ALMONACID, RAVEN B.

1. Explain how governance can be used in the following contexts and give appropriate examples:
a. National Governance
b. Local Governance
ANSWER: It is said that the need for governance exists every time a group of people come together to
accomplish an end because in able to determine who has the power to make decision, the authority to
enact policies and who is accountable in that group governance must exist. It is the same when it
comes to governing a country, hence in able for our national and local government to wield power,
authority, and enact policies for the purpose of managing the public and social upliftment it must
undertake and follow the principles of governance.
2. Briefly explain the eight basic characteristics of good governance
ANSWER:
 PARTICIPATION - refers to the rights given to everyone to take part or be represented in the
process of governance.
 RULE OF LAW - this means that good governance must have laws or rules that are equal and
enforceable to everyone (no exemption).
 TRANSPARENCY – the act of allowing those people affected by the decisions made to directly
access the information that they need to know.
 RESPONSIVENESS – this refers to the requirement of responding to the needs of all the
stakeholders immediately.
 CONCENSUS ORIENTED – the act of listening to the different interests of the society in able to
reach an understanding of what really is the best interest of the whole community.
 EQUITY AND INCLUSIVENESS – the act of giving equal rights to everyone especially to the most
vulnerable ones.
 EFFECTIVENSS & EFFICIENCY – the act of always governing in the most effective and efficient
ways there is.
 ACCOUNTABILITY – the act of identifying who is held responsible depending on the decisions and
actions made.

3. Define Corporate Governance and its purpose

ANSWER: Refers to the system of rules, practices and processes of directing and managing a
company.
4. Explain the basic objectives of corporate governance
ANSWER: Its main goal is to make sure that the shareholders and other stakeholders interest are
protected inside the company.
5. State and briefly explain the three basic principles of an effective corporate governance
ANSWER:
 TRANSPARENCY AND FULL DISCLOSURE - is simplest terms, transparency means
having nothing to hide.
 ACCOUNTABILITY – Who are held liable in decisions and actions taken
 CORPORATE CONTROL – refers to the activities of the board who manages the corporate
governance of a company.