Corporate Governance Institute´s critical components sustainable foundation, effective board, proactive management for performance, stakeholder accountability and process transparency

The Ten Pillars of Corporate Governance Institute (in alphabetical order):

• Accountability and responsibility
  The Corporate Governance Institute recommendations make the board, management and stakeholders accountable, transparent, and committed crusaders of good governance practices
  Corporate governance sets clear rules on the organisation’s structure and accountability. For example, the board must present an accurate and unbiased position of the company. This creates transparency through accountability and clear disclosures and reporting systems that highlight areas for improvement.
• CSR/ESG
  The Corporate Governance Institute also provides guidance on bribery, anti-corruption, fraud, ‘gift’ restrictions, and CSR/ESG in the corporate governance social responsibility and environmental, social governance guidelines.
• Corporate Culture, Ethics, and integrity
  a. Inclusion, ethnicity, equality, diversity etc
  As part of the guidance on improving cross-cultural management and promoting inclusion, ethnicity, equality, etc. The Corporate Governance Institute provides guidance to attract and safeguard talent and rewards.
  
  Are employees paid and rewarded for their efforts? Are work-life balance and a work-late culture in the organisation acceptable? Is succession planning in place? These are some of the questions we ask to avoid high turnover and ensure that training, awareness, and related governance and compliance issues occur. Part of the Corporate Culture guidance includes ethnicity, diversity, bullying, sexism, or inappropriate behaviour/use of work equipment with strict discipline, punishments, or consequences.
• Management is effective and efficient. Corporate governance components improve economic efficiency by holding management accountable. Management decisions go through an assessment and approval process that is critiqued and analysed, reducing the number of bad decisions a firm takes.
• Performance
  Stock listed companies have additional governance policies that give investors greater insight into how the company functions. Compliance with policies can demonstrate how decisions are made, thereby giving investors confidence that the company is effectively and efficiently run and can document and demonstrate good governance.
• The rule of law
  The comply or explain component ensures that the board of directors are accountable for explaining decisions they have made which are non-compliance or have gone wrong and identifying and addressing the risks to make objective decisions.
• Stakeholder management
  Corporate governance enhances investor confidence and creates a framework by which the business functions and addresses the conflict-of-interest issues. As a result, the stakeholders and investors have trust and confidence in the board and management.
• Stewardship
  Clear responsibilities identify the individuals who make bad decisions that affect the whole company without hiding behind the corporate mask.
• Sustainability and Minimise waste
  The Corporate Governance institute guidelines protect integrity and eliminate fraud and corruption. In addition, the procedures help to reduce waste and processes that limit expenses on utilities.
• Transparency
  Applicability and appropriateness of transparency is the basic principle of corporate governance. In the long run, transparency creates a constructive relationship between stakeholders and participation in the qualitative and quantitative corporate performance. In addition, corporate governance improves transparency and accountability for better decisions that the shares are priced appropriately.