Here’s why you should focus on good corporate governance

If the world’s biggest companies like Google, GE, JP Morgan, HSBC, and Berkshire Hathaway have taught us anything, it’s that no business can overlook the importance of corporate governance. When utilising fundamental analysis, investors keep a close eye on the way companies keep management in check and ensure board independence, financial disclosure, and shareholder rights are functioning well.

Recent studies also show that the benefits of assessing governance go beyond simply avoiding company disasters. Good corporate governance can potentially increase a company’s valuation as well as its bottom line.

What is corporate governance and why it matters?

Corporate governance is a system of rules, practices, and processes by which a company is controlled and directed. It involves balancing the interests of its stakeholders and the large array of parties, often with differing interests. Therefore, what constitutes “good practice” in this context is mostly a matter of preference.

General corporate governance measures include placing constraints on management power, appointing non-executive directors and ownership concentration, it also entails ensuring proper disclosure of financial info as well as executive compensation and rewards.

What’s surprising is that corporate governance is still considered a secondary factor when it comes to impact it has on a company’s performance. Contrary to a company’s financial position, operating capabilities, and strategies, the effectiveness of governance practices was mostly seen as vital only in unique circumstances like merger-and-acquisition decisions and CEO changes.

However, the modern business sphere proved that governance practices are not simply a secondary factor. When a company’s share price tanks due to an accounting scandal, the importance of good governance practices quickly become obvious. Corporate disasters clearly show us that the absence of good corporate controls puts the company as well as its investors at great risk.

Investors have ignored the importance of good governance for years merely because academic research found no clear causal link when it comes to governance and financial performance.

Investors prefer a company with a solid corporate governance

Amidst all the disregard for corporate governance, investors are starting to ask for help in avoiding misgoverned companies and looking for well-governed ones. Governments, stock exchanges as well as securities overseers are starting to develop new rules and regulations that can help stop some of the worst cases of corporate catastrophes.

The public image of a corporation will instinctively echo the culture of that body. It follows, therefore that effective corporate governance has to be in the centre of the organisation since this, in turn, will be mirrored in the culture. To translate to another analogy, a healthy blood and bones are mirrored in the logically healthy look of a person, therefore an organisation whose internal functions are strong and efficient will certainly look so from an external perspective.

Now that you know the importance of a good corporate governance, it’s time to look for a partner or consultant that will help your company begin its journey towards it. Leadership and Governance Centre like ICLIF is dedicated to executive education, research, coaching and consulting services in the areas of leadership development, organisational effectiveness and corporate governance. You may go to their website to learn more about their services.

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29 year old Quality Assurance Manager Lester Adney from McBride, has numerous passions that include rescuing abused or abandoned animals, business and yoyo. Will soon carry on a contiki voyage that will incorporate visiting the Kasbah of Algiers.

How to Improve Local Branding with a Limited Budget

Branding Your Local Business

Building brand awareness for a new business is never easy; it’s even more difficult with a limited budget. If you are new to business ownership you may have realized that it can be quite tricky to get new customers and build brand awareness when competing with dozens, maybe even hundreds, of competitors which have already been established.

If you’re struggling to get new customers because your business lacks brand awareness and your marketing budget is limited, you’ll have to get creative. Here are two ways you can build up your brand without spending your entire marketing budget in one week.

Custom Labeling, Decals & Stickers

For local businesses, traditional marketing can still be effective while also being quite affordable. You’re marketing to your local community while also servicing that same area. This gives you the opportunity to take advantage of inexpensive traditional marketing strategies.

It’s not uncommon to see service trucks or vans with their business information or logo shown on the side of their vehicles. This can be very effective for services or industries that cater to a wide audience as anyone in your local area could be a potential customer. Using car decals or stickers can help increase local awareness of your brand while not incurring monthly or on-going costs.

While full-vehicle decals can sometimes be quite pricey, you can also utilize die cut stickers to create a custom size and shape of your logo or artwork – these can also be used as die cut decals for your vehicles. You can then use these on your work or personal vehicles, shop windows, or areas that your target audience might frequent in order to increase brand awareness.

Local Citations & Business Listings

Another great way to build local business awareness on a tight budget – this time bring it online – is to utilize local citation and business listing sites. There are hundreds of business listing sites where you can setup a local business listing or citation and include your logo, hours of operation, services, etc. If you’re like most local businesses, you probably already have a listing on the most popular sites like Yelp, Angie’s List, Google, etc., but there are hundreds more.

Start by doing a Google search for the top 50 citation sites and go down the list to see which ones you haven’t yet been listed on. Most of these sites allow you to setup a free listing and can help drive traffic and business while also building brand awareness. These are great for local businesses with a limited budget because, while it may take time to setup profiles on all these sites, you don’t have to spend a dime.

Once you’ve grown your business enough to afford a larger marketing budget, you can then start using more competitive strategies to further grow your business.

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29 year old Quality Assurance Manager Lester Adney from McBride, has numerous passions that include rescuing abused or abandoned animals, business and yoyo. Will soon carry on a contiki voyage that will incorporate visiting the Kasbah of Algiers.