CORPORATE GOVERNANCE

Question 1

Definition

Answer 1

A set of systems, processes and principles that ensures an organisation is governed in best interest of all its stakeholders.
Seeing that an organisation is run properly.

Question 2

Corporate governance involves:

Answer 2

Accountability: ensure management is accountable to board of directors, in turn, board of directors accountable to the shareholders.

Fairness: protect shareholder’s rights, ensure all treated equitably, provide rights for violations.

Transparency: ensure all matters related to finance, performance, ownership and corporate governance are communicated accurately and in timely manner.

Responsibility: ensure organisations comply with relevant laws & regulations of a society.

Question 3

Good corporate governance is important where?

Answer 3

In an economy- as it provides a barrier to corrupt dealings, enhancing access to capital and long term prosperity (peace) of both individual organisations & economy as a whole.