Corporate Governance

Corporate governance is defined as the structures and processes by which companies are directed and controlled.

Good corporate governance helps companies operate more efficiently, improve access to capital, mitigate risk, and safeguard against mismanagement. It makes companies more accountable and transparent to investors and gives them the tools to respond to stakeholder concerns.

Corporate governance also contributes to development. Increased access to capital encourages new investments, boosts economic growth, and provides employment opportunities.

Institutional responsibility

Institutional responsibility is the responsibility of the organization for its decisions, activities and their results.

The organization may be held accountable for these activities before official bodies and stakeholders, who benefit from its services such as standards, testing, certification and reporting.

This responsibility has three dimensions: legal, ethical and societal. Moreover, it represents a responsibility of a national dimension. Organizations should:

° Adopt international and establish national criteria for social responsibility;

° Include the principles and values of responsibility and accountability in their practices;

° Adopt a sustainability reporting initiative such as the Global Reporting Initiative in their work.

Good Governance and work culture

Good governance does not mean the rigid observance of a set of rules and procedures and their interpretation in a literal manner, but it is rather a culture and a style of governing the relations between different stakeholders in a climate of transparency, rule of law and ethical behavior.

° The organization should define its stakeholders, its policies for involving them in the governance process and its approach to communicating with them.

° The organization should issue a “Declaration of Principles and Values” that represent the culture of the organization, including respect for the law, transparency, respect of human rights, honesty and respect of internationally accepted rules of conduct.

° The organization should endeavor to continually improve its management and operational systems with a view to improving competence and efficiency