) ) ) ) ) ) ) ) )

) ) ) ) ) ) ) ) )

The Core Principles of Good

Corporate Governance
 ) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )

Corporate governance refers to the

framework of policies and guidelines
that inform a company’s conduct,
decision-making and practice.
 ) ) ) ) ) ) ) ) ) Corporate governance is defined as the system by
) ) ) ) ) ) ) ) )
which businesses are directed and controlled
(SiIquete, 2016). Good corporate governance is a key
factor in underpinning the integrity and efficiency of a
company. When the company has poor corporate
governance, it can weaken the company’s potential,
lead to financial difficulties, and, in some cases, cause
long-term damage to a company’s reputation (Siquete,
2016).
 ) ) ) ) ) ) ) ) ) According to Siquete (2016), these are the core
) ) ) ) ) ) ) ) )
principles of good corporate governance and its
definition:
1. Fairness
This refers to equal treatment to all shareholders,
including stakeholders, employees, communities, and
public officials. The fairer the entity appears to
stakeholders, the more likely it is that it can survive the
pressure of interested parties.
 ) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
2. Accountability
Corporate accountability refers to the obligation
and responsibility to give an explanation or reason
for the company’s actions and conduct.
 ) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
2. Accountability
Establishing formal corporate reporting, sound
risk management and internal control systems
and approving sustainable corporate strategies
are examples of good corporate accountability in
practice.
 ) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
3. Responsibility
This refers to the responsibility for
overseeing the management of the
business and affairs of the company.
 4. Transparency
) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )

It means openness, a willingness by

the company to provide clear
information to shareholders and other
stakeholders.
 4. Transparency
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) ) ) ) ) ) ) ) )

A board with a comprehensive audit

committee, routine external audits and
informed, unbiased annual reports are
practising good corporate transparency.
 ASSESSMENT
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 ) ) ) ) ) ) ) ) )
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1. Garage Milk Tea located in Tagatay see

to it that they follow the corporate
governance that they have. Which of the
following is TRUE about corporate
governance.
 I. System by which businesses are directed and controlled
II.Framework of policies and guidelines that inform a
) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
company’s conduct, decision-making and practice.
III.When the company has a good corporate governance, it
can weaken the company’s potential, lead to financial
difficulties and cause long-term damage to a company’s
reputation
A. I only C. I, II and III
B. I and II D. III only
 ) ) ) ) ) ) ) ) ) 2. According to Siquete (2016), there are the core
) ) ) ) ) ) ) ) )
principles of good corporate governance . Classify
which of the following is/are the core principles of
good corporate governance.
I. Fairness II. Transparency
III. Accountability IV. Responsiveness

A. I only C. I, II and III

B. I and II D. IV only
 3. Mr. Martal shows equal treatment to all
) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )

shareholders, including stakeholders,

employees, communities, and public officials.
What core principle of corporate governance
does Mr. Martal apply?
A. Accountability C. Responsibility
B. Fairness D. Transparency
 ) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
4. It is the obligation and responsibility
to give an explanation or reason for the
company’s actions and conduct.

A. Accountability C. Responsibility
B. Fairness D. Transparency
 ) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
5. It is the responsibility for overseeing
the management of the business and
affairs of the company.
A. Accountability C. Responsibility
B. Fairness D. Transparency
 ) ) ) ) ) ) ) ) ) 6. Mr. Diaz practice to have a
) ) ) ) ) ) ) ) )

comprehensive audit committee, routine

external audits and informed, unbiased
annual reports in his company. Identify
which core principle of corporate
governance does Mr. Diaz apply?
A. Accountability C. Responsibility
B. Fairness D. Transparency
 ) ) ) ) ) ) ) ) ) Key to correction:
) ) ) ) ) ) ) ) )
1. A1 B3 C2 D0
2. A1 B2 C3 D0
3. B
4. A
5. C
6. D
 ) ) ) ) ) ) ) ) ) Activity No. 1
) ) ) ) ) ) ) ) )

Read and understand the questions below and briefly

explain your answers
Guide Questions:
1. Why do you think it is important that businesses
have core principles? Explain.
2. What are the objectives behind a company’s core
principles?
 ) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
Activity 2.
1. Do you believe that even if a nation’s economy
shows growth, the majority of its people can still be
poor and miserable? How can this happen? What is the
role of the business enterprise?
2. Are you convinced that the main purpose of business
is to gain profit or to respond to the needs and wants of
the society? Defend your answer on this.
 ) ) ) ) ) ) ) ) )
Activity No. 3
) ) ) ) ) ) ) ) )

Think of one business in Alfonso/Cavite.

Make a poster making about the
corporate social responsibility that they
have.
 ) ) ) ) ) ) ) ) )
Activity No. 4
) ) ) ) ) ) ) ) )

Think of one famous business in

Alfonso/Cavite/Philippines. Make a
report about the corporate social
responsibility that they have. Present
your report in the class.