It isn’t easy to adhere to corporate governance best practices, but you don’t have to. The right tools will help your board start off and remain on the right track throughout the year.

It’s easy corporate governance tips to think that corporate governance consists of complying with the law and adhering to regulations However, it’s far more than that. It’s an approach to business that can transform a company.

Accountability is one of the most essential aspects of corporate governance. This includes having transparent reporting systems as well as an established system of checks and balances to identify any potential issues in financial reporting. For example, it’s important to ensure that all board members are aware of their responsibilities and that they are fully prepared for meetings on the board as well as other events.

A clear path to shareholder engagement is another important aspect of good corporate governance. This includes ensuring that shareholders can remove directors who aren’t performing well. This also includes having clear and accessible information about the company’s financials, which includes the ability to review a company’s quarterly reports.

In addition, it is essential to have a clear plan to address environmental and social issues. Many investors are looking for ESG criteria to help them select stocks. It’s also crucial to show your company’s positive impact on society.