Let’s Check ULO (a) Let’s Check ULO (b)

1. b. Accountability
2. c. Integrity, honestly and accountability 1. a
2. d
3. a. Shareholders
4. a. Shareholders 3. d
5. d. Professionalism 4. a
5. a
6. a
7. a
8. d
9. a
10. c

Let’s Analyze

1. Transparency is derived from the word transparent, which means having nothing to
hide. For corporate governance, the appropriate users of the data must be informed
about the procedures and transactions of the company. Transparency is significant in
corporate governance, for it affects decision-making and compliance with legal
requirements. When an entity follows the pillar of transparency, it helps to prevent fraud
and schemes. With this in mind, investors prefer to invest their assets in businesses that
have a higher level of open information since they can ensure their funds are in good
hands. This makes sense: corporations are investing time to enhance their
transparency to gain investors and ROI.

Accountability means determining who will take action and be responsible when
something goes wrong. It is about who is liable for future mishaps. This pillar has a
great effect on the shareholder's confidence in investing in the corporation, resulting in
the shareholder wanting to invest more in the business. Others might understand
accountability as blaming, but it is more than that; it is basically taking ownership of
one's actions and their good or bad consequences.

Fairness is free from bias. It is about the equal treatment of each and every
shareholder's rights and privileges. In corporate governance, everyone in the company
should be treated equally, from minority employees to foreign shareholders. Moreover,
fairness in a business must also be practiced towards employees and communities to
create strong relationships and communication.

Independence is about the avoidance of any influence and interest to prevent

constraints. It is about having no relationship or connection, which affects decision-
making in a corporation. Independence in terms of business-to-business relationships is
the only thing that will avoid collusion and misappropriation.

2. Maintain liaison with executive management. They act to arrange and assist
meetings and interactions within parties. This is about investors, employees voices,
managers, accountants, auditors, and the government. They also exchange information
between itself and management. They facilitate officers and other boards with projects
and plans for resource and development planning. The committee must ensure that
there is no duplication of works in the corporation.

3. Implementation of principles, when disregarded in most businesses, will result in

chaos. Principles tell us what is right and just. When a corporate organization does not
follow certain standards and values, people will never be efficient and effective because
there will be no proper rules to be followed. As many people as there are in an
organization have different perspectives, and their plans may be good or bad; therefore,
principles can be used as a guideline to determine what is correct. This is the guideline
for where we stand in an unknown situation in corporate governance.