Session 3: Corporate Governance and Core Principles

Question 1

the system by which business corporations are directed and controlled

Answer 1

Corporate Governance

Question 2

specifies the distribution of rights and responsibilities among different participants in the corporation

Answer 2

Corporate Governance

Question 3

spells out the rules and procedures for making decisions on corporate affairs

Answer 3

Corporate Governance

Question 4

also provides the structure through which the company objectives are set and the means of attaining those objectives and monitoring performance

Answer 4

Corporate Governance

Question 5

system of principles, policies, procedures, and clearly defined responsibilities and accountabilities used by stakeholders to overcome the conflicts of interest inherent in the corporate form

Answer 5

Corporate Governance

Question 6

situations in which one is involved in multiple interest which could alter one’s decision-making

Answer 6

Conflicts of interest

Question 7

the framework of rules, systems and processes in the corporation that governs the performance by the Board of Directors and Management of their respective duties and responsibilities to the stockholders

Answer 7

The Revised Code Of Corporate Governance

Question 8

Objectives of Corporate Governance

Answer 8

▪ To eliminate or mitigate conflicts of interest. Particularly those between corporate managers and shareholders; and
▪ To ensure that the assets of the company are used efficiently and productively and in the best interests of its investors and other stakeholders.

Question 9

all men and women have opportunities to improve or maintain their wellbeing

Answer 9

Equity

Question 10

quality of making judgments that are free from discrimination

Answer 10

Equity

Question 11

concerned with actions, processes, and consequences, that are morally right, honorable, and equitable

Answer 11

Fairness

Question 12

establishes moral standards for decisions that affect others

Answer 12

Fairness

Question 13

“one man’s justice is another’s injustice.”

Answer 13

Ralph Waldo Emerson

Question 14

each decision-maker in the corporation should assume complete responsibility to take initiative and be answerable for his/her decisions, actions, and behavior. Everyone must be able to reason and explain for his/her actions and conduct.

Answer 14

Accountability

Question 15

Why is Accountability Important?

Answer 15

1. to prevent and detect corruption

2. to prevent the company to be fragile and open to rumors about mismanagement and abuse of power

Question 16

the obligation to demonstrate that work has been conducted in compliance with agreed rules and standards or to report fairly and accurately on performance results vis-a-vis mandated roles and/or plans

Answer 16

Accountability

Question 17

the obligation to demonstrate that work has been conducted in compliance with agreed rules and standards or to report fairly and accurately on performance results vis-a-vis mandated roles and/or plans

Answer 17

Corporate Accountability

Question 18

espouses that financial performance should not be a company’s only important goal and that shareholders are not the only people a company must be responsible to; stakeholders such as employees and community members also require accountability

Answer 18

Corporate Accountability

Question 19

Components of Corporate Accountability

Answer 19

1. Answerability
2. Sanction
3. Redress
4. System Improvement

Question 20

liable to be asked to give account

Answer 20

Answerability

Question 21

penalty or punishment provided as a means of enforcing obedience to a law

Answer 21

Sanction

Question 22

may refer either to the act of setting right an unjust situation (as by some power), or to satisfaction sought or gained for a wrong suffered

Answer 22

Redress

Question 23

openness and willingness by the company to provide clear, factual and timely information that accurately reflects the financial situation, performance, ownership and corporate governance of the company

Answer 23

Transparency

Question 24

can help fight corruption, improve governance and promote accountability; built on the free flow of information.

Answer 24

Transparency

Question 25

there is public access to all information which is not classified for well-specified reasons as provided for by law

Answer 25

Transparency

Question 26

subject to reasonable conditions prescribed by law, the State adopts and implements a policy of full public disclosure of all its transactions involving public interest

Answer 26

Section 28

Question 27

the right of the people to information on matters of public concern shall be recognized

Answer 27

Section 7

Question 28

use of property bears a social function, and all economic agents shall contribute to the common good

Answer 28

Section 6 (Stewardship)

Question 29

have the right to own, establish, and operate economic enterprises, subject to the duty of the State to promote distributive justice and to intervene when the common good so demands

Answer 29

Section 6

Question 30

concerns the nature of a socially just allocation of goods in a society

Answer 30

Distributive Justice

Question 31

refers to the responsibility that companies have to understand and manage their impacts on the environment in any number of ways

Answer 31

Stewardship

Question 32

acting knowing that leadership is a temporary role which is outlasted by the lifespan of an organization that has to be prepared for future vitality

Answer 32

Stewardship

Question 33

ensuring that each individual is generally happy in his or her working environment

Answer 33

Stewardship