Corporate governance is basically a set of rules, practices, and
procedures that guides company oversight and control by its Board of
Director and independent committees. It involves balancing the
interests of a company’s stakeholders including management,
employees, suppliers, customers, and the community with the need to
deliver value to its shareholders/owners. The essential components
of corporate governance in the professional environment are,
accountability, fairness, transparency, risk management and
responsibly.
Corporate governance entails developing a strong system of
accountability. A company workplace should align with a firm’s
strategic direction and comply with ethical and legal consideration.
Companies should also be transparent which may prevent them from
a potential fraud happening. Transparency builds a good reputation of
a company. The board of directors must treat shareholders,
employees, vendors, and communities fairly and with equal
consideration.
Reference: https://www.cambridgetrust.com/insights/investing-
economy/six-essential-elements-of-effective-corporate-gove
Mintz, S., & Morris, R. (2013). Ethical obligations and decision making in
accounting (3rd ed.). New York, NY: McGraw-Hill.
