MEANING OF CORPORRATE GORVERNANCE

Corporate Governance defines the

relationship between a companys
management, its board, share holders,
and other stockholders Corporate
governance is a set of process,
practices, polices and laws affecting
the way a business is dinected,
managed on controlled. It is a structure
of
rules,
relationship,
systems
programmes
process
within
the
business and by which authority is
exercised and controlled in the
organization.

Definition

The business dictionary defines corporate

governance as the frame work of rules and
practice by which a board of directions,
ensures
accountability,
business
and
transparency in the firms relationship with its
all stockholders ( directions, customers,
manufactures, employees, government and
the community)

NATURE OF CORPORATE GOVERNANCE

Corporate governance based on the principle

that
business
is
accountable
to
its
stockholders for its action.
Corporate
Governance
highlights
the
importance of ethics and social responsibility
in the mgt of a business.
Corporate governance a set of process,
practices, polices and laws affecting the way a
business is dinected managed or controlled.
The role of Corporate Governance is setting
light goals, selecting right paths matting right
decision and doing right action.

OBJECT OF CORPORATE
GOVERNANCE
To indicate moral values in business operations.
to ensure fair and equitable treatment

of

shareholders without discrimination.

To avoid discrimination, harassment and ill-tneatment
of the workforce.
To maintain discipline in the work environment of a
business organization.
To maintain good relationship between employees and
between employees and management.
to safeguard the interest of investors who want to
invest money in a business.
To facilitate business concerns establish right goals,
selecting right ways, making right decisions and doing
right actions.

Role of Corporate
Governance

Low rate of complaints

Reduced litigations
Good governance
Strong customer support
Warm support from the employees
Easy mobilization of finance
In calculate moral values in business
Better business relations

QUESTIONS
1. What is the boards role in corporate

governance & how close that defect

from management role ?
2. Why should boards change their
approach how ?
3. How dose the boards role in
oversight of risk faction in ?
4. How can the board influence the
corporate risk culture?
5. How can companies evaluate the
boards effectiveness?

CONCLUSION
Corporate Governance recognizes
the importance of ethics and social
responsibility in the management of a
business.
It provides a structure through which
the objectives of a company are set and
how they are achieved and mentioned