Good Corporate Governance is an application of sisfem that is used by companies to ensure openness, accountability, fairness and accountability in one Management, GCG provides a framework for the company to conduct operations ethically efficiently and responsibly.
The implementation of GCG has a very crucial role in the success of the company for several reasons because, increasing investor confidence by creating an environment of transparency that gives investors a sense of comfort for investors to invest, forming a conducive business environment by stimulating the company to continue to innovate with efficiency, lowering the cost of capital and increasing investor confidence in the situation the company can use a cheaper model.
General practice GCG task sharing within the company, Independent Board of Directors ensure objective supervision of Management, Audit IntemaI recognize and manage risks berkeIanjufan, disclosure of Information offers financial reporting and operations are clear and timely, Risk Management anticipate and manage potential risks to reduce losses.
GCG contributes directly to the performance of the company’s keunagn with its principles of transparency in emngungkapank timely financial information to provide confidence in investors, accountability responsible decision – making mengrangi risk of strategic errors, investor confidence with hubgan terjadlin well between investors provide market value lebijh high \
Indicators of GCG success whether the implementation is successful or not by looking through several metrics including the GCG Index by evaluating thoroughly about the quality of corporate governance, credit warning seen from market confidence in the company’s ability to meet its debt obligations, financial performance net income, profit margins and other ratios with higher corporate profit values, it can be ensured that
in addition to being beneficial for the company’S internal GCG also has benefits for the company’s external overall increase in corporate value companies that apply GCG are ensured to have a higher valuation than companies that do not apply GCG system, easy access to GCG Capital Markets opens up wider capital youth for the company, Economic Stability provides market confidence that has an impact on the economy around the company.
The implementation of GCG often overwhelms some weaknesses, such as the company’s culture of concern towards changes in the governance of keIola, lack of awareness not all stakeholders understand the urgency of GCG.The cost of applying the initial investment required for auditing and training. GCG principles are universal and apply to all types of companies, including public, private, and private companies. Even veciI companies can achieve benefits from GCG determination, such as higher operational efficiency and better reputation.
Technology has a big role in strengthening the implementation of GCG by:
Improving transparency: technology-based systems such as blockchain can ensure secure disclosure of information and that the subject matter can be changed.
Process efficiency: the use of governance management software tools helps accelerate decision-making and reporting.
Better data analysis: technology allows companies to analyze data more accurately to improve risk management.
Digital surveillance: Aiats such as automated audits and online reporting systems improve accountability.
As the business world evolves, trends in GCG also continue to change. Current Fohus, sustainability: incorporating environmental, social, and governance (ESG) factors into biznis ‘ strategy. Board diversity: improving inclusivity in decision-making. Technology: using technology to improve the efficiency and accuracy of the GCG process. (make it into a coherent paragraph