Please respond to 2 peers
My Initial post :
Corporate governance is system by which company is required to conduct their business considering procedure of managing company. The board of director of company is responsible to manage corporate governance in a company.
For effective corporate governance board of directors lead to effective corporate governance:
1.Make accountable for business decision taken on behalf of company.
2.Keep transparent all information which is required to available to all stakeholders.
3.Fairly treat to all stakeholders. That means fairly treat to creditor, Stockholder, supplier, govt etc.
4.Equally treat of all employees-All of the employees of company must treat equally.
5.Management of company is not involve in any mismanagement activities.
Reference
Chen, James. “What Corporate Governance Means for the Bottom Line.” Investopedia, Investopedia, 8 Feb. 2022, https://www.investopedia.com/terms/c/corporategovernance.asp.
Peer 1
Corporate Governance is a group of people (Board members) who come together to ensure the sustainability of a company/organization. The group discusses policies and procedures, legal action, hierarchy, internal controls, transparency and accountability.
It is super important to have a wide diverse group of people in a governance group. This will help to ensure many different ideas and thoughts are expressed and that it is not a one sided, but a collaboration. With being a minute taker for multiple boards (over 10) at various different times within this last 10 years, I have found that it is smart to have people with the following backgrounds, financial, legal, religious, managerial to ensure when decisions are being made they are being made for the right reasons and can be justified correctly. I really liked this picture which I am not sure if I can use as a source, (if not, please let me know and I will get another source!) which really helps to describe what a governance group does.
Peer 2
The method through which firms are directed and governed is known as corporate governance. The governance of their companies is the responsibility of their boards of directors. The responsibility of the shareholders in governance is to appoint the directors and auditors, as well as to ensure that a suitable governance framework is in place.
A good board of directors has the ability to manage and influence the organization’s employees in order to achieve the organization’s goals. An organization’s ultimate goal is to enhance shareholder wealth. A good board of directors has the passion and motivation to chart the course for the organization’s success. The board of directors’ characteristics will have an impact on the organization’s performance. They are implementing corporate governance within the company. Governance and structure will be brought to the company through dedication and commitment to the task, as well as the ability to lead and influence others. Employees and other members of the organization will be influenced by the organization’s performance. Dedication and commitment is also an essential quality of a board member. a board member need strong of dedication and commitment to duties that leads attending board meetings regularly. A good board member gives a lot to the organization and maintains interest to the accomplish the goals of the company.
“What Is Corporate Governance?” ICAEW, https://www.icaew.com/technical/corporate-governance/principles/principles-articles/does-corporate-governance-matter.
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