18.01.2019

Corporate governance is essentially nothing but a value-creating process through quality decision-making. That value should be shaped in the company as well as among its shareholders and other beneficiaries. In this sense, corporate governance is necessary to enable the shareholders and the public to trust the economic system and its institutions.

Investors or shareholders, as well as other beneficiaries should be sure that companies are open and honest, and there are mechanisms and institutions that are able to ensure control over that process.

The corporate governance system is the guarantee of the company’s health.

Corporate governance enables companies to:

increase efficiency, competitiveness, profitability and form long term values

formulate clear rules, accountability and accountability systems

improve the decision-making process and the quality of the decisions taken

define and implement a corporate strategy;

expand on a sustainable basis

identify and manage risks

improve the content and structure of the internal control

to create incentives for corporate strategy;

involve capital investments and business partners

formulate and strengthen business reputation and establish beneficial relationships with beneficiaries

prepare for the transfer of business to future generations?

 Although corporate governance policies and practices of the companies vary among the companies, however successful corporate governance practices are identical in terms of the principles of business conduct.

Corporate Secretary, whose mission is to increase company’s management efficiency, is a key person in corporate governance system.

Source: Anti-Corruption Compliance: A Guide to Mid-Sized Companies in Emerging Markets.

This material has been prepared in the scope of the “Armenia: Promoting Anti-Corruption Conduct and Reforms” Project implemented by the “Center for International Private Enterprise”, the “Armenian Lawyers’ Association” NGO, the “Corporate Governance Center” NGO and the “Yerevan Chamber of Commerce and Industry” with financial support of the National Endowment for Democracy. The project is implemented as a co-financing to the “Commitment to Constructive Dialogue” action implemented with the financial support of the European Union by a Consortium comprising the “Armenian Lawyers’ Association” NGO, the “Armenian Center for Democratic Education-CIVITAS” NGO, the “International Center for Human Development” NGO, the “SME Cooperation Association” NGO, the Union of Communities of Armenia, as well as “Agora Central Europe” NGO (Czech Republic). The contents of this material are the sole responsibility of the “Armenian Lawyers’ Association” NGO and can in no way be taken to reflect the views of the National Endowment for Democracy and the European Union.