Corporate Governance

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TABLE OF CONTENTS GOOD CORPORATE GOVERNANCE 2 • OBSERVANCE OF GOOD CORPORATE GOVERNANCE 3 • FAILURES OF CORPORATE GOVERNANCE 5 CORRUPTION 5 • BENEFITS OF AVOIDING CORRUPT PRACTICES 6 CONCLUSION 8 REFERENCES 9 GOOD CORPORATE GOVERNANCE Governance in the Oxford dictionary is defined as “control or influence”, while corporate is defined as “shared by all members of the group”. Therefore corporate governance refers to the structures and processes for the direction and control of members of a group. It is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require…show more content…
In addition, good corporate governance also reduces wastage, corruption and mismanagement of resources. Good corporate strategies and objectives that an organization or company has allows for less wastage because people already know what they ought to do, it also allows for less to no corruption because there is no mismanagement of resources owing to the fact that everyone knows where resources are to be allocated and used. Furthermore, good corporate governance infuses the democratic values of fairness, accountability and transparency into organizations. It maintains the integrity of business transactions and in so doing strengthens the rule of law and democratic governance. Observing good corporate governance allows for the clarification of private rights and public interests and the prevention of their abuse. In order for an organization to be effective, it must be accountable, responsible and transparent. Good corporate governance also structures the relationships among investors, boards of directors, managers and other stakeholders. Observing good corporate governance helps to maximize long term shareholder value by improving corporate decision making and performance. The improvement of corporate decision making and performance allows the organization to be effective because the interests of shareholders and those of other
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