good for management students

1. CORPORATE GOVERNANCE

2. Corporate governance is the
process and structure used to
direct and manage the business
and affairs of the company
towards enhancing business
prosperity and corporate
accountability with the ultimate
objective of realizing long-term
shareholder value, whilst taking
into account the interest of other
stakeholders.

3. Corporate Governance refers to the manner in
which the power of a corporation is
exercised in the stewardship of the
corporation’s total portfolio of assets and
resources with the objective of maintaining
and increasing shareholder value and
satisfaction of other stakeholders in the
context of its corporate mission. It is
concerned with creating a balance between
economic and social goals and between
individual and communal goals while
encouraging efficient use of resources,
accountability in the use of power and
stewardship and as far as possible to align
the interests of individuals, corporations
and society.

4. “Good governance is not simply
about corporate excellence. It is
the key to economic and social
transformation. The corporation of
today are no longer sheer
economic entities. These are the
engines of economic and social
transformation.”
-Dr Madhav Mehra, President of World Council For Corporate
Governance

5. THE IMPORTANCE OF GOOD
GOVERNANCE
If a country does not have a reputation for
strong corporate governance practices,
capital will flow elsewhere. If investors
are not confident with the level of
disclosure, capital will flow elsewhere. If
a country opts for lax accounting and
reporting standards, capital will flow
elsewhere. All enterprises in that country
– regardless of how steadfast a particular
company’s practices may be – suffer the
consequences.

6. Effective corporate governance requires a
clear understanding of the respective roles
of the board and of senior management
and their relationships with others in the
corporate structure. The relationships of
the board and management with
stockholders should be characterized by
candor; their relationships with employees
should be characterized by fairness; their
relationships with the communities in
which they operate should be
characterized by good citizenship; and
their relationships with government should
be characterized by a commitment to
compliance.

7. CORPORATE GOVERNANCE CORPORATE MANAGEMENT
External Focus Internal Focus
Governance assumes an open system Management assumes a closed
system
Strategy-orientated Task-orientated
Concerned with where the company is
going
Concerned with getting the company
there

8. The end