Corporate governance is the process by which company objectives are established, achieved and monitored. Corporate governance is concerned with the relationships and responsibilities between the board, management, shareholders and other relevant stakeholders within a legal and regulatory framework.
The board are responsible for providing entrepreneurial leadership within a controlled framework which enable risk to be assessed and managed. It is responsible for ensuring that profits within the organisation are maximised legally and within the constraints of the working environment.
The board are responsible for setting the company’s strategic aims ensuring that all of the required human resources are in place for the company to satisfy its short and long term objectives. It is responsible for ensuring that the ethical management of the organisation is at the core of the business and not the periphery.
Obligations to Shareholders and Stakeholders
The board are responsible for regularly reviewing management performance and setting the company’s values and standards and ensure that its obligations to its shareholders and stakeholders are realised.
The board are responsible for carrying out an annual critical evaluation of its own performance to ensure that optimum performance is maintained at board level and that the short and long term strategy of the organisation is treated as an iterative process. It is the responsibility of the chairman to nominate an impartial third party to carry out this evaluation.