The Core Principles of Good Corporate Governance

Question 1

is the system by which businesses are directed and controlled.

Answer 1

Corporate governance

Question 2

is a key factor underpinning the integrity and efficiency of a company.

Answer 2

Good corporate governance

Question 3

The Principles for Businesses

Answer 3

•Integrity
•Skill, care and diligence
•Management and control
•Financial prudence
•Market conduct
•Customers’ interests
•Communications with clients
•Conflicts of interest
•Customers: relationships of trust
•Clients’ assets
•Relations with regulators

Question 4

Core Principles of a Good Corporate Governance

Answer 4

•Accountability
•Fairness
•Stewardship/responsibility
•Transparency

Question 5

means to be liable in explaining or justifying one’s action and one’s decision. It refers to the obligation and responsibility to give an explanation or reason for the company’s actions and conduct.

Answer 5

Accountability

Question 6

is the quality of making judgements that is free from discrimination. It refers to equal treatment.

• The fairer the entity appears to stakeholders, the more likely it is that it can survive the pressure of interested parties.

Answer 6

Fairness

Question 7

a practice wherein people are intrinsically motivated to work for others or for organizations to accomplish the tasks and responsibilities with which they have been entrusted.

• Accountability goes hand in hand with responsibility

Answer 7

Stewardship/responsibility

Question 8

is an important mechanism for granting social responsibility. It means openness, a willingness by the company to provide clear information to shareholders and other stakeholders about the activities, what it plans to do in the future and any risks involved in its business strategies.

Answer 8

Transparency