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|Total Solutions Middle East is the leading compliance consultancy and training service company in the Dubai established in 2004, We provides HR Solutions, contracting, outsourcing and Payrolling services as well.|
What makes corporate governance so important?
In advanced economies, corporate governance dominates the political and business agenda. However, in Middle East, only a few publically-listed companies have effective corporate governance in place. But, with its countable benefits, a number of companies are considering the need for effective corporate governance.
Corporate governance is basically a system, set of principles and processes, detailing how companies should be controlled and directed. It regulates how boards manage the running of a company and its processes – by its members, executives. In addition, it also manages the way board members are accountable to the company and its shareholders. This management system has a direct leverage on the company’s responsibility, attitude, and accountability towards all stakeholders – which include shareholders, employees and customers alike.
It has a fundamental role to play in strengthening the efficiency and integrity of financial markets. This is why corporate governance Middle East is now given preference by business owners. Inadequate corporate governance, on the other hand, can undermine a company’s potential and may result into serious financial difficulties, at worst, which may also lead to fraud. However, a well-governed company can outperform other companies enabling them to attract more investors whose support can secure the growth and success of the company.
Transparency is quite important in corporate environment, where good principles of corporate governance can help. The principles of governance focus majorly on publically traded companies with an aim to help governments to advance the regulatory, legal and institutional framework. They provide practically workable suggestions and guidelines for relevant entities including investors, exchanges, corporations and others which play a part in the process of bringing into practice effective governance practices.
Advanced and emerging economies when studied for reference, they demonstrate that no single framework for corporate governance can work for all markets. This is because the rules and regulations vary largely from country to country. In this case, internationally recognised principles can’t be compulsory or authoritarian, rather they should be taken as reference that each country can amend to suit their market culture.
Introducing good corporate governance practices into business is important, but promoting the right culture is supreme. Also, there is a level of confidence associated with a company if it is known to have in place effective corporate governance practices. The information should be transparent and should be readily available to all its stakeholders.
In the Middle East, companies offering corporate governance also offer other services including Payrolling Middle East, PRO and relocation and other facilities. Hiring their services can be of great help for business owners.
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