It is becoming increasingly important for companies to implement good corporate governance structures as the demands of transparency and disclosure have been rising and more attention has been brought to the role and responsibility of directors and executives. Our Business Advisory Services have specialised in providing our clients working in both private companies and public institutions advice on how to improve the corporate governance structures.
The Icelandic Stock Exchange in cooperation with the Icelandic Chamber of Commerce and the Confederation of Icelandic Employers have published guidelines on good corporate governance in Iceland with the ‘comply or explain’ rule for registered companies.
We assist the Board and the management team in incorporating particular working procedures, such as for transparency and disclosure, evaluate efficiency, create policies and plans consistent with the overall goals of the operation and its environment, analyse risk and evaluate how to react to it, explode opportunities and support sustainable and profitable businesses which are at the same time socially responsible.
The benefits of adopting good corporate governance procedures are among other things better and more efficient disclosure to and from the Board. The goal is for directors and executives to adopt particular working methods which results in better management, better image and increased credibility among shareholders and other stakeholders, not to mention increased interest of potential investors.
The reputation and image of a company will not only improve in the marketplace and among consumers but also within the walls of the operation. The company will become more attractive in the eyes of employees and it decreased the chances of loosing its key people.
A negative image of the Board and the management team can have the opposite affects, where investors will not consider investing, the company could loose business deals and employees will prove less faithful.
What PwC can do for you
PricewaterhouseCoopers stresses the importance of long-term goals where companies which implement our good corporate governance structures can increase their value and practice sustainable business. We offer a variety of services which contribute to the company’s success and positive development.
Example of our services:
Our approach is based in six main factors which together create our framework for good corporate governance. Our clients can focus on one factor or more in particular. Our consultancy is tailored to the needs of each of our clients and we work in close cooperation with the directors and executives.
Our six factors are:
- Diagnostic review of the Board’s operation and composition
- Instructions and training to the Board and the management team
- Explain the role and responsibilities of directors
- Diagnostic review of the company’s disclosure and suggestions for improvements
- Advise on writing and implementing particular working procedures
- Advise on nominating and organising the subcommittees of the Board
- Advise on how to create code of ethics for the Board and the company as a whole
- Advise on how to carry out assessments of the work of the Board and management
- Evaluation of the company’s policy and advise on policy-making and planning
- Risk analysis and advise on risk management and assessment
- Advise on internal control and internal auditing
- Advise on IFRS
- Advise on how to create an efficient and practical corporate responsibility plan