Corporate governance is critical for an organisation, as it increases accountability. When the board of directors, management, company employees and shareholders are responsible for each other, this helps ensure everyone is accountable.
Good governance is also synonymous with business transparency. When a company meets reporting and disclosure requirements, stakeholders can be satisfied they have the required information to make decisions in the best interest of the company.
Corporate governance also controls risks and ensures company compliance with legal requirements, helping prevent fraud, scandals and potential liabilities.
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What is corporate governance?
September 10th
Corporate governance is a system of rules, practices and procedures that determine how an organisation or business operates. This enables an organisation to make sure it is always meeting its…
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What are the primary sources of law, regulation and practice for corporate governance?
August 19th
The primary source of regulation for corporate governance in Australia is the Corporations Act 2001 (Cth). Corporate governance is also subject to common law principles within the court system. The…
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What role do employees play in corporate governance?
August 19th
Generally employees have no legal corporate governance obligations, although those in executive positions or who sit on board committees can play a role in maintaining corporate governance standards. Related posts:…
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