Kate Crystel D.

Reyes
42891

Exercise No. 1: Essay

“Maximizing Shareholder’s wealth must always be priority. Must the other stakeholder’s interest be
compromised to achieve this?
Achieving shareholders wealth maximization doesn't compromise the interest of other stakeholders
because when this goal is achieved it means that the company is succeeding, the market value of the shares
is directly related to the performance of the company. And this is a common misconception is that when
firms strive to make their shareholders happy, they do so at the expense of the constituencies such as
customers, employees or suppliers. To enrich shareholders, managers must first satisfy the demands of these
other interest groups.

Exercise 2: True/False
_____TRUE__1. Stakeholders with low interest and high power should be kept informed.
___ TRUE __2. Accountability will be achieved when there is a clarification of governance roles and
responsibilities, as well as supporting voluntary efforts to ensure alignment if managerial and shareholder
interests
___FALSE__3. The purpose of corporate governance is profit maximization
___TRUE_ _4. Encouraging enhanced performance is an example of corporate control
___TRUE__5. The board of directors has control for corporate governance.

Evaluation

First, I learned the characteristics of a good governance which is participation,

What am I learning rule of law, transparency, responsiveness, census oriented, equity and
from this module? inclusiveness, effectiveness and efficiency, and accountability. And also, what
is corporate governance, it is the system of rules, practices and processes by
which business corporations are directed and controlled

What am I finding hard I didn't find anything of this lesson difficult maybe because it's an
or challenging about introduction of corporate governance.
the topic?
 The most important lesson I learned is corporate governance is important to
What was the most
ensures strong and balance economic development. This is also ensures that
important thing I
the interest of all shareholders (Majority as well as minority shareholder) are
learned from this
safeguard. Corporate governance affects the operational risk and, hence,
module?
sustainability of a corporation.

Exercise No. 1
What is the broad role of the Board of Directors?
The board role of the Board of Directors (BOD) is to ensure the company's success by collectively
directing the company's affairs, while meeting the appropriate interests of its shareholders and relevant
stakeholders. And also, to ensure that the organization charter and that there is proper accountability.

On what aspects do shareholders demand accountability from the BOD?

We know that shareholders are the owners of a corporation, they provide effective oversight
through election of BOD. In what aspects do shareholders demand accountability from the BOD? BOD
are accountable to shareholders to conduct an annual audit by independent directors that is timely, accurate,
and complete. The financial records need to be concise, readable, and easy to understand. They are
accountable also to act in their fiduciary duty, Including duty of care, loyalty and obedience. These duties
require to place the best interest of the company ahead of their own.

Exercise 2: Identification
Board of Director 1. Approving financial reports and other public documents are responsibilities of?
Internal Auditor 2. Responsible for the audit of companies for compliance with policies and laws, audits
efficiency and test of controls.
Operations managers 3. Responsible for the effective management of operations
Stakeholders 4. They are anyone that can be influenced, directly or indirectly, by the actions of the
company.
Audit of committees of Board of Directors 5. They provide oversight of internal and external audit function.

Evaluation

I learned about the division of responsibilities, the people behind a corporation,

What am I learning from the things that they do and also I figured out the becoming a part of BOD is
this module? really hard there's a lot of pressure to put in your shoulder, because I think that
the success of a company really depend on how the BOD will fulfill their
tasks, on how will they be effective to the company. I also learned the
relationship among shareholders, BOD, external and internal auditor, and the
 management, that the success of a corporation is not only depends on the BOD
but also on how they will cooperate together and on how they will fulfill their
duties and responsibilities

It will be difficult for me to memorize the responsibilities of the shareholders

What am I finding hard
but throughout this semester I know I can familiarize it because I will
or challenging about the
encounter it many times.
topic?

My important learning is in order for a corporation to be successful its

members should fulfill their duties with integrity. And on how a corporation
What was the most
work from the shareholders to the BOD and down to the bottom management.
important thing I learned
And the responsibilities and duties that they need to do. “ Teamwork is the
from this
ability to work together toward a common vision. The ability to direct
module?
individual accomplishments toward organizational objectives. It is the fuel that
allows common people to attain uncommon results”