With business practices being quite in-depth and increasingly difficult to effectively navigate, more companies are adopting guidelines aimed at making dealings more understandable for everyone that works for the company.
According to a recent poll conducted by Pricewaterhouse Coopers, 80 percent of large private companies have assumed specific corporate governance practices, aimed at making the business model more simple to comprehend.
Ken Esch, who runs PwC's private company service practice, said that while these guidelines may not be as casual as some would like them to be, they're needed for a company to run things smoothly.
"Private companies are embracing corporate governance primarily because it makes good business sense as they look to increase value for their stakeholders and keep pace with new business realities," said Esch. "Another key distinction is that, unlike their public counterparts, private companies have the freedom and flexibility to incorporate corporate governance as they see fit."
Some of the main ways in which private companies implement corporate governance practices are through financial reporting, HR compliance, risk management and long-term corporate strategy.
