Question

As a potential corporate governance expert, what does it mean when we say good corporate governance is about accountability, corporate responsibility, efficiency and transparency towards shareholders and stakeholders?

Answer 1

As a potential corporate governance expert, by the statement "corporate governance is about accountability, corporate responsibility, efficiency and transparency towards shareholders and stakeholders", it is meant that the business owes its major responsibility and attention towards its various stakeholders and Shareholders who play integral role in making its existence and smooth functioning possible, thus the effectiveness of business organization depends on its ability to satisfy its stakeholders and shareholders. The statement intends to highlight the importance of good corporate governance for organization through reflecting on how a business organization needs to take into consideration the interests and concerns of its stakeholders who are significant for its consistent growth and sustainability.

Therefore as Corporate governance experts, we should try to determine or ascertain the needs and desires of all such parties who directly or indirectly influence the business so as to ensure that these needs are duly met so that the business continues to receive support from its shareholders and stakeholders to progress in Long runI. It is important for corporate governance experts to assure that business operations, processes and policies are in congruence with the interests and need of its stakeholders and shareholders who are associated with the business. Therefore business should hold itself accountable for its actions which might intentionally or unintentionally tend to harm the purpose of these stakeholders. The business should try to maximize the good for its stakeholders and shareholders through maintaining transparency with them and working efficiently to help them attain their personal motives or interests. All these objectives can be achieved when business will establish and maintain a good corporate governance.

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