LO3

Question 1

A) Explain what is meant by Corporate Governance (CG)

Via CG`s Primary Objective???

Answer 1

• CG Primary objective is for:
• Company to operate in ethical +
• Transparent + accountable manner +
• To safeguard ShHolders` interest +
• Promote L-term value creation

Question 1

Question 1:

A) Explain what is meant by Corporate Governance (CG)

B) why having Corporate Governance structures is important.

C) Discuss 2 obstacles which may impede an organisation achieving high levels of Corporate Governance.

Answer 1

• It`s rules, practices, processes + Stru. Sys.
• Company directed + controlled.
• It surround Rela. among SHolders
• E.g. board of directors, ShHolders, etc…

Question 2

A) Explain what is meant by Corporate Governance (CG)

Via What CG is defined by?

Answer 2

• CG is defined by SHolders
• internally or externally (Gov)
• Crucial for all Orgs

Question 3

A) Explain what is meant by Corporate Governance (CG)

Via Why is CG needed???

Answer 3

Needed cos….

• Can’t assume all adheres to act ethically
• Rules and procedures needs to be written
• • Org needs recourse
• To deal with unacceptable behaviours

Question 4

A) Explain what is meant by Corporate Governance (CG)

Proc’s role in CG

Answer 4

• Inc. control over finance and expenditure
• Ensure ‘clean’ SC
• E.g. Not invo. in unethical business prac.
• E.g.2. child labour and risk management