Understanding Corporate Governance
What Small Businesses Need to Know
Tasty Holiday Chocolate Mousse
Corporate governance is the framework of rules, policies, and practices that guide a company’s operation and decision-making processes. It serves as a crucial foundation for achieving a company’s objectives and creating value for all stakeholders, including shareholders, employees, and customers. By adhering to these best practices, board members and stakeholders can foster a culture of effective governance that not only complies with legal requirements but also contributes to the long-term success of the organization. DEFINED ROLES AND RESPONSIBILITIES Clear delineation of roles and responsibilities is crucial for the efficient functioning of a board. Every board member should know their responsibilities and the extent of their authority. This ensures accountability and helps in the smooth running of the organization. ACCOUNTABILITY AND ETHICS Accountability and ethics form the backbone of effective governance. Board members should be accountable for their actions and decisions, always acting in the best interests of the company. High ethical standards should be maintained at all times. EFFECTIVE RISK MANAGEMENT Risk management should be a central part of decision-making. Boards must identify, evaluate, and manage risks the organization faces in order to protect stakeholder interests. ONGOING EDUCATION Board members should be committed to continuous learning. Time should be reserved in board meetings for ongoing education about business trends, governance matters, and the evolving landscape of the industry. STAKEHOLDER ENGAGEMENT A more participative form of governance involves actively engaging with stakeholders. Understanding their needs and expectations can provide valuable insights into strategic decisions, ensuring long-term sustainability and profitability. SHARED UNDERSTANDING OF PURPOSE It’s important that both board members and officers have a shared understanding of the company’s purpose as well as their own roles in fulfilling that purpose. ADAPTING TO EMERGING TRENDS The business landscape is ever-changing. From technological advancements to shifts in consumer behavior, board members should be attuned to emerging trends to adapt and evolve corporate governance practices accordingly. LEARNING FROM PAST MISTAKES The financial crisis of 2008 served as a wake-up call for many organizations. It emphasized the need for robust corporate governance mechanisms to avoid financial turmoil and ensure organizational longevity. If your small business needs assistance with its corporate governance, please contact our office at 901-388-5805 to schedule a strategy session with one of our experienced business lawyers.
Add even more cheer to the holidays with this decadent chocolate mousse.
INGREDIENTS • 10 oz semisweet chocolate, chopped
• 4 large eggs, separated
• 2 tbsp granulated sugar
• 4 tbsp butter
• 1/2 cup heavy cream
DIRECTIONS 1. In a medium heatproof bowl, add chocolate and butter. Set the bowl over a saucepan of barely simmering water and stir until chocolate and butter are melted and blended, then remove from heat and let cool slightly. 2. In a medium bowl, beat egg yolks until thick. Then gradually add melted chocolate mixture, stirring until blended. 3. In a separate bowl, beat egg whites until foamy. Then gradually add sugar, beating until stiff peaks form. 4. In another bowl, beat cream until stiff peaks form; fold egg whites and then cream into the chocolate mixture. 5. Pour into individual serving dishes and chill for 3 hours or until set. INSPIRATION “Blessed is the season which engages the whole world in a conspiracy of love.” —Hamilton Wright Mabie
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