Greater profitability and company value:
Good corporate governance is associated with better decision making, greater operational efficiency and lower financial risk, which can lead to higher profitability and greater company value for shareholders.
Greater transparency and accountability:
Corporate governance establishes clear structures and processes for decision-making, financial management and oversight, providing shareholders with greater information and transparency about how the company is run. This can increase investor confidence and make it easier to raise capital.
Protecting your rights: Good corporate governance establishes mechanisms to protect shareholders’ rights, such as the right to vote, the right to information and the right to participate in decision-making.
For the company in general:
Improving reputation and image: Good corporate governance can improve the reputation and image of the company among investors, customers, suppliers, employees and the community in general. This can lead to greater customer loyalty, improved supplier relationships, and a greater ability to attract and retain talent.
Greater access to capital:
Companies with good corporate governance usually have greater access to capital, both through the issuance of debt and the issuance of shares. This is because investors are more willing to invest in companies that are considered well-managed and transparent.
Risk reduction:
Good corporate governance can help reduce the risk of fraud, scandals and other corporate irregularities. This can protect the company’s reputation and avoid costly litigation and penalties.
More effective decision making:
Corporate governance establishes clear structures and processes for decision making, which can help improve the efficiency and effectiveness of decision making in the company.
Greater long-term growth:
Good corporate governance can help companies achieve long-term sustainable growth by creating an environment in which investors, employees and other stakeholders have confidence.
In summary, implementing good corporate governance can have a significant positive impact on a company’s performance and sustainability.