That's why many governance experts break it down into four simple words: People, Purpose, Process,and Performance. These are the Four Ps of Corporate Governance, the guiding philosophies behind why governance exists and how it operates.
There are numerous benefits to good corporate governance, including improved company culture, increased accountability, ability to spot potential issues before they occur. But, more than that, it shows investors that the business is organized and well placed to work in their best interests. So, it is crucial that organizations understand how to ensure good corporate governance.
One of the findings of the report regarding the difference between merely performing governance and actively seeking good corporate governance relates to the handling of risk. Of those surveyed, 89% of FTSE 350 boards discussed identifying risks, but most concentrated only on the procedures for identification. Just 30% stated how they would mitigate risk, which is where real value and competitive advantage lie.
In Canada, private corporations can be incorporated under provincial laws or federally. Each province has enacted its own legislation providing for the incorporation and regulation of corporations. For example, Ontario corporations are governed by the Business Corporations Act (Ontario). Federally incorporated corporations are governed by the Canada Business Corporations Act.