As more companies adopt formal frameworks, we examine who should be involved in governance strategies, the evolving nature of such structures and the main benefits.
Corporate governance frameworks offer to formalize a company’s policies and potentially deliver additional transparency to external investors. But the roadmap to creating an effective set of policies and deciding who should be accountable for them isn’t as clear. Indeed, even after a company has enacted governance policies, constant review and improvements are not only good practice, but critical in a rapidly changing environment.
To find out how the corporate governance landscape is evolving, Toppan Merrill commissioned survey corporate respondents in North American firms for their insights.
Our survey shows that governance policies tend to be extremely wide-ranging. An overwhelming majority (96%) of companies surveyed say regulation and compliance is an area covered by their corporate governance policies and procedures. The same proportion of respondents said ethics was an area covered. Furthermore, a wide range of other considerations score 80% or more: culture, talent, strategy, risk management and management performance. Only corporate performance, at 68%, was chosen by fewer than 80%—suggesting that the bottom line is not early as high on executives' mind as other matters when it comes to issue of governance.
All respondents surveyed say that their company formally evaluates its adherence to corporate governance policies. This is done at least once a year by 68%, with 4% doing so once every two years, and 28% on an ad hoc basis.