What is corporate governance?

Corporate governance is a system of rules and processes that govern the activities of companies. It defines the relationships between various business participants, including shareholders, the board of directors, management, and other stakeholders.

Objectives of corporate governance

Protection of shareholders’ rights;
Increased transparency and accountability;
Ensuring sustainable growth and financial stability;
Effective risk management.

Corporate governance structure

Shareholders are investors who have the right to influence major decisions through voting;
The board of directors is the key body responsible for governance and strategic direction;
Executive management – carries out the day-to-day management of the business.

Principles of corporate governance

Transparency – informing shareholders about key events;
Accountability – control mechanisms to prevent abuse;
Fairness – protection of the rights of all shareholders, including minority shareholders;
Responsible behavior is compliance with ethical standards and norms.

Corporate governance instruments

The company’s charter is a fundamental document that defines the goals, rights and obligations of the participants;
The board of directors is a group that directs strategic directions and controls management;
Committees are specialized groups (e.g. audit, remuneration) that assist the board of directors in decision making;
Reporting and auditing are procedures that ensure the transparency and reliability of financial information;
Policies and procedures are internal documents that regulate operations and interactions within the company;
Risk assessment – tools for identifying and managing financial and operational risks;
Shareholder feedback – mechanisms that allow shareholders to express their opinions and suggestions.

These tools help ensure efficiency and stability in company management.

Trends and Challenges

Modern companies face challenges related to global governance, sustainable development and digitalization. Effective corporate governance helps to respond to changes in the external environment and adapt to new requirements.

Benefits of Corporate Governance

Corporate governance helps build trust, improve financial performance and ensure the long-term success of a company.