Understand what corporate governance is and how it works

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For a society to function as well as possible, people need rules. Corporate governance also works this way, with standards applied to the business, which provide a routine for the practices carried out, making everything more productive, transparent and autonomous.

In this post, you will understand more deeply what corporate governance is and how it works and how it can be applied to your business!

How does corporate governance work?
The main objective is to improve processes, making the company's administration more agile. This means that important strategies and decisions need to be created to start a new project.

Something that often happens within a company and that this job seekers database solves is, for example, the impasse between partners. In other words, corporate governance can get the house in order.

This makes it much easier to receive investors at any time or even to apply for a loan from a financial institution . It even helps with the simplest decisions, such as choosing who will participate in a certain meeting or who will vote.

How to apply corporate governance in my company?
Now that you know what corporate governance is and its importance for any company, discover how to implement this concept in a practical way in your business.

Create a clear hierarchy
An employee who has to answer to two or more departments ends up not doing a good job in any of them. This is because we need to focus and having two bosses to answer to can cause a lot of confusion.

Therefore, all employees must clearly know who they report to and who their direct boss is. This hierarchy must be applied in all sectors of the company, from the factory floor to the highest position, which is the president.

Keep a record of all meetings
In any meeting held in your company, even if it is to discuss something that seems insignificant, minutes should be created. This document will record everything that was discussed at that moment, who said what, who came up with idea “x”, who voted on what, and other significant information.

All of these records should be archived so that they are easy to find when needed. It may be important to go back to the beginning if, for example, there is an error in a project.

Create corporate responsibility
Being aware of the impacts that your business's actions have on your team and also on society is corporate responsibility. Taking responsibility for your mistakes and changing what is wrong can improve the lives of other people and this gives a positive image of your company to the world.

You may still be wondering why you should apply this concept to your company. There are good reasons, such as avoiding abuse of power, planning and strategy errors and, most importantly, internal fraud.