Name: Lastrado, Liz Mary A.

BSA 2A
CORPORATE GOVERNANCE
Instructions
Discuss the following statements/questions in relation to Corporate Governance: (not less
than 5 sentences for each discussion)
1. What is the essence of any system of corporate governance?
Corporate Governance is an important factor and a cornerstone for a good business. It is a
toolkit that enables management and the board to handle the difficulties of running a business
more skillfully. With corporate governance, everything is done with great control and enables the
whole operation of the business to be in place. It helps improve the business performance, do
more things in the standard amount of time and produce more efficient workers. Hence, the
essence of corporate governance, is to achieve all the company’s goal in an efficient and
effective manner.

2. "Good corporate governance is all about controlling one's business and is so relevant,
and indeed vital, for all organizations, whatever size or structure".
The statement means that controlling one's business is at the heart of good corporate
governance, which is crucial for all firms, regardless of size or structure. With good corporate
governance, be it a big or small company, it will help ensure the company’s great future. Since a
company’s success does not only relies on how big the company is, but how well it was managed
and governed. With good governance, it could take the company anywhere and venture a whole
lot of opportunities. As well, be able to create more efficient and effective employees to the
company.

3. "Responsiveness usually results to effectiveness and efficiency".

It really is true that if you are responsive, it will result to you being effective and
efficiency. This is because, if one responds to the needs of the other, the conditions will be met,
hence, a good result. Just like in companies, if the organization is being responsive to the
stakeholders request and needs, they will meet the standards and the stakeholder wants. Thus,
this will make their job effective and efficient. Knowing what the goal is, keeps the organization
on the right track.

4. What is management's responsibility as far as financial reporting is concerned?

 The management responsibility is to establish and maintain an effective system of
internal control over the company’s financial reporting. This includes protecting assets from
unauthorized acquisition, use, or disposal. They are also responsible for the integrity and
objectivity of the financial statements. Also, a portion of the data in the financial statements is
based on the management's best assumptions and judgment and takes materiality into account.
This means that they really had a big part and responsibility when it comes to ensuring an
accurate and objective financial report.

5. "Transparency and accountability are synonymous."

The statement given was truly an accurate statement. This is because, transparency means
that the information given is in direct, true form, and very much accurate and accessible. And
when we say, accountability, it pertains to being responsible to one’s action. Moreover,
transparency is an instrument through which accountability is articulated. Hence, both words
mean being truthful and honest to the situation.