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Five Golden Rules Of Corporate Governance

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Corporate governance is a set of rules that direct and control corporate activities. The main purpose of this structure is to ensure transparency, fairness and answerability between firms and its stakeholders. This helps to reduce possible fraud acts and maintain ethics in the corporate world. The function of corporate governance involves balancing the many interests of the stakeholders of a corporation.
In order to make a business successful, the main components that are required are:
• A clear objective
• A feasible strategy to achieve the objective
• Creating and organizational structure that is suitable for executing the strategy
• Proper guidance and communication system for progressing the work
Looking at the components for successive of a business, it can be said that business ethics is least of a …show more content…
Ethics: it is very important for a business to have ethical grounds. Globalization has increased the importance of business ethics even more now. Lack of ethics will arise to trust issues in the stakeholders of the …show more content…
It can prevent corporate scandals, fraud, it also enhances a company’s public image as a responsible and honest company that has ethical base and worthy of shareholder and debt holder capital, that serves their best interest. It dictates the shared philosophy, practices and culture of an organization and its employees. Corporate governance is the soul of a business that stops a firm form wrong doings. It keeps a firm honest and out of trouble. Dishonest and exploitative dealings can make shareholders escape out of fear and doubt. Therefore the business is most likely to go bankrupt overnight. So it can be concluded by saying that corporate governance is a very important component in corporate world which brings law and order in the

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