We are living in a scenario of major global transformations, which has certainly impacted the performance of many businesses. However, even in this situation full of variables and transitions, some certainties in the business world remain valid, such as the impacts of the acronym ESG (Environmental, Social and Governance) which emerged with incredible popularity and brought to corporate agendas many strategic guidelines that are guiding companies in relation to how to carry out more sustainable business, considering the most current parameters to achieve good performance in relation to their impacts in the social, environmental, economic and corporate governance.
Even with this current emphasis on the acronym, there are still deep questions regarding G, for Corporate Governance, such as: why does the topic of governance appear at this time? What would be the guiding principles for good governance? What practices should companies follow? Does this help the company to devise better strategies for its sustainability?
When addressing issues about Corporate Governance, we are still involved in a process of evolution, where there is a need to construct analyzes and concepts that adhere to the various business relationships. In many companies, Corporate Governance is understood as due diligence, an agenda aimed at complying with laws and regulations and verification and audit processes. But, for other companies, with other interpretations, governance is more than merely meeting legal compliance, it is a big issue that involves everything from moral and ethical concepts to even practical actions for strategic deployment that can compromise the reputation and image of the business and of managers.
Currently, in its 5th edition, IBGC Code of Best Corporate Governance Practices It has established itself as a reference document, with recommendations for best governance practices with the aim of contributing to the evolution of the topic. The document highlights the four general principles that serve as a strategic (and inspirational) basis for the development of corporate policies and strategic definitions, namely: Transparency; Equity; Accountability; and Corporate Responsibility.
To achieve good Corporate Governance practices, it is also necessary to pay attention to structural issues, such as the accuracy of document organization; establish good communication; prepare integrated teams; act for prevention and invest in appropriate infrastructure and technology. Transparency in processes makes it possible to obtain information and consult documents in an accessible and clear way. Communication is important so that employees and other stakeholders have a clear view of the company's hierarchy and know who to report to in each situation. Promoting meetings with varied teams makes everyone aware of the company's plans and strategies. This makes processes more efficient, in addition to maintaining internal and external transparency. Another good practice, in any business management, is to act with a focus on prevention, rather than remediation, which avoids repair costs and provides greater security to its stakeholders.
Prevention models require investments, such as a Compliance, which requires the hiring of specialized consultants who help internal teams to better understand the impacts of the topic, and are subsequently appointed to carry out the due diligence – risk analysis, monitoring and also, external audit procedures, in order to avoid legal proceedings that are harmful to the company's image, criminal investigation, fines or other problems arising from fraud, corruption as well as lack of adherence to laws and regulations. Technology can bring greater reliability to Corporate Governance for data and information management, as well as ease in traceability mechanisms, making the entire database system less susceptible to human corruption when managed in an automated way.
In this way, companies that have strategies aimed at avoiding problems, adhere to the management model and corporate governance practices reduce the chances of something harmful occurring. With more transparency, communication and technology applied, employees can better channel time, energy and knowledge to apply innovation and create new values (more sustainable, in fact). In short, whatever the current management model practiced, good governance can only be built with the help of specialized and competent professionals who offer full support for structuring guidelines, defining ESG programs and projects, and carrying out training for internal teams.
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