According to Lockwood (2010), a good understanding of governance practices and the distribution of roles and responsibilities leads to better organization and access to the good governance that successful companies aspire to.
In this paper, I will discuss strategies for implementing governance practices and how to get stakeholder support.
Furtherance Practice Implementation Strategies:
Appointment of a good board of directors: The board of directors must be chosen from a diverse group based on their loyalty to the company. However, these individuals must have the various skills necessary for governance, then give them the tools they will need to do their work; this is done by creating a training and orientation program that explains to them how to carry out their tasks to the fullest (Firmansyah & Devi, 2017).
Evaluation of the members of the board of directors: This is done by setting specific measurement bases through separate subcommittees, measuring the board's performance and the performance of competitors, and also evaluating the quality of the decisions made to achieve profits and the stability of the company's positiocompany'st ocompany'sLockwooocompany'sLockwood Setting standards for guidance and supervision: This is done by drafting a comprehensive guide to good governance that operates according to the country’s laws ancountry'sions. The country's standarcountry's the board of directors' responsibilities, subcommittees, and executive management. These standards are updated and monitored by executive management and the relevant committees.
(Hermanson & Rittenberg, 2003).
Create a comprehensive monitoring system: This is done by developing a comprehensive plan for drafting progress reports and dealing with them. A mechanism shall be established for correspondence of reports between members of the Board, Board holders, and stakeholders, to whom the reports will be submitted, who will process and evaluate them, how to formulate recommendations, and how to implement them.
Develop a reward system: This is based on short and long term strategies, these strategies have desirable results when completed, according to these results, a system of rewards is established and how it should be paid to those who deserve it (Bruce & Buck, 1997).
Gain Stakeholder Support:
According to (Freeman & Reed, 1983), there are two types of corporate stakeholders, internal stakeholders, and external stakeholders; stakeholders get the most out of the quality of the information that reaches them; relevant, reliable, and timely information makes them more motivated to be an integral part of the sound governance system when preparing to carry out governance practices, stakeholders must be informed of these practices and their usefulness to the company as soon as possible. Therefore, their support is obtained, and they clearly understand these practices.
Conclusion
Good governance practices require action plans and procedures that make them implementable and produce the desired result. Gaining stakeholder support is vital to the full implementation of these practices. Conflict with the planned governance system and stakeholders’ expstakeholders'takeholders'rolestakeholders'rophicthe collapse of the governance system and its ineffectiveness in companies.
References
Bruce, A., & Buck, T. (1997). Executive reward and corporate governance. K. Keasey, S. Thompson and M. Wright, Corporate Governance: Economic, Management and Financial Issues, 80-102.
Firmansyah, I., & Devi, A. (2017). The implementation strategies of good corporate governance for zakat institutions in Indonesia. International Journal of Zakat, 2(2), 85-97.
Freeman, R. E., & Reed, D. L. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California Management Review, 25(3), 88-106.
Hermanson, D. R., & Rittenberg, L. E. (2003). Internal audit and organizational governance. Research opportunities in internal auditing, 1(1), 25-71.
Lockwood, M. (2010). Good governance for terrestrial protected areas: A framework, principles, and performance outcomes. Journal of Environmental Management, 91(3), 754-766.