Well-planned and implemented corporate governance offers a wealth of benefits. Patrick, Harper, & Dixon help companies near Hickory, NC, implement strong corporate governance to take advantage of those benefits.
If you are concerned that your company may be susceptible to corporate litigation from customers, employees, or partners, you can take proactive steps to protect your business. An experienced corporate governance attorney at Patrick, Harper, & Dixon will work with you to develop and implement a plan that limits your liability. Contact our law firm to discuss your options.
Benefits of Good Corporate Governance
Corporate governance is a broad term that refers to how decision-making, accountability, and processes are controlled at every level of a corporation. It covers aspects as disparate as attending to stakeholders’ interests and limiting employee turnover. Successful corporate governance offers the following benefits.
Reduces Risk of Litigation
Commercial litigation often starts with one of three sources: contract partners, customers, or employees. Successful corporate governance can limit the likelihood of litigation from all three sources, particularly the last.
Our attorneys will help you develop internal procedures and guidelines that are consistent with state and federal laws. We also work with you to train supervisors to consistently follow those procedures. Doing so limits your exposure to litigation from employees who have been discriminated or retaliated against.
The support of a corporate governance lawyer can also reduce your liability with contract partners and customers. Our team will help you craft contracts that are legally sound and instruct decision-makers within your enterprise so they understand what decisions put the company at risk.
Complies With Government Regulations
There is one other potential source of commercial litigation. If local, state, or federal officials believe that your company is violating commercial laws or regulations, you could be targeted with fines, investigations, or even lawsuits.
Just as a corporate governance lawyer will help your company comply with all contractual obligations, our legal team can help it comply with government regulations. Good corporate governance involves creating a framework with mechanisms in place to prevent your company from needing an attorney to look over every decision to ensure compliance.
Prevents Turnover
According to the Society for Human Resource Management (SHRM), the average cost of hiring a new employee is $4,700. For some jobs, this number may be as much as four times the position’s salary. Even at the lower end, that is a lot of money to spend just to replace a person who was probably doing the job better than the new person will for months or even years.
Avoiding employee turnover saves a significant amount of money, and a corporate governance attorney can help with this. A successful corporate governance plan creates an environment where employees are less likely to leave their jobs for other opportunities. A good plan will make employees feel motivated and respected, as well as encourage a good work-life balance.
Attracts Talent
If you have a strong corporate culture that prevents employees from wanting to leave, word of that culture will spread throughout your industry. This means that many of the same steps we take to prevent turnover also attract talented individuals looking for a job within your industry.
A corporate governance lawyer from Patrick, Harper, & Dixon will build on that success by helping your company build a sign-on package that is more likely to land that new talent. There needs to be a balance between rewarding new talent for joining and rewarding current employees for continuing to perform their duties.
Defines Responsibilities and Accountability
All too often in the corporate world, the first thing that happens after something goes wrong is the people in charge trying to determine who to blame for the situation. Passing the buck and assigning blame often take precedence over actually solving the problem.
At best, this leads to bad company morale. At worst, it results in unnecessary lawsuits. A well-implemented corporate governance plan makes it clear who is accountable in any given situation and dictates every employee’s responsibilities, especially when things go wrong.
Typically, those with more decision-making power should be more accountable, and the blame game should never be played. Instead, internal processes should be focused on resolving problems quickly, with every person in the company knowing their role when things go wrong.
Contact Patrick, Harper, & Dixon in Hickory, NC, as Soon as Possible to Discuss Corporate Governance Planning
Commercial litigation is a significant danger to any business. Defending against even a relatively minor lawsuit can cost tens of thousands of dollars, and a large lawsuit can easily bankrupt even modest-sized corporations. Well-planned corporate governance policies can protect your company from many of these risks by creating work procedures that benefit employees, customers, and investors alike.
If you are looking to protect your business and streamline your corporate governance procedures, contact an experienced attorney at Patrick, Harper, & Dixon today to schedule a consultation.
