Description
Corporate governance deals with the complex set of relationships between the corporation and its stakeholder such as the board of directors, management, shareholders etc. In the recent years, with growth in finance scandals the regulators and legislators have deepened their focus on how businesses are being run. They are trying to create a prototype for new corporate governance and disclosure measures, which would be constructive for both the stakeholders and controllers.
Through this tutorial we are going to learn the key aspects about corporate governance.
The training will include the following;
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Introduction
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Fundamentals of Corporate Governance
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Key Stakeholders
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4 Ps of Corporate Governance
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Principles on Corporate Governance in Banks by BSBS
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The US Corporate Governance System
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The Enron Scandal
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The WorldCom Scandal
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The Influence of SOX on Corporate Governance
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Conclusion
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Self-evaluation
Corporate Governance refers to the way in which companies are governed and to what purpose. It identifies who has power and accountability, and who makes decisions. It is, in essence, a toolkit that enables management and the board to deal more effectively with the challenges of running a company. Corporate governance ensures that businesses have appropriate decision-making processes and controls in place so that the interests of all stakeholders (shareholders, employees, suppliers, customers and the community) are balanced. Good corporate governance can benefit investors and other stakeholders, while bad governance can lead to scandal and ruin. Governance refers to the set of rules, controls, policies, and resolutions put in place to direct corporate behavior. A board of directors is pivotal in governance, while proxy advisors and shareholders are important stakeholders who can affect governance. Communicating a company’s corporate governance is a key component of community and investor relations. For instance, Apple Inc.’s investor relations site profiles its corporate leadership (the executive team and board of directors) and provides information on its committee charters and governance documents, such as bylaws, stock ownership guidelines, and articles of incorporation. Most successful companies strive to have exemplary corporate governance. For many shareholders, it is not enough for a company to be profitable; it also must demonstrate good corporate citizenship through environmental awareness, ethical behavior, and other sound corporate governance practices.
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