Corporate governance

INTRODUCTION

Corporate governance in the business context refers to the systems of rules,
practices, and processes by which companies are governed. In this way, the
corporate governance model followed by a specific company is the distribution of
rights and responsibilities by all participants in the organization.

Governance ensures everyone in an organization follows appropriate and
transparent decision-making processes and that the interests of all stakeholders
(shareholders, managers, employees, suppliers, customers, among others) are
protected.

What Is The Purpose Of Corporate Governance ? What Are Its benefits ?

 Ensures that the management of a company considers the best interests of
everyone;
 Helps companies deliver long-term corporate success and economic
growth;
 Maintains the confidence of investors and as consequence companies raise
capital efficiently and effectively;
 Has a positive impact on the price of shares as it improves the trust in the
market;
 Improves control over management and information systems (such as
security or risk management)
 Gives guidance to the owners and managers about what are the goals
strategy of the company;
 Minimizes wastages, corruption, risks, and mismanagement;
 Helps to create a strong brand reputation;

Most importantly – it makes companies more resilient.

Guiding Principles of Corporate Governance

1.The board approves corporate strategies that are intended to build sustainable
long-term value; selects a chief executive officer (CEO); oversees the CEO and
senior management in operating the company’s business, including allocating
capital for long-term growth and assessing and managing risks; and sets the “tone
at the top” for ethical conduct.

2.Management develops and implements corporate strategy and operates the
company’s business under the board’s oversight, with the goal of producing
sustainable long-term value creation

3.under the oversight of the board and its audit committee, produces financial
statements that fairly present the company’s financial condition and results of
operations and makes the timely disclosures investors need to assess the financial
and business soundness and risks of the company.

4.The audit committee of the board retains and manages the relationship with
the outside auditor, oversees the company’s annual financial statement audit and
internal controls over financial reporting, and oversees the company’s risk
management and compliance programs.

5.The nominating/corporate governance committee of the board plays a
leadership role in shaping the corporate governance of the company, strives to
build an engaged and diverse board whose composition is appropriate in light of
the company’s needs and strategy, and actively conducts succession planning for
the board.

Corporate Governance Structures:

Corporations can have many different structures, but the most typical structure
consists of the shareholders, board of directors, officers and the employees. The
structure of corporate governance determines the distribution of rights and
responsibilities between the different parties in the organization and sets the
decision-making rules and procedures. It is usually up to the management board
to decide how the company will develop.

Regulation of corporate governance

Corporate governance has received increased attention because of high-profile
scandals involving abuse of corporate power or alleged criminal activity by
corporate officers. Therefore, laws and regulations have been passed to address
the components of corporate governance.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

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