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 Due to the ever changing societal norms, increasingly complex business environment and the recent corporate collapse of companies such as HIH, Enron, One-Tel and WorldCom, Corporate Governance (governance) has emerged as an imperative issue at the forefront of organisational concerns. This has lead to a mounting emphasis on Board accountability, performance scrutiny and, compliance and conformance.
The role of the Board of Directors (the Board) is to define, delegate and monitor expectations placed on the organisation and the Chief Executive Officer (CEO) in relation to Strategic Planning; Policy Development; and Compliance, Risk Management and Audit. In addition, the Board's key function is to purposefully allocate organisational resources in the best interests of all stakeholders and in line with organisations goals.
Governance is a set of principles, systems, processes and policies set in place to protect and manage organisational resources. Boards accept, adopt and support governance policies and processes to ensure that organisational goals are met. The policies and processes act as a performance meter to measure the Boards performance and identify areas where the Board is responsible and accountable for their actions/decisions. Governance also incorporates ‘best practise’ principles which are compliant and conformant with current industry standards.
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