Quality corporate governance is the key to improving a company’s operational efficiency and financial results. It fosters a constructive dialogue with all stakeholders and helps increase the value of the business.
The biggest casualties of the global financial crisis have been trust and confidence. Both private companies and public institutions now attract much greater scrutiny. They’re expected to explain their business practices, disclose key relationships, justify their remuneration models, discuss their succession plans and make a wider contribution to society.
It’s not just investors they have to satisfy. They also have to answer to regulators and the general public. And, as many organisations move into new markets, they’re engaging with a more diverse mix of stakeholders, each wanting different kinds of information.
The digital technologies are simultaneously transforming the way we communicate. People can see — and say — more about the organisations that serve them than ever before. New risks, including new forms of risk, are also emerging, and the regulatory burden is increasing. So the pressure to be transparent, accountable and socially responsible is greater than at any time in history.
These factors are all accelerating evolution in the corporate governance.
Of further interest
|PwC Russia is a Partner of the XXII Olympic Winter Games and XI Paralympic Winter Games to be held in the city of Sochi in 2014