How to cultivate good corporate governance in SMEs

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It had been gaining momentum over the last decade, and with the emergence of the COVID-19 crisis and its consequent instability, it has finally consolidated itself as a benchmark business trend. Corporate governance is no longer an ideal exclusive to avant-garde companies.

Companies compete in terms of leadership , aware that the quality of management not only determines the proper functioning of operational processes, but also the success of financing processes, public recognition and even the ease of B2B business .

As Cepyme points out , “ transparency in intra- and extra-corporate operations, the quality of economic-financial information and accountability pave the way to financial resources .” And this, in fact, involves good corporate governance.

For all these reasons, today at MÁSMÓVIL Negocios we are addressing this important management of intangibles adapted to the context of the crisis and to the different regulations that address the responsibility of companies in this matter.

SME corporate governance
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What is corporate governance?
It tends to be used as a synonym for leadership , but its meaning nigeria number data encompasses much more than the simple management of teams and resources. Corporate governance is, in fact, the set of rules that structure the functioning of the company's governing bodies .

" It establishes the relationships between the board of directors , the board of directors, the shareholders and the rest of the interested parties, and stipulates the rules that govern the decision-making process regarding the company for the generation of value ," says Deloitte .

What happens in SMEs? Without so much hierarchy in between, for these companies Good Governance is embodied in the principles that govern all rules subject to ethical transparency.

In reality, whether it is a multinational or a micro-SME with two employees, corporate governance is always about the business's ability to adapt to changes and react to competition and unforeseen market events.

The basic ingredient of sustainability
For Antonio Garamendi , current president of CEOE , corporate governance is the key that opens the door to the “ Virtuous Circle of Sustainability ”. “ The economic, social and environmental sustainability of the company must be based on its profitability ”.

“And on top of that, we can base the rest of the factors that allow us to grow, increase competitiveness, attract talent and investments and, ultimately, create value, be useful to society and generate progress and well-being in it .”

corporate governance sustainability
Under this approach, Good Governance is synonymous with Compliance as it is based on ethical principles that are beneficial to all. Thus, a company with appropriate standards will achieve efficient resource allocation, avoid sanctions and guarantee the future of the business .

This sustainability increases the company's attractiveness to investors, provides intangibles to retain talent, and creates the ideal environment for a culture of open innovation .

The business, therefore, ends up being much more competitive . “ This sustainability working capital allows feedback to be provided to the cycle and to be in a position to improve processes and/or undertake new projects .”

What does corporate governance regulate?
Although its application varies from company to company, all Good Governance covers a series of fundamental subjects for the subsequent articulation of processes and decisions consistent with the company's sustainability objectives .