Corporate Governance Definition - As it Applies to Family Business
Any basic corporate governance definition, whether in a family business or any corporate environment, involves a series of best practices to assist a board of directors and management in their guidance of the company.
Shared governance in a family context starts with sound leadership and good communication. Compliance with guidelines focused on accountability, transparency and high standards of ethics will ensure that your family business continues to thrive.
Shared Governance - How to Manage Competing Interests
According to Craig Aronoff and John Ward, authors of Family Business Governance: Maximizing Family and Business Potential, shared governance, whether in a profit or non-profit setting, means effectively balancing the interests of family and the overall goals of the business.
For this reason, the policy behind corporate governance in a family enterprise should be based on building consensus between all stakeholders - owners, family and management.
Corporate Governance - Helpful Advice and Resources
Good corporate governance in a family enterprise is essential. Cohesive decision-making, effective conflict resolution and formal mechanisms that allow for growth and succession will assist in reducing the risk of potential pitfalls along the way.
The Alberta Business Family Institute can help you understand and utilize the concepts behind effective shared governance strategies for your own family enterprise. Register for one of our workshops or education programs or take advantage of our advisory services. Membership in the Alberta Business Family Institute gives you access to invaluable resources. Contact us today for more information.