Development of Corporate Governance Performance Indicators for Czech Manufacturing Companies

Abstract

Effective Corporate Governance is a key element in achieving long-term success of the company. Codes of conduct that Corporate Governance adopts, directly determine the sustainability of business activities. In this context, this paper aims to demonstrate the results of a research that identifies a set of key indicators of Corporate Governance performance. Presented research is quantitative. In order to identify key performance indicators factor analysis was employed. It was found that Corporate Governance performance is influenced by two factors. First factor, Relationship of Corporate Governance and stakeholders is measured by key indicators: Percentage of women within CG, Contributions to political parties, politicians and related institutions and Number of complaints received from stakeholders. The second factor, Strategy & Compliance is formed by Percentage of strategic objectives met and Total number of sanctions for breaching the law. This research results aim to contribute to both academy and corporate practitioners, who want to improve Corporate Governance performance and through the use of key performance indicators to support transparency and sustainability of their business.Effective Corporate Governance is a key element in achieving long-term success of the company. Codes of conduct that Corporate Governance adopts, directly determine the sustainability of business activities. In this context, this paper aims to demonstrate the results of a research that identifies a set of key indicators of Corporate Governance performance. Presented research is quantitative. In order to identify key performance indicators factor analysis was employed. It was found that Corporate Governance performance is influenced by two factors. First factor, Relationship of Corporate Governance and stakeholders is measured by key indicators: Percentage of women within CG, Contributions to political parties, politicians and related institutions and Number of complaints received from stakeholders. The second factor, Strategy & Compliance is formed by Percentage of strategic objectives met and Total number of sanctions for breaching the law. This research results aim to contribute to both academy and corporate practitioners, who want to improve Corporate Governance performance and through the use of key performance indicators to support transparency and sustainability of their business.