Corporate governance

 :Prepared by
Ahmed Adel kassem
:ID 22211037055

Mohamed Abdelgany Elsayed

ID:22211037054
past

Industrial Revolution
Cont Corporate governance
Cont Corporate governance
Cont Corporate governance
Cont Corporate governance
Corporate governance
 refers to the relationship among the board of
directors, top management and shareholders in
determining the direction and performance of
the corporation
?Who are Business’s Stakeholders

Stockholders Employees

Customers Community Competitors

Business Stakeholder Groups

Banks Creditors Government

Natural Environment:
Society Part of Sustainability

Cengage Learning 2015 © 77

The Corporation’s Hierarchy of Authority

State Charter

Shareholders

Board of Directors

Management

Employees
Roles of Four Major Groups
Shareholders -
• Own stock in the firm, giving them ultimate
control (the shareholder-primacy model).
Board of Directors -
• Govern and oversee management of the
business.
Managers (especially, top management) -
• The individuals hired by the Board to
manage the business on a daily basis .
Employees -
• Hired to perform actual operational work
Improving Corporate
Governance
Internal control
External audit
Risk Management
Resources available to the management
Ensure that financials are not misleading -
 Ensure that internal controls are adequate -
Follow-up allegations of irregularities -
Importance of corporate
governance

Stack holder protection

Full disclosure