Corporate Governance

Ma. Shella Santiago – Cabrera, EnP

Master in Public Adminstration
Governance the processes of interaction and decision-
making among the actors involved in a
collective problem that lead to the creation,
reinforcement, or reproduction of social
norms and institutions
 • in the business context refers to the
Corporate systems of rules, practices, and
processes by which companies are
Governance governed.
• Involves a set of relationships and the
networks between the company’s
management, its board of directors, its
shareholders and stakeholders
Corporate • The purpose of corporate governance is to
help build an environment of trust,
Governance transparency and accountability necessary
for fostering long-term investment, financial
stability and business integrity, thereby
supporting stronger growth and more
inclusive societies (OECD)
Why Corporate
Governance is
important?
 • Enhance healthy financial and quality
Importance of stature which attracts investment interests
• Establish early warning of potential and
Corporate critical risks
Governance • Build credibility and trust with stakeholders
• Promote brand image and reputation,
confidence
• Important to sustainable growth which
makes company become competitive
 • Ensure the basis for an effective
corporate governance framework
Principles of • The rights and equitable treatment
Corporate of shareholders and key
ownership functions
Governance • The Equitable Treatment of
(OECD) Shareholders
• The Role of Stakeholders
• Disclosure and transparency
• The responsibilities of the board
Separation of
Ownership and
Control
Stakeholders in
Corporate
Governance
Fundamental Pillars of Corporate Governance

Accountability Fairness Transparency Responsibility

 The Four P’s of
Corporate Governance
People

Performance Purpose

Process