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  • Corporate Governance Principles Explained

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    Avi Azad Yadav
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    This document discusses corporate governance, defining it as the structure and processes used to direct and manage an organization. It outlines key principles of corporate governance including accountability, transparency, fairness, and responsibility. The document also identifies six pillars of good corporate governance and lists some benefits such as encouraging positive behaviors, reducing costs, and attracting talented directors.

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    Avinash Kumar 130062 CGBE

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    This document discusses corporate governance, defining it as the structure and processes used to direct and manage an organization. It outlines key principles of corporate governance including accountability, transparency, fairness, and responsibility. The document also identifies six pillars of good corporate governance and lists some benefits such as encouraging positive behaviors, reducing costs, and attracting talented directors.

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    © All Rights Reserved
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    13 views8 pages

    Corporate Governance Principles Explained

    Uploaded by

    Avi Azad Yadav
    This document discusses corporate governance, defining it as the structure and processes used to direct and manage an organization. It outlines key principles of corporate governance including accountability, transparency, fairness, and responsibility. The document also identifies six pillars of good corporate governance and lists some benefits such as encouraging positive behaviors, reducing costs, and attracting talented directors.

    Copyright:

    © All Rights Reserved
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    of 8

    Corporate

    Governance
    GUIDED BY :- DR PRASAD
    SUNDARARAJAN
    By :- Avinash Kumar-1
    Roll no. :- 130062
    What is Corporate Governance ?

     Corporate Governance is the structure of rules, practices, and


    processes used to coordinate and deal with an organization.
     An organization's directorate is the essential power affecting corporate
    Governance.
     Bad corporate governance can cast doubt on a company’s operations
    and its definitive benefit.
     Corporate governance involves the areas of natural awareness, ethical
    behavior, corporate strategy, compensation, and risk management.
     The fundamental standards of corporate governance are accountability,
    transparency, fairness, and responsibility.
    Principles of corporate governance
     All shareholders should be treated equally and fairly. Part of this is making sure
    shareholders are aware of their rights and how to exercise them.
     Legal, contractual and social obligations to non-shareholder stakeholders must be
    upheld. This includes always communicating pertinent information to employees,
    investors, vendors and members of the community.
     The board of directors must maintain a commitment to ensure accountability,
    fairness, diversity and transparency within corporate governance. Board members
    must also possess the adequate skills necessary to review management practices.
     Organizations should define a code of conduct for board members and executives,
    only appointing new individuals if they meet that standard.
     All corporate governance policies and procedures should be transparent or
    disclosed to relevant stakeholders.
    Core principles

    Fairness

    Accountability
    Corporate Responsibili
    governance ty

    Transparency
    Six pillars of good corporate governance

    Rule of law Participation

    Moral integrity
    Accountability

    Transparency Effectiveness
    Benefits of good corporate governance.

    • Encouraging positive behaviors


    • Reducing cost of capital
    • Improving top – level decision making
    • Assuring internal control
    • Enabling better strategic planning
    • Attracting talented directors
    Conclusion…

    • The corporate governance framework should protect and


    facilitate the exercise of shareholders rights.

    • Corporate governance should ensure the strategic


    guidance of the company , the effective monitoring of
    management by the board , and the boards accountability
    to the company and the shareholders.

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