Corporate governance is the combination of rules, processes or laws by which businesses are operated, regulated or controlled. The term encompasses the internal and external factors that affect the interests of a company’s stakeholders, including shareholders, customers, suppliers, government regulators and management. The board of directors is responsible for creating the framework for corporate governance that best aligns business conduct with objectives.

1. Corporate Governance
Dr Emmanuel Daniel
Faculty of Social Work

2. Synopsis
• Overview of Corporate Governance
• Meaning of Corporate Governance
• Definitions of Corporate Governance
• Principles of Corporate Governance
• Significance of Corporate Governance
• Benefits of Corporate Governance
Dr Emmanuel Daniel- Faculty of Social Work07-07-2020 2

3. Overview
The act of steering, guiding and piloting
System of rules, practices, and processes
Carrying the business as per the stakeholders’ desires
Balancing individual and societal goals
Interaction between participants in shaping
performance
Individual’s actual performance Vs standard
performance
Effective strategic decisions
Complete responsibility to the Board in creating
framework
Dr Emmanuel Daniel- Faculty of Social Work07-07-2020 3

4. Dr Emmanuel Daniel- Faculty of Social Work07-07-2020 4

5. Definition of Corporate Governance
• Corporate governance is about enabling organisations to achieve their
goals, control risks and assuring compliance (Lakshna Rathod, 2018)
• The system by which companies are directed and controlled (Cadbury
Committee, 1992)
Dr Emmanuel Daniel- Faculty of Social Work07-07-2020 5

6. Principles of
Corporate
Governance
by World
Bank
 Transparency
 Accountability
 Responsibility
 Fairness
Dr Emmanuel Daniel- Faculty of Social Work07-07-2020 6

7. Significance of Corporate
Governance
• Investors will need protection for their investment
• Attracting capital
• Performance
• Winning investors confidence
• Global Perspective
• Vibrant stock market
Dr Emmanuel Daniel- Faculty of Social Work07-07-2020 7

8. The Benefit of Good
Corporate Governance
• Efficient processes
• Visibility of errors
• Reduced costs
• Smoother-running operations
• Compliance is assured
Dr Emmanuel Daniel- Faculty of Social Work07-07-2020 8

9. References
• Lakshna R. (2018) The Benefit of Good Corporate Governance, Retrieved from
https://diligent.com/en-gb/blog/why-is-corporate-governance-
important/#:~:text=Corporate%20governance%20is%20about%20enabling,how%20the%20compa
ny%20is%20operating.
• Subho M. (2020) Importance of Corporate Governance, Retrieved from
https://www.economicsdiscussion.net/business-environment/corporate-governance/corporate-
governance-in-india-need-importance-and-conclusion/10145
• Applied Corporate Governance (2020) Definition of Corporate Governance, Retrieved from
https://www.applied-corporate-governance.com/definition-of-corporate-
governance/#:~:text=The%20definition%20of%20corporate%20governance,(Cadbury%20Commit
tee%2C%201992).&text=%E2%80%9CCorporate%20governance%20involves%20a%20set,its%2
0shareholders%20and%20other%20stakeholders.
• The Audiopedia (2017) What is Corporate Governance, Retrieved from
https://www.youtube.com/watch?v=TDe76LzJyd4
• David, C. & Guler, A. (2008) Corporate Social Responsibility, Ventus Publishing, CO, USA
Dr Emmanuel Daniel- Faculty of Social Work07-07-2020 9