CORPORATE GOVERNANCE
In simple terms Corporate Governance means Good Governance. Corporate Governance is a well-defined and enforced structure that works for the benefit of everyone concerned by ensuring that the Enterprise adheres to accepted ethical standards, best practices and formal laws.
Corporate Governance is a system that ensures a check and balance system that minimizes conflict of interests. Corporate Governance aligns the interests of all stakeholders. Corporate Governance system helps to mitigate the conflict of interests between Stakeholders & Corporations.
Corporate Governance refers to the set of systems, principles and processes by which a company is governed. They provide guidelines as to how the company can be directed or controlled such that it can fulfill its goals and objectives in a manner that adds to the values of the company and is also beneficial for all stakeholders in the long-term.
Corporate Governance has received increased attention because of high-profile scandals involving abuse of Corporate power for alleged criminal activity by corporate officers, Therefore, laws and regulations have been passed to address the components of corporate governance.
Corporate Governance encompasses following principles while conducting the business:-
- Integrity & Fairness
- Transparent Transactions
- Adequate Disclosures
- Complying with the laws of Land
- Accountability & Responsibility
- Commitment to Business Ethics
Benefit of Good Corporate Governance:-
- Increased level of confidence in the Company
- Confidence in the share market. Accordingly a higher market price.
- Many financial investors takes their investment decisions based on Corporate Governance level in the company.
- A clean image influences the public/customers to buy the company products.
Vijayash Foundation promotes Corporate Governance because it is only by following good practices, India could become a $5 Trillion Economy in next three years and a $10 Trillion Economy in next ten years.
