Welcome to the “Corporate Governance Center” foundation’s (Center) website. Here you will find the answers to the questions of interest to you on corporate governance.
One of the most well-known (and simplest) definitions is that it is a system by which “companies are directed and controlled”. Good corporate governance not only significantly improves the sustainability and growth potential of a company but it has also been shown to notably assist companies in attracting investment and improving its operations, functions and performance. Corporate governance helps companies to meet some of the challenges of the modern business environment.
The importance of good corporate governance has been further brought under the spotlight due to some of the more dramatic financial events of recent years. It is widely considered that failures in corporate governance were among the reasons both for the collapse of the financial institutions, and for the financial-economic crisis itself. For this reason, the importance of corporate governance demonstrates growth trends worldwide, in the minds of not only governments and regulators, but also of investors and the wider business community.
Good corporate governance practice, when properly integrated into the company’s strategy, helps companies to:
- enhance performance, operations, competitiveness, profitability and long-term value,
- establish clear roles, responsibilities and accountabilities,
- improve decision-making processes and the quality of decisions,
- define and implement corporate strategy and direction,
- expand in a sustainable manner,
- identify and manage risks,
- enhance the substance and structures of internal control,
- create appropriate incentives in line with business strategy,
- attract capital, investment and business partners,
- build reputation and trust, through strengthening of stakeholder relationships,
- prepare for following generations.
Highlighting the role of corporate governance for sustainable development of Armenia, since 2012 the Center cooperates closely with International Finance Corporation (IFC), the member of the World Bank Group. http://www1.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/Corporate+Governance/Advisory_Services_Regional_Programs/ECA/. Within this cooperation the Center offers to the Armenian market participants a wide range of services: from corporate governance assessment (analysis) to business consultations, trainings, workshops and other related services aimed at improving the system.