Boards, the workforce and their shared culture should all work together to have a positive impact on everyone involved in the organisation and the community.

The impact of corporate governance mechanisms can be difficult to measure. Often, they are not investigated until something goes wrong. Boards need to measure continuously, potentially either through impact testing or scenario planning.

Boards need to know who and what they are influencing in order to understand the impact of their approach to effective corporate governance. We outline some of the numerous stakeholder groups in our sustainable governance guide and highlight core considerations for Boards.

By mapping stakeholder and influencer relationships, Boards can break down the type of engagement and activity that each stakeholder group needs to ensure effective governance.

Organisations do, however, need to measure effectiveness and impact, along with deciding what metrics can and should be used to do this.

Formal employee engagement schemes can make a real difference to the level of transparency your organisation can demonstrate, as it gives workforces the chance to convey their genuine perceptions on their working lives to the Board. This understanding of employee sentiment can enable a Board to have a positive impact and make a real cultural difference.

Download our guide to learn the key metrics to measure the impact of governance mechanisms and explore how effective corporate governance should be shaping your business.

 

Download Trust in the boardroom sustainable governance guide

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