Principles of Corporate Governance
Key elements of good corporate governance principles include honesty,trust and integrity,openness,performance,orientation,responsibility and accountability,mutual respect and commitment to the organization.Of importance is how directors and the management develop model of governance that aligns the values of the corporate participants and then evaluate this model periodically for its effectiveness.
Commonly accepted principles include:
Rights and Equitable treatment of Shareholders.
Interests of Stakeholders.
Role and Responsibilities of the Board.
Integrity and Ethical behavior.
Disclosure and Transparency.
Leadership
To direct the corporation for achieving continuing prosperity
Appointments
To provide a mix of proficient directors who is able to add value in decision making
Strategy & value
To determine corporation’s values & purpose and strategy to achieve them
Corporate performance
Board should monitor and evaluate the implementation of strategy, management performance criteria & business plan
Compliance
Board should ensure that corporation complies with relevant laws, regulations & codes of best business practices
Communication
To communicate with shareholders & other stakeholders effectively
Balance of power
To ensure correct use of poor by separating role of CEO & chairman.
Management appointments
The board should appoint the senior management staff. Ensures the regular training of the staff
Information system
board should ensure that information system are adequate to properly run the business
Risk management
The board must identify the key risk areas and key performance indicators of the business enterprise
Key elements of good corporate governance principles include honesty,trust and integrity,openness,performance,orientation,responsibility and accountability,mutual respect and commitment to the organization.Of importance is how directors and the management develop model of governance that aligns the values of the corporate participants and then evaluate this model periodically for its effectiveness.
Commonly accepted principles include:
Rights and Equitable treatment of Shareholders.
Interests of Stakeholders.
Role and Responsibilities of the Board.
Integrity and Ethical behavior.
Disclosure and Transparency.
Leadership
To direct the corporation for achieving continuing prosperity
Appointments
To provide a mix of proficient directors who is able to add value in decision making
Strategy & value
To determine corporation’s values & purpose and strategy to achieve them
Corporate performance
Board should monitor and evaluate the implementation of strategy, management performance criteria & business plan
Compliance
Board should ensure that corporation complies with relevant laws, regulations & codes of best business practices
Communication
To communicate with shareholders & other stakeholders effectively
Balance of power
To ensure correct use of poor by separating role of CEO & chairman.
Management appointments
The board should appoint the senior management staff. Ensures the regular training of the staff
Information system
board should ensure that information system are adequate to properly run the business
Risk management
The board must identify the key risk areas and key performance indicators of the business enterprise