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16th December 2024

Evergreens Insights: Corporate governance according to Tom Wirion

In this short extract from the “Evergreens by Spuerkeess” podcast, we share with you the views of Tom Wirion, Director General of the Chambre des Métiers (the Trade Council), on the crucial importance that governance plays for small and medium-sized enterprises. Find out his advice for implementing it effectively and the strategies for building solid governance that can be adapted to each company.

Mr Wirion, everyone has heard of governance, but what is it really and why do we need it?

Traditionally, corporate governance has often been associated with large listed companies. It encompasses the structures and processes by which decisions are made and control is exercised. 

Nowadays, however, it extends to all companies, whether small-, medium-sized or publicly listed. It's everyone's business.

When you set up a company, governance is not always the first thing you think about. In what ways is this changing and what needs to happen to ensure good governance?

In practice, governance is implemented without really knowing it, particularly in start-ups and small businesses. So it's crucial that business leaders formalise it over time. Governance is not limited to formal bodies such as boards of directors. It also covers informal considerations, especially in small companies. There is no single model; governance must be adapted to the size and nature of the company.

What are the key elements of good governance for small businesses?

For small businesses, it's important to find ways of doing things that are adapted to their size and structure. For example, even if a small company does not have a board of directors, it can put in place clear decision-making processes and involve employees. Flexibility and versatility are essential, while at the same time ensuring a certain level of rigour in procedures.

How can governance help attract investors?

Investors are looking for well-structured companies with clear governance. They ask questions about key people, the organisational structure and the succession plan. Good governance reassures investors and bankers, because it shows that the company is well managed and ready to grow.

Digitisation and cyber security are topical issues. How do they fit in with governance?

Digitisation offers tools to improve governance, such as digital signatures. However, it also brings risks, particularly in terms of cyber security. It is crucial to put in place protection mechanisms and train employees so that they are aware of the risks and know how to manage them.

What advice would you give to small businesses to improve their governance?

It is important to start by formalising the decision-making processes and involving employees. Governance must evolve with the company and adapt to its needs. Small businesses can also benefit from mentoring and professional networks to learn from best practice. Finally, it is essential to remain flexible and continue to adapt to new challenges.

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