Yrityshallinto

Yrityshallinto is the set of systems, processes, and practices by which a company is directed and controlled. It aims to balance the interests of owners, management, employees, customers, creditors, and other stakeholders while supporting long-term value creation, sustainability, and ethical conduct. Good corporate governance provides a framework for decision making, accountability, risk management, and transparent reporting.

Key elements of yrityshallinto include the board of directors and its oversight role, the responsibilities of senior management, and the internal controls and risk management system that monitor performance and compliance. It also encompasses the organization’s audit and compliance functions, remuneration policies, and the disclosure of information to shareholders and other stakeholders. The relationship between ownership and management, as well as the processes for nominating directors and evaluating their performance, are core topics.

The exact rules and practices of yrityshallinto vary by jurisdiction and company type. In Finland, corporate governance is shaped by the Companies Act (osakeyhtiölaki) and, for listed companies, the Finnish Corporate Governance Code and related guidance from supervisory and industry bodies. The code emphasizes board independence, a clear division of duties between the chair and the CEO, appropriate committee structures (such as audit, remuneration, and nomination), and timely, accurate financial reporting. For non-listed companies, governance often relies on internal policies and ownership agreements but generally follows similar principles.

Over time, yrityshallinto has evolved to place greater emphasis on sustainability, ESG considerations, stakeholder engagement, and risk governance. Digitalization and cyber risk have increasingly influenced governance structures, board composition, and disclosure practices, reinforcing the need for ongoing evaluation and adaptation.