How To Organize And Implement Corporate Governance Correctly?

1. all directors, shareholders and stakeholders should clearly define the purpose and scope of corporate governance.

This principle should be a code of conduct for all organizations and help to eliminate the misunderstanding of corporate governance.

2. directors should set an example, formulate company norms and actively abide by them.

Pay attention to the cultivation of employees' moral quality - a company director should regard the cultivation of corporate ethics and responsibilities as one of his duties.

3. the board of directors should give reasonable authorization to management and the committee, including setting clear objectives, explaining responsibilities, identifying management structures and committees, designating directors, and formulating company policies.

Directors need to know their strengths and weaknesses and often examine whether they are doing the right thing.

The directors should also supervise the management of the company to ensure that they can achieve their goals.

4. directors should give full consideration to long-term strategy when formulating corporate strategy.

And return factors.

All companies can not avoid risks. To ensure the success of strategy, we need to understand, accept, manage and deal with risks.

Directors can not take responsibility for risk management to the management of the company.

The directors need to be clear about the risks faced by the company at all times, and make sure that the risks are acceptable.

Five

All kinds of relations should be balanced.

As a team, the board of directors needs to cooperate with non-executive directors and executive directors.

Professional financial knowledge enables directors to correctly understand the complexities of company operation and related risks.

6. management pay should help improve the company.

And need pparency.

This is a fundamental challenge for the company.

Management compensation design needs to be linked to individual performance, and can further enhance the company's performance.

Improper compensation design will not motivate management so that management can not protect the rights and interests of shareholders and other stakeholders.

Therefore, salary should be linked to employee performance and job responsibilities.

7. company risk management and control should be objectively examined and independent of department management at all levels.

Internal and external audit is an important basis for implementing target assessment and control. It should be carried out independently and not affected by management.

8. the board of directors shall be responsible for shareholders and other stakeholders.

Directors should work hard to achieve the successful operation of the company and ensure the rational distribution of shareholders' interests.

In a joint stock company, the interests of shareholders are the first, but if we consider the interests of society, environment, employees and other stakeholders, we will be more conducive to the long-term interests of shareholders.