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'good corporate governance' is simply 'good business'.

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Corporate Governance:
Introduction:
Corporate Governance may be defined as a set of systems, processes and principles
which ensure that a company is governed in the best interest of all stakeholders. It
is the system by which companies are directed and controlled the way they are
performing acts. It is about promoting corporate fairness, transparency and
accountability. In other words, 'good corporate governance' is simply 'good
business'. It ensures:
Adequate disclosures and effective decision making to achieve corporate
objectives;
Transparency in business transactions;
Statutory and legal compliances;
Protection of shareholder interests;
Commitment to values and ethical conduct of business.
Corporate governance also refers to the system by which corporations are directed
and controlled. The governance structure specifies the distribution of rights and
responsibilities among different participants in the corporation (such as the board
of directors, managers, shareholders, creditors, auditors, regulators, and other
stakeholders) and specifies the rules and procedures for making decisions in
corporate affairs. Governance provides the structure through which corporations
set and pursue their objectives, while reflecting the context of the social, regulatory
and market environment. Governance is a mechanism for monitoring the actions,
policies and decisions of corporations. Governance involves the alignment of
interests among the stakeholders and handling the things and making the decision
in the right way.
It is about commitment to values, about ethical business conduct and about making
a distinction between personal and corporate funds in the management of a
company. Ethical dilemmas arise from conflicting interests of the parties involved.
In this regard, managers make decisions based on a set of principles influenced by
the values, context and culture of the organization. Ethical leadership is good for
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business as the organization is seen to conduct its business in line with the
expectations of all stakeholders.
There has been renewed interest in the corporate governance practices of modern
corporations, particularly in relation to accountability, since the high-profile collate
is about commitment to values, about ethical business conduct and about making a
distinction between personal and corporate funds in the management of a company.
Ethical dilemmas arise from conflicting interests of the parties involved. In this
regard, managers make decisions based on a set of principles influenced by the
values, context and culture of the organization. Ethical leadership is good for
business as the organization is seen to conduct its business in line with the
expectations of all stakeholders. Apses of a number of large corporations during
2001–2002, most of which involved accounting fraud. Corporate scandals of
various forms have maintained public and political interest in the regulation of
corporate governance. In the U.S., these include Enron Corporation and MCI Inc.
(formerly WorldCom). Their demise is associated with the U.S. federal government
passing the Sarbanes-Oxley Act in 2002, intending to restore public confidence in
corporate governance.
Corporate governance has also been defined as "a system of law and sound
approaches by which corporations are directed and controlled focusing on the
internal and external corporate structures with the intention of monitoring the
actions of management and directors and thereby mitigating agency risks which
may stem from the misdeeds of corporate officers."
In contemporary business corporations, the main external stakeholder groups are
shareholders, debt holders, trade creditors, suppliers, customers and communities
affected by the corporation's activities. Internal stakeholders are the board of
directors, executives, and other employees.
Much of the contemporary interest in corporate governance is concerned with
mitigation of the conflicts of interests between stakeholders. Ways of mitigating or
preventing these conflicts of interests include the processes, customs, policies,
laws, and institutions which have an impact on the way a company is controlled.
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Corporate Governance: Introduction: Corporate Governance may be defined as a set of systems, processes and principles which ensure that a company is governed in the best interest of all stakeholders. It is the system by which companies are directed and controlled the way they are performing acts. It is about promoting corporate fairness, transparency and accountability. In other words, 'good corporate governance' is simply 'good business'. It ensures: ?Adequate disclosures and effective decision making to achieve corporate objectives; ?Transparency in business transactions; ?Statutory and legal compliances; ?Protection of shareholder interests; ?Commitment to values and ethical conduct of business. Corporate governance also refers to the system by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. Governance provides the structure through which corporations set and pursue their objectives, while reflecting the context of the social, regulatory and market environment. Governance is a mechanism for monitoring the actions, policies and decisions of corporations. Governance involves the alignment of interests among the stakeholders and handling the things and m ...
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