https://boardroomdirect.blog/board-governance-software-products-in-2022/
Corporate governance is a challenging area of practice, policy and ethics that involves many stakeholders. It encapsulates the structures and systems that ensure accountability, transparency and transparency in the company’s operations and reports. It covers the manner in that boards oversee the executive management of a business and the way they select, monitor and evaluate the CEO’s performance. It also includes the manner in which directors make financial decisions and inform shareholders of these decisions.
In the 1990s, corporate governance became a hot topic due to the introduction of structural reforms aimed at building markets in former Soviet states and the Asian Financial Crisis. The Enron scandal of 2002, followed by the emergence of shareholder activism within institutions, and the 2008 financial crisis has led to increased scrutiny. Corporate governance is a hot issue today, with new developments and pressures constantly surfacing.
The Anglo-Saxon or “shareholder primacy view” places the priority on shareholders. Shareholders elect a board of directors who direct management and sets the strategic goals of the company. The board of directors is responsible for select and evaluate the CEO, set and monitor enterprise policies for risk management, and oversee the operation of the company. They also provide reports on their stewardship to shareholders.
Integrity honesty, transparency, fairness and accountability are the four fundamental principles of effective corporate governance. Integrity relates to the ethical and responsible way board members make decisions. Transparency means openness honest, integrity, and complete disclosure of information to all stakeholders. Fairness refers to how boards deal with employees, suppliers and clients. The responsibility of a board treats its own members as well as the community at large.