Lesson 2

Question 1

CORPORATE SYSTEM

Answer 1

1. Corporate Management
2. Corporate Governance

Question 2

deals with daily operations and the process of leading, administrating, and directing a company.

Answer 2

Corporate Management

Question 3

is the system of rules, practices, and processes by which a company is directed and controlled. It essentially involves balancing the interests of a company’s many stakeholders such as shareholders, managers, customers, suppliers, financiers, government, and the community.

Answer 3

Corporate Governance

Question 4

is defined as someone who protects and takes care of the needs of others.

Answer 4

Steward

Question 5

refers to the obligation and responsibility to give an explanation or reason for the company’s actions and conduct. Ensures that management is accountable to the Board and that Board is accountable to shareholders

Answer 5

Accountability

Question 6

an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation.

Answer 6

Shareholders

Question 7

is any individual, group, or party that has an interest in an organization and the outcomes of its actions. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers.

Answer 7

Stakeholders

Question 8

refers to equal treatment, for example, all shareholders, including minorities should receive equal consideration for whatever shareholdings they hold. Each decision made requires balancing the interest of different stakeholders. Treat all team members, customers, and suppliers with respect and without bias. Provide effective redress for violations.

Answer 8

Fairness

Question 9

the company readily and openly provides information. We proactively communicate our work status, priorities, and deadlines. We make clear the rationale for our recommendations. We convey changes immediately and consistently. Ensure timely, accurate disclosure on all material matters, including the financial situation, performance, ownership and corporate governance.

Answer 9

Transparency

Question 10

Effects of Good Corporate Governance

Answer 10

Good Corporate Governance -> Increases confidence of stakeholders -> Encourages new investments -> Boost employment opportunities-> Boost economic growth-> Sustainability

Question 11

Most of the benefits received from business ethics are the goals of

Answer 11

Corporate Governance