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The Role of

Transparency in
Corporate
Governance

Kyla S. Casuyon

BSBAMM-11
Corporate
Governance
Corporate governance is a system of rules,
regulations, and practices that regulate how
a business is directed, controlled, and
managed
Importance of transparency in
corporate governance

Transparency is an essential component of corporate governance because


it fosters trust and confidence among stakeholders such as shareholders,
investors, workers, and customers.
Importance of
Transparency in
Corporate
Governance
Improved accountability

Transparency encourages accountability by


ensuring that all choices are made openly
and honestly
Importance of
Transparency in
Corporate
Governance
Enhanced Reputation

Companies that operate transparently are


perceived as being more trustworthy and
reliable, which can help to enhance their
reputation
Importance of
Transparency in
Corporate
Governance
Increased shareholder value

Transparency may boost shareholder value


Importance of
Transparency in
Corporate
Governance
Improved decision-making

Transparency may help enhance decision-


making at all levels of the organization
Impact of Transparency in
Corporate Performance

A increasing amount of research demonstrates that openness in corporate


governance might improve business performance
Impact of
Transparency in
Corporate
Performance
Stronger financial performance

Businesses with transparent financial


reporting tend to do better financially
Impact of
Transparency in
Corporate
Performance
Improved risk management

Transparent businesses are more likely to


be innovative
Impact of
Transparency in
Corporate
Performance
Better employee engagement

Employee engagement is higher in


transparent firms
CONCLUSION
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