Good corporate governance leads to an improved company growth trajectory. A recent survey by the London Business School reveals that corporate governance has led to positive business growth for UK companies. In this article at Diligent, Lakshna Rathod shares 6 advantages companies enjoy from good corporate governance.
Advantages You Can’t Ignore
Since corporate governance gets embedded into the culture, you receive support from the employees as well. In fact, companies that complied with the UK Corporate Governance Code had better corporate outcomes than those that did not. Following are the 6 advantages companies will enjoy if they comply:
Creating a Positive Work Environment: Instead of only enforcing governance on the workforce, top executives and leaders must follow the rules themselves. This increases acceptance among employees and creates a positive work environment. With better visibility, companies can effectively address issues within critical response hours.
Increased Efficiency Saving Costs: With proper corporate governance, it is possible for companies to save capital in this fast-changing world. In fact, investors may even pay more because your company has a good governance structure.
Effective Monitoring: When you perform effective monitoring of the workspace, you build confidence that policies and standards are working. The board can detect any anomalies faster when they are in control of the governance policies of the company.
Improved Methods for Strategies: With great communication between management, it is easier to plan better strategies. With the full support of the board and better technologies, resources and funds are spent with full transparency.
Hiring Top Talents: When you hire executives that are experts in their field, they bring more stability to the organization. It further strengthens regulatory best practices in the company. Since the market is evolving, it is important to get fresh directions and leverage new opportunities.
To view the original article in full, visit the following: https://diligent.com/en-gb/blog/6-ways-boards-benefit-from-good-corporate-governance/