Stronger Corporate Governance legislation is emerging globally but true success will come from self-regulation, increased internal controls and the strong ethical corporate culture that organizations create.
Independence cannot be created by structures but by the way people act and the independence of mind that they bring to the organization. Boards must no longer be purely representative in nature but must lend expertise and add value to the organization and all other stakeholders.
Organizations that can demonstrate sound self-regulated practices are less likely to be inhibited by intrusive and demanding external regulators.
The purpose of good governance principles is to assist board members, CEOs and senior managers to develop, implement and maintain a robust governance system that fits the particular circumstances of the entity. It also provides mechanisms for an entity to establish and maintain an ethical culture through a committed self-regulatory approach.