The institutionalization of the company implies achieving the continuity of growth and permanence that the business requires to consolidate itself with foundations supported by good practices and with this a definition of a solid business structure is achieved.
The foregoing is achieved through a governance model and the adoption and implementation of best corporate practices that are being defined and this is from the simplest processes to the organizational structure that responds to the proposed strategy. The above is done based on the needs of each company and according to the type of industry in which it is located.
In general terms, institutionalization allows you to obtain benefits such as: (i) Effective communication between the company and shareholders, (ii) Strengthening of governing bodies by formalizing the Board of Directors, directors, committees and others, (iii) Better decisions on strategies, (iv) improve financial reports regarding their quality, (v) improve training for your members with development plans and equitable compensation plans.
However, what is the keyword to obtain the above benefits, well, we must start with implementing good corporate governance, which has the objective of controlling and supervising the performance of the company at all times, as well as identifying risks that entails its operations, in addition to that with this it will be possible to ensure transparency in the activities carried out by the company, optimize its operations.
How can we consider that we have a good corporate governance model? Well, some basic principles are:
- Equal treatment and protection of the interests of all shareholders.
- The recognition of the existence of third parties interested in the good performance, stability and permanence of the company over time.
- Responsible issuance and disclosure of information, as well as transparency in administration.
- The assurance that the strategic vision of the company exists, as well as the vigilance and effective performance of the administration.
- The identification, administration, control and disclosure of the risks to which the company is subject.
- The declaration of ethical principles and corporate social responsibility.
- The prevention of illegal operations and conflicts of interest.
- The disclosure of improper facts and the protection of informants.
- Compliance with the various regulations to which the company is obliged.
Finally, and what is of greatest interest to those who have a company, business, society, etc., How do I obtain attraction to my clients or investors? Here are a number of additional benefits you get, for example:
- Giving certainty and confidence to investors and interested third parties about the honest and responsible conduct of the company’s business.
- Optimize the creation of value for Investors.
- Provide the necessary information to Investors.
- Have and operate an efficient internal control system through the authorization of policies and administrative regulations of general observance.
- Strengthen trust in the company by current and potential Investors, regulatory bodies, among others.
Gloria Ponce de León & Hernández