Corporate governance is aimed at and reportable by listed companies. However, this high level of corporate responsibility and the governance structures in place in large companies can be and should be reflected in businesses of all sizes when your plans are to grow. Good corporate governance is not just about standards and ticking boxes but is the behaviours of your business and extends from reviewing solely finance to environmental, social and governance (ESG) areas. Implementing the right systems, attitudes and values into your business from the early stages will benefit in the long term.
“I like to pride myself on thinking pretty long term, but not that long term” – Mark Zuckerberg
Tip 1: Document Your ESG Standards
Spending half a day researching and implementing corporate governance for your small business may seem like a waste of time, however documenting what standards you expect your business to meet will profit in the long run. The standards do not need to start as a large document and can be as brief as you like or even woven into your existing business mission/ethos or procedures. By detailing your standards and promoting them on your website will not only help attract new business (as you could be seen as a larger business and a business that has thought about its impact on others) but also loyal employees who share the same values.
Tip 2: Include Your ESG Standards in Working Procedures
Building on from your ESG standards, you should include, where appropriate, new or improved working procedures. Benefits of promoting these standards throughout your workforce include:
Tip 3: Focus on Medium and Long Term
Focussing on the medium and long term results of a decision can avoid potential problems caused by short term, quick-fix solutions. Never rush into a decision to quickly fix a problem that will run contrary to your standards set. Not only will this lose business, but could result in higher staff turnover or poor staff work ethics.
Corporate governance may not be mandatory for the smaller, entrepreneurial led businesses but by considering it and including some basic standards and processes, your business will run more smoothly, be able to scale more effectively and ultimately will be more attractive for new business and potential buyers should you wish to sell your company.
We hope you have found these tips useful and are able to use them to improve your business and investments. Don’t miss out on future tips - subscribe to Turner Invest newsletter on turnerinvest.co.uk and follow us on social media.
Empowering People to Live the Life of Their Dream
Turner Invest Directors Catherine & Stephen Turner