Corporate governance is the system of rules and processes that direct how a company operates. It involves balancing the interests of shareholders, management, and other stakeholders. Good corporate governance creates transparency, trust, and long-term viability through principles like fairness, accountability, and risk management. It guides a company's activities from strategy to compliance. The four pillars of corporate governance are people, process, performance, and purpose. Upholding strong corporate governance leads to ethical decision-making and benefits all involved in the company.
Corporate governance is the system of rules and processes that direct how a company operates. It involves balancing the interests of shareholders, management, and other stakeholders. Good corporate governance creates transparency, trust, and long-term viability through principles like fairness, accountability, and risk management. It guides a company's activities from strategy to compliance. The four pillars of corporate governance are people, process, performance, and purpose. Upholding strong corporate governance leads to ethical decision-making and benefits all involved in the company.
Corporate governance is the system of rules and processes that direct how a company operates. It involves balancing the interests of shareholders, management, and other stakeholders. Good corporate governance creates transparency, trust, and long-term viability through principles like fairness, accountability, and risk management. It guides a company's activities from strategy to compliance. The four pillars of corporate governance are people, process, performance, and purpose. Upholding strong corporate governance leads to ethical decision-making and benefits all involved in the company.
Corporate governance is the system of rules and processes that direct how a company operates. It involves balancing the interests of shareholders, management, and other stakeholders. Good corporate governance creates transparency, trust, and long-term viability through principles like fairness, accountability, and risk management. It guides a company's activities from strategy to compliance. The four pillars of corporate governance are people, process, performance, and purpose. Upholding strong corporate governance leads to ethical decision-making and benefits all involved in the company.
Corporate governance. 2. To pinned point the benefits of Corporate Governance. 3. To understand the principles of Corporate governance. 4. To define the 4Ps of Corporate Governance. What Is Corporate Governance? qCorporate governance is the system of r ules, pr actices and pr ocesses by which a firm is directed and controlled. qC o r p o r a t e governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community. q Since corporate governance provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. Understanding Corporate Governance qC o m m u n i c a t i n g a firm's corporate governance is a key component of community and investor relation. qMost companies strive to have exceptional corporate governance. For many shareholders, it is not enough for a company merely to be profitable. It also must demonstrate good corporate citizenship through environmental awareness, ethical behavior, and sound corporate governance practice. Benefits of Corporate Governance 1-2 1. Good corporate governance creates transparent rules and controls, provides guidance to leadership, and aligns the interests of shareholders, directors, management, and employees. 2. It helps build trust with investors, the community, and public officials. 3. Corporate governance can provide investors and stakeholders with a clear idea of a company's direction and business integrity. 4. It promotes long-term financial viability, opportunity, and returns. Benefits of Corporate Governance 2-2 5. It can facilitate the raising of capital. 6. G o o d corporate governance can translate to rising share prices. 7. Itcan lessen the potential for financial loss, waste, risks, and corruption. 8. It is a game plan for resilience and long- term success. The Principles of Corporate Governance 1-2 1. Fairness- The board of directors must treat shareholders, employees, vendors, and communities fairly and with equal consideration. 2. Transparency- The board should provide timely, accurate, and clear information about such things as financial performance, conflicts of interest, and risks to shareholders and other stakeholders. The Principles of Corporate Governance 2-2 3. Risk Management-The board and management must determine risks of all kinds and how best to control them. They must act on those recommendations to manage them.
4. Responsibility-The board is responsible for the oversight of
corporate matters and management activities. It must be aware of and support the successful, ongoing performance of the company.
5. Accountability-The board must explain the purpose of a
company's activities and the results of its conduct. It and company leadership are accountable for the assessment of a company's capacity, potential, and performance. It must communicate issues of importance to shareholders. What Are the 4 Ps of Corporate Governance?
qPeople qProcess qPerformance qPurpose TAKEAWAYS 1-2 üCorporate governance is the structure of rules, practices, and processes used to direct and manage a company. üAcompany's board of directors is the primary force influencing corporate governance. üBad corporate governance can cast doubt on a company's operations and its ultimate profitability. TAKEAWAYS 2-2 üCorporate governance covers the areas of environmental awareness, ethical behavior, corporate strategy, compensation, and risk management. üT h e basic principles of corporate governance are accountability, transparency, fairness, responsibility, and risk management. The Bottom Line a) Corporate governance consists of the guiding principles that a company puts in place to direct all of its operations, from compensation, risk management, and employee treatment to reporting u n fa ir p ra ctice s, d e a l i n g w i t h i m p a c t o n t h e climate, and more. b) Corporate governance that calls for upstanding, transparent company behavior leads a company to m a k e e th ica l d e cis i o n s t h a t b e n e f i t a l l o f i t s stakeholders. It can underscore a potential investment for investors. Bad corporate governance leads to a breakdown of a company, often resulting in scandals and bankruptcy. References • Corporate Governance Definition: How It Works, Principles, and Examples. Retrieved from: https://www.investopedia.com/terms/c/corp orategovernance.asp Thank you!
