Dimple: “Why should I care about the shareholders, who I see once a year at the

general meeting. It is much more important that I care about employees; I see them
every day.” That was stated by the executive officer (CEO) of the German car maker
Volkswagen AG.
Kyla: And we are here to tackle about what is corporate governance and key theoretical
models. Before anything else, We’d love to share this quote by Louis Gerstner “The real
mechanism for corporate governance is the active involvement of the owners.”
So, what is corporate governance and why is it important?
Any idea what is a corporate?
Dimple: Corporate Governance. From the word corporate, it is relating to large group or
company or shared by all the members of group. While the governance, it is the action
or manner of governing a state or organization. In a simple word governance is equak to
relationships.
Mary: So, in essence, corporate governance is the set of rules, procedures, and
processes that a company uses to direct and manage itself.
Mary: A pleasant afternoon BSBA-HRM and BS Entrep. Specially Mr. Arnel Villasin,
Hello, I am Marycris M. Cabyao and my co-presenters Ma. Kristine Dimple D.
Pantoliaga and Fatima Kyla S. Beltran. For Today’s Overview we’ll be defining (slide 3)
corporate governance is important because it creates a system of rules and practices
that determines how a company operates and how it aligns the interest of all its
stakeholders. (elaborate) Big companies believed that a good corporate governance
leads to ethical business practices, which leads to financial viability (when u say
financial viability it is the ability of an organisation to generate enough revenue to cover
its operating costs and generate a profit). In turn, that can attract investors. (honestly
before a company can have an investor they have to make a good business plan. Note,
some investors are not just focusing on the good business plan but also if they are
investing in the right track, the right people to put up too.)