Corporate Governance
TABLE OF CONTENTS
GOOD CORPORATE GOVERNANCE 2
• OBSERVANCE OF GOOD CORPORATE GOVERNANCE 3
• FAILURES OF CORPORATE GOVERNANCE 5
CORRUPTION 5
• BENEFITS OF AVOIDING CORRUPT PRACTICES 6
CONCLUSION 8
REFERENCES 9
GOOD CORPORATE GOVERNANCE
Governance in the Oxford dictionary is defined as “control or influence”, while corporate is defined as “shared by all members of the group”. Therefore corporate governance refers to the structures and processes for the direction and control of members of a group. It is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society. Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals.
Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked.
Good corporate governance deals with the manner the providers of finance guarantee themselves of getting a fair return on their investment. It clearly distinguishes between the owners and the managers, the managers being
GOOD CORPORATE GOVERNANCE 2
• OBSERVANCE OF GOOD CORPORATE GOVERNANCE 3
• FAILURES OF CORPORATE GOVERNANCE 5
CORRUPTION 5
• BENEFITS OF AVOIDING CORRUPT PRACTICES 6
CONCLUSION 8
REFERENCES 9
GOOD CORPORATE GOVERNANCE
Governance in the Oxford dictionary is defined as “control or influence”, while corporate is defined as “shared by all members of the group”. Therefore corporate governance refers to the structures and processes for the direction and control of members of a group. It is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society. Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals.
Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked.
Good corporate governance deals with the manner the providers of finance guarantee themselves of getting a fair return on their investment. It clearly distinguishes between the owners and the managers, the managers being
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