CORPORATE

GOVERNANCE
Presented By Ali Sheikh
DEFINITION -
Corporate Governance Is The System And Rules By
Which An Organization Is Controlled, Operated &
Directed.

There Are 4 Core Principles Of Good Corporate

Governance
 PRINCIPLES OF CORPORATE GOVERNANCE

Business Must Be Able To Explain Every Action And Decision It Takes.

ACCOUNTABILITY Accountability Builds Trust Among Shareholders, Stakeholders And
Management.

Transparency Builds Upon This Trust. A corporation must be open and

TRANSPARENCY willing to disclose truthful, accurate and timely information regarding
the company’s financial, social and political position.

As Steering A Whole Corporation You Must Be Responsible Of

RESPONSIBILITY
Your Behaviors. It Surpasses Wrongdoings And Placing Blame.

For Effective Corporate Governance (Considering Business

FAIRNESS Ethics) All Stakeholders & Shareholders Must Be Treated Equally.

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 STAKEHOLDERS MODEL
• A person with an interest or concern in a business.

• The stakeholder model is more focused and concerned about the stakeholders, as these people can affect the
business' operations and performance.

• Stakeholder must be considered before setting up goals as they may disrupt or prevent certain policies being
carried out.

Shareholder Customers Connected Suppliers Banks

Internal
MANAGEMEN
T
EMPLOYEES

Community External Government

STAKEHOLDERS
CONFLICT
• Stakeholders are mostly interested in a
business' success but sometimes their
personal interests may conflict.
Some examples may be-

• Shareholders demanding high profits while

customers demanding more value for money
products (Cheap yet good quality).
• Employees demanding pay rise while
management tries to maximize profits.
• The community wanting least damage to
environment while shareholders want
cheapest way to dispose the waste.

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THANK YOU
Presented By Ali Sheikh