The organization of effective corporate governance involves the creation of rules, controls, policies and resolutions that promote positive corporate behaviour and work culture. It also protects organisations against business dangers and crises, such as cybersecurity threats, corruption of the leadership economic downturns, political instability. It includes contingency plans to aid companies in coping with these forces of business and come out the other side stronger and more resilient.

Corporate governance structures and procedures vary according to a company’s industry, ownership structure and the jurisdiction. Despite their different characteristics, these governance structures and practices should have one common goal – constructing value over time for shareholders. They should also provide flexibility to adapt and modify their governance practices as necessary to accomplish this goal.

The board of directors for a company is responsible for setting nonprofit board of directors salary goals and objectives, appointing as well as supervising the senior management, as well as representing the interests of shareholders. The board members must understand their obligations and work with the company’s top management to ensure that their duties are fulfilled in a manner which promotes growth for the business and financial performance.

Stakeholders should be encouraged to engage in dialogue and outreach with the board of directors and management. They will be able voice their opinions on issues that have traditionally been the management and the board the management, like strategic direction and decisions. In doing so it is vital for the board and management to be honest and transparent with their stakeholders about their governance structures and procedures and their reasons for using them.