The Importance of Corporate Governance

CorporateGovernance_cover_sm_092011George Washington once described government as a force—a force that has the power to shape the organization on which it presides or crush it under the weight of mismanagement and negligence.

It’s a sentiment that easily applies to the corporate setting, myocarditis and a value that resounds firmly throughout Brad Beckstead’s THiNKaha book, infection #CORPORATE GOVERNANCE tweet Book01: How Corporate Governance Adds Value to Your Business.

Corporate Governance as an Ethos and Not Just a Guide
A company, not unlike a country, requires corporate governance (CG) in the form of strong leadership and even stronger guidelines. It’s the system in which all company stakeholders, from shareholders to managers, abide by. And while most people see corporate governance as an arbitrary rulebook of sorts, it is fundamentally more of an ethos; the very foundation on which the company is built.

“CG is not a professional standard like a doctor’s code of ethics,” Brad writes in aha #9. “Rather, it is specific to corporate structure.”

In #CORPORATE GOVERNANCE tweet, Brad outlines the importance of corporate governance into ten main sections, categorizing each of his 140 tweet-sized nuggets of wisdom into anything from tips on effective corporate governance to motivating top-level management on CG implementation.

Corporate governance isn’t only essential in growing a business, it is absolutely critical in the day-to-day operations of a company.

A common problem with corporate governance, Brad notes, is that it’s often only referred to during times of trouble. But corporate governance should play a far more active role in the corporate setting. It gives businesses a competitive edge. It instills accountability in the executive branches of a corporation. It provides a healthy, positive, and fair work environment.

The Value of Corporate Governance in Small Businesses
Although the book is relevant to any sized business, it champions the SME in particular.

“By embracing [internal] controls and governance, small businesses can move forward with the confidence of accountability and credibility to their stakeholders,” he says in the book’s opening pages. “These virtues directly increase value in companies’ equity and profitability.”

Corporate governance has a more recognizable role to play in large corporate entities and Brad clearly outlines the managerial expectations of each and every individual. But Brad believes that CG adds just as much value to small businesses as it does in big ones.

He encourages small businesses to adopt corporate governance in a way that instigates company growth, acting as an early benchmark for proper company conduct effective management practices. In turn, effective CG positively affects bottom-line profits by increasing accountability in small businesses.
Corporate governance can be the key differentiator between a successful enterprise and a failed business.

In that sense, George Washington was right. Corporate government is a force. It is the force that pushes corporations forward toward their goals. Without it, even the brightest of companies are doomed to stand still, left in the dust of their competitors.

About #CORPORATE GOVERNANCE tweet
Written in the eminently readable tweet format, #CORPORATE GOVERNANCE tweet covers the gamut of corporate compliance. The reader comes away with a lucid understanding of how corporate governance and effective systems of internal controls work to protect the interests in all parties involved in a public company.

Read an excerpt here!
Buy #CORPORATE GOVERNANCE tweet here!

About Brad Beckstead
Brad Beckstead specializes in audits, corporate governance, and internal control design and implementation for smaller public companies. He is a Certified Public Accountant, a Certified Information Systems Auditor (CISA), and is Certified in Risk and Internal Systems Controls (CRISC). Brad is Audit Partner and SOX specialist at L.L. Bradford & Company, CPAs in Las Vegas, Nevada. He is the former Managing Partner at Beckstead and Watts, LLP, an audit firm that won a case in 2010 before the Supreme Court against the Public Company Accounting Oversight Board. Brad has trained numerous U.S. and China-based companies on the effective design, implementation, and testing of internal control systems in accordance with Section 404 of the Sarbanes-Oxley Act. He has also conducted training programs for Sun Microsystems during the rollout of their virtual office concept. In 2006, Brad was named one of the “Top 100 Most Influential Accountants” by Accounting Today, an accounting trade journal.

Brad created corporate governance, internal control, and accounting policies and procedures templates, which are bundled and sold on his website, SOX404lite.com.

Connect with Brad on LinkedIn and Twitter!

Leave a Reply