“Corporate governance” is the term used to refer to the policies and processes by which a corporation (or other large, complex institution) is controlled and directed. It refers especially to the way power and accountability flow between shareholders, boards of directors, CEOs, and senior managers.
Similarly, it is asked, why ethic is important in business?
Ethical behaviour and corporate social responsibility can bring significant benefits to a business. For example, they may: attract customers to the firm's products, thereby boosting sales and profits. make employees want to stay with the business, reduce labour turnover and therefore increase productivity.
One may also ask, how ethics can make corporate governance more meaningful?
HOW ETHICS CAN MAKE CORPORATE GOVERNANCE MORE MEANINGFUL. Corporate governance is meant to run companies ethically in a manner such that all stakeholders—creditors, distributors, customers, employees, and even competitors, the society at large and governments—are dealt with in a fair manner.
What are the 4 P's of corporate governance?
That's why many governance experts break it down into four simple words: People, Purpose, Process,and Performance. These are the Four Ps of Corporate Governance, the guiding philosophies behind why governance exists and how it operates. Let's have a look at exactly what each of the Ps means.
What is the main objective of corporate governance?
The basic purpose of corporate governance is to monitor those parties within a company which control the resources owned by investors. The primary objective of sound corporate governance is to contribute to improved corporate performance and accountability in creating long-term shareholder value.