Corporate Governance
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- Category: Politics: Economics
- Date Submitted: 01/03/2011 07:29 AM
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CORPORATE GOVERNANCE
What is corporate governance?
Describe the control and direction of corporations. (a set of processes, policies, laws and institutions affecting the way of a corporation is directed, administered or controlled). Includes the relationships among the stakeholders involved and the goals for the corporation is governed. It is about how shareholders and agencies external to a corporation control influence those responsible for directing and managing the affairs of the corporation.
What has been concerned primarily with management and stewardship issues?
• Corporate strategy: every organization has its objective; particular strategy helps to achieve its objective.
• Succession planning: it is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions. Succession planning ensures the availability of experienced and capable employees that are prepared to assume these roles as they become available.
• Integrity of internal control structure: the idea behind internal control is org can reach its objective.
• Remuneration policy.
Essential corporate governance principles
Principle 1: Lay solid foundation for management and oversight
Recognize and publish the respective and responsibilities of board and management
Principle 2: Structure the board to add value
Have a board of an effective composition, size and commitment to adequately discharge its responsibilities and duties.
Principle 3: Promote ethical and responsible decision making
Actively promote ethical and responsible decision marking.
Principle 4: Safeguard integrity in financial Reporting
Independently verify and safeguard the integrity of the company’s financial reporting.
Principle 5: Make timely and balanced disclosure
Promote timely and balanced disclosure all material matters concerning the company
Principle 6: Respect the rights of shareholders
Principle 7:...
What is corporate governance?
Describe the control and direction of corporations. (a set of processes, policies, laws and institutions affecting the way of a corporation is directed, administered or controlled). Includes the relationships among the stakeholders involved and the goals for the corporation is governed. It is about how shareholders and agencies external to a corporation control influence those responsible for directing and managing the affairs of the corporation.
What has been concerned primarily with management and stewardship issues?
• Corporate strategy: every organization has its objective; particular strategy helps to achieve its objective.
• Succession planning: it is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions. Succession planning ensures the availability of experienced and capable employees that are prepared to assume these roles as they become available.
• Integrity of internal control structure: the idea behind internal control is org can reach its objective.
• Remuneration policy.
Essential corporate governance principles
Principle 1: Lay solid foundation for management and oversight
Recognize and publish the respective and responsibilities of board and management
Principle 2: Structure the board to add value
Have a board of an effective composition, size and commitment to adequately discharge its responsibilities and duties.
Principle 3: Promote ethical and responsible decision making
Actively promote ethical and responsible decision marking.
Principle 4: Safeguard integrity in financial Reporting
Independently verify and safeguard the integrity of the company’s financial reporting.
Principle 5: Make timely and balanced disclosure
Promote timely and balanced disclosure all material matters concerning the company
Principle 6: Respect the rights of shareholders
Principle 7:...