Corporate Governance Principles

Milton Jack / Posted On: 27 May 2021 / Updated On: 25 March 2022 / Organisational Development / 3

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Corporate Governance Principles

Introduction

The changing landscape affecting public and private companies warrants a need to keep the business world abreast with updated corporate governance principles. The principles are not exhaustive, but they represent current practical and effective corporate governance practices. There is recognition that wide variations exist among; businesses, relevant regulatory regimes, ownership structures, and private and public companies (Roundtable, 2016). There is no one-size-fits-all, and there is no prescription or endorsement of any particular choice. The board can use its discretion when it comes to which principles to adopt. As a result, each organization should use these principles as a guide for creating structures, methods, and processes that are suited for their needs and circumstances.

 

Corporate governance is the structure and relationships that affect the direction and performance of a company. The community's legal, regulatory, institutional, and ethical context also influences the corporate governance structure. Whereas the twentieth century was the era of management, the early twenty-first century is more concerned with governance. Although both phrases refer to corporate control, governance has always necessitated an analysis of the underlying purpose and validity (McRitchie, 2020).

 

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