www.boardroomdirect.blog/what-are-the-four-types-of-corporate-governance
Best practices for corporate governance are not only for businesses that are legally structured as corporations. It’s a system that requires managers to do more than just execute well-developed strategies. They must also be accountable and fair to all stakeholders. Regardless of whether your business has one or many stakeholders–shareholders, employees, clients, students or the community–your company’s approach to governance will change over time and depend on your unique needs and context. However, there are some common principles that you can apply to any business, large or small:
Transparency is among the most essential aspects of good corporate governance. This means that you must ensure that your management and board members are open with shareholders, auditors and the general public regarding financial reporting, accounting standards, major decisions, and internal practices. This is also important that your business is open about its environmental and social impact in ways that are easily accessible to people who may be interested.
Another aspect of corporate governance is to establish clear roles and the responsibilities of your board. This can be done by drafting job descriptions for the board, its chairperson and vice-chairperson committees, their chairs, or by setting up terms of reference for directors on their own. This will ensure a consistent set of responsibilities, well as clear boundaries for delegation and limits on the authority. It can help to foster a strong culture of collaboration and open communication and help to reduce errors and ensure compliance with the law. It could also lead to better opportunities for growth as your business expands and diversifies.