Corporate governance and responsibility are important for businesses, even small businesses. Corporate governance is not limited to large corporations. It consists of two primary components. First, corporate governance is the behavior exhibited by various members of a company, whether it be at the management and executive level or among other employees. The second component is the specific set of rules that help govern this behavior. Having these rules in place makes it possible for business owners to codify governance and increase responsibility.
1. Hold meetings among all those who have a say in determining how you run your business. Consult managers who help keep your business running smoothly because they will generally have their finger on the pulse of the company. Interaction with workers on a regular basis by these managers provides them with a strong indication of how workers relate to one another. Determine what areas of improvement are needed in regard to company culture and relations among employees.
2. Create a manual for governing company relations. The manual should include information that clearly lays out the expectations for those who work for the company. Include managers and owners in the specific mandates made in the manual so that employees will see that proper behavior within the company starts at the top, rather than simply being imposed from there. Provide employees with an opportunity to contribute to the company manual by having them complete surveys or offer suggestions.
3. Disclose your corporate rules to the general public. Place these on your website so that anyone who wants to learn about the ethical behavior of your organization can do so. By placing the information out there in the public view, you increase corporate responsibility by making yourself and your company subject to public scrutiny.
4. Audit the behavior of all those who work for your company. Do so on a regular basis. Hire an external auditing or consulting firm to examine your corporate policies and behaviors. Auditing the behavior of managers, owners and employees will make everyone responsible for following the rules and maintaining responsible behavior. If your company has a board of directors, include some members who are completely independent of your business. Schedule regular meetings of these board members to provide neutral oversight of your business practices and frank criticism of any potential problem areas.
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