Crystal clear corporate governance
What is corporate governance?
Of all definitions the following one is enlightening about its purpose:
“Corporate governance is the system of rules, practices and processes by which a firm is directed and controlled.”
This gives corporate governance a prime role in the conduct of the company’s business affairs. How can a business otherwise thrive without direction and control? Although it ultimately touches the goals of every stakeholder group, corporate governance is about aligning management actions with shareholder interests.
To make sure this happens, communications must be open so that information flows freely – something that far outstrips regulatory disclosures. Finnish forest industry company UPM has clearly grasped this.
UPM, “The Biofore Company” knows the importance of open communications – and acts accordingly. This becomes obvious after a glance at their governance section.
To start with, the landing page features an illustration of the company’s governance structure with the right labels and a description of the company’s governance practices. Information about AGMs, board of directors or contacts can easily be found. And neither diversity on the board nor remuneration of directors and senior managers are forgotten.
We believe companies do not wish to keep shareholders in the dark. We also believe it is important that they show they don’t. We believe UPM shows the way it should be done. Is there any doubt the market will value your company more fairly if you let it know how your company is directed and controlled? Feel free to share your own thoughts about this.
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