Corporate Governance Concepts

 

Corporate Governance simply defined, involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined. Good corporate governance should provide proper incentives for the board and management to pursue objectives that are in the interests of the company and its shareholders and should facilitate effective monitoring.

– OECD Principles of Corporate Governance.

 

 

 

International Institute for Governance & Leadership (IIGL) advocates and actively promotes the following concepts of Corporate Governance.

 

 

If a country does not have a reputation for strong corporate governance practices, capital will flow elsewhere. If investors are not confident with the level of disclosure, capital will flow elsewhere. If a country opts for lax accounting and reporting standards, capital will flow elsewhere.

– Arthur Levitt (Former Chairperson: US Securities Exchange Commission)

 

 

 

Corporate governance 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 accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society.

– Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992.

 

 

 

Good corporate governance is about ‘intellectual honesty’ and not just sticking to rules and regulations, capital flows towards companies that practice this type of good governance. It is clear that good corporate governance makes good sense. The name of the game for a company in the 21st century will be – to conform while it performs.

– Mervyn King – Chairman King Report.

 

 

 

Corporate Governance is a way of life which reflects the DNA of a company and is practiced by its board and the management with equally strong conviction. Such a company creates wealth adhering to high standards of ethics and value system, and distributes wealth keeping in view the principle of equanimity toward sustainable development of the communities & society at large.

– Prof. Mahendra Chouhan, Vice Chairman, Global Advisory Board, Asian Centre for Corporate Governance & Sustainability.