The Relevance Of The Four Fundamental Pillars Of Corporate Governance
Introduction
What is Corporate Governance?
Corporate governance is a system which conduct and manage the business of a company to enhance their business prosperity and also corporate accountability with the ultimate objective of realizing long-term shareholder value (Report on Corporate Governance, February 1999). It also help to advance in entrepreneurial and cautious management for the company to attain their achievements. Furthermore, corporate governance has distribute to 4 Fundamental Pillars which involving accountability, transparency, responsibility and fairness.
Fundamental Pillars of Corporate Governance
As an explanation, accountability is refer to clarify the governance’s roles and responsibilities, also involving voluntary efforts to ensure the alignment of managerial and shareholder’s interests hence monitor by the board of directors. For example, corporate have the accountability to inform their shareholder about the updated of corporate’s policies or the public’s latest feedback. In a simplest way, corporate governance’s accountability towards to the stakeholders that may bring much affects to corporate. Besides, transparency is also a part of the Fundamental Pillars. It require timely to reveal adequate information that concerning corporate financial performance. It means the details that concern to corporate governance will have to disclose adequately after a period. On the other hand, responsibility of corporate governance is to ensure that corporations
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