A company’s competitive position can be greatly enhanced by a management structure that provides for an increased focus on the control and reporting functions of management boards, and greater clarity to the respective responsibilities of directors, shareholders and auditors.
Thus, corporate governance – complementing good management and helping to establish clear management roles and responsibilities – identifies the system of rules and processes that an enterprise is directed and controlled with. Indeed, it provides a framework for a company to achieve its objectives, covering virtually all management aspects from strategies and action plans to performance measurement.
The European Union has been promoting the adaption of best practices in corporate governance in order to increase the competitiveness and sustainability of SMEs and to enhance private sector development. Adaptation of good corporate governance has proven to provide several benefits to enterprises in order to meet the challenges of the current business environment.
- Institutionalization of Family Businesses & Succession Planning For SMEs – SECOND Project
- IFC (World Bank Group), The EU Approach to Corporate Governance (2008)
- The EU Single Market, Modernisation of Company Law and Enhancement of Corporate Governance – http://ec.europa.eu/internal_market/company/modern/index_en.htm
- Action Plan: European company law and corporate governance – a modern legal framework for more engaged shareholders and sustainable companies – http://eur-lex.europa.eu/legal-content/EN/ALL/;ELX_SESSIONID=KLtVTq9Lvt1vwNpsRCqZ8rt…
- European Corporate Governance Institute – http://www.ecgi.org/
- Corporate Governance Codes by Country – http://www.ecgi.org/codes/all_codes.php
- Financial Aspects of Corporate Governance (The Cadbury Report) – https://www.jbs.cam.ac.uk/cadbury/report/index.html