimized version of your company. So don't waste any more time and start applying these improvements right now!
A stagnant business is dangerous to both the organizational culture and its bottom line. To avoid this problem, we prepared a eBook special: in it you will understand the main obstacles to growth, as well as the best technologies to boost your business. Download the free guide here or click on the banner below:
Did you like our article? Like our page on Facebook and check out amazing content to leverage your projects!