What is Corporate Governance definition/concept

This is a concept applied to the business world, specifically to entities that use organizational systems based on transparency and efficiency and sustainability criteria. Corporate Governance

your main idea

It is a set of rules and practices with which the managers and administrators of these companies are expected to act responsibly.

Its fundamental bases are as follows:

1) a government code or manual that serves as a base document in which the responsibility of those who are part of an entity is established;

2) this code details the role of shareholders as the company’s management group and the functions of management as an administrative body; Corporate Governance

3) in parallel, external (for example, audits) and internal control systems are developed, as well as risk management.

The fundamentals mentioned above allow decision-making to be more fluid and effective, while business strategy follows a coherent course.

Corporate governance and ISO standards

ISO standards are global quality standards developed in collaboration between governments, consumers and businesses. The purpose of these standards is the sustainability and proper functioning of organizations .

ISO 38500 is an international standard focused on the concept of corporate governance. This standard sets the standards for good corporate governance and its recommendations serve to ensure that all those responsible for an entity adopt criteria of efficiency and professionalism . Corporate Governance

The set of standards developed in ISO 38500 can be applied both in private and public companies, as well as in non-profit entities, regardless of the size of the company or organization.

In relation to the objectives of this standard, we can highlight the following:

1) generate a climate of trust among all those who form a company or who have a relationship with it;

2) inform and guide administrators on the use of information technologies within their organization;

3) provide a valid reference so that the entity can be evaluated against objective criteria.

The benefits obtained through correct corporate governance can be summarized in two main axes:

1) the organization complies with internationally recognized safety and efficacy criteria ;

2) the legislation on subjects of a different nature is respected, such as privacy, SPAM legislation, commercial practices, environmental regulations, accessibility of information or intellectual property rights.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button