The nature of governance
It is the responsibility of the government to ensure that business is properly conducted. An organization’s strategic objectives are more likely to be achieved with guidelines and equitable and effective use of resources rather than overt control and strict adherence to rules.
Governance – a generic perspective
The Organisation for Economic Co-operation and Development (OECD) has identified the following as the basic principles of corporate governance:
- An examination of shareholders’ rights, roles, and equitability
- Ensures the organization’s strategy is well-guided, the board monitors management effectively, and the board is held accountable for the company’s success
- Board members oversee management’s achievement of corporate objectives by reviewing and guiding the corporate strategy
As part of the corporate governance structure, the board of directors sets out who is responsible for what...
