Course : CB442 Professional Development

Year : September 2013

Session 13

GOOD CORPORATE
GOVERNANCE

Bina Nusantara
Learning outcome
Student will able to analyze the definition of
governance, good corporate governance.
GOVERNANCE

Bina Nusantara
the way state power is used in managing
economic and social resources for development
and society. (The World Bank)

the exercise of political, economic and
administrative authority to manage a nations
affair at all levels. It is the complex mechanisms,
process, relationships and institutions through
which citizens and groups articulate their
interests, exercise their rights and obligations
and mediate their differences (UNDP,1997)

Bina Nusantara



TRANSPARENCY
ACCOUNTABILITY
RESPONSIBILITY
INDEPENDENCY
FAIRNESS

GOOD CORPORATE GOVERNANCE
Principles
ORGANISATION FOR ECONOMIC CO-
OPERATION AND DEVELOPMENT
6
OECD Principles of Corporate Governance :

THE RIGHTS OF SHAREHOLDERS
THE EQUITABLE TREATMENT OF SHAREHOLDERS
THE ROLE OF STAKEHOLDERS IN CORPORATE
GOVERNANCE
DISCLOSURE AND TRANSPARENCY
THE RESPONSIBILITIES OF THE BOARD


Bina Nusantara
Governance Process Based on stakeholder Interests



Corporation
Governments
Activists
Shareholders
Employees
Customers
Creditors & Lenders
Suppliers
Others, Including the Media,
who can be affected by or
who can affect the achievement of
the corporations objectives

Competitors
Leonard J. Brooks & Paul Dunn (2010)