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    Gerente Module 1 Activity (Governance)

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    Aldrin Gerente
    The document discusses key concepts of corporate governance including defining it as the system of rules and processes by which companies are governed. It explains that corporate governance structure determines the distribution of rights and responsibilities in an organization. The basic objectives of corporate governance are listed as transparency and full disclosure, increasing shareholder wealth, self-assessment, and fair treatment of shareholders. The three basic principles of effective good governance are stated as transparency and disclosure, accountability, and corporate control. The statement "Responsiveness usually results to effectiveness and efficiency" is assessed to be true as responsiveness of stakeholders is important to achieve objectives that lead to good, effective, and efficient outcomes for a company.

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    Gerente Module 1 Activity (Governance)

    Uploaded by

    Aldrin Gerente
    169 views2 pages
    The document discusses key concepts of corporate governance including defining it as the system of rules and processes by which companies are governed. It explains that corporate governance structure determines the distribution of rights and responsibilities in an organization. The basic objectives of corporate governance are listed as transparency and full disclosure, increasing shareholder wealth, self-assessment, and fair treatment of shareholders. The three basic principles of effective good governance are stated as transparency and disclosure, accountability, and corporate control. The statement "Responsiveness usually results to effectiveness and efficiency" is assessed to be true as responsiveness of stakeholders is important to achieve objectives that lead to good, effective, and efficient outcomes for a company.

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    The document discusses key concepts of corporate governance including defining it as the system of rules and processes by which companies are governed. It explains that corporate governance structure determines the distribution of rights and responsibilities in an organization. The basic objectives of corporate governance are listed as transparency and full disclosure, increasing shareholder wealth, self-assessment, and fair treatment of shareholders. The three basic principles of effective good governance are stated as transparency and disclosure, accountability, and corporate control. The statement "Responsiveness usually results to effectiveness and efficiency" is assessed to be true as responsiveness of stakeholders is important to achieve objectives that lead to good, effective, and efficient outcomes for a company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    169 views2 pages

    Gerente Module 1 Activity (Governance)

    Uploaded by

    Aldrin Gerente
    The document discusses key concepts of corporate governance including defining it as the system of rules and processes by which companies are governed. It explains that corporate governance structure determines the distribution of rights and responsibilities in an organization. The basic objectives of corporate governance are listed as transparency and full disclosure, increasing shareholder wealth, self-assessment, and fair treatment of shareholders. The three basic principles of effective good governance are stated as transparency and disclosure, accountability, and corporate control. The statement "Responsiveness usually results to effectiveness and efficiency" is assessed to be true as responsiveness of stakeholders is important to achieve objectives that lead to good, effective, and efficient outcomes for a company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Gerente, Aldrin P. Oct.

    21,2020
    2BSA-3 Mr. Escoses
    GOVERNANCE, BUSINESS ETHICS, SOCIAL RESPONSIBILITY AND INTERNAL
    CONTROL

    Chapter 1 (Exercise)

    1. Define corporate governance.


    - In the business context, it refers to the system of rules, practices, and
    processes by which companies are governed. It is all about controlling one’s
    business and so is relevant for all organizations.

    2. What does corporate governance structure involve?


    - The structure of corporate governance determines the distribution of rights
    and responsibilities between the different parties in the organization and sets
    the decision-making rules and procedures. It is usually up to the management
    board to decide how the company will develop.

    3. State the purpose of corporate governance?


    - The purpose of corporate governance is to help build an environment of trust,
    transparency and accountability necessary for fostering long-term investment,
    financial stability and business integrity, thereby supporting stronger growth
    and more inclusive societies.

    4. Explain the basic objectives of corporate governance.

    a. Transparency and Full Disclosure


    - It ensures that the organization will have a high degree of transparency
    by encouraging full disclosure of transactions in company accounts.
    b. Increase Shareholder’s Wealth
    - Its main objective is to protect the long-term interest of shareholders.
    This only reflects that positive perception of corporate governance will
    make potential investors to invest in a company or an organization.
    c. Self-Assessment
    - It enables firms to assess their behavior and actions before they are
    scrutinized by regulatory agencies. Having a strong corporate
    governance system will limit an organization from exposure of
    regulatory risks and fines.
    d. Fair and Equitable Treatment of Shareholders
    - It ensures equitable and fair treatment of all shareholders of the
    company. The equity will be safeguarded by good governance
    structure in an organization.

    5. Explain the three basic principles of effective good governance.

    a. Transparency and Full Disclosure


    - Companies that have an effective corporate governance structure in
    place know that transparency must be a core principle. Also, the
    organization must have sound disclosure policies/practices and must
    safeguard integrity in financial reporting.
    b. Accountability
    - Good corporate governance ensures stakeholders know that the
    company’s mission, values, short and long-term strategic goals must
    be accomplished for the benefit of the company.
    c. Corporate Control
    - It ensures that an organization must recognize some risks and
    remunerate fairly and responsibly.

    Explain whether the following statement is true or false.

    “Responsiveness usually results to effectiveness and efficiency”

    - In my opinion, I think this statement is TRUE. It is true that responsiveness


    usually results effectiveness and efficiency. The responsiveness of
    stakeholders is important in order to do our objectives that will make the
    company even better. And with that, those objectives will lead into good,
    effective and efficient outcomes.

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