Corporate governance is the process of creating guidelines, policies, controls and resolutions that promote a positive corporate culture and behaviour. It also safeguards organizations from business threats and crises like cybersecurity threats, corruption of the leadership recessions in the economy, and political instability. It also includes contingency plans which helps businesses deal with the challenges of business and emerge stronger and more resilient.

Corporate governance structures and practices vary according to the size of a company, industry, ownership structure and jurisdiction. Despite their differing characteristics, these governance structures and practices should all have a common goal, which is to create value for shareholders. They must also be able to adjust their governance practices to achieve this goal.

The board of directors of a company is tasked with setting strategic goals, appointing and monitoring senior management, and representing the interests of shareholders. The board members must be aware of their responsibilities and work with management to fulfill them in a way that supports the development of the business as well as financial performance.

Stakeholders must be encouraged to engage in dialogue and communication with the board of directors and management. This will allow them to make their views heard in areas that typically, fall under the purview of the board and management--such as strategic direction and decision making. It is important that the management and board are open and honest about their governance practices and structures and the motives https://scoreboardroom.com/nonprofit-board-pay-equity behind using them.