Effective corporate governance includes the rules, procedures, and guidelines that direct a company, while also considering the interests of shareholders, employees, customers suppliers, lenders the government and the community. These are essential elements for a flourishing, strong business.

The people element of good governance makes sure that the people involved in a company’s operations are ethical, knowledgeable and committed to the company’s objectives. This is especially important at an era where people are fed up with corruption and are demanding more transparency, equity and accountability.

Having transparent reporting systems is a key element of good corporate governance. This means that the board receives financial reports that are thorough each month, which provide insight into the company’s performance, and why. It is also a good idea for boards to set up a system of checks-and-balances to prevent fraud and inefficiency.

Policies and guidelines are an essential element of good corporate governance. They should reflect the company’s culture, align with legislation/regulations and internal policies, and be clearly available to all stakeholders.

One of the most important facets of good corporate governance is having an independent director, referred to as a presiding director to oversee and direct the board. This is especially crucial if the structure of the board leadership structure of companies combines roles as CEO and chair, or if there are close personal ties among top leadership. In addition, companies should make sure that their compensation practices do not create conflicts of interest for directors.

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