Managing Good Corporate Governance
GOOD CORPORATE GOVERNANCE (GCG) AND WORLD CLASS MANAGEMENT
The question that frequently arises is how to guarantee the executive management can be directed to the achieving goal as well as to ensure the satisfaction of stakesholders interests. The national reformation has opened our eyes that many aspects of governing corporate were non-transparent, which created many serious problems and suffered many corporate stakeholders, moreover put a burden to many others.
Therefore, THE JAKARTA CONSULTING GROUP shifts its attention to the Corporate Governance aspect in order to establish a management system with a world class quality. In a globalized era, corporations in the developing countries, including Indonesia, must stand equal with other corporations in the world, and be productive and constructive by interacting and taking part in the Good Corporate Governance.
The corporate governance shifts attention to mainly improving the corporate performance through supervising the management performance as well as ensuring the management accountability to the shareholders and the stakeholders. The Good Corporate Governance is vital because it motivates the management to improve its effectiveness as well as to control the management behavior to gratify the interest of the stakeholders, within a synergize framework.
Generally, The Corporate Governance covers four key points (according to the concept of OECD): fairness, transparency, accountability and responsibility. Corporate leaders must be able to show justice and share profits with the shareholders. Thus, transparency of information to the shareholders and the stakeholders on many policies, on whose responsible for those policies and how responsible they are is necessary. The JCG observes that the executives require enough delegation of authority to make a successful business.
Therefore, it is essential to develop a mechanism that can control the corporate effectively, as well as to preserve the interests of the shareholders and the stakeholders well.
MEDIUM FOR CORPORATE GOVERNANCE
Corporate Governance is a process and a structure of many activities to ensure that the corporate operates accordingly to stakesholders wishes. Furthermore, many mediums used to guarantee corporate achievement as well as to preserve the stakeholders interests are as follows:
Generally, Corporate Governance focuses on problems in the accountability. However, several aspects that promote corporate achievement must be checked during the implementation. It is important the goal of the enterprise remains compatible with the goal of the accountability.
Several mechanisms that can be developed are the Executive Remuneration, the Audit Committees, the Internal Controls, and the Shareholders especially the Institutional Investors.
During the implementation, THE JAKARTA CONSULTING GROUP also knows the importance of the executive management to have enough delegated authority to be flexible in developing careers. Thus a cultural condition and the level of development in one condusive corporate are also required during the implementation.
WITH GOOD CORPORATE GOVERNANCE TO A WORLD CLASS COMPANY
Good Corporate Governance is critical in improving professionalism, accountability and corporate performance to be equal with the best companies in the world, and to improve endurance and competitiveness. The resistance stemming from the internal working culture, the quality of the human resource as well the non-condusive societal culture to develop Good Corporate Governance principles can disappear through continuous improvements.
The final message is, to make Good Corporate Governance works, namely to make Corporate Directors behaving in the interest of the Stakeholders/Shareholders, we still have to give themauthority to develop the organization while treating them with all due respect (A.B. Susanto, 2002).