Corporate Governance

• Governance comes from the Latin word

“gubanare” which means “to steer.”

• Corporate governance means to steer

an organization.
 Other Definition
• A system of stewardship and control to guide organizations in
fulfilling their long-term economic, moral, legal and social
obligations towards their stakeholders.
• A set of relationships between a company's directors, its
shareholders and other stakeholders. It also provides the structure
through which the objectives of the company are set, and the means
of achieving those objectives and monitoring performance, are
determined.
 Underlying Principles
of Corporate Governance
• Good corporate governance allows company to reap the full
benefits of international and local capital markets, improve
investors’ confidence, reduce cost of capital, and induce
stable sources of financing.
• It must be principles-based to allow a company certain
degree of flexibility in shaping its own best practices based
on the company’s age, size, complexity, extent of internal
operations, and other factors.
• Strong corporate governance is founded on the principles of
fairness, accountability, and transparency.
• Fairness means equal treatment.
• Corporate accountability means acceptance of full
responsibility for the powers and authority granted to
those charged with governance.
• Transparency means open and clear, timely and
accurate disclosure of relevant information, financial or
non-financial, to shareholders and other stakeholders, as
well as not concealing material information.