Skip to main content

Corporate guidance: A look inside


Hello readers, so today I will be writing about corporate governance. According to BPP Learning Media, Corporate governance is a system by which companies are directed and controlled. The directors of a company are responsible for corporate governance, however, not one size fits all. Not all businesses can be managed the same way. Corporate governance is designed to monitor managers, it promotes the right of shareholders, it also states that all shareholders must be treated equally. The role and the responsibilities  of the board of directors is also stipulated by corporate governance. Corporate governance framework must be designed to disclose the financial situation of the company accurately.

It is also meant to strategic guidance while making the brand of directors accountable for their actions. Since all companies cannot be ran the same way because of the difference in legislation framework and culture. The corporate governance has different models, as such it must reflect those qualities I mentioned above. It also encourages the company to have distribution of power and the power must not be in the hands of only one person. Thus, there must be a chairman who chairs the board and there must be a CEO who is the head of executive directors. While the chairman is responsible for the board of directors, the CEO is responsible for the running of the business organisation. However, the board can override the suggestions of the CEO.

It also encourages companies to give remunerations that are attractive so as to attract good directors and it should also be used to motivate executive directors, as part of their remuneration and should be linked to their performance at work. The right of stakeholders must be recognized when developing the corporate governance model. The corporate governance is concerned about the relationship between internal stakeholders (directors, managers, employees) as well as external stakeholders (shareholders, government, customers, regulators).

Corporate governance also makes sure resources are allocated  well between organisations. It aims at ensuring resources are managed well by those charged with control and management. the corporate governance encourages the board to have a good relationship with the shareholders. A good relationship can be maintained with shareholders through annual general meetings. It also helps formulate the objectives of an organisation, as well as the way risks can be managed within the business organisation. It employs corporate governance, however, different models can be developed.

That is all for today, keep checking out my blog regularly. cheers!

Comments

Popular posts from this blog

Work-life balance: all should attain it

Hello readers, today I will be writing about work-life balance. According to businessdictionary.com, work-life balance "is a comfortable state of equilibrium achieved between an employee's primary priorities of their employment position and their private lifestyle." All work and no play makes Jack a dull boy, thus, you should find a balance between work and play. Here are some tips to help you achieve it.
1. Do not check your email (work) after working hours, this will help improve the quality of time you spend with your family and friends. Thus, you should not be distracted by work when spending time with your family and friends. 
2. When you decide to improve the situation of your work life balance, take it one step at a time. For example if you do not get to spend time in the evenings with your family during the week days due to coming back late from work, you should decide to spend one day a week and gradually increase it to two and then three till you get to spend the…

Eid Mubarak

The world of competence

Hello readers, it has been a while. Hope you did not miss me much, the good news is I am back now. Today, I will be writing about competence.
Competence is the ability that enables a company or an individual to deploy its resources effectively. It is neccessary for a company to have a competence target in all its business activities so as to deliver value to its customers. This will help create a competitive advantage for the company.
Competencies must provide value to customers. It must be unique or able to develop greatly or be better than that of competitors. New products and services must be able to be developed as a result of the competence. It must be difficult for other competitors to obtain or imitate.
Continually producing high quality products can make a company become a market leader (which is a core competence) as it provides a company with a competitive advantage. With high quality, higher prices can be demanded by the company from customers and the company will also be able…