Corporate Governance deals with the role of the teams and team members of a company in providing the leadership to the company with great insight. There are several factors which will be dealt within the corporate governance plan but the common purpose will be in providing the necessary insights to the direction in which the company is heading into.
Providing the general guidelines about the direction of the business to the employees and management is the sole purpose of the corporate governance plan. making the right decisions at the right time is done based on the corporate governance plan. How the future of the company is being affected due to internal as well as external factors is explained through the corporate governance plan. In general, a purpose for each activity carried out in the company is explaining in this plan.
Through corporate governance plan, the actions and consequences are constantly monitored by the top management staff in the company. Through this it is possible to ensure that the leaders in each team are acting in order to perform according to the values of the stakeholders of the company. In small and medium business organizations the role of each management team will be a shrink to less number of people and Corporate Governance helps them to run the company smoothly.
Most of the companies exhibit a corporate citizenship page on their official website stating the various documents for investor relationship. These documents act as the basis of the responsibility towards the environment and social factors. The corporate governance plan makes it clear the company is concentrated in attaining profits by following the policies.