HISTORY & NEED OF CORPORATE GOVERNANCE

May 29th, 2015
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Arcadia University
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Importance of corporategovernance October 2006 -- Good corporate governance helps to prevent corporate scandals, fraud, and potential civil and criminal liability of the organization. It is also good business. A good corporate governance image enhances the reputation of the organization and makes it more attractive to customers, investors, and suppliers and, in the case of nonprofit organizations, contributors.

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Corporate GovernanceIs the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. An important theme of corporate governance is the nature and extent ofaccountabilityof particular individuals in the organization, and mechanisms that try to reduce or eliminate theprincipal-agent problem. Importance of corporategovernanceOctober 2006-- Good corporate governance helps to prevent corporate scandals, fraud, and potential civil and criminal liability of the organization. It is also good business. A good corporate governance image enhances the reputation of the organization and makes it more attractive to customers, investors, and suppliers and, in the case of nonprofit organizations, contributors.There is some evidence that good corporate governance produces direct economic benefit to

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