The Importance of Good Corporate Governance
Why is Good Corporate Governance important?
On the 4th of December, we invited Olga Iermolenko and Anatoli Bourmistrov from Nord University and Yuriy Repeta from First Chair Legal to explore this issue in an event hosted together with the Ukrainian-Scandinavian Society. Two dimensions that online the framework for Corporate governance principles were explored: education and legislation. While legislation can provide soft regulations for mechanisms of corporate governance, education can equip businesses with necessary instruments and tools.
Good Corporate Governance is steadily becoming more relevant and important for international cooperation. As Ukrainian companies compete for cooperation with foreign entities, improving internal routines and own corporate governance can be a competitive advantage.
In our work, the chamber often comes across the topic of Good Corporate Governance when discussing business cooperation between Norway and Ukraine. Ultimately, having practices in place that strive for Good Corporate Governance is essential to a company’s reputation and reliability. Such practices also demonstrate a European approach to doing business and safeguards that the interests of all stakeholders are taken into account. This is important for foreign, and Norwegian companies who are considering doing business with companies in another country.
Why should Ukrainian companies improve their corporate governance?
- A company that has a a system of rules, policies and practice is more attractive to cooperate with as it can ensure accountability and security for the cooperating party.
- Improves reliability
- Positive for reputation
- It can become a great communication tool: it should be available to customers and partners
- Can be a tool for getting new partners/customers.
A good partner for Norwegian companies would:
- Be transparent
- Have a zero-tolerance-policy towards corruption
- Have a Code of Conduct
- Incorporate social responsibility in their way of doing business / UN’s Sustainable Development Goals
- Demonstrate how the business acts adherent to governing rules, policies and procedures and respects local institutions
- Norwegian companies often prefer companies that specialises in one or a few narrow spheres
- Have good references
Thank you to everyone who participated in the event, to our speakers and the Ukrainian- Scandinavian Center for the initiative and space. Please see our calendar for our next relevant event.
If you have any questions concerning doing business in Norway or Ukraine, please do not hesitate to contact us at email@example.com
If you have a specific inquiry relating to one of our project areas (Energy, IT, Manufacturing, Seafood, Agriculture) see our about NUCC page to find the most relevant point of contact.
We look forward to continue our work in 2021!