Why is Corporate Governance the key to your Business’s Success?
To demonstrate good corporate citizenship, companies strive to have outstanding corporate governance through sound corporate governance practices. Good corporate governance is the critical element of strong community and investor relations.
Corporate governance is transparent rules and controls that provide direction to leadership and arrange the roles of shareholders, directors, management, and employees. It refers to the rules, controls, and policies to direct corporate behavior. It is concerned with practices and procedures for ensuring that a company runs efficiently and achieves its objectives while ensuring stakeholders can trust that the company is well-founded.
A board of directors is pivotal in governance as the primary stakeholders; shareholders, considered essential stakeholders, can affect corporate governance. The board of directors is appointed mainly by shareholders or other board members representing shareholders of the company.
The role of corporate governance in company performance
Good corporate governance poses a significant positive impact on many aspects of the business. Other than building trust with investors and public officials, it also provides stakeholders and investors with the detailed direction of the company. Moreover, it promotes long-term financial viability, facilitates capital raising, and translates to rising share prices. Most importantly, it decreases the potential for financial loss, risks, and corruption.
Corporate governance also structures initiatives that motivate corporate insiders to maximize the company’s operational efficiency and long-term firm growth by limiting insiders’ power that can abuse corporate resources.
Studies have proven that better corporate governance reduces the miscommunication of vital information between the company and stakeholders, boosting confidence in the company, which increases the company’s market value. To ensure effective corporate governance practices, it is always best to work with an external advisory firm like Ahmed Mamdouh & Co. Kreston Egypt, one of the leading audit firms in Egypt.
The Importance of Corporate Governance Services Offered Auditing Firms
To ensure a business has structured solid corporate governance controls and the board follows the regulations, investors and public authorities may often require a company to hire a corporate governance advisory board.
Audit firms in Egypt like Ahmed Mamdouh & Co. Kreston Egypt often offer a wide array of auditing services that include corporate governance advisory.
An experienced will offer clients corporate governance services on different aspects, starting with a comprehensive review of the governance framework and the risk assessments. They will be able to help the company benchmark its governance practices against its peers in the industry to look for areas of improvement. Moreover, they will evaluate the current management structure to ensure its efficiency.
Most importantly, firms offering a corporate can take on the responsibility of creating corporate governance for a business from scratch.
The above are all essential to maintaining good corporate governance and fostering a culture of integrity, attracting talent and financial capital, and promoting internal efficiency.
Impact of Technology on Corporate Governance Services
Digital transformation is shifting how companies do business in all aspects; it facilitates decision-making processes. New technologies have played a vital role in improving corporate governance practices through tools that enhanced the process massively.
Not only it facilitated processes, but technology also has another significant contribution to good corporate governance. It increased transparency, information, accountability, and public participation and promoted the efficient delivery of public goods and services. Most importantly, technology increases the level of security to fight cyber risks. Some of the new tools and services that leveraged technologies are:
– Distributed ledger technology: leveraging blockchain ensures data is stored in a verifiable and secure place, establishing a stronger trust between the company and shareholders.
– Digital Signature: facilities the authentication of transactions, increasing its security and deriving the public-key-cryptography.
– Real-time insights: shareholders can now actively follow up with the company’s performance rather than waiting for reports through real-time tools for analytics and data. This enables faster intervention in case of any discrepancy is detected.
– Real-time accounting: Shareholders could aggregate the company’s transactions into an income statement or balance sheet; they will no longer need to rely on quarterly financial reports.
– Improved security: new cyber providers assure board directors and management that their corporation’s data is secure from hackers. It also enables them to conduct board activities securely through their mobiles anywhere worldwide and at any time. They offer multiple services to create passwords, user authentications, and encryption to secure workflows faster.
Why should Kreston Egypt be your preferred partner for Corporate Governance services?
Ahmed Mamdouh & Co. Kreston Egypt is one of the most prominent audit firms in Egypt, offering a wide array of corporate governance services for more than 30 years. We pledge to help our clients achieve the highest levels of success and exponential growth locally and globally.
Our corporate governance practice is part of a network of more than 170 firms in more than 120 countries globally. Our consultant team has an extensive understanding of local and global regulations, so we are well equipped to help our clients deal effectively with corporate governance, regulations, and compliance issues.
Ahmed Mamdouh & Co. Kreston Egypt implements top-notch technology services to help our clients navigate uncertainties. We work as a partner to our clients, ensuring they get the best services and results. We offer comprehensive audit and assurance services to ensure they maintain a positive, transparent relationship with investors and regulators to facilitate growth opportunities.
We use our resources to facilitate well-informed decision-making for the board of directors and decrease risk. Our certified consultants also offer a limited review, agreed-upon services, and CPA auditing to cater to clients’ specific requests.
Contact our team today for a detailed consultation on how we can help your business build a good corporate governance practice.
References:
– https://www.investopedia.com/terms/c/corporategovernance.asp
– https://www.icaew.com/technical/corporate-governance/principles/principles-articles/does-corporate-governance-matter
– https://www.lexology.com/library/detail.aspx?g=1e6cb76d-ed39-44da-8fe3-43823dc27487
– https://fbj.springeropen.com/articles/10.1186/s43093-021-00093-6
– https://www.researchgate.net/publication/281945625_The_Effect_of_Corporate_Governance_on_Firm_Performance_Evidence_from_Egypt
– https://www.oecd.org/sti/ind/2090569.pdf
– https://www.isscorporatesolutions.com/solutions/corporate-governance-advisory-services/
-https://www.diligent.com/insights/corporate-governance/achieving-strong-corporate-governance-through-technology/#:~:text=It’s%20possible%20to%20classify%20the,of%20public%20goods%20and%20services.
– https://ecgi.global/content/technology-and-corporate-governance-0
– https://www.ius.uzh.ch/dam/jcr:9771f665-411e-434e-aa30-9598d66909c6/Technology%20in%20Corporate%20Governance%202.pdf
– https://www.wtwco.com/en-VN/Insights/2019/08/the-future-of-work-and-its-impact-on-corporate-governance
