Chapter 1 - Introduction to Corporate
Governance
Governance - answer A process whereby elements in society wield power, authority
and influence and enact policies and decisions concerning public life and social
upliftment.
Governance - answer________ comprises all the process of governing - whether
undertaken by the government of a country, by a market or by a network - over a social
system and whether through the laws, norms, power or language of an organized
society.
Governance - answer________ means the process of decision-making and the process
by which decisions are implemented (or not implemented) through the exercise of
power or authority by leader of the country and/or organization
Characteristics of Good Governance (PRTRCEEA) - answer Participation
Rule of Law
Transparency
Responsiveness
Consensus Oriented
Equity&Inclusiveness
Effectiveness&Efficiency
Accountability
Participation - answerKey cornerstone of good governance
Participation - answer______ could either be direct or through legitimate institutions or
representatives
Participation - answerThis needs to be informed and organized. This means freedom of
association and expression on one hand and an organized civil society on the other
hand.
Rule of Law - answerGood governance requires fair legal framework that are enforced
impartially.
Rule of Law - answerRequires full protection of human rights, particularly the minorities.
Transparency - answerDecisions taken and their enforcement are done in a manner
that follows rules and regulations. Information is freely available and directly accessible.
, Rule of Law - answerRequires an independent judiciary
Responsiveness - answerInstitutions and processes try to serve the needs of all
stakeholders within a reasonable timeframe
Consensus Oriented - answerMediation of different interests in society to reach a broad
consensus on what is in the best interest of the whole community and how this can be
achieved.
Equity and Inclusiveness - answerEnsures that all its members feel that they have a
stake in it and do not feel excluded from the mainstream of society.
Equity and Inclusiveness - answerRequires all groups, but particularly the most
vulnerable, have opportunities to improve or maintain their well-being.
Effectiveness and Efficiency - answerCovers the sustainable use of natural resources
and the protection of the environment.
Effectiveness and Efficiency - answerProcesses and institutions produce results that
meet the needs of society while making the best use of resources at their disposal.
Accountability - answerKey requirement of good governance
Accountability - answerThis cannot be enforced without transparency and the rule of law
Corporate Governance - answerSystem of rules, practices and processes by which a
company is directed and controlled
Corporate Governance - answerBalancing the interests of a company's many
stakeholders, such as shareholders, management, customers, suppliers, financiers,
government and the community
Corporate Governance - answerA topic that has received growing attention in public as
policy makers and other become aware of the contribution makes to financial market
stability and economic growth
Good Corporate Governance - answerAbout controlling one's business and so is
relevant, and indeed vital, for all organizations, whatever size or structure.
Corporate Governance Structure - answerSpecifies the distribution of rights and
responsibilities among different participants in the corporation, such as the board,
managers, shareholders, and other stakeholders
Corporate Governance Structure - answerSpells out the rules and procedures for
making decisions on corporate affairs
Governance
Governance - answer A process whereby elements in society wield power, authority
and influence and enact policies and decisions concerning public life and social
upliftment.
Governance - answer________ comprises all the process of governing - whether
undertaken by the government of a country, by a market or by a network - over a social
system and whether through the laws, norms, power or language of an organized
society.
Governance - answer________ means the process of decision-making and the process
by which decisions are implemented (or not implemented) through the exercise of
power or authority by leader of the country and/or organization
Characteristics of Good Governance (PRTRCEEA) - answer Participation
Rule of Law
Transparency
Responsiveness
Consensus Oriented
Equity&Inclusiveness
Effectiveness&Efficiency
Accountability
Participation - answerKey cornerstone of good governance
Participation - answer______ could either be direct or through legitimate institutions or
representatives
Participation - answerThis needs to be informed and organized. This means freedom of
association and expression on one hand and an organized civil society on the other
hand.
Rule of Law - answerGood governance requires fair legal framework that are enforced
impartially.
Rule of Law - answerRequires full protection of human rights, particularly the minorities.
Transparency - answerDecisions taken and their enforcement are done in a manner
that follows rules and regulations. Information is freely available and directly accessible.
, Rule of Law - answerRequires an independent judiciary
Responsiveness - answerInstitutions and processes try to serve the needs of all
stakeholders within a reasonable timeframe
Consensus Oriented - answerMediation of different interests in society to reach a broad
consensus on what is in the best interest of the whole community and how this can be
achieved.
Equity and Inclusiveness - answerEnsures that all its members feel that they have a
stake in it and do not feel excluded from the mainstream of society.
Equity and Inclusiveness - answerRequires all groups, but particularly the most
vulnerable, have opportunities to improve or maintain their well-being.
Effectiveness and Efficiency - answerCovers the sustainable use of natural resources
and the protection of the environment.
Effectiveness and Efficiency - answerProcesses and institutions produce results that
meet the needs of society while making the best use of resources at their disposal.
Accountability - answerKey requirement of good governance
Accountability - answerThis cannot be enforced without transparency and the rule of law
Corporate Governance - answerSystem of rules, practices and processes by which a
company is directed and controlled
Corporate Governance - answerBalancing the interests of a company's many
stakeholders, such as shareholders, management, customers, suppliers, financiers,
government and the community
Corporate Governance - answerA topic that has received growing attention in public as
policy makers and other become aware of the contribution makes to financial market
stability and economic growth
Good Corporate Governance - answerAbout controlling one's business and so is
relevant, and indeed vital, for all organizations, whatever size or structure.
Corporate Governance Structure - answerSpecifies the distribution of rights and
responsibilities among different participants in the corporation, such as the board,
managers, shareholders, and other stakeholders
Corporate Governance Structure - answerSpells out the rules and procedures for
making decisions on corporate affairs
