Best practices for corporate governance are not just for businesses that are legally organized as corporations. They’re a system that leaders must do more than execute effectively on well-planned strategic plans–they must also be fair and responsible to all stakeholders. Regardless of whether your business has one or many stakeholders–shareholders, employees, clients, students or the community–your company’s approach to governance will change over time and depend on your unique needs and context. There are some general principles that you can apply to any size business:

Transparency is among the most crucial elements of good corporate governance. This means that your board members and management are open with auditors, shareholders and the public about financial reporting accounting standards, major decisions, and internal procedures. This means that your organization should provide information on its environmental and social impacts easily accessible to anyone who may be interested.

The definition of clear roles and responsibilities is an additional aspect of corporate governance. This can be accomplished by reference drafting job descriptions for the board the chairperson, vice-chairperson and chairperson committees, as well their chairs or by creating terms of reference for directors in their individual roles. This ensures a standard set of responsibilities, as also clear guidelines for delegation, as well as limits on authority. It can create an environment of open communication and collaboration, and help to reduce errors and ensure compliance. It can also lead to better opportunities for growth as your company expands and diversifies.