It is a framework within which operational and behavioral standards for the board, the executive management and the wider staff are set. Hierarchy in harmony. It comes largely in an accountability movement, better management and better control. It is based essentially on the principles of transparency, independence and responsibility.
What is a good and efficient corporate governance?
It covers a number of different aspects and encompasses all processes, regulations and laws designed to frame the way the company is directed, administered and controlled.Corporate Governance can be described as a set of relationships between a company's management, board, shareholders, and other stakeholders, which provides the structure through which the objectives of the company are set.
Good corporate governance is essential to support business growth. Good governance provides mechanisms to ensure the leadership, integrity and transparency in decision-making. It must help to set the objectives of the company, the means to reach them and how to assess performance.
What are the standards of good governance?
The good governance mechanisms may be evidenced by standards of good practice in relation to strong leadership, a positive culture, remuneration policy, presence of independent directors, disclosure of the company roles and structure and robust risk management. These all encourage and reinforce behaviors that ensure company representatives act to protect the long-term interests of the company and its shareholders.
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