In the last article, we talked about the meaning of corporate governance along with its formation, framework and functionality. Here’s a quick recap: Corporate governance refers to the set of rules, practices, processes and principles that exist to regulate and operate a company. It helps ensure that the interests of all parties involved such as the shareholders, employees, customers, government and the community are duly fulfilled in a balanced and fair manner. Corporate governance revolves around the 4 basic principles of: 1) Accountability 2) Fairness 3) Responsibility 4) Transparency Now we’ll take a look at how these elements/principles come into play through the Board of Directors and what effects they have on the other stakeholders. 1) Accountability A company is liable and answerable for every action, transaction and decision taken during the course of business. This is the reason why it is of paramount importance to have an extremely reliable and…
