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Name: Castro, Gomela Mairen R. Date: March 4, 2021
Activity 1
1. What does governance mean?
- At all levels, governance is the exercise of economic, political, and
regulatory authority in order to administer a country's affairs. It
includes the tools, procedures, and structures that individuals and
organizations use to express themselves, exercise their rights
under the law, fulfill their responsibilities, and mediate their
conflicts according to UNDP. Governance matters because it builds
a significant future for an organization by leading it onto a direction
and ensuring that day-to-day leadership is still aligned with the
goals of the organization. Without this, there can be no sustainable
development in a country.
2. Explain whether the following statement is true or false. “Governance is exercised
only by the government of a country”.
- As stated in the context, Governance comprises all the processes
of governing whether undertaken by the government of a country,
by a market or by a network over a social system and whether
through the laws, norms, power, or language of an organized
society. That means governance does not limit to the government
of our country only. As long as there is a social structure to lead,
and the administering body of a social system is the one who
enforces and exercises the power of governance, it is probable to
be the power core at a certain level.
3. Explain how governance can be used in the following contexts and give appropriate
examples:
a. National governance - It is a custom wherein the state aims for sociopolitical
and socioeconomic order. It is significant that good governance on a
national perspective is present for the reason that such governance will
prompt economic policies. National governance creates and sustains an
environment in order to pursue strong and equitable development. Example
of national governance is that when our country is trying to improve its
management of solid waste through the passage of Ecological Solid Waste
Management Act that provides for a systematic, comprehensive and
ecological waste management program to ensure the protection of public
health and the environment. It mandates the implementation of plans and
prescribes policies to achieve the objectives such as information
dissemination, consultation, education and training of various local
government units on ecological industries. The essence of national
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governance is evident through the creation of laws regarding ecological
aspects.
b. Local governance - It is the virtue or actual competence of local government
bodies to regulate and govern a considerate portion of public affairs while
acting in accordance of the law and at their own responsibility for the
benefit of the local community. These local government authorities are
elected and also represents the interest of the community and make
decisions on its behalf. An example of local government is when US
Department of State recognizes Vico Sotto, Pasig City Mayor as an
Anticorruption Champion where he prioritizing anticorruption and
transparency in campaigns and office. He also established an information
and complaints hotline, formally involved civil society organizations in city’s
budgeting and policy making. This legal act was performed by the local
government personalities to ensure the its citizens. That’s why the city has
a lot of improvement and its residents are their priority.
c. Corporate governance - It refers to the concept of rules, practices, and
processes by which business corporations are directed and controlled such
as appraise the interest of stakeholders and also the distribution of rights
and responsibility among them. This structure of governance is used to
address concerns regarding an entity’s management in order to achieve
long-term success. Also, it is significant for any corporate institution to
observe this forms od governance. The form of governance can be observed
at Mitsubishi Motors Corporation which they requested for the release of
their financial statements. The company considers compliance to be its
highest priority and the strengthening and improvement of corporate is an
ongoing priority for management with the aim of continuing sustainable
growth in order to meet the expectations of all of its stakeholders including
its shareholders and customers. Therefore, the financial statements are
expected to reflect the actual economic position of the company upon the
plea of the board of directors.
d. International governance - It can be perceive as a movement to encourage
political relationships among transnational actor. The purpose behind such
governance is to establish exchanges such as negotiations regarding
current problems that may affect more than one state or region
economically, culturally, and politically. When stated differently,
international governance is used to particularly designated all regulations
and practices foe other organization through a global scale. For instance,
we are experiencing a current threat of Covid-19 across the globe. The need
of international governance is much stronger since the virus affects all
parties. An example of this concept of governance is that of international
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alliance for vaccines including the formation of international partnership
between foreign ministries to lessen the damage of the virus.
4. Explain briefly the eight (8) basic characteristics of good governance.
a. Participation - It needs to be informed and organized as stated in the
definition. All of us should have a voice and be included in decision-making
in order to have good governance. It is built on freedom of association and
speech as well as capacities to participate constructively.
b. Rule of Law - It simply means that the making of laws, their compliance,
and the relations between legal rules are all governed by the law, and that
no one is above the law, even the highest-ranking official.
c. Transparency - It is build on the free flow of information. Processes,
institutions, and information are directly accessible to those concerned with
them and enough information is provided to understand and monitor them.
d. Responsiveness - Responding to people’s real needs in an efficient and
effective manner. This necessitates a determination to anchor policies,
strategies, programs, events, and resources in the context of people’s
aspirations, with particular attention paid to local variations and aspirations.
e. Consensus Oriented - It ensures that even though no one achieves their full
potential, a common minimum can be reached for everyone with no
negative consequences for anyone. It's one in which participants work
together to achieve as much agreement as possible.
f. Equity & Inclusiveness - This necessarily involves providing opportunities
for all groups in society to enhance and sustain their well-being. It entails
welcoming everybody and treating them fairly. Everyone should be able to
get a public assistance.
g. Effectiveness & Efficiency - Effectiveness must be understood in the sense
of achieving the desired goal, while efficiency means the minimization of
transaction costs. As a result, for effectiveness, processes and organizations
must deliver outcomes that fulfill the needs of the organization while getting
the best use of the resources at their disposal.
h. Accountability - Accountability is the key of good governance and the lack
of it will bring corruption. An organization is accountable to those who will
be affected by its decisions or actions as well as the applicable rules of law.
5. Transparency and accountability are synonymous. Explain whether the statement
is correct or not.
- In my own perspective, the statement is correct because
transparency is a tool that is used to communicate accountability.
6. Explain whether the following statement is true or false. “Responsiveness usually
results to effectiveness and efficiency”.
- The statement is true because responsiveness means that a
governance law allows an organization and its processes to strive
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to meet the needs of all stakeholders, resulting in an effective and
efficient outcome.
7. Define corporate governance.
- Corporate governance is essential to company’s survival. It is
required to establish a transparency corporate culture,
accountability, and disclosure. It is a process by which a company
is managed or regulated. It is a collection of procedures, customs,
regulations, laws, and guidelines that govern how a company is
managed, administered, and regulated.
8. What does corporate governance structure involve?
- It lays out the rights and obligations of various stakeholders such
as board of directors, managers, and shareholders as well as the
principles and practices for business decision.
9. State the purpose of corporate governance.
- Its purpose is to contribute to build an environment of trust,
openness, and accountability that will promote long-term
investment, financial stability, and corporate integrity resulting in
stronger growth and more inclusive societies.
10. Explain the basic objectives of corporate governance.
a. Fair and Equitable Treatment of Shareholders - All shareholders are treated
equally, and their rights are recognized, protected, and made easier to
exercise through continuous and transparent communication. Minority
shareholders are adequately protected from any unequal actions on the part
of the majority.
b. Self-Assessment - The aim of the Self-Assessment is to assess the Board’s,
Committees’, and individual members’ results, to assess the efficacy of the
Company’s governance practices, to identify areas for improvement, and to
implement new methodologies to further enhance our Company’s corporate
governance standards.
c. Increase Shareholders’ Wealth - The company’s guiding goal should be to
increase the company’s value for shareholders. However, in order to
accomplish this goal, all stakeholders’ economic interests must be served
over time. Stakeholder preferences must be prioritized in order to optimize
shareholder capital. Increasing stakeholder’s interests also increases
shareholders’ wealth.
d. Transparency and Disclosure - Good corporate governance should ensure
that all relevant information about the company, including its financial
situation and performance, is disclosed in a consistent and accurate
manner. It is in each organization’s best interests to provide accurate,
timely, and reliable information, as well as to make relevant information
fairly available to all stakeholders. Strong disclosure, in addition to being an
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important characteristic of good governance, is thought to promote
transparency.
11. Explain the three basic principles of effective corporate governance.
- Accountability occurs in a collaboration where one party has
expectations of the other and the other is needed to provide details
about how they’ve been met those standards or suffer the
possibility of failing to do so. The method in which this is
accomplished is usually outlined in an organization’s legal
documents. For accountability to be achieved, there must be
transparency. Organizations should be transparent because it allow
others to see and understand how they function honestly. An
organization must provide reliable, full, and timely information to
stakeholders about its operations and governance in order to attain
accountability. Accountability is only possible with transparency.
This isn’t to say that all data should be made public. Certain forms
of information, such as confidential information, are not permitted
to be made public. Lastly, Corporate Control refers to the power to
make operational and strategic decisions for a company, such as
capital allocations, acquisitions and divestments, high management
decisions, and major marketing, development, and economic
decisions.

Unformatted Attachment Preview

Name: Castro, Gomela Mairen R. Date: March 4, 2021 Activity 1 1. What does governance mean? - At all levels, governance is the exercise of economic, political, and regulatory authority in order to administer a country's affairs. It includes the tools, procedures, and structures that individuals and organizations use to express themselves, exercise their rights under the law, fulfill their responsibilities, and mediate their conflicts according to UNDP. Governance matters because it builds a significant future for an organization by leading it onto a direction and ensuring that day-to-day leadership is still aligned with the goals of the organization. Without this, there can be no sustainable development in a country. 2. Explain whether the following statement is true or false. “Governance is exercised only by the government of a country”. - As stated in the context, Governance comprises all the processes of governing whether undertaken by the government of a country, by a market or by a network over a social system and whether through the laws, norms, power, or language of an organized society. That means governance does not limit to the government of our country only. As long as there is a social structure to lead, and the administering body of a social system is the one who enforces and exercises the power of governance, it is probable to be the power core at a certain level. 3. Explain how governance can be used in the following contexts and give appropriate examples: a. National governance - It is a custom wherein the state aims for sociopolitical and socioeconomic order. It is significant that good governance on a national perspective is present for the reason that such governance will prompt economic policies. National governance creates and sustains an environment in order to pursue strong and equitable development. Example of national governance is that when our country is trying to improve its management of solid waste through the passage of Ecological Solid Waste Management Act that provides for a systematic, comprehensive and ecological waste management program to ensure the protection of public health and the environment. It mandates the implementation of plans and prescribes policies to achieve the objectives such as information dissemination, consultation, education and training of various local government units on ecological industries. The essence of national governance is evident through the creation of laws regarding ecological aspects. b. Local governance - It is the virtue or actual competence of local government bodies to regulate and govern a considerate portion of public affairs while acting in accordance of the law and at their own responsibility for the benefit of the local community. These local government authorities are elected and also represents the interest of the community and make decisions on its behalf. An example of local government is when US Department of State recognizes Vico Sotto, Pasig City Mayor as an Anticorruption Champion where he prioritizing anticorruption and transparency in campaigns and office. He also established an information and complaints hotline, formally involved civil society organizations in city’s budgeting and policy making. This legal act was performed by the local government personalities to ensure the its citizens. That’s why the city has a lot of improvement and its residents are their priority. c. Corporate governance - It refers to the concept of rules, practices, and processes by which business corporations are directed and controlled such as appraise the interest of stakeholders and also the distribution of rights and responsibility among them. This structure of governance is used to address concerns regarding an entity’s management in order to achieve long-term success. Also, it is significant for any corporate institution to observe this forms od governance. The form of governance can be observed at Mitsubishi Motors Corporation which they requested for the release of their financial statements. The company considers compliance to be its highest priority and the strengthening and improvement of corporate is an ongoing priority for management with the aim of continuing sustainable growth in order to meet the expectations of all of its stakeholders including its shareholders and customers. Therefore, the financial statements are expected to reflect the actual economic position of the company upon the plea of the board of directors. d. International governance - It can be perceive as a movement to encourage political relationships among transnational actor. The purpose behind such governance is to establish exchanges such as negotiations regarding current problems that may affect more than one state or region economically, culturally, and politically. When stated differently, international governance is used to particularly designated all regulations and practices foe other organization through a global scale. For instance, we are experiencing a current threat of Covid-19 across the globe. The need of international governance is much stronger since the virus affects all parties. An example of this concept of governance is that of international alliance for vaccines including the formation of international partnership between foreign ministries to lessen the damage of the virus. 4. Explain briefly the eight (8) basic characteristics of good governance. a. Participation - It needs to be informed and organized as stated in the definition. All of us should have a voice and be included in decision-making in order to have good governance. It is built on freedom of association and speech as well as capacities to participate constructively. b. Rule of Law - It simply means that the making of laws, their compliance, and the relations between legal rules are all governed by the law, and that no one is above the law, even the highest-ranking official. c. Transparency - It is build on the free flow of information. Processes, institutions, and information are directly accessible to those concerned with them and enough information is provided to understand and monitor them. d. Responsiveness - Responding to people’s real needs in an efficient and effective manner. This necessitates a determination to anchor policies, strategies, programs, events, and resources in the context of people’s aspirations, with particular attention paid to local variations and aspirations. e. Consensus Oriented - It ensures that even though no one achieves their full potential, a common minimum can be reached for everyone with no negative consequences for anyone. It's one in which participants work together to achieve as much agreement as possible. f. Equity & Inclusiveness - This necessarily involves providing opportunities for all groups in society to enhance and sustain their well-being. It entails welcoming everybody and treating them fairly. Everyone should be able to get a public assistance. g. Effectiveness & Efficiency - Effectiveness must be understood in the sense of achieving the desired goal, while efficiency means the minimization of transaction costs. As a result, for effectiveness, processes and organizations must deliver outcomes that fulfill the needs of the organization while getting the best use of the resources at their disposal. h. Accountability - Accountability is the key of good governance and the lack of it will bring corruption. An organization is accountable to those who will be affected by its decisions or actions as well as the applicable rules of law. 5. Transparency and accountability are synonymous. Explain whether the statement is correct or not. - In my own perspective, the statement is correct because transparency is a tool that is used to communicate accountability. 6. Explain whether the following statement is true or false. “Responsiveness usually results to effectiveness and efficiency”. - The statement is true because responsiveness means that a governance law allows an organization and its processes to strive to meet the needs of all stakeholders, resulting in an effective and efficient outcome. 7. Define corporate governance. - Corporate governance is essential to company’s survival. It is required to establish a transparency corporate culture, accountability, and disclosure. It is a process by which a company is managed or regulated. It is a collection of procedures, customs, regulations, laws, and guidelines that govern how a company is managed, administered, and regulated. 8. What does corporate governance structure involve? - It lays out the rights and obligations of various stakeholders such as board of directors, managers, and shareholders as well as the principles and practices for business decision. 9. State the purpose of corporate governance. - Its purpose is to contribute to build an environment of trust, openness, and accountability that will promote long-term investment, financial stability, and corporate integrity resulting in stronger growth and more inclusive societies. 10. Explain the basic objectives of corporate governance. a. Fair and Equitable Treatment of Shareholders - All shareholders are treated equally, and their rights are recognized, protected, and made easier to exercise through continuous and transparent communication. Minority shareholders are adequately protected from any unequal actions on the part of the majority. b. Self-Assessment - The aim of the Self-Assessment is to assess the Board’s, Committees’, and individual members’ results, to assess the efficacy of the Company’s governance practices, to identify areas for improvement, and to implement new methodologies to further enhance our Company’s corporate governance standards. c. Increase Shareholders’ Wealth - The company’s guiding goal should be to increase the company’s value for shareholders. However, in order to accomplish this goal, all stakeholders’ economic interests must be served over time. Stakeholder preferences must be prioritized in order to optimize shareholder capital. Increasing stakeholder’s interests also increases shareholders’ wealth. d. Transparency and Disclosure - Good corporate governance should ensure that all relevant information about the company, including its financial situation and performance, is disclosed in a consistent and accurate manner. It is in each organization’s best interests to provide accurate, timely, and reliable information, as well as to make relevant information fairly available to all stakeholders. Strong disclosure, in addition to being an important characteristic of good governance, is thought to promote transparency. 11. Explain the three basic principles of effective corporate governance. - Accountability occurs in a collaboration where one party has expectations of the other and the other is needed to provide details about how they’ve been met those standards or suffer the possibility of failing to do so. The method in which this is accomplished is usually outlined in an organization’s legal documents. For accountability to be achieved, there must be transparency. Organizations should be transparent because it allow others to see and understand how they function honestly. An organization must provide reliable, full, and timely information to stakeholders about its operations and governance in order to attain accountability. Accountability is only possible with transparency. This isn’t to say that all data should be made public. Certain forms of information, such as confidential information, are not permitted to be made public. Lastly, Corporate Control refers to the power to make operational and strategic decisions for a company, such as capital allocations, acquisitions and divestments, high management decisions, and major marketing, development, and economic decisions. Name: Description: ...
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