INTRODUCTION

TO CORPORATE GOVERNANCE

Generally, governance refers to a

process whereby elements in society
wield power, authority and influence
and enact policies and decisions
concerning public life and social
upliftment.
GOVERNANCE

the process of decision-making

and the process by which
decisions are implemented (or
not implemented) through the
exercise of power or authority
by leaders of the country and /
or organizations.
 CHARACTERISTICS OF GOOD
GOVERNANCE

PARTICIPATION RULE OF LAW TRANSPARENCY

Freedom of association Full protection of human Information is freely
and expression on one rights available and directly
hand and an organized accessible to those
civil society on the other who will be affected by
hand. such decisions and their
enforcement.
 CHARACTERISTICS OF GOOD
GOVERNANCE

CONSENSUS EQUITY AND

RESPONSIVENESS ORIENTED INCLUSIVENESS
Good governance Understanding of the This requires all
requires that institutions historical, cultural and groups, but particularly
and processes try to social contexts of a the most vulnerable, to
serve the needs of all given society or have opportunities to
community.
stakeholders within a improve or maintain
reasonable timeframe. their well being.
 CHARACTERISTICS OF GOOD
GOVERNANCE

EFFECTIVENESS ACCOUNTABILITY
& EFFICIENCY An organization or an
institution is
Meet the needs of accountable to those
society; sustainable use who will be affected by
of natural resources and its decisions or actions.
the protection of the Accountability cannot
be enforced without
environment.
transparency and the
rule of law.
 CORPORATE GOVERNANCE:
AN OVERVIEW

It basically involves
balancing the interests of
system of rules, practices a company's many
and processes by which stakeholders, such as
business corporations are shareholders,
directed and controlled. management, customers,
suppliers,
financiers, government
and the community.
PURPOSE OF CORPORATE GOVERNANCE
•to facilitate effective,
entrepreneurial and prudent
management that can deliver long-
term success of the company.

•to enhance shareholders' value and

protect the interests of other
stakeholders by improving
corporate performance and
accountability
 OBJECTIVES OF CORPORATE
GOVERNANCE

FAIR AND
EQUITABLE INCREASE TRANSPARENCY
TREATMENT OF SELF-ASSESSMENT SHAREHOLDERS’ AND FULL
SHAREHOLDERS WEALTH DISCLOSURE
 BASIC PRINCIPLES OF EFFECTIVE
CORPORATE GOVERNANCE

01 02 03
Transparency and Full Accountability Corporate Control
Disclosure
Is the board telling us Is the board taking Is the board doing the
what is going on? responsibility? right thing?
THANK YOU!
Prof. Rey Greña