Why is Corporate Governance Important?

Corporate governance is the way a corporation polices itself. In short, it is a method of governing the company like a sovereign state, instating its own customs, policies and laws to its employees from the highest to the lowest levels. Corporate governance is intended to increase the accountability of your company and to avoid massive disasters before they occur. Failed energy giant Enron, and its bankrupt employees and shareholders, is a prime argument for the importance of solid corporate governance. Well-executed corporate governance should be similar to a police department's internal affairs unit, weeding out and eliminating problems with extreme prejudice. A company can also hold meetings with internal members, such as shareholders and debtholders - as well as suppliers, customers and community leaders, to address the request and needs of the affected parties.

Principles of Corporate Governance

Shareholder recognition is key to maintaining a company's stock price. More often than not, however, small shareholders with little impact on the stock price are brushed aside to make way for the interests of majority shareholders and the executive board. Good corporate governance seeks to make sure that all shareholders get a voice at general meetings and are allowed to participate.
Stakeholder interests should also be recognized by corporate governance. In particular, taking the time to address non-shareholder stakeholders can help your company establish a positive relationship with the community and the press.
to majority shareholders. All board members must be on the same page and share a similar vision for the future of the company.
Ethical behavior violations in favor of higher profits can cause massive civil and legal problems down the road. Underpaying and abusing outsourced employees or skirting around lax environmental regulations can come back and bite the company hard if ignored. A code of conduct regarding ethical decisions should be established for all members of the board.
Business transparency is the key to promoting shareholder trust. Financial records, earnings reports and forward guidance should all be clearly stated without exaggeration or "creative" accounting. Falsified financial records can cause your company to become a Ponzi scheme, and will be dealt with accordingly.

Corporate Governance as Risk Mitigation

Corporate governance is of paramount importance to a company and is almost as important as its primary business plan. When executed effectively, it can prevent corporate scandals, fraud and the civil and criminal liability of the company. It also enhances a company's image in the public eye as a self-policing company that is responsible and worthy of shareholder and debtholder capital. It dictates the shared philosophy, practices and culture of an organization and its employees. A corporation without a system of corporate governance is often regarded as a body without a soul or conscience. Corporate governance keeps a company honest and out of trouble. If this shared philosophy breaks down, then corners will be cut, products will be defective and management will grow complacent and corrupt. The end result is a fall that will occur when gravity - in the form of audited financial reports, criminal investigations and federal probes - finally catches up, bankrupting the company overnight. Dishonest and unethical dealings can cause shareholders to flee out of fear, distrust and disgust.

Team Work - Meaning and Tips for better Team Work

A single brain is not always capable of making key decisions on its own. To come up with an efficient solution, an individual requires the help and advice of others. A team is established when individuals get together on a common platform with the common goal of completing a task. To guarantee optimum compatibility, team members should ideally come from similar backgrounds and have a single aim. To provide their best, the team members must complement each other and function as a single unit in tight cooperation. "There is no I in Team Work," as the saying goes, and each member must put the needs of his team first. Personal interests must take a second seat. Any team's performance is directly proportionate to the relationship between its members and their combined efforts. What is the definition of teamwork? Teamwork is defined as the sum of each team member's efforts toward the fulfilment of the team's goal. In other words, any team's backbone is its ability t

Scientists discover a new theory / The fundamental property of light – 150 years after Maxwell

Light plays a vital role in our everyday lives and technologies based on light are all around us. So we might expect that our understanding of light is pretty settled. But scientists have just uncovered a new fundamental property of light that gives new insight into the 150-year-old classical theory of electromagnetism and which could lead to applications manipulating light at the nanoscale. It is unusual for a pure-theory physics paper to make it into the journal Science. So when one does, it’s worth a closer look. In the new study, researchers bring together one of physics' most venerable set of equations – those of James Clerk’s Maxwell’s famous theory of light – with one of the hot topics in modern solid-state physics: the quantum spin Hall effect and topological insulators . To understand what the fuss is about, let’s first consider the behaviour of electrons in the quantum spin Hall effect. Electrons possess an intrinsic spin as if they were tiny spinning-tops,

19 Types Of Content Writing Services For Your Business

It’s hard to know which type of content writing service is the best for your business. There are so many different types of content writing services out there that it’s easy to get confused. You end up wondering if you’re choosing the right one for you. In this post, we’ll get rid of this confusion, once and for all. I’m going to list out the different kinds of writing services you could use. By the end of this article, you’ll know whether you need a copywriter, a content writer, or a social media marketer and how they can help you achieve your business goals. This post is also useful for writers who want to hone their writing skills in a specific area. Let’s dive in and learn what types of content writing services exist and when you should use them. (Bonus – if you want to hire the top 1% of writers, go to the bottom to learn how). Types of Content Writing Services As we go through the list of content writing services, you will find that many of them overlap. That’s perfectly

The LimitlessX - Get Tech Science News around the Globe

Search This Blog