Effective corporate governance follows seven important characteristics that make up a code of ethics for a company’s leaders. They promote these characteristics through management of the business and its employees. The seven characteristics that make up good corporate governance are:

1. 1.       Clear Strategy

Each business or company has a mission. Whether that mission is to provide a service, a product, or something else, they need to have a clear strategy to help them reach their goal. Sharing the strategy with the entire workforce will help keep everyone on the same page and working toward the same goal.

1. 2.       Risk Management

Many companies aren’t aware that they are at risk, until they go through an assessment. InnovaCounsel sits down with companies to help them discover where they are vulnerable legally.  By identifying business risks before they become legal issues, it can protect the business and save money in the long run.

1. 3.       Discipline

What good is a policy if it isn’t enforced? Company leaders need to be consistent in their discipline to implement policies, resolutions and strategies. This helps everyone stay on the same page and feel like they are being treated equally.

1. 4.       Fairness

When employees are treated well, the company benefits. Management should put fairness as a high priority when dealing with employees. Treating employees unfairly could create negative long-term effects within the company, disintegrating the employees’ trust in management.

1. 5.       Transparency

Both within the company and outside of the company, transparency can be beneficial. Transparency gives the public and the employees more trust. For employees, it helps them understand what is happening and why. Secrecy breeds skepticism and a lack of trust with the public.

1. 6.       Social Responsibility

There is an increasing expectation from the public for corporations to be socially responsible within their community. Many corporations do this by finding ways to reduce waste and pollution they produce. They also find ways to reinvest in the community through donations and volunteer efforts.

1. 7.       Self- Evaluation

Much like risk management, self-evaluation can help identify and avoid problems that happen within the leadership. Mistakes will be made, but by self-evaluating, they can be recognized and solved.

Creating effective governance that includes these characteristics can be a struggle. That’s where general counsel, such as InnovaCounsel, can step in and assist. As part of their services, InnovaCounsel covers corporate governance, advising boards of directors and much more. Contact InnovaCounsel to find out how their general counsel services can improve the workplace and company as a whole.