GOOD CORPORATE GOVERNANCE 2
• OBSERVANCE OF GOOD CORPORATE GOVERNANCE 3
• FAILURES OF CORPORATE GOVERNANCE 5
• BENEFITS OF AVOIDING CORRUPT PRACTICES 6
GOOD CORPORATE GOVERNANCE
Governance in the Oxford dictionary is defined as “control or influence”, while corporate is defined as “shared by all members of the group”. Therefore corporate governance refers to the structures and processes for the direction and control of members of a group. It is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require …show more content…
Good corporate governance helps build a good brand image for the organization and a brand image brings with it greater loyalty and commitment to the employees and when there is commitment to employees, the employees will be more effective and efficient in their work. Once a brand image has been created, it will be easy for an organization to access outside capital with ease and also retain the investors and even grow in market share.
Good corporate governance also helps a company improve the overall performance. Observing good corporate governance strategies ensures that the organization members know what they ought to do and when and this allows the organization to be effective in its activities because time is used efficiently and also costs are minimized for instance training costs because everyone knows what to do.
Corporations were invented for the benefit of society, but to fulfill that role and serve society, they must have responsible internal leadership. This competitive edge will allow the organization to be effective in the way it carries out its day to day business activities. It is important for an organization to have reliable and trustworthy leaders and managers. This helps the organization a lot because the leaders will better lead others if they are upright in their dealings.
FAILURES OF CORPORATE GOVERNANCE
One of the problems with the current debate on corporate governance is that there are many different and often conflicting views on the