CONCEPT OF CORPORATE GOVERNANCE
The concept of corporate governance defines the accountability and responsibility of the Board of Directors to all the stakeholders of the organisation including shareholders, employees, suppliers, customers and society at large, thereby giving the organisation a fair, efficient and transparent management.
Broadly, the concept of corporate governance is to balance everyone’s role from upper management to employees in the company. As Corporate governance is more than company administration, it involves fair, efficient and transparent functioning of the corporate management system along with monitoring the actions, policies, practices and the stakeholders.
Transparency means the process of making every important aspect clearly visible and available to all. Transparency in corporate governance implies an accurate, adequate and timely disclosure of relevant information about the operating results etc. of the corporate enterprise to the stakeholders. The concept of corporate governance is important to revive investors’ confidence in the corporate sector for a planned development of the company as well as the society at large.
Concept of Corporate Governance plays an important role in bringing two different levels of the firm together and it also leads to highly profitable work environment.