Name : Annisa

NIM : 46119006
Class : 4A D4

1 Method Good Corporate Governance

2 Concept  The Cadbury Committee, in 1992-through the Cadbury
report-issued a separate definition of GCG. According to the
Cadbury Committee, Good Corporate Governance is a
principle that directs and controls companies in order to
achieve a balance between the strengths and authority of the
company in providing accountability to shareholders in
particular and stakeholders in general
 Agoes (2011) defines corporate governance as a governance
system that is transparent and regulates the roles of directors,
shareholders and other types of stakeholders. The process is
carried out on the actions of achieving company goals

3 Principle Theory Good Corporate Governance is considered the most effective

way to maintain the stability of the company's growth. In the
process, there are at least five main principles that must be
adhered to
 1. Transparency
Transparency means real state of affairs. This principle is
carried out by the company by making it easier for
stakeholders to access any information they need.
Transparency needs to be implemented to maintain the level
of objectivity between the company and stakeholders.
 2. Independence
Being a company that is not easily interfered with by other
parties is also one of the principles of corporate governance.
Parties related to the company must be able to move
separately without dominating the other.
  3. Responsibility
In running a business, of course you will always be followed
by existing regulations and moral norms. As a good
company, it must be able to fulfill both of these aspects.
 4. Accountability
Accountability is a principle related to accountability. This
means that as an implementation of good corporate
governance, the company must be able to be held
accountable for all decisions taken
 5. Fairness and Equality
Generally, the company's stakeholders consist of several
parties who have an interest in the company. This means
that the company does not only face 'one person' in running
its business. Therefore, the value of justice must be
considered so that there are no discrepancies.
4 Advantages The concept and its application in the Indonesian context (2005)
by Daniri Achmad, the benefits of applying the principles of
good corporate governance for companies are as follows:
 Contributing to the creation of the welfare of society,
employees and other stakeholders and is a good solution
in facing the challenges ahead.
 There is recognition and protection of the rights and
obligations of stakeholders.
 The existence of an integrated approach based on
democratic principles, management, and legitimate
company participation.
 Increasing the legitimacy of companies that are managed
in an open, fair and accountable manner.
 Increase the effectiveness, efficiency, and productivity
of the use of company resources.
 Creating an appeal to investors that investments are safe
and can be managed efficiently, openly with the support
of responsible processes.
5 Disadvantages  minimal reporting of financial performance and company
obligations
 lack of oversight of management activities by
commissioners and auditors
 lack of incentives to encourage efficiency in companies
through a fair competition mechanism.
6 Formula Coporate Governanace Perception Index (IICG) and Corporate
Sosial Rensponsibility (CSR)
7 Analysis Technique GCG is measured using managerial ownership, institutional
ownership, independent commissioners, and audit committee
size.

1 Method Assessment GCG

2 Concept Self-assessment is an activity that begins with filling out a
questionnaire related to efforts to implement GCG in the
company in carrying out an ethical and sustainable business
(Daniri, 2014)

3 Principle Theory One of the parameters in conducting an assessment has been

determined by the Decree of the Secretary of the Ministry of
BUMN No. SK-16/S.MBU/2012 concerning indicators or
parameters for evaluating and evaluating the implementation of
Good Corporate Governance in SOEs. The GCG assessment
carried out by the assistance of other parties must be fully
accompanied by a team from the internal company so that the
results of observations by independent parties become valid
4 Advantages With a GCG assessment, of course, the company can find out
how far GCG has been implemented and identify appropriate
steps to prepare infrastructure and corporate structures that are
conducive to effective GCG implementation.
5 Disadvantages It is difficult to access the information needed such as
community participation, bureaucratic structure, resources,
 attitude of implementers and communication as well as
constraints in the economic, social and political environment.
6 Formula In terms of international standards, there are five major
parameters. First, the rights of shareholders, second, the role of
stakeholders, third, equal treatment of shareholders, fourth,
transparency and disclosure, fifth, duties and responsibilities of
the board
7 Analysis Technique  Self Assessment
The company itself conducts an assessment or self-
assessment. Only banks are required by the government for
self-assessments
 second party assessment
This second party assessment is usually carried out by a
business unit appointed by the company to carry out the
assessment within the company itself, but in cooperation
with, for example, the risk management unit or audit unit.
For example, when auditing a branch office, management
will entrust it to the audit team to conduct an assessment at
the branch office
 Third-Party Assessment
While the third party assessment is an assessment or
evaluation carried out by an independent party. For public
companies, OJK has directly appointed the Indonesian
Institute for Corporate Directorship (IICD) Indonesia. This
institution is the only institution that may assess.