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.
According to stakeholder and agency theories, what essential components of corporate
governance have you experienced in the workplace? How does corporate governance affect
the ethical climate of the organization? If you have not experienced corporate governance
personally in a professional environment, speculate as to what the essential components of
corporate governance are in the professional environment and how they affect the ethical
climate.
Corporate governance is the structure of rules, practices, and processes used to direct and
manage a company. A company's board of directors is the primary force influencing
corporate governance; Corporate governance covers the areas of environmental awareness,
ethical behavior, corporate strategy, compensation, and risk management. The basic
principles of corporate governance are accountability, transparency, fairness, responsibility,
and risk management.
I Work for the Orland Fire Protection District as a Finance Assistant. The Orland Fire
Protection District is a special taxing district that an elected Board of Trustees governs. While
the Fire District works closely with the elected officials of Orland Park, Orland Hills, and
Orland Township, it is a separate governing body. The primary revenue source for the Orland
Fire Protection District is property taxes, accounting for nearly 90% of the income. The
remaining 10% comes from special fees and grants.
Over 163 employees are serving the community in a variety of positions. The Orland Fire
Protection District employs over 114 career firefighters trained as paramedics. The District
has a dispatching center and maintenance facility that operates six fire stations throughout the
area. The District holds an Insurance Service Office (ISO) class one rating for fire protection.
The ISO places Orland Fire Protection District within the top 3% of the best fire departments
in the country. The Fire District has been awarded the Government Finance Officer
Association award for excellence in financial reporting. Based on a survey of patients
transported by the Fire District’s ambulance, 95% of those who responded rated the
responding paramedics as excellent.
The Orland Fire Protection District follows a paramilitary organizational model. Following
the chain of command is critical in emergency scenes and is followed in daily operations. All
Chief Officers and line personnel are civil service employees. Civilian personnel fills roles in
administration, dispatch, and fire prevention.
Organizational Chart
James Chen (August 18, 2022) What is Corporate Governance? Retrieved from
https://www.investopedia.com/terms/c/corporategovernance.asp
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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.
