Q12. Define corporate governance? State major character of good corporate governance?
Ans. Corporate Governance is simply stated, ‘Governance’ means the process of decision making and the process by which decisions are implemented. The term corporate governance’ is understood and defined in various ways-
Corporate Governance can be defines as the formal system of accountability and control for ethical and socially responsible organizational decisions and use of resources and accountability relates to how well the content of workplace decisions is aligned with the organizations strategic direction. Control involves process of auditing and improving decisions and actions. Good corporate governance has the following major characteristics are:
- Consensus oriented,
- Effective and efficient,
- Equitable and inclusive,
- Follow rule of law.