Corporate governance ESG
Governance is about managing companies and organizations in an efficient and responsible manner
Governance is related to managing companies and institutions in an effective and responsible manner. The goal of governance services is to achieve transparency, accountability, justice, and objectivity in the management of institutions and in making important decisions that affect everyone.
The concept of governance includes several aspects, including:
1- Institutional governance: which includes the necessary rules, procedures, and structures to guide and manage the institution in an effective and transparent manner.
2- Financial governance: which is related to managing money and financial resources in a responsible and effective manner, determining optimal investments and reducing financial risks.
3- Regulatory governance: which is related to defining policies, procedures, and rules necessary to guide and manage operational processes and improve efficiency and effectiveness in performance.
During the past few years, the so-called ESG standard appeared, which is an acronym for (Environmental, Social, Governance). These are the three main criteria for measuring sustainability and the impact of investment in companies. It means first environmental governance that is concerned with climate change, carbon footprint, environmental pollution, material reuse and recycling, given what The environment suffers from problems, most notably global warming and carbon emissions, which were the main cause of climate change in the atmosphere, and the impacts created by these environmental problems that threaten our future and extend to the future of future generations, and secondly, social governance, from which gender equality, social contribution, labor standards, and health and safety emerge. And based on these social standards, companies place them in their own structure and organization to create a more sustainable work environment, and thirdly, corporate governance, including shareholders’ rights, tax transparency, risk management and anti-corruption, which is one of the most important pillars in the index, as corporate governance is concerned with limiting the use of power In other than the interests of the shareholders, strengthening the performance of the boards of directors, and emphasizing disclosure, each company must have a clear structural and strategic plan for the conduct of its business to prevent misleading shareholders and those with interests in the company.
Where the importance of the criterion of environmental, social and corporate governance is mainly formed in enhancing the sustainability of business in companies and commercial establishments, especially in times of crisis, which is called the term (sustainable investment).
Book an appointment![#](https://ach-ksa.com/wp-content/uploads/2023/04/HDStockImages_premium_JRxaFf.jpg)