LO3 Flashcards
1
Q
A) Explain what is meant by Corporate Governance (CG)
Via CG`s Primary Objective???
A
- CG Primary objective is for:
- Company to operate in ethical +
- Transparent + accountable manner +
- To safeguard ShHolders` interest +
- Promote L-term value creation
1
Q
Question 1:
A) Explain what is meant by Corporate Governance (CG)
B) why having Corporate Governance structures is important.
C) Discuss 2 obstacles which may impede an organisation achieving high levels of Corporate Governance.
A
- It`s rules, practices, processes + Stru. Sys.
- Company directed + controlled.
- It surround Rela. among SHolders
- E.g. board of directors, ShHolders, etc…
2
Q
A) Explain what is meant by Corporate Governance (CG)
Via What CG is defined by?
A
- CG is defined by SHolders
- internally or externally (Gov)
- Crucial for all Orgs
3
Q
A) Explain what is meant by Corporate Governance (CG)
Via Why is CG needed???
A
Needed cos….
- Can’t assume all adheres to act ethically
- Rules and procedures needs to be written
- Org needs recourse
- To deal with unacceptable behaviours
4
Q
A) Explain what is meant by Corporate Governance (CG)
Proc’s role in CG
A
- Inc. control over finance and expenditure
- Ensure ‘clean’ SC
- E.g. Not invo. in unethical business prac.
- E.g.2. child labour and risk management
