Corporate governance: what is it and how important is it during the pandemic?

[soniya55531]

The concept of corporate governance, widely used in the market, may seem, at first glance, quite complex. However, in simplified terms, the term refers to a set of processes and standards that guide the management of a company.


According to the Brazilian Institute of Corporate Governance (IBGC), the concept is based on the “system by which companies and other organizations are managed, monitored and encouraged, involving relationships between partners, board of directors, management, supervisory and control bodies and other interested parties.”


In other words, in a company, corporate governance has the georgia mobile database main objective of fostering organization, strengthening and strengthening relationships with stakeholders and ensuring the alignment of business interests, reconciling them with the guidelines of regulatory and supervisory bodies. This entire process aims to achieve the desired results and contribute to the quality of management.


Thus, corporate governance should be understood as a management mechanism to guide operations in an orderly manner and in accordance with the processes that govern the institution, aiming at greater efficiency in the various layers that make up the organizational structure and thus fostering the construction of an institutional culture. In this sense, it is worth highlighting that, in relation to standards, practices such as Compliance belong to corporate governance.


The pillars of corporate governance
In practice, when developing a corporate governance system, companies need to invest in more balanced models.

Very rigid corporate management can impact and bureaucratize work, bringing negative effects to management. On the other hand, the absence of a solid plan can fragment governance and not bring the expected results.


To assist in this process, the IBGC has listed four pillars that constitute and must be present in any corporate governance program. They are:


Transparency
It consists of the desire to make available to interested parties information that is of interest to them and not just that imposed by provisions of laws or regulations.