Corporate Governance : Good Business Management

1658 Words Sep 8th, 2014 7 Pages
The general idea we have in mind when we hear the term "Corporate Governance", is that it is an almost unattainable goal. The reason is the only companies that have "corporate governance" are big businesses with exorbitant capital, or, at least have shares on the stock-market. It is based on the idea that applying good organizational governance practices, is exclusive and expensive. But those who argue this idea are very far from reality. I must confess that I was one of these people. Currently all companies regardless of their capital or size, implement some system of administration (Knell 2008, p. 5), i.e. they have a "Corporate Governance".

Why is it important to discuss Corporate Governance?

Good “Corporate Governance" is synonymous with “good business management” that reinforces surveillance systems, management and administration of a company, making them efficient, effective, honest, transparent and democratic. A company with high quality management will have access to financing (public or private) in better conditions and terms. This implies appropriate business decisions to reach a higher level of accounting transparency, more efficiently managing business problems, and giving people, who are not involved in decision making, the guarantee that their interests are well protected (Monks 2011, p.10). But the most important, perhaps, is that a good implementation of "corporate governance" will be translated a company more ordered, correctly planning of their…
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