Businesses around the globe are moving towards an ESG-focused way of business, as well as improving risk management. This includes incorporating corporate governance in all of their policies. Of course, tracking corporate governance is not always easy.

Tech can make it easier.

What is corporate governance?

Corporate governance refers to a system of policies and processes that fundamentally control a business’s behaviour. Ultimately, it seeks to align the values of stakeholders and the executive board with the messaging of the company.

Often, corporate governance is included in ESG, which stands for Environmental, Social and Corporate Governance. These are a set of criteria that ensure a company has socially conscious investments and policies.

An example of valuing ESG within a business is comprehensively tracking a supply chain to ensure that there is no evidence of ethical or sustainable violations.

How can tech help?

Technology can allow us to align the beliefs of stakeholders with the policies of the company. It can also help us to retain transparency, promote sustainability, and ensure that corporate governance is helping to drive cost and efficiency savings.

By bringing in technology, we can track company data, integrate it and deliver insights, including forecasted.

One example of this is implementing artificial intelligence.

Artificial intelligence (AI) can help companies to both measure and analyse their societal impact. It can do this by analysing supply chains to detect weaknesses, measuring environmental impact, and providing a way of forecasting potential future issues.

Blockchain technology is also another key potential player in corporate governance. Blockchain provides a centralised source of information that can be accessed by stakeholders. It provides a secure method of data storage and removes the necessity of intermediaries.

Previously, intermediaries have been a time-consuming and costly part of corporate governance. They provide a mutual point of communication between partners where trust may not otherwise be present. Blockchain can replace this by providing a centralised, immutable and secure source of information and documents such as contracts.

Technology platforms that integrate AI, machine learning and blockchain will transform the way we deal with corporate governance.

Blockhead Technologies is helping companies support their environmental, social and corporate governance objectives through blockchain-enabled solutions. You can find out more here or contact us here for more information or a demo.