Corporate Governance

Corporate Governance

Corporate Governance is basically a detailed disclosure of information and an account of an organization’s financial situation, performance, ownership and governance, relationship with shareholders and commitment to business ethics and values. Corporate Governance is basically a detailed disclosure of information and an account of an organization’s financial situation, performance, ownership and governance, relationship with shareholders and commitment to business ethics and values.

Corporate Governance is the interaction between various participants such as shareholders, board of directors, and company’s management, in shaping a corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked.

Corporate Governance deals with the manner the providers of finance guarantee themselves of getting a fair return on their investment. Corporate Governance clearly distinguishes between the owners and the managers. The managers are the deciding authority. In modern corporations, the functions/ tasks of owners and managers should be clearly defined and should be harmonizing.

Corporate Governance deals with determining ways to take effective strategic decisions. It gives ultimate authority and complete responsibility to the Board of Directors. It is interesting to note that the definition of corporate governance changes in different cultural contexts. For example: Let us look at a definition provided by the Center of European Policy Studies or CEPS. CEPS define corporate governance as:

“The whole system of rights, processes and controls established internally and externally over the management of the business entity with the objective of protecting the interests of the stakeholders.”

Corporate Governance is basically a detailed disclosure of information and an account of an organization’s business

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What you will learn

• Explain What is Corporate Governance
• Define Corporate Governance
• Explain What is a Corporation

Rating: 3.8

Level: Beginner Level

Duration: 1 hour

Instructor: Management Study Guide