ROSALY M.

JADRAQUE
ACCE 311 – 2981
IN A NUTSHELL
Activity 1. Corporate governance is required to be implemented by organizations,
especially those organizations that assume stewardship functions. In this part, you
will be required to draw conclusions, perspectives, arguments and ideas from the
unit lesson. I will supply the first item and you will continue the rest.

1. Corporate governance streamlined how management including the Board of

Directors should participate in ensuring that stakeholders are provided with
adequate information related to the conduct of the business. In this manner,
auditors are also ensured that whatever findings they have, will be given
attention by the top level management. In so doing, auditors can feel at ease
in providing objective findings, without the trouble of being retaliated by the
management.

2. Corporate governance is a very important mechanism that each and every

company must possess and improve. It balances the interests of the
stakeholders for the decisions taken though this could affect numerous
stakeholders. Without a proper framework, management will be tempted to
pursue their own interest and disregard the interests of the stakeholders.

3. Corporate governance includes proper disclosure of relevant information in a

timely manner. It means that it must be updated. Disclosure also permits
stakeholders complete access of the information regarding the business and
ensures that each and every stakeholder could decide according and based
from the information provided.

4. The Board of Directors as the highest governing body in an organization

which also controls most of the activities conducted by the business, is a
pivotal link between managers and shareholders. It is the job of the BOD to
effectively implement good governance and constraint on senior manager to
ensure proper execution of their functions.
5. Financial disclosure and ethical behavior are two important pillars of corporate
governance. The financial disclosure is very relevant for the decision making
purposes of the shareholders and by the stakeholders as a whole. Hiding
information will never give benefits to the organization but instead will give
suspicions for fraudulent activities. That’s when ethical behavior will become
necessary.