Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. It establishes the framework for accountability and transparency between stakeholders such as shareholders, management, customers, suppliers, and society. Effective corporate governance promotes fairness, transparency, accountability and responsibility to help companies operate efficiently, attract investment, and meet legal and social obligations.

1. Corporate Governance

2. “Corporate Governance is about promoting
corporate fairness, transparency and
accountability”
—James D. Wolfensohn

3. What is Corporate Governance?
It encompass the combination of laws,
regulations, listing rules and voluntary private
sector, practices that enable the corporation to
attract capital, perform efficiently, generate
profit and meet both legal obligations and
general societal expectations.
In simpler terms it is a set of systems,
processes and principles which ensure that a
company is governed in the best interest of all
stakeholders, corporate managers and
directors

4. Why Corporate Governance necessary?
• Business became open, global and
complex
• Growing proportion of economic activity
takes place in firms
• Mobilizes and combine lot of resources
from several sources to provide goods
and services

5. Impact of Corporate Governance
• Efficiency with which a corporation
employs assets
• Ability to meet societal expectations and
create better image
• Ability to attract resources from the
society
• Reduce corruption and bribery
• Overall performance

6. Principles of Corporate Governance
I. Fairness
II. Transparency
III. Accountability
IV. Responsibility

7. Fairness
• The corporate governance framework
should protect shareholders’ rights.
• The corporate governance framework
should ensure the equitable treatment
of all shareholders, including minority
and foreign shareholders. All
shareholders should have the
opportunity to obtain effective redress
for violation of their rights.

8. Transparency
• The corporate governance framework
should ensure that timely and accurate
disclosure is made on all material
matters regarding the corporation,
including the financial situation,
performance, ownership and
governance of the company

9. Accountability
• The corporate governance framework
should ensure the strategic guidance of
the company, the effective monitoring of
management by the board, and the
board’s accountability to the company
and the shareholders

10. Responsibility
• The corporate governance framework
should recognize the rights of
stakeholders as established by law and
encourage active co-operation between
corporations and stakeholders in
creating wealth, jobs, and the
sustainability of financially sound
enterprises

11. Conclusion
• Principles of Corporate Governance
require both regulation and private
sector initiative for implementation
• Raise awareness of the value of
corporate governance improvement