Accountability
This principle of Corporate Governance talks about the obligation and responsibility of the company to provide proper justification for their every step to the stakeholders. If the board is taking any step for the benefit of the company, the stakeholders must know the same. The board must properly analyze the situation of the company and present a clear report in front of all the stakeholders. The board should maintain a proper risk management channel to address any issue within the company. The board should communicate with the stakeholders to ensure that there are no issues with the company.
Corporate Governance: Principles and Legal Aspect
Corporate Governance consists of two words “Corporate” and “Governance”. The general meaning of governance can be understood as the act of the company that is used to cater to the actions and affairs of the company. In short, Corporate Governance is a set of rules that is used to govern the actions of the company. It ensures that the work of the company is running smoothly, the company achieves its objectives, and provides benefits to its shareholders, employees, and workers. It also ensures that in the long run, the company caters to the needs of society with the help of certain activities without hampering their employees.
Geeky Takeaways:
- A good Corporate Governance of a company ensures that the company is reaching various heights and earning profit in business without hampering society or their employees.
- It creates a sense of confidence in investors’ minds and helps the company generate enough capital for their company.
- It also helps the investors, stakeholders, and all the involved companies in the company to get an idea of whether the company is heading and what is the future of the company.
- It encourages the stakeholders of the company to only engage in the best practices for the company.
Table of Content
- What is Corporate Governance?
- Principles of Corporate Governance
- 1. Transparency
- 2. Accountability
- 3. Responsibility
- 4. Risk Management
- 5. Impartiality
- Legal Aspects under Corporate Governance
- Conclusion
- Corporate Governance- FAQs