CGF ARTICLES, OPINIONS & EDITORIALS
Isn't this just more red-tape? (2011-12-07)
February 19,
2015 3338 3338 
The recent phone hacking and banking scandals in Europe have again illustrated the importance of corporate governance; showcasing the manner in which organisations can incur irreparable damage to their reputation when they do not pay correct attention to their governance practices.
However, there are other aspects to consider when formulating an organisation’s Corporate Governance Framework® and its desired practices, and these components must be incorporated within the core of an organisation’s strategy to ensure they are consistently applied, monitored and measured.
Corporate governance constitutes amongst other, policies, procedures and guidelines; each of which fulfil the relevant measures to ensure that the appropriate people within an organisation are equipped to understand their respective roles and responsibilities. One of the principle objectives is to ensure the organisation is directed and controlled in such a manner that it meets with the general approval of the organisation’s shareholders, as well as its stakeholders, whilst staying abreast of the law and accepted business practices. Corporate governance is also about discipline. Applied correctly, those employees who are in leadership positions -- all be they at various levels -- will be in a far better position to regulate their decision making with the mandate to do so. One of the aims of applying good governance within an organisation is to ensure a safe and organised operation which empowers employees to make carefully considered decisions, thereby eliminating, amongst other, poor business practices which cause unnecessary or harmful damage to the organisation and its stakeholders.
Whilst this is not an exhaustive list, here are six reasons to understand why sound governance and its practices are important in your organisation . . .
