Myself

In: Business and Management

Submitted By Kardashy
Words 1251
Pages 6
Kendra Lawrence & Manuell Manzanilla
Business Ethics
February 05th, 2016
Best Practices of Corporate Governance
The system of rules, practices and processes by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community). The corporate governance framework consists of explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards, procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles, and procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances.
The field of corporate governance is at a crossroads. Our knowledge of what we know about the efficacy of corporate governance mechanisms is rivalled by what we do not know.
Good corporate governance helps to prevent corporate scandals, fraud, and potential civil and criminal liability of the organization. It is also good business. A good corporate governance image enhances the reputation of the organization and makes it more attractive to customers, investors, suppliers and in the case of non-profit organization contributors.
The best practices of corporate governance are in the structure of the board of directors, the operation of the board of directors and the other corporate governance practices.
When it comes to the structure of the board of directors, the best practice includes selecting completely independent directors and these directors should preferably constitute a majority of all directors, with the possible exception of privately held companies. This means to select directors who are willing and able to devote the necessary time to their director duties…...

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