Elements / Areas of Corporate Governance

1. Ethics
 Moral values and principles that govern a person's behavior or the conducting of an
activity. It is also called moral philosophy.
 Principles that govern a person's behavior
 Also the discipline concerned with what is morally good and bad and morally right and
wrong
 Kaya ginagawa kasi isa syang obligation
o Business ethics
 Organizational principles, values, and norms that primariliy guide
individual and group behavior in business
 Principles that guide an individual or group in a corporation kung papaano
kung ano yung mga ethics na dpat sundin sa corporation
 
2. Risk Management
 The continuing process to identify, analyze, evaluate and treat loss exposure and to
monitor risk control and financial resources to mitigate the adverse effect of loss
o Risk
 The possibility of an event happening that will have an impact on the
achievement of objectives
 
3. Internal Control
 A set of policies a firm employs to safeguard assets, ensure accurate and reliable
accounting records and information, promote efficiency and measure compliance with
established standards.
 There should be separation of duties
 Dapat naka set ang policies to safeguard the assests and the records of the company
 
4. Compliance
 Ensure that the organization complies with society's legal and regulatory rules
 
5. Administration
 How to manage the operations
 Day to day operations
 Anong ang trbaho ng janitor, cashier, etc
 
Ethical procedures should be followed, i.e the moral principles that should set by a corporation
must be applies
 
Examples:
 The public good is placed before individual interests
 There are effective measures to prevent and combat all forms of workplace dishonesty
 Conflicts of interest are declared in a timely manner and persons involved must abstain
from taking part in relevant decisions
 Reinforcement of an ethical culture, incl