SOUTH PHILIPPINE ADVENTIST COLLEGE

C A M A N C H I L E S , M ATA N A O , D AVA O D E L S U R , P H I L I P P I N E S

CORPORATE
GOVERANCE

ACCOUNTANCY DEPARTMENT| SEPT 2021

 The
PROPONENTS Reporters
LORO, ADRIAN JUNE
LUMANDO, FELMAR
BALOLOT, KATHYRINE
BONIFACIO, MITCHELLE
ROXAS, DARWIN
ALFANTA, JERYL
 CHAPTER I
INTRODUCTION TO CORPORATE GOVERNANCE
n-making and
ns are
ented) through WHAT IS
ority by GOVERNANCE
r

1
1 PARTICIPATION • both men and women is a key cornerstone of good
governance.
• Participation could be either direct or through legitimate
institution or representative.
• participation must be informed and organized.

2 RULE OF LAW • good governance requires fair legal frameworks that are
enforced impartially.
• It also requires full protection of human rights, particularly
those of minorities.
• Impartial enforcement of laws requires an independent
judiciary and an impartial and incorruptible police force.

2
3 TRANSPARENCY • means that decisions taken and their enforcement are
done in a manner that follows rules and regulations.
• It also means that enough information is provided and
that it is provided in easily understandable forms and
media.
• It means that information is freely available and directly
accessible

4 RESPONSIVENES
S
• Good governance requires that institutions and processes try to
serve the needs all Stakeholders within a reasonable timeframe.

3
 CONSENSUS
5 ORIENTED
• Good governance requires mediation of the different
interests in society to reach a broad consensus on what is
in the best interest of the whole community and how this
can be achieved.

EQUITY & • ensures that all its members feel that they have a stake in it
6 INCLUSIVENESS and do not feel excluded from the main stream of society
• to improve their well-being.

4
 EFFECTIVENESS & • Processes and institutions should be able to produce results
7 EFFICIENCY that meet the needs of their community.

• Resources of the community should be used

effectively for the maximum output.

8 ACCOUNTABILIT
Y
• Good governance aims towards betterment of people, and
this cannot take place without the government being
accountable to the people.
• Governmental institutions, private sectors, and civil society
organizations should be held accountable to the public and
institutional stakeholders.

5
CORPORATE GOVERNANCE: AN OVERVIEW
is defined as the system of rules,
practices and processes by which
business corporations are directed is a topic that has received growing
attention in the public in recent years as
and control. It involves balancing
policy makers and others become more
the interests of a company’s aware of the contribution good corporate
many stakeholders, such as governance makes to financial market
shareholders, management, stability and economic growth.
customers, suppliers, financiers,
government and the community.

6
PURPOSE OF CORPORATE
GOVERNANCE
 The purpose of corporate
governance is to facilitate
effective, entrepreneurial and
prudent management that
can deliver long-term
success of the company.

7
THE 4 OBJECTIVE CORPORATE GOVERNANCE
 FAIR AND EQUITABLE TREATMENT OF SHAREHOLDERS

• A corporation governance structure ensures equitable and fair treatment of all

shareholders of the company.
• all shareholders deserve equitable treatment and this equity is safeguarded by a good
governance structure in any organization.
8
 SELF-ASSESSMENT

• Corporate governance enables firms to assess their behavior and actions before they are
scrutinized by regulatory agencies.

9
 INCREASE SHAREHOLDERS WEALTH

• Another corporate governance’s main objective is to protect the long-term interests of

the shareholders.

10
 TRANSPARENCY AND FULL DISCLOSURE

• Good corporate governance aims at ensuring a higher degree of transparency in a

organization by encouraging full disclosure of transaction in the company account.

11
BASIC PRINCIPLES OF EFFECTIVE CORPORATE GOVERNANCE
Effective corporate
governance is transparent,
protects the right of
shareholders and includes
both strategic and
operational risk
management.
 Here is the basic principle of effective corporate
governance

12
A. Transparency and full
Disclosure
B. Accountability
C. Corporate Control