Technology enhances business efficiency by providing new tools and solutions. Corporate governance is in a state of great flux and transformation, and technology is the bridge by which regulation and governance will improve. Quality technology systems can provide new levels of security which mitigate cyber risks to corporations. Technology increases the participation of the public and leads to transparency and accountability. Its collective power culminates in its ability to deliver information, goods and services to the public. Innovative technology, coupled with the proper technical prowess and a healthy corporate culture, breeds positive change in corporate governance.
Corporate governance, sometimes called board governance, describes the construct of standards and rules ensuring the company is responsibly working for the needs of stakeholders, shareholders, customers, and teams. Operations must support the organization’s goals—short and long term—and speak to the ethical and industry standards necessary to remain successful.
“In an era of great change on so many levels, a system of governance that promotes accountability is essential,” said attorney Louis Modugno. “The potential of technology to create improved governance and compliance with mitigated risks and heightened security is the only way forward.”
Often, corporate governance looks different depending on the type of organization. Its collective policies and strategies point to the company’s unique goals and objectives. The overlying tenets of any governance program include responsibility, fairness, independence, and combined accountability and transparency, as described by PricewaterhouseCoopers (PwC).
The Reason for Corporate Governance
Board governance embraces the principles necessary for proper governance through a system which seeks to improve the internal controls and operating procedures of the business. If a board is effective, it is ensuring alignment between the goals set forth and the operations in place to achieve them. The board has established and informed the goals of the company, and their leadership determines how effectively those goals translate to management teams and operations.
When developing proper corporate governance, a detailed plan will improve the company’s performance and address the relationship between the president or CEO of the company and the board of directors. The recruitment, performance review and behavioral assessment of all board members falls within corporate governance as well. A well-developed corporate governance structure will also address risks and compliance while directly applying to communication at every level. All financial reporting should fall under corporate governance and more recent areas of attention include cybersecurity, diversity & inclusion, and company culture.
Business Technology for Corporate Governance
Technology is vital in day-to-day operations, and its ability to identify and address individual concerns makes it a mainstay in the quest for the best corporate governance. Technology is the cornerstone for comprehensive business solutions, and cooperative technology working together to create larger systems is no longer a fantasy. From ease of reporting to thorough auditing and accountability, technology systems provide oversight of operations that is lacking with the human eye, expediting any investigative and reporting needs. In a marketplace that demands accuracy, expediency and transparency, utilizing technology in corporate governance is a no-brainer.
Electronic portals and centralized information are an easy way for board members to communicate and stay apprised of updates in real time. Such centralized communication and filing systems are implemented at every level of operations and have improved security, protecting personal information while making statistical data available for easy review.
Security Through Tech
Technology is inherently at risk for cyberattack, disgruntle employees, and partnership disagreements, and security must be a top priority within corporations. Often, companies will engage a third-party technical partner to oversee communication and storage in specialized and secure methods. By outsourcing tech and security needs, the board can focus on its tasks while leaving security to the experts.
Electronic programs and products require robust security so that sensitive data is not breached and shared outside of the company. With proper technology in place and a security system to protect it, management and board members can focus on the needs of the organization to maintain proper operating systems. An added effect of quality security is its capacity to protect information accessed via mobile device.
When leadership is sure that their information is secure from cyber hacking, they can confidently conduct their business from anywhere. With encryption, secure workflows, password protection and user authentication, security becomes a multi-layered construct that protects information and increases efficiency of the organization.
Efficient and Effective Governance
Streamlining workflows and duties is often a primary goal of technological solutions. When board members can access reporting information in seconds instead of waiting for it to arrive via post, the time and energy saved can be expended on company improvement. Technology provides real-time communication and easy reference to past conversation to give context to any situation. In the time of online meetings, technology enhances the remote work experience and encourages productivity in no-contact conditions. The added bonus of saving money on board member travel makes streamlining and utilizing technology an obvious step forward.
When technology solutions automate processes, accountability is enhanced by the reduction of human error. Software is now capable of tracking changes and following communication chains to identify how a decision was reached. From recording revisions in documents to noting comments and communication, technology provides a clear picture of the processes used by board members.
Recording email and messaging conversations is a simple way to create accountability, and using technology to record and transcribe minutes from meetings is a powerful way to ensure all topics are represented in any reports. From tracking board votes to providing curated insights and customized content, smart technology is the companion that makes corporate governance easy and executable.
The best tech solutions for corporate governance create a web of accountability and efficiency through which a board can uphold the values and standards of an organization while driving the company toward important goals and milestones. Creating a system that eliminates human error while preserving the heart and thought processes that make for a quality operation is the end-goal for technology advancement in the corporate setting. Creating uniform, cohesive systems that encourage communication and accountability is the way forward for growing, successful organizations.