MIDTERM IN GGSR Flashcards
the policies and principles followed by an organization in order to maximize shareholders’ wealth and to attain the set objectives formed in adherence to regulatory framework of the country.
concerned with holding the balance between economic and social goals and between individual and communal goals.
Corporate governance
one of the strength of the business for creation of intangibles like trust, reputation, brand image, tax advantage and for manifestations in balance sheets
concerned with treating the stakeholders of the firm ethically or in a socially responsible manner. Stakeholders exist both within a firm and outside.
Corporate Social Responsibility
refers to a company’s commitment to ethical practices that benefits society and the environment while maintaining profitability.
Corporate Social Responsibility
Concept of Triple-Bottom-Line Accounting by
Robert J. Rubinstein
what is the Concept of Triple-Bottom-Line Accounting
Socially , Environmentally, Economically
3 Socially
S. Bearable
S. Sustainable
S. Equitable
The society is capable of accepting
Socially Bearable
The society can maintain and support
Socially Sustainable
The society is fair and impartial
Socially Equitable
3 Environmentally
En. Bearable
En. Sustainable
En. Viable
Can accept by the environment
Environmentally Bearable
Can maintain and support by the environment
Environmentally Sustainable
Feasible, workable, applicable, usable and practical for the environment
Environmentally . Viable
3 Economically
Ec. Equitable
Ec. Sustainable
Ec. Viable
Fair and impartial to economy
Economically Equitable
Can maintain and support by the economy
Economically Sustainable-
Feasible, workable, applicable, usable and practical for the economy
Economically Viable
Refers to the three central factors in measuring thesustainabilityand societal impact of aninvestmentin a company orbusiness.
Environmental, Social, and Corporate Governance(ESG)
Feasible, workable, applicable, usable and practical for the economy
Economically Viable
refer to the challenges posed by human activities that negatively impact the planet. These issues are central to sustainability efforts and ESG (Environmental, Social, and
Governance) policies
Environmental concerns
Environmental concerns:
0.sustainability
1. Climate Change
2. Pollution
3. Deforestation
4. Loss of Biodiversity
5. Water Scarcity
6. Waste Management & Plastic Pollution
7. Ocean Acidification
8. Renewable Energy vs. Fossil
Fuels
refer to issues that affect
societies, communities, and
individuals, often related to
human rights, equality, and wellbeing.
Social
concerns
Social
concerns:
-Diversity
-Human rights
-Consumer protection
-Animal welfare
- Human Rights Violations
- Inequality and Discrimination
- Poverty and Economic Inequality
- Health and Well-being
- Education and Literacy
- Workplace Issues and Labor Rights
- Community Development and Social Infrastructure
- Ethical Business Practices
- Misinformation and Media Influence
- Social Stability and Political Conflicts
area of investigation into the rights and responsibilities of the management of a company—its board, shareholders and the various stakeholders in that company.
Corporate governance concerns
Corporate governance concerns:
Management structure
Employee relations
Executive compensation
Employee compensation
Revolves on the aspects of maintaining the good reputation of every organization that might affect their internal and external environment.
Principles of Corporate Governance
Principles of Corporate Governance:
TRANPARENCY
ACCOUNTIBILITY
RESPONSIBILITY
FAIRNESS
- The ability of an organization to be transparent, the organization’s awareness of their decisions will affect all concerns.
TRANPARENCY
- The capacity of an organization of being accountable and liable in their decisions.
ACCOUNTIBILITY
- The ability of an organization to take control, manage and take ownership of their acts.
RESPONSIBILITY
- The ability of an organization to have impartial decisions to avoid favoritism and discrimination.
FAIRNESS
Environment of an Organization
Internal Environment
External Environment
Internal Environment:
Higher Management
Managements
People
Process
The decision makers of the organization.
Higher Management
This include the rank and file that will follow and obey the decision
People
Includes the managements and supervisory that will implement and evaluate the decision.
Managements
This is the organizations standard protocols that should consider in making decision
Process
External Environment:
Government
Society
Economy
mandated law and ordinance that should consider in making decision
Government
Considering the beliefs, social norms, culture and tradition of certain place in making decision
Society
Considering the effects of decision to overall country’s progress in making decision.
Economy
Guiding Principles of Good Governance
1.Leadership is Key
2.Anticipate Change and Stay Relevant
3.Reward for Work and Work for Reward
4.A Stake for Everyone, Opportunities for All
Honest & capable leaders, Possess moral courage & integrity to do what is right and not what is popular with the people
.Leadership is Key
Meritocracy, Reward based on abilities and hard work, Regardless of race, religion and socio-economic background
.Reward for Work and Work for Reward
Decisions made need to be forward-looking so future challenges will be anticipated
.Anticipate Change and Stay Relevant
Having a say in decision-making helps develop people a greater sense of belonging. Dialogue, listened to their concerns and put measures in place
.A Stake for Everyone, Opportunities for All
